Callinex Acquires the Headway Deposit Adjacent to the Brunswick No 12 Mine
Callinex Acquires the Headway Deposit Adjacent to the
Brunswick No 12 Mine
VANCOUVER
,
Nov. 14, 2018
/CNW/ -
Callinex Mines Inc.
(the "Company" or "Callinex") (TSXV: CNX) (OTCQX: CLLXF) is pleased to
announce that it has acquired the Headway Project (the "Project"), which hosts the high-grade Headway Deposit, located adjacent to the
world-class Brunswick No 12 Mine in the Bathurst Mining District of
New Brunswick
(
See Figures
1,2 and 3). The Project contains a high-
grade zinc-lead-copper-silver deposit located along the prolific 'Brunswick Horizon' where limited historic near-surface drilling delineated
the deposit to a depth of
160m
. The Project shares a property boundary and similar geology with Glencore's Brunswick No 12 mine,
previously the world's largest underground zinc mine, where production totaled 137 million tons grading 8.74% Zn, 3.44% Pb, 0.37% Cu,
and 102 g/t Ag from 1964-2013.
Max Porterfield
, President and CEO stated, "This acquisition, completed at attractive terms as a result of current market conditions, fits
well with our existing project portfolio in the Bathurst Mining District. The high-grade Headway deposit is a compelling exploration
opportunity considering its very limited exploration history, proximity to the world-class Brunswick No 12 Mine and its strategic location
within potential trucking distance to the Nash Creek Project."
The Headway Deposit was outlined by 35 drill holes from 1965-66 and is reported to be
950m
long,
160m
deep and up to
15m
thick. In
assessment report 472314 prepared by Headway Red Lake Gold Ltd. in 1966, a historical "ore reserves" of 263,100 tonnes grading
11.6% Zn Eq. (6.2% Zn, 2.1% Pb, 1.4% Cu and 20.9 g/t Ag) between the A and B zones while the C zone reported 54,000 tonnes
grading 7.0% Zn Eq. (3.9% Zn, 1.3% Pb, 0.8% Cu and 14. g/t Ag). The historical "ore reserves" noted above is mentioned for historical
purposes only and uses categories not consist with the definitions of "resources" and "reserves" as set forth by CIM. The reliability of
this historical estimate is unknown but considered relevant by the Company as it represents a significant target for future exploration
work by the Company. The assumption, parameters and methods used to calculate this historical resource estimate are not known to the
Company. The qualified person has not made any attempt to re-classify the estimates accordingly to current CIM standards of disclosure
or the CIM definitions. The Company is not treating this estimate as current mineral resources or mineral reserves as defined by
CIM. Although the historical resource estimate was also designated as "ore" it cannot be compared to mineral reserves as it is not
supported by at least a current pre-feasibility study. In order for this historical resource estimate to be current, the Company will be
required to carry out shallow drilling on the Headway Deposit.
Mid-tier zinc producer Nexa Resources SA (formerly known as Votorantim Metals Canada Inc.) is the only company within the past 40
years to have completed drilling on the project, consisting of just two drill holes in 2011, as it had been closely held by a single owner.
Callinex plans to digitize historic drilling, complete a surface induced polarization survey and drilling in the future.
Subject to TSX Venture Exchange approval, the Company has issued the vendor 250,000 shares, representing an implied transaction
value of
$25,000
, and a 1.0% NSR royalty, of which half can be re-purchased for
$500,000
. The acquisition of the Headway Project also
includes
$44,800
in work credits, which will allow the claims to remain in good standing until late-2023.
Zinc equivalent grades for the historic resource estimate are based on the following metal prices: zinc
US$1.15
/lb, lead
US$0.90
/lb,
copper
US$2.70
/lb and silver
US$14.50
per oz. Metal recoveries of 100% were applied in the metal equivalent calculations. The zinc
equivalent calculation is as follows: ZnEq = 100 ((
Ag Price
in (g) x
Ag Grade
) + (Pb Price*2204.6 x Pb Grade(%)/100) + (Cu
Price*2204.6 x Cu Grade(%)/100) + (Zn Price*2204.6 x (Zn Grade(%)/100))/Zn Price*2204.6).
J.J. O'Donnell, P.Geo, a qualified person under National Instrument 43-101 and a Consulting Geologist for Callinex, has reviewed and
approved the technical information in this news release.
