Callinex Reports Final Drill Results to be Included in Upcoming PEA
Callinex Reports Final Drill Results to be Included in Upcoming
PEA
Highlights
Final drill results received where 13 of 15 reported drill holes intersected significant zinc mineralization;
Drill hole NC17-261 intersected
23.0m
of 4.2% Zn Eq. from a starting depth of
11.0m
including
8.3m
of 6.0% Zn Eq.; and
Callinex expects to release an updated NI 43-101 Mineral Resource Estimate within 15 days and PEA in late-May.
VANCOUVER
,
April 4, 2018
/CNW/ -
Callinex Mines Inc.
(the "Company" or "Callinex") (TSX-V: CNX; OTCQX: CLLXF) is pleased to
announce final drill results where 13 of 15 reported drill holes intersected significant zinc mineralization ("Zn Eq.") at the Company's 100% owned
Nash Creek Project located within the Bathurst Mining District of
New Brunswick
(
See Figures
1 and 2). The drill holes were completed to test
for extensions of mineralization along the margins of the Nash Creek Deposit while also confirming historic drill holes completed at the Hickey
Zone during the 1970s.
Significant results include:
Drill hole NC17-261 intersected
23.0m
of 4.2% Zn Eq. from a starting depth of
11.0m
including
8.3m
of 6.0% Zn Eq.;
Drill hole NC17-273 intersected
10.0m
of 2.6% Zn Eq. from a starting depth of
29.0m
including
5.0m
of 3.8% Zn Eq.; and
Drill hole NC17-279 intersected
23.0m
of 2.6% Zn Eq. from a starting depth of
62.0m
including
8.0m
3.7% Zn Eq. and a separate
intersection of
8.0m
of 3.7% Zn Eq. from a starting depth
106.0m
.
*For complete drill results along with zinc equivalent calculations refer to Table 1.
With final results now received, Callinex anticipates announcing an updated NI 43-101 mineral resource estimate within 15 days, subject the
completion of the resource model by Tetra Tech Inc. The updated mineral resource estimate will include an additional 59 drill holes completed in
2017 that materially expanded the size of the Nash Creek Deposit to the north, where mineralization remains open for expansion.
The 2016 mineral resource estimate for the Nash Creek Deposit estimates a near surface indicated resource totaling 712 million pounds Zn Eq.
and inferred resource totaling 88 million pounds of Zn Eq. (See Table 2). The Company's Superjack Project hosts an additional near-surface
inferred resource totaling 328 million pounds of Zn Eq. in the Bathurst Mining District (See Table 2).
Callinex also anticipates announcing results for its maiden Preliminary Economic Assessment ("PEA") on the
Nash Creek
and Superjack Project in
late-May. In September, 2017 the Company engaged P&E Mining Consultants Inc. and has since completed significant work towards completion
of the PEA.
Following the completion of the PEA, the Company will commence an extensive 2018 exploration program consisting of diamond drilling, ground
geophysics, soil sampling and prospecting to discover additional deposits within the 20 km long land package.
The PEA is expected to have a base-case scenario of a standalone open pit operation with potential to process between 15 to 20 million tonnes of
material using dense media separation ("DMS") as a pre-concentration process before the material would be delivered to an on-site conventional
flotation mill. The Company is anticipating a head grade of approximately 5 to 7% combined zinc-lead when utilizing DMS.
The Project benefits from tremendous infrastructure within close proximity. The Nash Creek Deposit is located approximately 1 km from
Provincial Highway 11, high-voltage transmission lines and only 25 km by road to Glencore's Brunswick Smelter, deep water port, railway and
power plant near the town of
Belledune
(
See Figures
1 and 2).
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: 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 Eq.
(%)
Zn
(%)
Pb
(%)
Ag
(g/t)
NC17-252
81.00
85.00
4.00
4.55%
3.28%
1.01%
16.88
including
81.00
82.00
1.00
12.24%
8.57%
2.99%
46.30
NC17-253
15.00
19.00
4.00
3.76%
3.18%
0.12%
20.85
NC17-253
36.00
40.00
4.00
3.18%
2.63%
0.32%
12.27
NC17-256
8.00
13.00
5.00
2.57%
2.06%
0.31%
10.46
NC17-256
24.00
32.00
8.00
3.37%
2.48%
0.43%
22.25
NC17-258
12.00
16.00
4.00
3.50%
2.28%
0.94%
17.33
NC17-261
11.00
34.00
23.00
4.21%
2.80%
0.92%
26.75
including
16.70
25.00
8.30
5.97%
4.15%
1.17%
34.77
NC17-262
71.00
77.00
6.00
4.88%
4.29%
0.40%
10.26
including
72.00
76.00
4.00
6.17%
5.47%
0.50%
11.78
NC17-264
16.00
30.00
14.00
2.17%
1.58%
0.32%
13.65
including
21.00
26.00
5.00
3.99%
3.11%
0.45%
21.08
and
36.00
42.00
6.00
2.24%
1.55%
0.22%
21.72
and
48.00
51.00
3.00
1.97%
1.41%
0.16%
18.33
and
60.00
64.00
4.00
1.55%
0.29%
1.03%
15.43
and
138.00
140.00
2.00
2.78%
1.73%
0.90%
11.24
and
163.00
170.00
7.00
1.72%
1.09%
0.56%
6.04
NC17-265
7.00
19.15
12.15
2.05%
1.20%
0.59%
14.75
including
7.00
13.00
6.00
2.89%
1.58%
0.96%
20.30
including
9.00
12.00
3.00
3.32%
1.59%
1.36%
23.67
NC17-267
16.90
30.30
13.40
2.28%
1.69%
0.32%
13.77
including
16.90
24.60
7.70
2.95%
2.22%
0.39%
16.91
and
28.50
30.30
1.80
3.70%
2.77%
0.55%
19.47
NC17-270
50.25
51.60
1.35
2.40%
1.95%
0.19%
12.45
NC17-272
21.00
24.00
3.00
1.45%
1.15%
0.18%
6.10
and
31.00
33.00
2.00
1.67%
1.46%
0.20%
1.44
and
39.50
41.00
1.50
2.47%
1.99%
0.31%
9.29
and
58.00
60.00
2.00
1.70%
0.27%
1.38%
9.85
NC17-273
29.00
39.00
10.00
2.55%
1.64%
0.50%
20.87
including
34.00
39.00
5.00
3.81%
2.47%
0.75%
29.98
NC17-279
62.00
114.00
52.00
1.90%
1.64%
0.20%
3.67
including
62.00
85.00
23.00
2.60%
2.30%
0.24%
3.56
including
62.00
70.00
8.00
3.70%
3.18%
0.35%
9.43
and
106.00
114.00
8.00
3.68%
2.98%
0.46%
12.82
Notes
(1)(2)(3)(4)
:
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.
All intervals are reported as core width drilled thicknesses; true thicknesses are estimated to be 80-100% of drilled thicknesses.
4.
Drill holes NC17-268 and NC17-275 did not intersect any significant mineralization.
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.
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 then onto
Burnaby, BC
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 exploring these projects in support of an updated resource estimate and maiden PEA planned for Q2
2018.
Additionally, Callinex is exploring its projects in the Flin Flon Mining District of
Manitoba
which notably include the 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/April2018/04/c1483.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 04-APR-18