Callinex Announces Results from the 2018 Drilling Campaign VANCOUVER
Callinex Announces Results from the 2018
Drilling Campaign
VANCOUVER
, Dec. 13, 2018 /CNW/ -
Callinex Mines Inc.
(the "Company" or "Callinex") (TSX-V:
CNX; OTCQX: CLLXF) is pleased to announce results from the 2018 drilling campaign (the
"Campaign") at the Company's 100% owned Nash Creek Project (the "Project") located within the
Bathurst Mining District of
New Brunswick
(
See Figures
1 and 2). The majority of drill holes were
completed to test sparsely drilled areas periphery to the Nash Creek Deposit and two holes were
drilled to test a preliminary induced polarization ("IP") target (the "Central Zone target") to the east
(See Table 1 and News Release dated
July 11, 2018
). Most of the holes drilled to the north targeted
an untested portion of a 3 km long soil anomaly and did not encounter significant mineralization. The
two widely-spaced holes drilled into the Central Zone target intersected mineralization ranging up to
semi-massive sulphides with zinc and lead values (See Table 1).
Two widely-spaced drill holes, NC18-301 and NC18-302, tested part of the Central Zone target that
was identified late in the 2018 field season. Results from these two drill holes has revealed
lithologies, alteration, and mineralization which replicates an environment similar to the Hickey Zone,
located 1.2 km to the west. This Central Zone target was identified within a small area that was
covered as part of a much larger 175 line km IP survey that was previously announced (See News
Release dated
October 1, 2018
). The district-scale IP survey is still ongoing and anticipated to be
completed in the first quarter of 2019.
A 2019 drilling campaign is anticipated to follow-up on targets generated from the IP survey including
additional drilling on the Central Zone target that spans
1900m
x
400m
and is located 1 km east of
the Nash Creek Deposit. Nearly all volcanogenic massive sulphide deposits occur in clusters and the
Nash Creek
deposit is the only deposit along this 20 km trend. To date, very limited exploration has
been completed within the
Nash Creek
land package that encompasses several high-grade mineral
occurrences and has potential to host other deposits.
These results have confirmed that IP is the most effective method to directly target near-surface
mineralization at the Project. The ability of the IP survey to accurately vector towards increased
sulphide mineralization, which generally correlates with higher grade mineralization at the Nash
Creek Deposit, is very encouraging to apply on the 150 km
2
district-scale land package.
Additionally, the drilling campaign identified mineralization west and east of the Hickey Zone with drill
holes NC18-281 intersecting
3.0m
of 10.9% Zn, 1.2% Pb and 23.3 g/t Ag along with NC18-293
intersecting
9.0m
of 2.3% Zn, 0.4% Pb and 5.9 g/t Ag (See Table 1 and Figure 2). Mineralization
was also encountered to the northwest of the Hayes Zone. These results confirm the potential to
expand the deposit further with step-out drilling in the future.
Drill hole NC17-289 completed
475m
to the north of the Hickey Zone intersected
8.0m
of 1.8% Zn,
0.3% Pb, and 3.4 g/t Ag. The depth of mineralization intersected indicates that the stratigraphy
plunges to the north and any future exploration in this area would be focused on targeting
mineralization that could be amenable to underground mining. Drilling completed along a 3 km long
soil anomaly to the northwest did not encounter significant mineralization, unlike it had previously
along the southern 2 km where it was coincident with an IP response.
The Company's overall exploration activities since mid-2017 have yielded positive results that
contributed to an increase in Indicated zinc equivalent pounds by 74%, to 963 million pounds, and
Inferred zinc equivalent pounds have increased by 385%, to 407 million pounds since the Project
was acquired in 2016 (See Table 2 and News Release dated
April 16, 2018
).
The maiden 2018 PEA outlined a high-margin, open-pit mine plan that generates a pre-tax internal
rate of return of 34.1% and Net Present Value at an 8% discount rate of
$230 million
based on a
zinc price of US
$1.25
(See News Release dated
May 14, 2018
). The life of mine all-in sustaining
costs ("AISC") were estimated at approximately US
$0.28
per pound of zinc produced, net of by-
product credits (See News Release dated
May 14, 2018
).
