Vancouver, British Columbia – November 14, 2018 – 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.
Table 1: Mineral Resource Estimates for the Nash Creek and Superjack Projects
|Indicated Mineral Resources|
|Contained Zn Eq.|
|Inferred Mineral Resources|
|Contained Zn Eq.|
- 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).
For additional information, please contact:
Callinex Mines Inc.
Max Porterfield, President and Chief Executive Officer
Phone: (604) 605-0885
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.