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On The Ground At Palmer… The Crew's Perspective

 
   
Mental Health Trust Lease – Best Interest Decision


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Haines Community Page

 

What is the Palmer Project?

The Palmer Project is a promising mid-stage mineral exploration project, operated by Constantine Metal Resources Ltd., which has the potential to become a future high-grade, underground copper-zinc-gold-silver mine.  The Project is located south of the Haines highway, near the historic Porcupine placer gold camp.  Geologically, it consists of 200 million year old volcanogenic massive sulphide (VMS) mineral prospects characterized by high-grade concentrations of zinc, copper, silver and gold mineralization.

Significant exploration work is still needed to determine if the mineral deposit at Palmer will become large enough to warrant mining.  If such a deposit is eventually defined, detailed environmental, geotechnical, and socioeconomic studies as well as extensive community consultation will be undertaken prior to applying for permits to construct and operate a mine. Baseline environmental studies began in the summer in 2008 and will progress and expand in accordance with exploration success.

Palmer Project 2017

Environmental Assessment and BLM Approvals

After a rigorous Environmental Assessment by the Bureau of Land Management and participation by the public and other cooperating agencies, our Plan of Operations (PoO) for expanded exploration work and additional road construction was awarded a FONSI (Finding of No Significant Impacts) and granted approvals on August 18th, 2016. Information on the Environmental Assessment can be found here: NEPA Document number: DOI-BLM-AK-A020-2016-0006-EA. We would like to thank everyone for their participation in this process. We have committed to several environmental protection measures and permit stipulations that will allow us to continue evaluating the property in a safe and efficient manner while also providing significant local economic benefit from employment and business opportunities.

Joint Venture with Dowa

Beginning in 2017, Constantine and Dowa formalized a joint-venture business partnership on the Palmer Project, and you might be wondering what this means…

  • Constantine will remain the day-to-day operator and 51% owner
  • Additional expertise and resources to advance the project
  • Enhanced ability to maintain a high bar of quality and responsibility

Constantine and Dowa share a long term vision to build a modern and sustainable project that may one day support a modern underground mine operation in Haines. Dowa’s commitment to a resource-recycling society and high-bar of corporate social responsibility are reasons we are proud to form this partnership to advance the Palmer Project.

Snow Pack Monitoring Stations – Public Snow Data!

As a part of our ongoing efforts to gain a better understanding of all aspects of the environment at the Palmer Project, our team installed two snow pack monitoring stations during the 2015 field season. The equipment and data service is provided by BeadedStream, an Alaskan entrepreneurial success story. The stations were installed on the South  Wall at an elevation of 875m (2870ft) and 1260m (4134ft) and consist of digital temperature sensors spaced every 20 cm on a steel pole, an acoustic snow depth gauge, and a solar powered data logger with a satellite link that allows real time monitoring of data. Snow depth is determined by the difference between the digital temperature sensors that are buried in the snow, compared to the digital temperature sensors that are exposed to ambient air. The spacing of the digital temperature sensors is used to calculate the thermal gradient within the snowpack. We thought you might enjoy the data as well:


Click to watch set up

Click to access data

Community Commitment

A successful project, healthy ecosystem and vibrant community are all important to Constantine and our employees. Constantine is committed to sharing information and we encourage community participation as the Project continues to advance.

We strive to be accessible and provide open and honest communication of our plans. Equally important to Constantine is hearing from the local community. Understanding local values, ideas and information is critical for planning a successful project.

We Want to Hear From You!

Please contact Darsie Culbeck or Liz Cornejo
for more information:

darsie@constantinemetals.com
liz@constantinemetals.com

Keeping it local

Constantine shops locally and has a policy to give priority to local workers, contractors and service providers.

In 2014, our fifteen local Haines workers earned $406,000, and an additional $165,000 was earned by five other Alaskans. Over $1,062,000 was paid directly to Haines area businesses plus another $1,316,000 to other Alaska businesses.

The 2014 Palmer Project activities provided nearly $3 million dollars of direct economic benefit to the Alaska economy, including $1.47 million to Haines.

In 2013, payroll for our local Haines hire was $199,848 (10 employees; does not include local contractors). An additional $276,110 was paid directly to Haines area suppliers and contractors. Including other regional businesses, the 2013 program resulted in over $1,000,000 of direct benefit to the Alaskan economy.

 

What is being done to understand and safeguard the environment at Palmer?

Not only is protecting the environment, fishery, fauna, and water quality extremely important to Constantine, it is the law.

