An Independent Analysis
of Constantine’s Palmer Project of Constantine Metal Resources Ltd,
Palmer Project, Alaska, USA | NI 43-101 Technical Report
Independent Analysis
James R. Kuipers P.E., chief consulting engineer at Kuipers & Associates with over 35 years of experience in the mining industry, conducted the analysis of Constantine’s July 2019 Preliminary Economic Assessment (PEA).
Constantine-Palmer
Constantine-Palmer is a speculative mining project in northern Southeast Alaska that could* produce zinc, copper, lead barite, silver and gold. *none of the projected resources are proven reserves.
The Analysis Concludes:
The PEA is based on unproven mineral resources that are “speculative” and “do not have demonstrated economic viability.”
Constantine’s plan to sell barite, a waste product at similar mines, is “highly speculative.”
Constantine’s cost estimates assume no acid mine drainage that would require treatment, but “there is reason to believe this assumption will not be correct.”
There is “a high likelihood of exceeding the estimated capital and operating costs, potentially by significant amounts (i.e. up to 50%).”
“The Palmer Project, due to its high dependency on zinc prices, might prove to be uneconomic.”
The report identifies numerous site-specific risks, including avalanche, portal construction, AG deposit metallurgy, site surface geotechnical conditions, water management, seismicity, geochemistry, dust management, and post-closure site-specific risks. Each of these risks carries potential associated additional costs.
No ore terminal. “Constantine’s Preliminary Economic Report does not address a plan for transport facilities for any of its concentrates, which is important as the remote town of Haines does not have a deepwater port with facilities to service Palmer.”
