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:
- 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.
- The Nash Creek Mineral Resource Estimate includes the Hickey
Zone and Hayes Zone.
- The Superjack Mineral Resource Estimates includes the
Nepisiguit A (the "A Zone") and Nepisiguit C Zones (the "C
Zone").
- 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.
- A cut-off grade of 1.5% Zn Eq. was utilized in the resource
estimate.
- 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.
- 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.