Constantine understands that subsistence, recreational and commercial fishing are very important to the local community and that clean water and the safeguard of healthy fish populations is essential. Fish and fish habitat studies were initiated in 2013 and will continue to be an important part of future work at Palmer. State regulations are very protective of aquatic ecosystems and there are many examples of important watersheds with past or present mining co-existing with thriving salmon stocks (click here for ADF&G annual biomonitoring reports on productive salmon spawning creeks that traverse the Greens Creek Mine complex). In fact, there are several mines in Alaska that have enhanced fisheries through habitat enhancement resulting in healthier fish populations than before mining commenced.

Constantine, using a qualified third party, began collecting water quality data in 2008 in order to help establish baseline environmental conditions.  This program continues with each active field season and will help, in part, to characterize the natural environment at the Palmer Property.  Constantine has also initiated rock characterization studies to focus on the potential environmental effects of rock geochemistry on water quality.

The environmental program at Palmer will progress and expand in accordance with successful exploration drilling results.  If and when a deposit with sufficient size, grade and quality has been defined at Palmer, the modern mine permitting process in Alaska ensures that all projects are developed and mined in a responsible manner.  Before permits for a fully operational mine can be granted, lengthy and detailed studies on everything from hydrology, air and water quality, and wetlands, to fish and aquatic habitats, and wildlife are required.  In addition to environmental studies, community consultation and socioeconomic studies will also be conducted prior to mine permitting and construction.  Permitting of mines in Alaska is coordinated by the Department of Natural Resources, Division of Mining, Land & Water.  To learn more about the permitting process please click here to view a detailed slide show prepared by the Alaska Large Mine Permitting Team.

Other Information and Frequently Asked Questions

Background on Constantine

Constantine Metal Resources Ltd. is a Vancouver, BC based mineral exploration company that was formed in 2006 to explore the Palmer project. Constantine’s core management team have been involved with the project and worked in the area since 1997. Management has a track record of doing things right, with a member of the team receiving the Commissioner’s award for Project Excellence from the State of Alaska for his stewardship of an advanced underground exploration program located on Prince of Wales Island.  Constantine’s expertise is in applying our geological know-how to the discovery and advancement of new mineral deposits.

About Dowa, our partner

In 2013 Constantine signed an agreement with Dowa Metals & Mining Co., Ltd. of Japan allowing Dowa to earn a minority 49% interest in the project by funding $22 million in exploration over four years.  The vast majority of this money will go directly into the ground in an effort to define a mineral resource that merits mining.  Constantine is the operator of the project and will continue managing all activities including communicating our plans and activities with the community.

The origin of the Dowa Group of companies dates back to the late eighteen hundreds mining copper and zinc Kuroko (VMS) deposits in northern Japan. Dowa developed their smelting and refining expertise over the years dealing with these relatively complex, polymetallic ores.  Now Dowa purchases mineral concentrate throughout the world from mines owned by others (including currently operating mines in Alaska). The refined metals produced at Dowa’s facilities in Japan are sold domestically and internationally and go into many of the items we use in our daily lives.

Dowa has a reputation for operating some of the most technologically advanced and environmentally sound smelting and refining complexes in the world. Dowa has utilized their expertise in efficiently recovering many of the trace and rare elements contained in complex ores and have applied this to recycling.  They are now a world leader in metal recycling and waste treatment, and employ a unique business model that is integrated with environmental business activities. To view Dowa’s corporate social responsibility reports please visit  http://dowa-csr.jp/en/report/index.html

History of the Palmer Project

Merril Palmer
Merrill Palmer

It all started with Merrill Palmer, a Haines local who prospected and began staking claims back in 1969. Merrill has played an active role in the project, which now bears his name, maintaining faith in its potential and seeing a number of companies explore the Property with encouraging but limited success. These include Anaconda Copper (1979-80), Southeastern Minerals (1980-83), Bear Creek Mining (1983-85), Newmont Exploration (1987-89), Granges Exploration (1989), Cominco (1990-93), Kennecott (1993-97), Rubicon Minerals (1998-2000), and Toquima Minerals (2004).  A major breakthrough occurred in 2007 when Constantine drilled high-grade copper and zinc mineralization in areas now known as the RW and South Wall zones. Since that time Constantine has drilled 52 holes (to the end of 2013) and defined a mineral resource. To date, there has been over $15 million and tens of thousands of person hours invested in exploration work on the property.  

