Callinex Provides Drilling Update for its Nash Creek Zinc Project
Callinex Provides Drilling Update for its Nash Creek Zinc
Project
VANCOUVER
,
Aug. 9, 2018
/CNW/ -
Callinex Mines Inc.
(the "Company" or "Callinex") (TSXV: CNX) (OTCQX: CLLXF) is
pleased to provide an update on its 2018 drilling campaign (the "Campaign") at the Company's 100% owned Nash Creek
Zinc Project (the "Project") located in the Bathurst Mining District of
New Brunswick, Canada
(
See Figures
1 and 2). To
date, 13 drill holes have been completed to test targets located adjacent to the current mineral resources (See Figure 3
and Table 1). It is anticipated that an additional nine drill holes will be completed as part of the first phase of the 2018
Campaign. The first batch of samples will be shipped for analytical testing within the next week.
Additionally, the Company plans to commence a district-scale, 250-line km induced polarization survey ("IP Survey") to
identify potential for additional deposits that are located along a 20 km trend with previously identified high-grade mineral
occurrences (See News Release dated
August 21, 2017
). The second phase of the 2018 drilling campaign will follow up
on results from the ongoing Campaign and new targets derived from the 2018 IP Survey that is anticipated to commence
shortly.
A 2011 IP survey completed over the Nash Creek Deposit has proven to be the most effective method for targeting base
metal sulphides. The IP survey was integral to Callinex's initial 2017 exploration campaign that led to a major expansion of
the Nash Creek Deposit with an increase in Indicated zinc equivalent ("Zn Eq.") pounds by 74% to 963 million pounds and
an increase in Inferred Zn Eq. pounds by 385% to 407 million pounds (See News Release dated
April 16, 2018
). All of the
IP targets that have been drill tested intersected either base metal mineralization or alteration associated with the Nash
Creek Deposit.
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
(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
).
A two-minute overview video for the Nash Creek Project can be viewed by
clicking here
.
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 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: Nash Creek Land Package
Figure 3: Plan Map of the Nash Creek Deposit
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.
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
.
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SOURCE
Callinex Mines Inc.
View original content: http://www.newswire.ca/en/releases/archive/August2018/09/c7675.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 09-AUG-18