Vancouver, British Columbia – September 5, 2018 – Callinex Mines Inc. (the “Company” or “Callinex”) (TSXV: CNX) (OTCQX: CLLXF) is pleased to announce that it has commenced an aggressive, 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 objective of the IP Survey is to detect additional near-surface zinc-rich volcanogenic massive sulphide (“VMS”) deposits along an underexplored 20 km long trend with high-grade base metal occurrences. Targets generated from previous IP surveys have shown a very high correlation to the current mineral resources (See Figure 3 and Table 1).
Only 2 km of the 20 km trend has been subject to any significant exploration, which led to the delineation of the Nash Creek Deposit. A 2011 IP survey has shown the technology to be the most effective method for targeting base metal sulphides at the Project (See Figure 3). All of the IP targets that have been drill tested intersected either base metal mineralization or alteration related to the Nash Creek Deposit.
The 2018 IP Survey, anticipated to be completed in 60 days, will span a linear 16.5 km northwest-southeast trend with line widths up to 4.7 km (See Figure 4). The depth penetration of the survey is estimated to be approximately 200 m. A follow-up drill program will be planned to test high-priority targets generated from the IP Survey.
The 2011 IP survey was integral to Callinex’s initial 2017 exploration campaign that led to a major expansion of the Nash Creek Deposit with an increase in Indicated zinc equivalent (“Zn Eq.”) pounds by 74% to 963 million pounds and an increase in Inferred Zn Eq. pounds by 385% to 407 million pounds (See News Release dated April 16, 2018).
The northern grid will encompass the Central Zone, located 1.6 km to the east of the Nash Creek Deposit, and consist of a pole-dipole survey with 100 m line spacing that totals 38 line-km. The southern grid will consist of a pole-dipole survey with 300 m line spacing that totals 137 line-km.
In 1987 the Department of Natural Resources and Environment (DNRE) conducted a study of the potential of the volcanic rocks and documented several high-grade outcrops and highly anomalous stream sediment samples on southern portion of Callinex’ land position. The study also notes ‘distinctive enrichments’ in mercury and antimony that may represent alteration haloes associated with ‘blind’ base metal deposits. Additionally, previous limited exploration by Falconbridge, Noranda and BHP has indicated potential to host additional base metals deposits.
Highlights of mineral occurrences include:
Big Hole Brook Prospect
The Big Hole Brook prospect consists of at least eight, quartz-ankerite veins that cut Devonian aged mafic volcanic rocks. Highlight of previous surface sampling results include:
Sample 4 – 8.1% Zn and 10.9% Pb
Sample 6 – 3.9% Zn and 1.0% Pb
Sample 102 – 9.0% Zn, 2.1% Pb, 0.2% Cu and 5 g/t Ag
Sample 193 – 5.2% Zn, 2.9% Pb, 0.2% Cu and 8 g/t Ag;
McNeil Brook Prospect
Noranda Exploration Ltd. staked the area based on anomalous stream sediments and the first trench completed encountered 2.7 m of 2.1% Cu, 0.6% Pb and 14.7 g/t Ag in 1968. Three holes were drilled in the immediate area and intersected a low-grade Cu-Zn-Pb-Ag zone with the best intersection including 6m of 1.5% Zn and 0.6% Pb with a higher-grade interval over 1.5 m of 3.1% Zn and 0.6% Pb. Subsequently, BHP revisited the area and collected eight samples from the historic Noranda trenches, six of which were assayed above 0.8% Cu including one sample that assayed at 5.5% Cu, 0.7% Zn, 0.6% Pb and 14.1 g/t Ag.
Approximately 2 km to the northeast, a vein containing massive galena and sphalerite that cuts mafic flows of Devonian volcanic rocks, was discovered in 1987 and reported to contain 3.5% Zn, 2.5% Pb and 1,500 g/t Ag. The rocks in this area are locally brecciated, which is important for permeability associated with VMS deposits. Additionally, there are pyroclastics related to a circular structure that could represent a volcanic crater or vent.
Falls Gulch Prospect
An area with highly anomalous Zn-Pb stream sediment samples ranging from 0.68% to 0.80% Zn, 0.10% to 0.12% Pb and 5-7 g/t Ag. A study completed by the DNRE concluded that in part that the rhyolites in the area contained a trace element (Hg-Sb-As) signature, which is similar to that of the Nash Creek Deposit.
Exploration in search of epithermal gold and silver deposits by Novagold in 1988 intersected elevated Zn-Pb zones over widths ranging from 5 to 10 m. The highest-grade intersection from the gold-focused drilling campaign was 2.2% Zn, 1.1% Pb and 17 g/t Ag over a 0.2 m interval in drill hole 03-88-1. A HLEM geophysical survey subsequently completed identified a conductive zone with potential for flat-lying mineralization to the northeast and was concluded by Novagold to represent a viable drill target for base metal mineralization.
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.
The Company also announces that it entered into an engagement agreement with Red Cloud Klondike Strike Inc. (“Red Cloud”) whereby Red Cloud has agreed to provide capital market advisory services for an initial term of four months. In providing these services, Red Cloud will receive $8,000 per month and has been granted 350,000 stock options at $0.25 per share for a period of three years from the date of grant.
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.