Techniques used in mineral exploration 

Constantine employs a variety of exploration tools to aid in the exploration and discovery of additional mineralization at the Palmer property. Traditional methods such as prospecting and mapping are still very important, but we now use diamond drilling, geophysical surveys, and detailed geochemical analyses. Together, these techniques help us understand the three-dimensional surface and subsurface geology. Current work is focused on additional diamond drilling to expand known zones of mineralization and to discover new zones. Constantine also sponsored a Master's thesis that helped us better understand the deposit.

Drilling is performed by helicopter portable drill rigs that are set on temporary wooden platforms. Drill bits embedded with diamonds cut and extract tubes of rock referred to as drill core.  While actively drilling, water is continuously pumped down the hole to keep drill bits from overheating and to wash away cuttings. Drill water additives are often used to assist in hole stabilization and cutting removal.

All activity has been supported by helicopter including the movement of drills and personnel. In 2014 Constantine plans to rehabilitate a portion of an existing mineral access road (originally built in the late 1970s) that will provide better access to our work sites, reduce helicopter flight time, and increase crew safety.


Geologist Examining Drill Core
          Diamond Drilling
Diamond Drilling

Diamond Drilling
          Downhole Geophysical Survey
Downhole Geophysical Surveys


Who works in mineral exploration?

Mineral exploration is a broad field that typically employs a diverse mix of employees including geologists, geotechnicians, diamond drillers, geophysicists, pad builders and carpenters, surveyors, helicopter pilots and mechanics, cooks, housekeepers, maintenance workers and general laborers, mountaineers, medics and first aid attendants, expediters, and others.  The Constantine team consists of many of these positions, many of whom are Haines Borough residents. Services and supplies that support our exploration work include items such as locally sourced lumber, locally built drill core boxes and drill core racks, meals and accommodation, fuel, hardware, and office supplies.

The Constantine team at work (click images to enlarge)


What metals are found in the Palmer deposit?

Mainly copper and zinc, but also significant amounts of gold and silver.  Information gathered mainly from the 2006-2009 drilling programs and some information from previous programs were used to calculate the initial resource estimate for the Palmer Property, which was released in January 2010.  This study defined an inferred resource containing 4.12 million tonnes of rock with metal grades of 2.01% copper, 4.79% zinc, 0.30 grams/tonne gold, and 30.5 grams/tonne silver in the RW and South Wall Zones of the Property.  Copper is vital to our modern society and is used extensively in energy generation and distribution, building products and electronic equipment. It is also a core constituent of many ‘green’ technologies, such as solar cells, wind turbines and electric vehicles. Zinc is primarily used in the construction and automobile industries for corrosion protection, but is also an essential micronutrient for human health.

The Mineral Information Institute has assembled a great website with information on mineral properties and their various uses: www.mii.org/commonminerals.html

Students and teachers might be interested in downloading this 40-page PDF book published by the United States Geological Survey (USGS) entitled The Life Cycle of a Mineral Deposit - A Teacher's Guide for Hands-On Mineral Educational Activities

What type of deposit is Palmer?

The Palmer Property is host to VMS-style base (copper, zinc) and precious (gold, silver) metal mineralization.  VMS, short for volcanogenic massive sulphide, refers to a type of deposit that is generated by volcanic activity and is composed of sulphide minerals.  Deposits are formed by hydrothermal venting of metal rich fluids on the seafloor, a process that is still found in modern oceans and can be seen in scientific videos of deep-sea "black smokers". In the case of the Palmer VMS deposit, this process occurred over 200 million years ago on an ancient seafloor which has since been folded and uplifted to its present position in the mountain.

Sulphides are minerals whose chemical composition includes sulphur in the compound.  Sulphides are common in most rocks; however in mineral deposits they occur in sufficiently high concentrations so as to be economic to mine. In the Palmer deposit, these minerals are mainly chalcopyrite (copper), pyrite (iron), and sphalerite (zinc).  The deposit also includes a significant amount of barite, a barium sulphate.  Sulphide minerals form the ore in most types of mineral deposits, and are the primary source of copper, zinc and lead used in the world today. Please explore the Palmer Project section of the website for more geological and technical details.

 

Will the Palmer Project become a mine?

