Callinex Announces Significant Expansion to the Nash Creek Zinc Deposit and Plans to Complete PEA in Q1 2018
Callinex Announces Significant Expansion to the Nash Creek Zinc Deposit and Plans to Complete PEA in Q1 2018
Highlights
Ten drill holes confirm the expansion of the Nash Creek Deposit 500m to the north, an increased strike length of approximately 35%;
Additional drilling planned in 2017 to further expand the Nash Creek Deposit and deliver an updated resource estimate in Q4; and
Plans to complete a PEA in Q1 that is envisioned to include open pit mining at the
Nash Creek
and Superjack Projects with a standalone
processing facility.
VANCOUVER
,
Sept. 5, 2017
/CNW/ -
Callinex Mines Inc.
(the "Company" or "Callinex") (TSX-V: CNX; OTCQX: CLLXF) is pleased to announce results from 14
drill holes, including ten that confirm the extension of the Nash Creek Deposit (the "Deposit") approximately 500m to the north at the Company's 100% owned
Nash Creek Project located within the Bathurst Mining District of
New Brunswick
(
See Figures
1 and 2). Results announced to date from Callinex's initial drilling
campaign has successfully increased the strike length of the Deposit by approximately 35% as indicated by a total of 13 drill holes that all intersected significant
mineralization (See Table 1 and Figures 3). The Deposit is open for expansion laterally to the north of drill hole NC-241 that intersected 10.6m grading 4.3% zinc
equivalent ("Zn Eq.") (See Table 1 and Figure 3).
The southern 1.5km of the 2km long Nash Creek Deposit contains an indicated resource totaling 712 million pounds of Zn Eq. mineralization and an inferred
resource totaling 88 million pounds of Zn Eq. mineralization (See Table 2). The Superjack Project located 100 km by highway to the southwest hosts an additional
near-surface inferred resource totaling 328 million pounds of Zn Eq. mineralization in the Bathurst Mining Camp (See Table 2 and Figure 1).
Highlights from the northern extension of the Nash Creek Deposit include:
Hole 229 intersected
11.7m of 4.0% Zn Eq. within a larger intersection over 18.1m grading 3.0% Zn Eq. at a starting depth of 18.0m;
Hole 233 intersected
9.5m of 6.5% Zn Eq. within a larger intersection over 43.9m grading 3.1% Zn Eq. at a starting depth of 30.1m
; and
Hole 241 intersected
10.6m of 4.3% Zn Eq. with a larger intersection over 20.0m of 3.0% Zn Eq. at a starting depth of 64.5m
.
Max Porterfield
, President and CEO, stated "We are looking forward to aggressively delineating additional zinc-rich mineralization in the Bathurst Mining District,
particularly in advance of an upcoming PEA that will evaluate the economic potential of these deposits. The
Nash Creek
and Superjack zinc projects, which are
directly connected by highway with access to power, represent a unique opportunity to build shareholder value considering their size, location and exploration
potential."
Callinex plans to extend its ongoing drilling campaign in the Bathurst Mining District throughout 2017 to further expand the Nash Creek Deposit and conduct
additional infill drilling as required to complete an updated resource estimate on the Project. A subsequent announcement will be made regarding the specifics of
this program along with exploration plans for the nearby Superjack Project, where initial assays are expected this month.
The Company has also been evaluating proposals with engineering firms to complete a Preliminary Economic Assessment ("PEA") that is envisioned to include
open pit mining and a standalone processing facility at the
Nash Creek
project with the nearby Superjack Project serving as a source of open-pit mineralization.
The PEA will be scheduled for completion in Q1, 2018 and additional metallurgical testing at the Superjack Project is already underway. Additional updates will be
provided once an engineering firm has been awarded the contract.
The Nash Creek Project is ideally situated approximately 1 km south of Provincial Highway 11 and has access to power supplied by a nearby 450 MW power
station (See Figure 1 and 2). Additionally, the Project is located 100 km by road to Trevali's Caribou Mine and 25 km by road to Glencore's
Belledune
lead/silver
smelter, which has direct railway access to Glencore's Canadian zinc smelting and refining operations.
The Nash Creek Project was recently expanded to include several high-grade mineral occurrences up to 19% Zn+Pb to the south of the Nash Creek Deposit and
within a similar geological setting. The project area now covers over 40 sq. km within an underexplored volcanogenic massive sulphide belt.
Additionally, the Company has granted options to purchase 1,300,000 common shares to a consulting geologist and key member of the Company's technical
team. The options are exercisable at a price of
$0.33
per share for a period of five years from the grant date and are subject to certain vesting provisions.