Cautionary Note on PEA.
The PEA is preliminary in nature and it includes Inferred Mineral
Resources that are considered too speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty
that the PEA will be realized.
J.J. O'Donnell, P.Geo, a qualified person under National Instrument 43-101 and a Consultant for
Callinex, has reviewed and approved the technical information in this news release.
2018 Annual General Meeting
Callinex recently held its Annual General Meeting on
December 11, 2018
. The Company is pleased
to report that over 29 million shares were voted and that all resolutions put forward by the Board of
Directors were overwhelmingly approved with each item receiving approximately 99% of support.
These resolutions included setting the number of directors at five and approved the appointment of
Max Porterfield
,
Mike Muzylowski
,
Nico Civelli
,
Michael Louie
and
Keith Minty
to the Board of
Directors. Shareholders appointed PricewaterhouseCoopers LLP as auditors of the Company until
the next annual general meeting and to authorize the directors of the Company to fix the
remuneration to be paid to the auditors.
Acquisition of Headway Property
Callinex is also pleased to announce that it has acquired a 100% interest in the Headway Property,
located in the Bathurst Mining District,
New Brunswick
. In consideration of the Headway Property,
Callinex issued a total of 250,000 common shares to the vendor. The details of the transaction are
set forth in the news release dated
November 14, 2018
.
Figure 1: Map of the Bathurst Mining District of
New Brunswick
Figure 2: Plan Map of the Nash Creek Deposit
Table 1: Nash Creek Drill Results
Nash Creek Drill Results
(1)(2)(3)
Drill Hole
From
(m)
To
(m)
Interval
(m)
Zn
(%)
Pb
(%)
Ag
(g/t)
NC18-281
99.0
102.0
3.0
10.91
1.19
23.33
including
101.0
102.0
1.0
20.70
1.20
1.00
NC18-283
42.0
47.0
5.0
2.53
0.40
2.20
including
42.0
44.0
2.0
4.08
0.60
1.00
NC18-285
20.0
26.0
6.0
1.37
0.05
1.00
NC18-289
306.0
314.0
8.0
1.84
0.28
3.38
including
306.0
310.0
4.0
2.78
0.45
4.25
NC18-293
68.0
77.0
9.0
2.25
0.40
5.89
including
68.0
72.0
4.0
3.24
0.42
8.75
NC18-301
82.0
88.0
6.0
1.18
0.25
7.00
NC18-302
36.0
40.0
4.0
0.13
1.92
5.75
Notes
(1)(2)(3)
:
1.
The numbers may not add due to rounding.
2.
All intervals are reported as core width drilled thicknesses; true thicknesses are estimated to be 80-100% of drilled thicknesses.
3.
Drill holes NC18-282, NC18-284, NC18-286, NC18-287, NC18-288, NC18-290, NC18-291, NC18-292, NC18-294 and NC18-295 did not intersect any significant mineralization
while assays for drill holes NC18-296, NC18-297, NC18-298, NC18-299, NC18-300 and NC18-303 are still pending but the Company does not anticipate any material results.
Table 1: Mineral Resource Estimates for the
Nash Creek
and Superjack Projects
Indicated Mineral Resources
Project
Tonnes
Zn Eq.
(%)
Zn
(%)
Pb
(%)
Ag
(g/t)
Cu
(%)
Contained Zn Eq.
(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
(g/t)
Cu
(%)
Contained Zn Eq.
(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.
