Vancouver, British Columbia--(Newsfile Corp. - June 28, 2019) - Constantine Metal Resources Ltd. (TSXV: CEM) (OTCQX: CNSNF) ("Constantine" or the "Company") is pleased to announce the filing of materials on SEDAR at www.sedar.com for the annual general and special meeting of shareholders to be held at 10:00 a.m. on July 25, 2019 at Suite 2800, Park Place, 666 Burrard Street, Vancouver, B.C. (the "Meeting"). At the Meeting, Constantine shareholders of record as of June 18, 2019 will be asked, among other things, to consider and approve the proposed spin-out of Constantine's gold assets into its wholly owned subsidiary, HighGold Mining Inc. ("HighGold").

As described in the Company's news release dated May 21, 2019, the spin-out will be conducted by way of a plan of arrangement (the "Arrangement") under the British Columbia Business Corporations Act. Pursuant to the Arrangement, Constantine shareholders will be entitled to receive one HighGold Share for every three Constantine Shares held, distributed on a pro rata basis. Upon completion of the Arrangement the total number of outstanding HighGold shares is anticipated to be 15,118,084.

The following assets of Constantine will be spun-out to HighGold pursuant to the Arrangement:

  • the newly-leased Johnson Tract Au-Ag-Zn-Cu-Pb Project in Alaska;

  • the Munro-Croesus Project, the Golden Mile Project and the Golden Perimeter Project, in the Timmins Gold Camp, Ontario;

  • a Yukon joint venture project; and

  • certain royalty rights in Ontario.

Constantine's flagship Palmer Zn-Cu-Ag-Au Project in Southeast Alaska will be retained by the Company.

"Both the results of the re-sampling program at the Johnson Tract Project and positive headway made in the process of spinning out all of Constantine's gold assets into HighGold represent advances in the growth and evolution of Constantine that has been a significant part of the ongoing strategic planning for the Company," commented President & CEO, Garfield MacVeigh. "Constantine will continue to create shareholder value by advancing the Palmer Project and will allow shareholders to realize the value locked in the gold assets through their spinout into a separate entity. It is a very exciting time for our board, management and staff to see their efforts, both corporately and technically, create and augment this value."

The Arrangement will be subject to ‎TSX Venture Exchange ("Exchange"), regulatory and court approval, the approval of the Company's ‎shareholders, as well as ‎management's and the board's continued discretion. Following completion of the Arrangement, the Company also intends to apply to list HighGold's common shares on the Exchange. The listing of HighGold's common shares on the Exchange will be subject to Exchange approval and HighGold fulfilling all of the requirements of the Exchange.

For further information concerning the Arrangement, readers are encouraged to review the notice of meeting and management information circular describing the terms of the Arrangement, all of which are available on the Company's profile on SEDAR (www.sedar.com).

The Board of Directors of Constantine has unanimously approved the Arrangement and recommends that shareholders vote in favour of the Arrangement.

Johnson Tract Technical Report

Coincident with the Arrangement filings, the Company has filed a technical report titled "NI 43-101 Technical Report for the Johnson Tract Project" dated June 27, 2019 by Brodie Sutherland, P.Geo, who is an independent "qualified person" under National Instrument 43-101 - Standards of Disclosure for Mineral Projects. The report was prepared for Constantine's wholly owned subsidiary, HighGold. The Property is located near tidewater, 125 miles (200 kilometers) ‎southwest of Anchorage, Alaska and includes the very high-grade Johnson Tract Au-Ag-Zn-Cu-‎Pb deposit along with excellent exploration potential indicated by several other prospects over a ‎‎12 km strike length.‎ The Project has been inactive since the mid-1990s.

The report presents new assay results from a drill core re-sampling program completed in late 2018. The objective of the program was to confirm the location and grades of historic mineralization documented in drilling completed between 1982 and 1993. A total of 426 samples were taken across nine (9) drill holes and submitted to ALS Chemex laboratories in Vancouver, BC. Samples were of quarter-cut drill core taken from previously sampled intervals archived on site in secure storage. Table 1 is a comparison between historic data and a sub-section of the 2018 resampled drill holes reported in the NI43-101 Johnson Tract Technical Report referenced above. The data show a strong correlation between the historic and 2018 duplicates, for all the precious and base metals of interest.

Table 1. Comparison of some 2018 resampled core drill intervals to historic results

Drill Hole Sample  From To Width* Au Zn Cu Pb Ag
   Origin (meters) (meters) (meters) g/t % % % g/t
JM-82-003 Historic 196 219 23 1.63 15.33 0.94 2.46 12.12
JM-82-003 Re-sample 196 219 23 1.17 16.66 1.04 2.54 11.00
JM-82-003 Historic 223 246 23 2.21 6.43 0.16 0.10 2.38
JM-82-003 Re-sample 223 246 23 2.42 7.05 0.18 0.13 2.77
JM-88-034 Historic 246.7 318.1 71.4 20.94 5.21 1.23 1.51 9.81
JM-88-034 Re-sample 246.7 318.1 71.4 20.70 4.85 0.88 1.28 8.16
JM-93-064 Historic 263.7 297.5 33.8 9.00 3.48 1.26 1.08 7.76
JM-93-064 Re-sample 263.7 297.5 33.8 6.94 3.71 1.39 0.85 7.83

 

*All intervals shown as apparent width, true width 60% to 90% of drilled widths

The technical report concludes that the potential for discovery of additional mineralization at the Johnson Tract Project is considered very good. The most immediate opportunity is the Northeast Offset Target, interpreted as the fault displaced extension of the deposit. Limited historic drilling at this target has documented alteration and mineralization that shares the same characteristics of the main Johnson Tract deposit. Additional exploration drilling is clearly warranted.

Multi-deposit, district-scale potential is supported by the presence of other mineral prospects, most notably the Difficult Creek prospect where similar tenor mineralization to the Johnson Tract deposit is documented. A total of 1,344 meters of drilling were completed at Difficult Creek by a former operator in 1983, outlining a large alteration system and up to 36.6 meters of 3.57 g/t gold, 1.8% zinc, 0.2% copper, 0.4% lead and 15.5 g/t silver in drill hole DC83-002. Additional drilling is recommended. Other prospects such as Easy Creek, Kona and South Valley show promising surface results and require further field work to establish drill targets.