We don’t yet know the answer to this question. Constantine has been able to define a considerable new mineral resource, but it is still far too early to predict if or when there could be an operating mine at the Palmer Property.  There are four main stages of mineral exploration & development, starting with an early "grass-roots" exploration stage (Stage 1) where a property may have one or more mineral occurrences or showings, but no established mineral deposits.  The Palmer Property was considered an early-stage project from 1969 until 2007 when drilling encountered thick intervals of significant mineralization.  It would now be considered a mid-stage project (Stage 2) where we are required to do further exploration in order to enlarge and better define the existing inferred resource.  Most of the work at this stage involves drilling in an attempt to expand the size of the deposit and to determine the grade and quality of mineralization. It takes considerably more work and time after that to complete the engineering evaluations, economic assessments, and environmental studies that are necessary to determine the feasibility of mine development (Stage 3). If a project is determined to be both economically and environmentally feasible to develop, it then takes more time still to permit, finance and ultimately construct (Stage 4).

If the Palmer Project becomes a mine would it be an underground or open pit mine?

The high-grade nature of this kind of deposit allows for underground mining.  The advantage of a high-grade underground mine is the rate of mining is much lower than that of an open pit mine and much less material is actually mined. It also allows miners to be much more selective in what is removed, thereby producing far less waste rock than other types of mines. The result is a mining operation with a much smaller surface disturbance and lower total footprint. 

How is ore, like that found at Palmer, typically processed?

Ore is crushed and ground (milled) to the size of the individual mineral grains. The minerals containing the metals of value are then separated from those that are waste, resulting in what's called a mineral concentrate.  The concentrate is then transported to a smelting facility where the metal is extracted from the ore minerals and further refined.  Smelters all over the world process concentrates from North American mines and, accordingly, it is beneficial to be near a deep-sea port, like Haines, that allows concentrate to be shipped efficiently.

Would a mine at Palmer produce tailings?

Yes. Almost all metal mines produce tailings.  Tailings are the finely ground sand size particles of rock that are left behind after milling the ore and extracting the minerals of value. It is far too early to say what the best option for tailings storage would be, but some common options include (a) dry stack storage in which a dense and stable material is ultimately covered and reclaimed with vegetation (b) placement back underground as paste-fill, and (c) impoundment or ponds in which the tailings are kept under water to avoid oxidation. Rock characterization and metallurgical studies will guide a plan to ultimately design an environmentally responsible tailings and rock dump facility that is protective of the surrounding ecosystem.

What is Acid Rock Drainage and would a mine at Palmer generate it?

Sulphide minerals when left exposed to oxygen will breakdown to their constituent elements and have the potential to generate acid and liberate metals (acid rock drainage or ARD). This process, which requires both oxygen and water similar to the way rust forms on a car, is naturally occurring and is enhanced by increasing the mineral surface area that is exposed to air when breaking and milling rock.  Historically acid rock drainage has resulted in negative environmental impacts at some mines; fortunately we now benefit from decades of research and science into ARD and modern mines are designed and strictly regulated to ensure ARD and the negative impacts associated with it do not occur. The design starts with characterizing your rock types prior to mine design to minimize the amount of development rock that requires special handling. At the Palmer project, while there are sulphide minerals present, there is also a significant volume of acid neutralizing carbonate rich rocks within and surrounding the deposit, which provide flexibility and extra protection in the environmental design of a mining operation. 

What scale of operation could Palmer become?

It is too early to know if there will become a mine and accurately predict mine production rates. But based on what we know so far, and on comparison with other similar deposits such as the Greens Creek mine on Admiralty Island and Myra Falls mine on Vancouver Island, BC it is not unreasonable to envisage a 1500 to 3500 ton per day underground mine with the potential to operate sustainably for many decades. The envisioned underground mining rate is significantly less than that at many open pit mines operating in North America that process 25,000 to >100,000 tons of ore per day and in addition also move significantly more waste rock. 

Who could work at a future mine?

Mining is similar yet very different from mineral exploration and this is reflected in the different mix of employees.  Mining is a highly technical operation focused on extracting the ore in the most efficient, safe, and environmentally conscious manner.  Active mining operations employ miners, heavy and light duty equipment operators and mechanics, engineers, geologists, metallurgists, lab technicians, environmental scientists, and drillers, together with a large support team of electricians, carpenters, office managers, accountants, health and safety specialists, medics, warehouse staff,  janitors, truck drivers, and cooks…to name a few. One would expect significant participation from Haines Borough residents in any mining operations, both directly and indirectly. Should Palmer eventually advance to a mine, potential operations would likely include between 150 to 300 direct long term jobs. Goods, services, and taxes are a significant part of the operation’s revenue that is distributed to the State and the community.

The Alaska Miners Association also publishes annual reports summarizing the economic benefits of Alaska's mining industry.

Palmer VMS Project Croesus Gold Project Yukon Gold Project Golden Mile Project

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