Jason Levers
, P.Geo, a qualified person under National Instrument 43-101 and a Staff Geologist for Callinex, has reviewed and approved the technical information
in this news release.
Table 1: Nash Creek Drill Results
(1)(2)(3)
Nash Creek Deposit - Expansion Holes
Drill Hole
From
(m)
To
(m)
Interval
(m)
Zn Eq.
(%)
Zn
(%)
Pb
(%)
Ag
(g/t)
NC17-224*
77.0
91.8
14.8
3.63%
2.56%
0.37%
32.68
including
78.7
81.3
2.6
6.89%
4.79%
0.87%
58.56
NC17-226*
11.0
20.0
9.0
5.24%
3.59%
1.15%
28.00
including
16.9
19.3
2.4
12.64%
8.96%
2.65%
59.19
and
29.0
41.0
12.0
1.78%
1.40%
0.19%
9.33
including
31.0
33.0
2.0
4.52%
3.80%
0.36%
17.63
and
241.7
246.0
4.3
1.79%
1.50%
0.15%
7.03
NC17-229
18.0
36.1
18.1
2.97%
1.77%
0.65%
28.04
including
19.1
30.8
11.7
4.00%
2.44%
0.84%
35.98
and
44.7
49.2
4.5
2.47%
1.11%
0.86%
26.69
and
61.4
76.2
14.8
3.22%
2.42%
0.50%
15.86
NC17-230
44.0
59.6
15.5
2.37%
1.60%
0.41%
17.77
including
44.0
54.5
10.4
2.97%
2.06%
0.48%
21.33
NC17-231
41.4
48.4
7.0
3.58%
2.50%
0.37%
32.85
NC17-232
55.5
78.5
23.0
2.78%
2.21%
0.27%
14.83
including
64.5
71.5
7.0
5.08%
4.11%
0.45%
25.26
NC17-233
30.1
74.0
43.9
3.06%
2.27%
0.41%
18.81
including
30.1
39.6
9.5
6.55%
4.82%
0.84%
43.38
NC17-234
104.0
111.8
7.8
1.34%
1.27%
0.08%
0.16
and
139.0
142.9
3.9
2.60%
1.69%
0.75%
11.18
including
139.0
139.9
0.8
10.01%
7.61%
2.12%
23.80
and
175.5
177.0
1.5
5.30%
1.38%
4.18%
12.07
NC17-235
85.3
87.3
2.0
2.86%
2.48%
0.34%
3.28
and
93.9
102.5
8.6
5.59%
4.96%
0.72%
0.08
including
93.9
100.4
6.5
6.96%
6.26%
0.80%
0.09
including
93.9
96.6
2.7
10.85%
10.19%
0.76%
0.05
NC17-236
11.9
15.0
3.1
3.55%
1.64%
1.84%
13.39
NC17-238
93.7
98.7
5.0
1.21%
1.12%
0.11%
0.01
NC17-241
64.5
84.5
20.0
3.00%
2.14%
0.46%
20.29
including
65.3
75.8
10.6
4.29%
3.00%
0.73%
28.64
NC05-10*
89.0
100.7
11.7
3.68%
2.71%
0.38%
28.18
including
90.1
94.0
3.9
6.29%
4.77%
0.56%
44.87
Reconnaissance Holes
Drill Hole
From
(m)
To
(m)
Interval
(m)
Zn Eq.
(%)
Zn
(%)
Pb
(%)
Ag
(g/t)
NC17-227
16.3
21.8
5.6
1.77%
1.22%
0.27%
13.70
NC17-228
107.5
108.0
0.5
6.47%
4.25%
2.30%
9.21
NC17-237
23.0
23.8
0.8
3.90%
2.28%
1.20%
25.18
and
100.8
114.5
13.7
1.72%
1.20%
0.46%
5.42
including
102.6
106.0
3.4
2.93%
2.43%
0.34%
9.09
NC17-239
No Significant Results
*Refer to News Release dated July 13, 2017 for NC17-224 and NC17-226 while NC05-10 is a historic hole
Notes
(1)(2)(3)
:
1
.
Zinc equivalent grades are based on the following metal prices: zinc
US$2,525
/t (1.15/lb), lead
US$2,205
/t (1.00/lb), and silver
US$18.0
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) + (Zn Price*2204.6 x (Zn Grade(%)/100))/Zn Price*2204.6).
2
.
The numbers may not add due to rounding.
3
.
True widths are not currently known.
Table 2: 2016 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.
('000 pounds)
Nash Creek
9,033,000
3.58
2.79
0.57
18.16
n/a
711,991
Total
9,033,000
3.58
2.79
0.57
18.16
n/a
711,991
Inferred Mineral Resources
Project
Tonnes
Zn Eq.
