Vancouver, British Columbia – August 9, 2018 – Callinex Mines Inc. (the “Company” or “Callinex”) (TSXV: CNX) (OTCQX: CLLXF) is pleased to provide an update on its 2018 drilling campaign (the “Campaign”) 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). To date, nine drill holes have been completed to test targets located adjacent to the current mineral resources (See Figure 3 and Table 1). It is anticipated that an additional 13 drill holes will be completed as part of the first phase of the 2018 Campaign. The first batch of samples will be shipped for analytical testing within the next week.
Additionally, the Company plans to commence a district-scale, 250-line km induced polarization survey (“IP Survey”) to identify potential for additional deposits that are located along a 20 km trend with previously identified high-grade mineral occurrences (See News Release dated August 21, 2017). The second phase of the 2018 drilling campaign will follow up on results from the ongoing Campaign and new targets derived from the 2018 IP Survey that is anticipated to commence shortly.
A 2011 IP survey completed over the Nash Creek Deposit has proven to be the most effective method for targeting base metal sulphides. The 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). All of the IP targets that have been drill tested intersected either base metal mineralization or alteration associated with the Nash Creek Deposit.
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 (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 Consulting Geologist for Callinex, has reviewed and approved the technical information in this news release.
Figure 3: Plan Map of the Nash Creek Deposit
Table 1: Mineral Resource Estimates for the Nash Creek and Superjack Projects
|Indicated Mineral Resources|
|Contained Zn Eq.|
|Inferred Mineral Resources|
|Project||Tonnes||Zn Eq. (%)||Zn (%)||Pb (%)||Ag|
|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 C$230 million (C$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.