Table 2: Comparison of Mineral Resources Since Acquisition in 2016
Timeframe
1
Classification
2
Cut-
off,
ZnEq
3,
4
(%)
Tonnes
Zn
(%)
Pb
(%)
Ag
(gpt)
ZnEq
3,
4
(%)
ZnEq
3,4
Contained
(lbs)
Pre-Acquisition
Indicated
2.0
7,807,900
2.72
0.55
18.3
3.22
554,268,000
Post-Acquisition
Indicated
1.5
13,592,000
2.68
0.58
17.8
3.21
963,392,000
Percent Change
N/A
N/A
+ 74%
- 1%
+ 5%
- 2%
0%
+ 74%
Pre-Acquisition
Inferred
2.0
1,211,700
2.66
0.52
18.0
3.14
71,057,000
Post-Acquisition
Inferred
1.5
5,929,000
2.68
0.47
13.9
3.11
407,130,000
Percent Change
N/A
N/A
+ 389%
+ 1%
- 10%
- 23%
- 1%
+ 385%
(1)
Callinex reported closing the acquisition of the Nash Creek Property on August 15, 2016. The effective date of the "Pre-Acquisition" mineral resource estimate is March 27,
2009, the effective date of the "Post-Acquisition" mineral resource estimate is March 21, 2018. The 2009 mineral resource is considered to be historical and has been
superseded by the mineral resource estimate with effective date March 21, 2018.
(2)
Classification conforms to NI 43-101, Companion Policy 43-101CP, and the Canadian Institution of Mining, Metallurgy and Petroleum ("CIM") Definition Standards on Mineral
Resources and Mineral Reserves adopted by CIM council, as amended. Inferred Resources have been estimated from geological evidence and limited sampling and must be
treated with a lower level of confidence than Measured and Indicated Resources.
(3)
Pre-acquisition zinc equivalency (ZnEq) was calculated as Zn% + 0.633*Pb% + 0.008*Ag_ppm, the Post-Acquisition zinc equivalency is calculated as Zn%+ 0.747*Pb% +
0.006*Ag_ppm.
(4)
The Post-Acquisition estimate is reported using a 1.5% ZnEq cut-off value, which is reduced from a 2% ZnEq cut-off that was used to report the Pre-Acquisition estimate.
(5)
A bulk density value of 2.76 was used in the Pre-Acquisition estimate, and bulk density was calculated based on relationship to grade for the Post-Acquisition estimate
using the formula 2.74+0.028*(Zn%+Pb%).
(6)
Tonnes and ZnEq contained pounds are rounded.
QA/QC
Individual samples were labeled, placed in plastic sample bags, and sealed. Groups of samples
were then placed in security sealed bags and shipped directly to SGS Canada Inc. in
Garson,
Ontario
for preparation and then onto
Burnaby, BC
for analysis. Samples were crushed to 75%
passing 2mm and pulverized to 85% passing 75 microns in order to produce a 250g split. All copper,
zinc and silver assays were determined by Aqua Regia (2 and 4 acid) digestion with a ICP-AES
finish, with overlimits (>100 ppm Ag, >10,000 ppm Zn, and >10,000 ppm Cu) Aqua Regia digestion
with ICP-AES "ore-grade" finish QA/QC included the insertion and continual monitoring of numerous
standards and blanks into the sample stream at a frequency of 1 per 10 samples, and the collection
of duplicate samples at random intervals within each batch at a frequency of 1 per 10 samples.
SGS Canada Inc. carried out some or all of the following methods to obtain the assay results for
Callinex: G_LOG02 Pre-preparation processing,G_PRP89 Weigh, Dry, to 3kg, Crush 75% -2mm,
Split to 250g, Pulverize to 85% -75µm, GE-ICP14B two acid digest for non-organic, or low
sulphides, GE-ICP40B four acid digest AES 33 element package, GO-ICP13B, ore grade Aqua
Regia Digest with ICP/AES finish, GO-ICP41Q ore grade Aqua Regia Digest ICP/AES finish.
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
.
SOURCE
Callinex Mines Inc.
View original content:
http://www.newswire.ca/en/releases/archive/December2018/13/c7529.html
%SEDAR: 00031889E
For further information:
Callinex Mines Inc., Max Porterfield, President and Chief Executive
Officer, Phone: (604) 605-0885, E-mail: [email protected]
CO: Callinex Mines Inc.
CNW 08:30e 13-DEC-18