(%)
Zn
(%)
Pb
(%)
Ag
(g/t)
Cu
(%)
Contained Zn Eq.
('000 pounds)
Superjack
3,211,000
4.63
3.01
0.78
29.46
0.27
327,618
Nash Creek
1,113,000
3.58
2.83
0.57
15.51
n/a
87,883
Total
4,324,000
4.36
2.96
0.73
25.87
0.20
415,501
Notes:
1
.
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 resources for the Nash Creek Project were calculated using metal prices of
$0.90
/lb for zinc,
$0.87
/lb for lead, and
$17.73
/oz for silver.
Metallurgical recoveries have been assumed to be 90.5% for zinc, 81.5% for lead and 50% for silver. A cut-off grade of 2.0% Zn Eq. was utilized in the
resource estimate.
5
.
Zinc equivalent 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 resource estimate.
Table 3: NQ Diamond Drill Hole Data
Nash Creek Deposit - Expansion Holes
Hole ID
UTM Zone 19T
NAD 83 East
UTM Zone 19T
NAD 83 North
Elevation
(m)
Azimuth
(
o
N UTM)
Dip
(
o
)
Length
(m)
NC17-224*
717060
5308540
60
0
-90
237
NC17-226*
716854
5308687
66
0
-90
271
NC17-229
716834
5308428
72
0
-90
192
NC17-230
716901
5308386
63
0
-90
159
NC17-231
716991
5308469
66
0
-90
156
NC17-232
716971
5308554
57
0
-90
150
NC17-233
716885
5308515
61
0
-90
120
NC17-234
717004
5308760
54
0
-90
207
NC17-235
717088
5308630
46
0
-90
195
NC17-236
716857
5308657
63
0
-90
222
NC17-238
717092
5308788
47
0
-90
195
NC17-241
716889
5308743
57
0
-90
195
NC05-10*
716977
5308679
47
0
-90
233
Reconnaissance Holes
NC17-227
716775
5308867
64
0
-90
282
NC17-228
716766
5309020
73
0
-90
186
NC17-237
716655
5308760
71
0
-90
174
NC17-239
716625
5308451
77
0
-90
177
*Refer to News Release dated July 13, 2017 for NC17-224 and NC17-226 while NC05-10 is a historic hole
Figure 1: Map of the Bathurst Mining District of
New Brunswick
Figure 2: Plan Map of the Nash Creek Deposit
Figure 3: Plan Map of the Nash Creek Deposit
Expansion Holes
Figure 4:
Long Section View
of the Nash Creek Deposit
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
Vancouver, B.C.
for analysis. Samples were crushed to 75% passing 2mm and pulverized to 85% passing 75 microns in order produce a 250g
split. All copper, zinc and silver assays were determined by Aqua Regia digestion with a combination of ICP-MS and ICP-AES finish, with overlimits (>100 ppm
Ag, >10,000 ppm Zn, and >10,000 ppm Cu) completed by fire assay with gravimetric finish (Ag) or Aqua Regia digestion with ICP-AES finish (copper and zinc). All
samples were analyzed for gold by Fire Assay of a 30 gram charge by AAS, or if over 10.0 g/t were re-assayed and completed with a gravimetric 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 following methods to obtain the assay results for Callinex: G_LOG02 Pre-preparation processing, G_WGH79 Weighing
and reporting, G_PRP89 Weigh, dry, crush, split, pulverize, G_SCRQC QC for crush and pulverize stages, G_CRU22 Crush >3kg, G_DRY11 Dry samples,
GE_FAA313 @Au, FAS, AAS, 30g-5ml (Final mode), GE-IC14A Aqua Regia digestion/ICP-AES finish, GE_IMS14B Aqua Regia digestion/ICP-MS package,
GE_IMS14 Aqua Regia digestion, GO_FAG303 30g, Fire assay, gravimetric finish (Au)(Final Mode), GO_FAG313 30g, Fire assay, gravimetric finish (Ag)(Final
Mode), G0_ICP13B Ore Grade, Aqua Regia digest/ICP-AES. Ag >10ppm was analyzed by ICP and GO_XRF77B-pyrosulfate fusion.
About Callinex Mines Inc.
Callinex Mines Inc. (TSX-V: 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
. Callinex is actively drilling these projects in
support of an updated resource estimate and maiden PEA planned for Q1 2018.
Additionally, Callinex is actively exploring its projects in the Flin Flon Mining District of
Manitoba
which notably includes its Pine Bay and Big Island Projects.
These projects are located within 25 km to an operating processing facility that requires additional ore within four years.
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/September2017/05/c5914.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 07:00e 05-SEP-17