VANCOUVER, Dec. 13, 2018
/CNW/ - Callinex Mines Inc. (the "Company" or "Callinex")
(TSX-V: CNX; OTCQX: CLLXF) is pleased to announce results from the
2018 drilling campaign (the "Campaign") at the Company's 100% owned
Nash Creek Project (the "Project") located within the Bathurst
Mining District of New Brunswick
(See Figures 1 and 2). The majority
of drill holes were completed to test sparsely drilled areas
periphery to the Nash Creek Deposit and two holes were drilled to
test a preliminary induced polarization ("IP") target (the "Central
Zone target") to the east (See Table 1 and News Release dated
July 11, 2018). Most of the holes
drilled to the north targeted an untested portion of a 3 km long
soil anomaly and did not encounter significant
mineralization. The two widely-spaced holes drilled into the
Central Zone target intersected mineralization ranging up to
semi-massive sulphides with zinc and lead values (See Table 1).
Two widely-spaced drill holes, NC18-301 and NC18-302, tested
part of the Central Zone target that was identified late in the
2018 field season. Results from these two drill holes has revealed
lithologies, alteration, and mineralization which replicates an
environment similar to the Hickey Zone, located 1.2 km to the west.
This Central Zone target was identified within a small area that
was covered as part of a much larger 175 line km IP survey that was
previously announced (See News Release dated October 1, 2018). The district-scale IP survey is
still ongoing and anticipated to be completed in the first quarter
of 2019.
A 2019 drilling campaign is anticipated to follow-up on targets
generated from the IP survey including additional drilling on the
Central Zone target that spans 1900m
x 400m and is located 1 km east of
the Nash Creek Deposit. Nearly all volcanogenic massive sulphide
deposits occur in clusters and the Nash
Creek deposit is the only deposit along this 20 km trend. To
date, very limited exploration has been completed within the
Nash Creek land package that
encompasses several high-grade mineral occurrences and has
potential to host other deposits.
These results have confirmed that IP is the most effective
method to directly target near-surface mineralization at the
Project. The ability of the IP survey to accurately vector towards
increased sulphide mineralization, which generally correlates with
higher grade mineralization at the Nash Creek Deposit, is very
encouraging to apply on the 150 km2 district-scale land
package.
Additionally, the drilling campaign identified mineralization
west and east of the Hickey Zone with drill holes NC18-281
intersecting 3.0m of 10.9% Zn, 1.2%
Pb and 23.3 g/t Ag along with NC18-293 intersecting 9.0m of 2.3% Zn, 0.4% Pb and 5.9 g/t Ag (See
Table 1 and Figure 2). Mineralization was also encountered to the
northwest of the Hayes Zone. These results confirm the potential to
expand the deposit further with step-out drilling in the
future.
Drill hole NC17-289 completed 475m
to the north of the Hickey Zone intersected 8.0m of 1.8% Zn, 0.3% Pb, and 3.4 g/t Ag. The
depth of mineralization intersected indicates that the stratigraphy
plunges to the north and any future exploration in this area would
be focused on targeting mineralization that could be amenable to
underground mining. Drilling completed along a 3 km long soil
anomaly to the northwest did not encounter significant
mineralization, unlike it had previously along the southern 2 km
where it was coincident with an IP response.
The Company's overall exploration activities since mid-2017 have
yielded positive results that contributed to an increase in
Indicated zinc equivalent pounds by 74%, to 963 million pounds, and
Inferred zinc equivalent pounds have increased by 385%, to 407
million pounds since the Project was acquired in 2016 (See Table 2
and News Release dated April 16,
2018).
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 based on a zinc price of US $1.25 (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).
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 Consultant for Callinex, has reviewed and
approved the technical information in this news release.
2018 Annual General Meeting
Callinex recently held its Annual General Meeting on
December 11, 2018. The Company is
pleased to report that over 29 million shares were voted and that
all resolutions put forward by the Board of Directors were
overwhelmingly approved with each item receiving approximately 99%
of support. These resolutions included setting the number of
directors at five and approved the appointment of Max Porterfield, Mike
Muzylowski, Nico Civelli,
Michael Louie and Keith Minty to the Board of Directors.
Shareholders appointed PricewaterhouseCoopers LLP as auditors of
the Company until the next annual general meeting and to authorize
the directors of the Company to fix the remuneration to be paid to
the auditors.
Acquisition of Headway Property
Callinex is also pleased to announce that it has acquired a 100%
interest in the Headway Property, located in the Bathurst Mining
District, New Brunswick. In
consideration of the Headway Property, Callinex issued a total of
250,000 common shares to the vendor. The details of the
transaction are set forth in the news release dated November 14, 2018.
