Highlights
- Drill hole NC17-263 intersected 11.8m of 3.9% Zn Eq. and expanded the deposit to
the east;
- Drill hole NC17-278 intersected three separate near-surface
zones including 10.0m of 3.6% Zn Eq.
and 9.0m of 3.3% Zn Eq.; and
- Drill hole NC17-280, the northernmost hole drilled as part of
the expansion program, intersected 4.1m of 4.6% Zn Eq.
VANCOUVER, Feb. 14, 2018 /CNW/ - Callinex Mines Inc.
(the "Company" or "Callinex") (TSX-V: CNX; OTCQX: CLLXF) is
pleased to announce assay results from the recently completed
drilling campaign 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 expand
the deposit laterally and along strike in the northern area of the
Nash Creek Deposit. Significantly, NC17-263 intersected
11.8m of 3.9% zinc equivalent
mineralization (Zn Eq.) and expanded the deposit to the east while
NC17-278 intersected three separate near-surface zones including
10.0m of 3.6% Zn Eq. and 9.0m of 3.3% Zn Eq. (See Figure 3 and Table 1).
Drill hole NC17-280, the northernmost hole drilled as part of the
expansion program, intersected 4.1m
of 4.6% Zn Eq.
The reported drill holes were completed to support an updated NI
43-101 Mineral Resource Estimate that is scheduled for completion
in March. These results indicate that the deposit remains open
along strike, which is coincident with a considerable lead-in-soil
anomaly. Furthermore, these drill holes also indicate that the bulk
of 2017 drilling intersected the main mineralized body. There may
be additional opportunities to expand the deposit laterally by
identifying and targeting NW trending cross-structures.
Callinex plans to delineate the extent of the Nash Creek Deposit
along strike in both directions that is coincident with a 3 km long
zinc-lead soil anomaly, of which only the southern 2 km has been
drilled. The Company also plans to test satellite zones that
are open for expansion and commence a district-scale exploration
program along the 20 km long land package.
At least two north-striking vertical faults appear to be a
pathway for mineralization at the Nash Creek Project. The Peacock
Fault appears related to the Hayes Zone and the Chickadee Fault
appears to be related to the Hickey Zone. The Peacock Fault has
only had one hole drilled between the Hayes and MacMillan Zones and
is one of several high-priority targets at the property that is
planned to be drill tested in 2018.
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). Callinex is currently working towards
publishing an updated resource estimate and maiden Preliminary
Economic Assessment ("PEA").
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 a conventional flotation mill.
The Nash Creek Deposit hosts 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 hosts an additional near-surface inferred resource
totaling 328 million pounds of Zn Eq. in the Bathurst Mining
District (See Table 2).
J.J. O'Donnell, P.Geo, a qualified person under National
Instrument 43-101 and VP of Exploration 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
Figure 3: Plan Map of the Nash Creek Deposit Expansion
Holes
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)
|
NC17-251
|
57.3
|
61.3
|
4.1
|
2.16%
|
1.24%
|
0.21%
|
32.16
|
and
|
73.8
|
82.7
|
8.9
|
1.69%
|
1.35%
|
0.09%
|
11.53
|
including
|
81.7
|
82.7
|
1.0
|
4.52%
|
4.05%
|
0.07%
|
17.90
|
NC17-263
|
37.2
|
49.0
|
11.8
|
3.93%
|
3.10%
|
0.44%
|
19.04
|
including
|
44.0
|
49.0
|
5.0
|
7.38%
|
5.88%
|
0.81%
|
34.72
|
and
|
67.0
|
74.0
|
7.0
|
1.88%
|
1.25%
|
0.22%
|
19.17
|
NC17-271
|
175.0
|
177.0
|
2.0
|
2.64%
|
1.78%
|
0.29%
|
26.38
|
NC17-274
|
151.0
|
157.0
|
6.0
|
2.01%
|
1.68%
|
0.36%
|
0.68
|
including
|
151.0
|
155.0
|
4.0
|
2.65%
|
2.21%
|
0.49%
|
0.86
|
NC17-276
|
157.0
|
161.0
|
4.0
|
2.83%
|
2.69%
|
0.16%
|
0.01
|
including
|
159.0
|
160.0
|
1.0
|
9.93%
|
9.44%
|
0.56%
|
0.02
|
NC17-278
|
66.0
|
76.0
|
10.0
|
3.55%
|
2.43%
|
0.67%
|
23.40
|
including
|
72.0
|
74.0
|
2.0
|
11.71%
|
8.12%
|
2.17%
|
74.10
|
and
|
88.0
|
91.0
|
3.0
|
2.38%
|
1.63%
|
0.25%
|
23.17
|
and
|
110.0
|
125.0
|
15.0
|
2.47%
|
1.68%
|
0.39%
|
19.56
|
including
|
111.0
|
120.0
|
9.0
|
3.27%
|
2.24%
|
0.55%
|
23.90
|
NC17-280
|
105.0
|
109.1
|
4.1
|
4.55%
|
4.00%
|
0.63%
|
0.03
|
including
|
106.0
|
108.0
|
2.0
|
7.53%
|
6.53%
|
1.14%
|
0.02
|
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 NC17-266
and NC17-277 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.
Investor Relations Provider
Callinex also announces that it has engaged Future Money Trends,
LLC and its affiliated entities ("FMT") to provide certain
financial publishing, digital marketing and investor relations
services to the Company. FMT is a limited liability company
existing under the laws of the State of
Texas with an office at 1102 S. Austin Ave, #110-283, Georgetown, Texas, USA.
The initial term of the engagement is for one year. In
consideration of the services provided by FMT, Callinex has agreed
to provide compensation of USD $3,800
to FMT to manage a digital marketing budget for 2018. To the
knowledge of Callinex, FMT owns, directly and indirectly, 750,000
common shares of Callinex and was previously granted 300,000 stock
options in Callinex.
Since 2014, Callinex has engaged FMT to provide financial
publishing and digital marketing services. During this
period, FMT was paid an average of approximately USD $4,400 per month in compensation to manage
digital campaigns since January 1,
2014 until December 31,
2017.
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.