VANCOUVER, Nov. 14, 2018 /CNW/ - Callinex Mines Inc. (the
"Company" or "Callinex") (TSXV: CNX) (OTCQX: CLLXF) is pleased to
announce that it has acquired the Headway Project (the "Project"),
which hosts the high-grade Headway Deposit, located adjacent to the
world-class Brunswick No 12 Mine in the Bathurst Mining District of
New Brunswick (See Figures 1,2 and 3). The Project contains a
high-grade zinc-lead-copper-silver deposit located along the
prolific 'Brunswick Horizon' where limited historic near-surface
drilling delineated the deposit to a depth of 160m. The Project shares a property boundary and
similar geology with Glencore's Brunswick No 12 mine, previously
the world's largest underground zinc mine, where production totaled
137 million tons grading 8.74% Zn, 3.44% Pb, 0.37% Cu, and 102 g/t
Ag from 1964-2013.
Max Porterfield, President and
CEO stated, "This acquisition, completed at attractive terms as a
result of current market conditions, fits well with our existing
project portfolio in the Bathurst Mining District. The high-grade
Headway deposit is a compelling exploration opportunity considering
its very limited exploration history, proximity to the world-class
Brunswick No 12 Mine and its strategic location within potential
trucking distance to the Nash Creek Project."
The Headway Deposit was outlined by 35 drill holes from 1965-66
and is reported to be 950m long,
160m deep and up to 15m thick. In assessment report 472314 prepared
by Headway Red Lake Gold Ltd. in 1966, a historical "ore reserves"
of 263,100 tonnes grading 11.6% Zn Eq. (6.2% Zn, 2.1% Pb, 1.4% Cu
and 20.9 g/t Ag) between the A and B zones while the C zone
reported 54,000 tonnes grading 7.0% Zn Eq. (3.9% Zn, 1.3% Pb, 0.8%
Cu and 14. g/t Ag). The historical "ore reserves" noted above is
mentioned for historical purposes only and uses categories not
consist with the definitions of "resources" and "reserves" as set
forth by CIM. The reliability of this historical estimate is
unknown but considered relevant by the Company as it represents a
significant target for future exploration work by the
Company. The assumption, parameters and methods used to
calculate this historical resource estimate are not known to the
Company. The qualified person has not made any attempt to
re-classify the estimates accordingly to current CIM standards of
disclosure or the CIM definitions. The Company is not treating
this estimate as current mineral resources or mineral reserves as
defined by CIM. Although the historical resource estimate was
also designated as "ore" it cannot be compared to mineral reserves
as it is not supported by at least a current pre-feasibility
study. In order for this historical resource estimate to be
current, the Company will be required to carry out shallow drilling
on the Headway Deposit.
Mid-tier zinc producer Nexa Resources SA (formerly known as
Votorantim Metals Canada Inc.) is the only company within the past
40 years to have completed drilling on the project, consisting of
just two drill holes in 2011, as it had been closely held by a
single owner. Callinex plans to digitize historic drilling,
complete a surface induced polarization survey and drilling in the
future.
Subject to TSX Venture Exchange approval, the Company has issued
the vendor 250,000 shares, representing an implied transaction
value of $25,000, and a 1.0% NSR
royalty, of which half can be re-purchased for $500,000. The acquisition of the Headway Project
also includes $44,800 in work
credits, which will allow the claims to remain in good standing
until late-2023.
Zinc equivalent grades for the historic resource estimate are
based on the following metal prices: zinc US$1.15/lb, lead US$0.90/lb, copper US$2.70/lb and silver US$14.50 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) + (Cu Price*2204.6 x Cu
Grade(%)/100) + (Zn Price*2204.6 x (Zn Grade(%)/100))/Zn
Price*2204.6).
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: Headway Project Location Map
Figure 3: Headway Deposit with Historic Drilling and Geology
Map
Table 1: Mineral Resource Estimates for the Nash Creek and Superjack Projects
|
Indicated Mineral
Resources
|
Project
|
Tonnes
|
Zn
Eq
|
Zn
|
Pb
|
Ag
|
Cu
|
Contained Zn
Eq
|
|
|
(%)
|
(%)
|
(%)
|
(g/t)
|
(%)
|
(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
|
Cu
|
Contained Zn
Eq
|
|
|
(%)
|
(%)
|
(%)
|
(g/t)
|
(%)
|
(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.