Callinex Reports Final Drill Results to be Included in Upcoming PEA

Highlights

  • Final drill results received where 13 of 15 reported drill holes intersected significant zinc mineralization;
  • Drill hole NC17-261 intersected 23.0m of 4.2% Zn Eq. from a starting depth of 11.0m including 8.3m of 6.0% Zn Eq.; and
  • Callinex expects to release an updated NI 43-101 Mineral Resource Estimate within 15 days and PEA in late-May.

Vancouver, British ColumbiaApril 4, 2018Callinex Mines Inc. (the “Company” or “Callinex”) (TSX-V: CNX; OTCQX: CLLXF)  is pleased to announce final drill results where 13 of 15 reported drill holes intersected significant zinc mineralization (“Zn Eq.”) at the Company’s 100% owned Nash Creek Project located within the Bathurst Mining District of New Brunswick (See Figures 1 and 2). The drill holes were completed to test for extensions of mineralization along the margins of the Nash Creek Deposit while also confirming historic drill holes completed at the Hickey Zone during the 1970s.

Significant results include:

  • Drill hole NC17-261 intersected 23.0m of 4.2% Zn Eq. from a starting depth of 11.0m including 8.3m of 6.0% Zn Eq.;
  • Drill hole NC17-273 intersected 10.0m of 2.6% Zn Eq. from a starting depth of 29.0m including 5.0m of 3.8% Zn Eq.; and
  • Drill hole NC17-279 intersected 23.0m of 2.6% Zn Eq. from a starting depth of 62.0m including 8.0m 3.7% Zn Eq. and a separate intersection of 8.0m of 3.7% Zn Eq. from a starting depth 106.0m.

*For complete drill results along with zinc equivalent calculations refer to Table 1.

With final results now received, Callinex anticipates announcing an updated NI 43-101 mineral resource estimate within 15 days, subject the completion of the resource model by Tetra Tech Inc. The updated mineral resource estimate will include an additional 59 drill holes completed in 2017 that materially expanded the size of the Nash Creek Deposit to the north, where mineralization remains open for expansion.

The 2016 mineral resource estimate for the Nash Creek Deposit estimates a near surface indicated resource totaling 712 million pounds Zn Eq. and inferred resource totaling 88 million pounds of Zn Eq. (See Table 2).  The Company’s Superjack Project hosts an additional near-surface inferred resource totaling 328 million pounds of Zn Eq. in the Bathurst Mining District (See Table 2).

Callinex also anticipates announcing results for its maiden Preliminary Economic Assessment (“PEA”) on the Nash Creek and Superjack Project in late-May. In September, 2017 the Company engaged P&E Mining Consultants Inc. and has since completed significant work towards completion of the PEA.

Following the completion of the PEA, the Company will commence an extensive 2018 exploration program consisting of diamond drilling, ground geophysics, soil sampling and prospecting to discover additional deposits within the 20 km long land package.

The PEA is expected to have a base-case scenario of a standalone open pit operation with potential to process between 15 to 20 million tonnes of material using dense media separation (“DMS”) as a pre-concentration process before the material would be delivered to an on-site conventional flotation mill. The Company is anticipating a head grade of approximately 5 to 7% combined zinc-lead when utilizing DMS.

The Project benefits from tremendous infrastructure within close proximity. The Nash Creek Deposit is located approximately 1 km from Provincial Highway 11, high-voltage transmission lines and only 25 km by road to Glencore’s Brunswick Smelter, deep water port, railway and power plant near the town of Belledune (See Figures 1 and 2).

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 Brunswick

Figure 2: Plan Map of the Nash Creek Deposit

Table 1: Nash Creek Drill Results

Nash Creek Drill Results(1)(2)(3)
Drill Hole From

(m)

To

(m)

Interval

(m)

Zn Eq.

(%)

Zn

(%)

Pb

(%)

Ag

(g/t)

NC17-252 81.00 85.00 4.00 4.55% 3.28% 1.01% 16.88
including 81.00 82.00 1.00 12.24% 8.57% 2.99% 46.30
NC17-253 15.00 19.00 4.00 3.76% 3.18% 0.12% 20.85
NC17-253 36.00 40.00 4.00 3.18% 2.63% 0.32% 12.27
NC17-256 8.00 13.00 5.00 2.57% 2.06% 0.31% 10.46
NC17-256 24.00 32.00 8.00 3.37% 2.48% 0.43% 22.25
NC17-258 12.00 16.00 4.00 3.50% 2.28% 0.94% 17.33
NC17-261 11.00 34.00 23.00 4.21% 2.80% 0.92% 26.75
including 16.70 25.00 8.30 5.97% 4.15% 1.17% 34.77
NC17-262 71.00 77.00 6.00 4.88% 4.29% 0.40% 10.26
including 72.00 76.00 4.00 6.17% 5.47% 0.50% 11.78
NC17-264 16.00 30.00 14.00 2.17% 1.58% 0.32% 13.65
including 21.00 26.00 5.00 3.99% 3.11% 0.45% 21.08
and 36.00 42.00 6.00 2.24% 1.55% 0.22% 21.72
and 48.00 51.00 3.00 1.97% 1.41% 0.16% 18.33
and 60.00 64.00 4.00 1.55% 0.29% 1.03% 15.43
and 138.00 140.00 2.00 2.78% 1.73% 0.90% 11.24
and 163.00 170.00 7.00 1.72% 1.09% 0.56% 6.04
NC17-265 7.00 19.15 12.15 2.05% 1.20% 0.59% 14.75
including 7.00 13.00 6.00 2.89% 1.58% 0.96% 20.30
including 9.00 12.00 3.00 3.32% 1.59% 1.36% 23.67
NC17-267 16.90 30.30 13.40 2.28% 1.69% 0.32% 13.77
including 16.90 24.60 7.70 2.95% 2.22% 0.39% 16.91
and 28.50 30.30 1.80 3.70% 2.77% 0.55% 19.47
NC17-270 50.25 51.60 1.35 2.40% 1.95% 0.19% 12.45
NC17-272 21.00 24.00 3.00 1.45% 1.15% 0.18% 6.10
and 31.00 33.00 2.00 1.67% 1.46% 0.20% 1.44
and 39.50 41.00 1.50 2.47% 1.99% 0.31% 9.29
and 58.00 60.00 2.00 1.70% 0.27% 1.38% 9.85
NC17-273 29.00 39.00 10.00 2.55% 1.64% 0.50% 20.87
including 34.00 39.00 5.00 3.81% 2.47% 0.75% 29.98
NC17-279 62.00 114.00 52.00 1.90% 1.64% 0.20% 3.67
including 62.00 85.00 23.00 2.60% 2.30% 0.24% 3.56
including 62.00 70.00 8.00 3.70% 3.18% 0.35% 9.43
and 106.00 114.00 8.00 3.68% 2.98% 0.46% 12.82