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
(%)
|
Pb
(%)
|
Ag
(g/t)
|
NC18-281
|
99.0
|
102.0
|
3.0
|
10.91
|
1.19
|
23.33
|
including
|
101.0
|
102.0
|
1.0
|
20.70
|
1.20
|
1.00
|
NC18-283
|
42.0
|
47.0
|
5.0
|
2.53
|
0.40
|
2.20
|
including
|
42.0
|
44.0
|
2.0
|
4.08
|
0.60
|
1.00
|
NC18-285
|
20.0
|
26.0
|
6.0
|
1.37
|
0.05
|
1.00
|
NC18-289
|
306.0
|
314.0
|
8.0
|
1.84
|
0.28
|
3.38
|
including
|
306.0
|
310.0
|
4.0
|
2.78
|
0.45
|
4.25
|
NC18-293
|
68.0
|
77.0
|
9.0
|
2.25
|
0.40
|
5.89
|
including
|
68.0
|
72.0
|
4.0
|
3.24
|
0.42
|
8.75
|
NC18-301
|
82.0
|
88.0
|
6.0
|
1.18
|
0.25
|
7.00
|
NC18-302
|
36.0
|
40.0
|
4.0
|
0.13
|
1.92
|
5.75
|
Notes(1)(2)(3):
1.
|
The numbers may not
add due to rounding.
|
|
|
2.
|
All intervals are
reported as core width drilled thicknesses; true thicknesses are
estimated to be 80-100% of drilled thicknesses.
|
|
|
3.
|
Drill holes NC18-282,
NC18-284, NC18-286, NC18-287, NC18-288, NC18-290, NC18-291,
NC18-292, NC18-294 and NC18-295 did not intersect any significant
mineralization while assays for drill holes NC18-296, NC18-297,
NC18-298, NC18-299, NC18-300 and NC18-303 are still pending but the
Company does not anticipate any material results.
|
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.
|
Table 2: Comparison of Mineral Resources Since Acquisition in
2016
Timeframe1
|
Classification2
|
Cut-off,
ZnEq3,4 (%)
|
Tonnes
|
Zn
(%)
|
Pb
(%)
|
Ag
(gpt)
|
ZnEq3,
4
(%)
|
ZnEq3,4
Contained
(lbs)
|
Pre-Acquisition
|
Indicated
|
2.0
|
7,807,900
|
2.72
|
0.55
|
18.3
|
3.22
|
554,268,000
|
Post-Acquisition
|
Indicated
|
1.5
|
13,592,000
|
2.68
|
0.58
|
17.8
|
3.21
|
963,392,000
|
Percent
Change
|
N/A
|
N/A
|
+ 74%
|
- 1%
|
+ 5%
|
- 2%
|
0%
|
+ 74%
|
|
Pre-Acquisition
|
Inferred
|
2.0
|
1,211,700
|
2.66
|
0.52
|
18.0
|
3.14
|
71,057,000
|
Post-Acquisition
|
Inferred
|
1.5
|
5,929,000
|
2.68
|
0.47
|
13.9
|
3.11
|
407,130,000
|
Percent
Change
|
N/A
|
N/A
|
+ 389%
|
+ 1%
|
- 10%
|
- 23%
|
- 1%
|
+ 385%
|
(1)
|
Callinex reported
closing the acquisition of the Nash Creek Property on August 15,
2016. The effective date of the "Pre-Acquisition" mineral
resource estimate is March 27, 2009, the effective date of the
"Post-Acquisition" mineral resource estimate is March 21,
2018. The 2009 mineral resource is considered to be
historical and has been superseded by the mineral resource estimate
with effective date March 21, 2018.
|
(2)
|
Classification
conforms to NI 43-101, Companion Policy 43-101CP, and the Canadian
Institution of Mining, Metallurgy and Petroleum ("CIM") Definition
Standards on Mineral Resources and Mineral Reserves adopted by CIM
council, as amended. Inferred Resources have been estimated from
geological evidence and limited sampling and must be treated with a
lower level of confidence than Measured and Indicated
Resources.
|
(3)
|
Pre-acquisition zinc
equivalency (ZnEq) was calculated as Zn% + 0.633*Pb% +
0.008*Ag_ppm, the Post-Acquisition zinc equivalency is calculated
as Zn%+ 0.747*Pb% + 0.006*Ag_ppm.
|
(4)
|
The Post-Acquisition
estimate is reported using a 1.5% ZnEq cut-off value, which is
reduced from a 2% ZnEq cut-off that was used to report the
Pre-Acquisition estimate.
|
(5)
|
A bulk density value
of 2.76 was used in the Pre-Acquisition estimate, and bulk density
was calculated based on relationship to grade for the
Post-Acquisition estimate using the formula
2.74+0.028*(Zn%+Pb%).
|
(6)
|
Tonnes and ZnEq
contained pounds are rounded.
|
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 and then onto
Burnaby, BC for analysis. Samples
were crushed to 75% passing 2mm and pulverized to 85% passing 75
microns in order to produce a 250g split. All copper, zinc and
silver assays were determined by Aqua Regia (2 and 4 acid)
digestion with a ICP-AES finish, with overlimits (>100 ppm Ag,
>10,000 ppm Zn, and >10,000 ppm Cu) Aqua Regia digestion with
ICP-AES "ore-grade" 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 the following methods
to obtain the assay results for Callinex: G_LOG02 Pre-preparation
processing,G_PRP89 Weigh, Dry, to 3kg, Crush 75% -2mm, Split to
250g, Pulverize to 85% -75µm, GE-ICP14B two acid digest for
non-organic, or low sulphides, GE-ICP40B four acid digest AES 33
element package, GO-ICP13B, ore grade Aqua Regia Digest with
ICP/AES finish, GO-ICP41Q ore grade Aqua Regia Digest ICP/AES
finish.
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.
SOURCE Callinex Mines Inc.