Callinex Announces Preliminary Results from Ongoing Induced Polarization Survey at Nash Creek

Vancouver, British ColumbiaOctober 1, 2018Callinex Mines Inc. (the “Company” or “Callinex”) (TSXV: CNX) (OTCQX: CLLXF) is pleased to announce preliminary results from its ongoing district-scale induced polarization (“IP”) survey 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). The IP survey commenced at the northern grid located approximately 1 km east of the Nash Creek Deposit (See News Release dated September 5, 2018). Preliminary results have identified a significant target area that spans approximately 1900m by 400m and appears associated with a synclinal repetition of the Nash Creek Deposit (See Figure 3). The footprint of this target area compares favorably to the IP signature associated with the Nash Creek Deposit.

Callinex completed two holes to evaluate the conductive responses modelled in the target area and both holes intersected various amounts of sulphide mineralization that has potential to host zinc and lead mineralization. The intersected depth of the sulphide mineralization correlates well with the modelled chargeability and samples have been sent to the lab for analytical testing. The Company anticipates that this target area will be thoroughly drill tested in the next drill program after the larger IP survey has been completed. Targets generated from previous IP surveys over the Nash Creek Deposit have shown a very high correlation to the current mineral resources (See Figure 4 and Table 1).

To date, approximately 65 line km have been completed as part of the survey and it is anticipated that the remaining 110 line km will be completed within 90 days due to slower than anticipated production.

The Company has also completed its ongoing drill program which consisted of 23 holes totaling approximately 4,750m. It is planned that significant drilling will occur to follow up on IP targets associated with this survey in the spring of 2019.

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 BrunswickFigure 2: Nash Creek Land PackageFigure 3: Nash Creek Preliminary Results of 2018 IP SurveyFigure 4: Nash Creek Deposit Correlation with 2011 IP Survey

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.

 

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

E-mail: info@callinex.ca

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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