Notes(1)(2)(3)(4):

  1. Zinc equivalent grades are based on the following metal prices: zinc US$2,525/t (1.15/lb), lead US$2,205/t (1.00/lb), 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 ((Ag Price in (g) x Ag Grade) + (Pb Price*2204.6 x Pb Grade(%)/100) + (Zn Price*2204.6 x (Zn Grade(%)/100))/Zn Price*2204.6).
  2. The numbers may not add due to rounding.
  3. All intervals are reported as core width drilled thicknesses; true thicknesses are estimated to be 80-100% of drilled thicknesses.
  4. Drill holes NC17-268 and NC17-275 did not intersect any significant mineralization.

Table 2: 2016 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.

(‘000 pounds)

Nash Creek 9,033,000 3.58 2.79 0.57 18.16 n/a 711,991
Total 9,033,000 3.58 2.79 0.57 18.16 n/a 711,991
Inferred Mineral Resources
Project Tonnes Zn Eq. (%) Zn (%) Pb (%) Ag

(g/t)

Cu

(%)

Contained Zn Eq.

(‘000 pounds)

Superjack 3,211,000 4.63 3.01 0.78 29.46 0.27 327,618
Nash Creek 1,113,000 3.58 2.83 0.57 15.51 n/a 87,883
Total 4,324,000 4.36 2.96 0.73 25.87 0.20 415,501

Notes:

  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 (the “A Zone”) and Nepisiguit C Zones (the “C Zone”).
  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.

QA/QC

Individual samples were labeled, placed in plastic sample bags, and sealed. Groups of samples were then placed in security sealed bags and shipped directly to SGS Canada Inc in Garson, Ontario for preparation then onto Burnaby, BC for analysis. Samples were crushed to 75% passing 2mm and pulverized to 85% passing 75 microns in order produce a 250g split. All copper, zinc and silver assays were determined by Aqua Regia digestion with a combination of ICP-MS and ICP-AES finish, with overlimits (>100 ppm Ag, >10,000 ppm Zn, and >10,000 ppm Cu) completed by fire assay with gravimetric finish (Ag) or Aqua Regia digestion with ICP-AES finish (copper and zinc). All samples were analyzed for gold by Fire Assay of a 30 gram charge by AAS, or if over 10.0 g/t were re-assayed and completed with a gravimetric finish. QA/QC included the insertion and continual monitoring of numerous standards and blanks into the sample stream at a frequency of 1 per 10 samples, and the collection of duplicate samples at random intervals within each batch at a frequency of 1 per 10 samples.

SGS Canada Inc carried out some or all of following methods to obtain the assay results for Callinex: G_LOG02 Pre-preparation processing, G_WGH79 Weighing and reporting, G_PRP89 Weigh, dry, crush, split, pulverize, G_SCRQC QC for crush and pulverize stages, G_CRU22 Crush >3kg, G_DRY11 Dry samples, GE_FAA313 @Au, FAS, AAS, 30g-5ml (Final mode), GE-IC14A Aqua Regia digestion/ICP-AES finish, GE_IMS14B Aqua Regia digestion/ICP-MS package, GE_IMS14 Aqua Regia digestion, GO_FAG303 30g, Fire assay, gravimetric finish (Au)(Final Mode), GO_FAG313 30g, Fire assay, gravimetric finish (Ag)(Final Mode), G0_ICP13B Ore Grade, Aqua Regia digest/ICP-AES. Ag >10ppm was analyzed by ICP and GO_XRF77B-pyrosulfate fusion.

About Callinex Mines Inc.

Callinex Mines Inc. (TSX-V: 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. Callinex is actively exploring these projects in support of an updated resource estimate and maiden PEA planned for Q2 2018.

Additionally, Callinex is exploring its projects in the Flin Flon Mining District of Manitoba which notably include the Pine Bay and Big Island Projects. These projects are located within 25 km to an operating processing facility that requires additional ore within four years.

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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