Vancouver, British Columbia – June 19, 2017 – Callinex Mines Inc. (the “Company” or “Callinex”) (TSX-V: CNX; OTCQX: CLLXF) is pleased to announce that it has added a second rig to its ongoing 2017 Bathurst drilling campaign (the “Campaign”) at the Company’s 100% owned Nash Creek Project located in the Bathurst Mining District of New Brunswick. To date, nine holes have been completed as planned to test for potential to expand the near-surface mineral resource further to the north (See News Release dated May 30, 2017). It is anticipated that an additional 15 drill holes will be completed with a concentrated focus on testing an area spanning 500m along strike from the extent of the current mineral resource (See Figure 1 and 2).
The Nash Creek Project is ideally situated approximately 1 km south of Provincial Highway 11, about 100 km by road to Trevali’s Caribou Mine and 25 km by road to Glencore’s Belledune lead/silver smelter, which has direct railway access to Glencore’s Canadian zinc smelting and refining operations. Previous exploration has delineated mineralization over a 1.5km strike length and the project hosts an Indicated mineral resource totaling 712 million pounds of zinc equivalent mineralization and an Inferred mineral resource totaling 88 million pounds of zinc equivalent mineralization (see Table 1).
Following completion of the Nash Creek phase of the drilling campaign, the drill rigs will be mobilized to the nearby Superjack Project to test for high-grade extensions to the A Zone deposit (See Table 1). The two deepest holes drilled by a previous operator at the A Zone deposit, at a vertical depth of approximately 440m, intersected thick intervals of high-grade mineralization (See Figure 3):*
- NP11-54 intersected 10.3m of 8.2% Zn Eq. (4.0% Zn, 1.7% Pb, 0.4% Cu, 53.3 g/t Ag and 0.3 g/t Au) including a higher-grade interval over 6.6m of 10.5% Zn Eq. (5.3% Zn, 2.2% Pb, 0.4% Cu, 69.0 g/t Ag and 0.5 gt/ Au); and
- NP11-39 intersected 11.2m of 7.6% Zn Eq. (5.0% Zn, 1.0% Pb, 0.2% Cu, 34.2 g/t Ag and 0.2 g/t Au) including a higher-grade interval over 2.6m of 17.6% Zn Eq. (15.0% Zn, 1.4% Pb, 0.3% Cu, 32.5 g/t Ag).
In addition to testing the A zone at greater depths, one hole will also test a 1,300 metre long by 800 metre wide gravity inversion anomaly that indicates the three known mineralized zones (A, B and C zones) all potentially connect at depth. The Superjack phase of the drilling campaign is anticipated to include 4 to 8 drill holes totaling 2,500m to 4,000m.
*Zinc equivalent grades are based on the following metal prices: zinc US$2,525/t ($1.15/lb), copper US$5,500/t ($2.49/lb), lead US$$2,205/t ($1.00/lb), gold US$1,300 per oz 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 ((Au Price in (g) x Au Grade) + (Ag Price in (g) x Ag Grade) + (Cu Price*2204.6 x Cu Grade(%)/100) + (Zn Price*2204.6 x Zn Grade(%)/100)+(Pb Price*2204.6 x Pb Grade(%)/100))/Zn Price*2204.6
Jason Levers, PGeo, a qualified person under National Instrument 43-101 and a Staff Geologist for Callinex, has reviewed and approved the technical information in this news release.
Table 1: 2016 Mineral Resource Estimates for New Brunswick Projects
|Indicated Mineral Resources|
|Ag (g/t)||Cu |
|Contained Zn Eq. (‘000 pounds)|
|Inferred Mineral Resources|
|Category||Tonnes||Zn Eq. (%)||Zn (%)||Pb (%)||Ag (g/t)||Cu |
|Contained Zn Eq. (‘000 pounds)|
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 and Nepisiguit C Zones
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.
Figure 1: Map of the Bathurst Mining District of Northern New Brunswick
Figure 2: Plan View of the Nash Creek Mineral Resources
Figure 3: Long Section of the A Zone Deposit
About Callinex Mines Inc.
Callinex Mines Inc. is focused on discovering and developing zinc and copper rich mines within prolific Canadian VMS mining jurisdictions. The Company is actively exploring its Pine Bay Project, located in the Flin Flon mining district of Manitoba, which hosts significant historic VMS deposits that are within close proximity to a processing facility. The larger project portfolio hosts three significant zinc rich mineral resources including the Point Leamington, Nash Creek and Superjack Projects located in Eastern Canada.
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.