Figure 1: Map of the Bathurst Mining District of
New Brunswick
Figure 2: Headway Project Location Map
Figure 3: Headway Deposit with Historic Drilling and Geology Map
Table 1: Mineral Resource Estimates for the
Nash Creek
and Superjack Projects
Indicated Mineral Resources
Project
Tonnes
Zn Eq
Zn
Pb
Ag
Cu
Contained Zn Eq
(%)
(%)
(%)
(g/t)
(%)
(M lbs)
Nash Creek
13,592,000
3.21
2.68
0.58
17.8
n/a
963
Total
13,592,000
3.21
2.68
0.58
17.8
n/a
963
Inferred Mineral Resources
Project
Tonnes
Zn Eq
Zn
Pb
Ag
Cu
Contained Zn Eq
(%)
(%)
(%)
(g/t)
(%)
(M lbs)
Superjack
3,211,000
4.63
3.01
0.78
29.5
0.27
328
Nash Creek
5,929,000
3.11
2.68
0.47
13.9
n/a
407
Total
9,140,000
3.64
2.80
0.58
19.4
0.09
735
Notes:
1
.
Mineral Resources are categorized according to CIM Definition Standards; it cannot be assumed that all or any part of Inferred
Mineral Resources will be upgraded to Indicated or Measured as a result of continued exploration.
2
.
The Nash Creek Mineral Resource Estimate includes the Hickey Zone and Hayes Zone.
3
.
The Superjack Mineral Resource Estimates includes the Nepisiguit A (the "A Zone") and Nepisiguit C Zones (the "C Zone").
4
.
Zinc equivalent Mineral Resources for the Nash Creek Project based on trailing 3-year metal prices and metallurgical recovery
assumptions based on limited testwork. Zinc equivalency is calculated as Zn%+ 0.747*Pb% + 0.006*Ag_ppm.
5
.
A cut-off grade of 1.5% Zn Eq. was utilized in the resource estimate.
6
.
Zinc equivalent Mineral Resources for the Superjack Project were calculated using metal prices of
$1.12
/lb for zinc,
$1.06
/lb for
lead,
$2.97
/lb for copper and
$20.38
/oz for silver. Metal recoveries have been assumed to be 100% for zinc, 72% for lead, 86% for
copper and 70% for silver. A cut-off grade of 1.5% Zn Eq. was utilized in the Mineral Resource Estimate
.
7
.
Numbers may not add due to rounding.
About Callinex Mines Inc.
Callinex Mines Inc. (TSXV: CNX) (OTCQX: CLLXF) is advancing its portfolio of zinc rich deposits located in established Canadian
mining jurisdictions. The portfolio is highlighted by its
Nash Creek
and Superjack deposits in the Bathurst Mining District of
New
Brunswick
. A 2018 PEA outlined a mine plan that generates a strong economic return with a pre-tax IRR of a 34.1% (25.2% post-tax)
and NPV8% of
$230 million
(
$128 million
post-tax). The projects have significant exploration upside over a district-scale land package
that encompasses several high-grade mineral occurrences along a 20 km trend.
Click here
to view a video overview of the Nash Creek
Project.
Callinex has a project portfolio that also includes projects within the Flin Flon Mining District of
Manitoba
that are located 25 km to an
operating processing facility that requires additional ore. The Company's projects host Indicated resources of 13.6 Mt averaging 3.2%
Zn Eq. totaling 963 million pounds and Inferred resources of 23.2 Mt averaging 5.2% Zn Eq. totaling 2.7 billion pounds (See News
Release dated
April 16, 2018
).
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements
with respect to future expenditures. These statements address future events and conditions and, as such, involve known and unknown
risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from
any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the
ability to complete the proposed drill program and the timing and amount of expenditures. Except as required under applicable
securities laws, Callinex does not assume the obligation to update any forward-looking statement
.
View original content:
http://www.prnewswire.com/news-releases/callinex-acquires-the-headway-deposit-adjacent-to-the-brunswick-no-12-mine-300749972.html
SOURCE
Callinex Mines Inc.
View original content:
http://www.newswire.ca/en/releases/archive/November2018/14/c3246.html
%SEDAR: 00031889E
For further information:
Callinex Mines Inc., Max Porterfield, President and Chief Executive Officer, Phone: (604) 605-0885, E-mail:
CO: Callinex Mines Inc.
CNW 08:30e 14-NOV-18