POINT LEAMINGTON PROJECT
- Large VMS deposit that hosts an Inferred resource of 14.1 Mt grading 6.2% Zn Eq. containing 1.9 billion pounds of Zn Eq., including 484,000 oz Au at 1.1 g/t Au, located in Newfoundland, Canada
- The last exploration drilling campaign expanded a high-grade zinc-gold zone and intersected 4.67m of 15.05% Zn, 4.37 g/t Au, 57.88 g/t Ag and 0.36% Cu down-plunge from the mineral resource.
- Mineral resource starts at surface and extends to a vertical depth of 350m, where high-grade mineralization is open for expansion
- The project is at an advanced permitting stage and 100% of the mineral resource is contained within a mining license
Callinex owns a 100% interest in Mining Lease 136 subject to a 3.5% NSR, of which 1.5% can be re-purchased for $2.0 million. The project is accessible by road and trails approximately 37km from the city of Grand-Falls Windsor and 20km from the provincial power grid.
The Point Leamington deposit was discovered by Noranda during the 1970s and was advanced as a potential open pit operation. In 1997 Noranda sold the project to Rubicon Minerals who subsequently entered in to an option agreement with BHP Billiton in 1999 to earn up to a 70% interest in the project in exchange for financing the project to commercial production.
The project has not been subjected to any drilling programs since 2004 despite favorable results as the project was largely held within a small junior focused on other jurisdictions. Recent metallurgical testing completed by Newmarket Gold Inc. (TSX: NMI) in 2014 indicated potential to significantly increase gold recoveries from levels previously contemplated by Noranda. Additional metallurgical and preliminary engineering studies will be necessary to further evaluate the economic potential of the deposit.
On July 4, 2013, a Technical Report titled “Technical Report and Resource Estimate on the Point Leamington Property, Newfoundland, Canada” was prepared by Tetra Tech Inc. (“Tetra Tech”) for Raystar Capital Inc. / Newmarket and estimated an Inferred mineral resource of 14.1 Mt grading 6.2% Zinc Eq. including 1.86% zinc, 1.07 g/t gold, 17.12 g/t silver and 0.42% copper (See Table 1). The existing mineral resource estimate contains 577 million pounds of zinc, 484,000 ounces of gold, 7,755,000 ounces of silver and 130 million pounds of copper.
A high-grade portion of the deposit is estimated to contain 2.0 million tonnes grading 9.6% Zn Eq. (3.02% Zn, 1.95 g/t Au, 23.09 g/t Ag, and 0.51% Cu) and is open at a vertical depth of 350m, with several high-grade intercepts down-plunge from the mineral resource (See Table 1 and Figure 2). Drill hole PL04-077, the most recent hole drilled, expanded the high-grade zone and intersected 4.67m grading 15.05% Zn, 4.37 g/t Au, 57.88 g/t Ag and 0.36% Cu. Additionally, hole PL-051 intersected 5.65m grading 9.81% Zn, 1.92 g/t Au, 65.58 g/t Ag and 0.55% Cu and hole PL-056 intersected 4.51m 8.84% Zn, 2.27 g/t Au, 81.66 g/t Ag and 0.61% Cu. The mineralization intersected in these holes is down-plunge from the 2013 resource estimate and open for expansion.
The Project also has potential to host additional deposits along strike from the Point Leamington Deposit. Drill hole PL04-073, drilled approximately 275m along strike from the deposit during the most recent exploration campaign, intersected 3.9m grading 5.18% Zn, 1.65 g/t Au, 33.1 g/t Ag and 0.27% Cu (See Figure 2). This area is largely untested at depth and additional drilling may be completed in the future.
Table 1: 2013 Inferred Mineral Resource Estimate and Sensitivity
|Cutoff (Zn Eq%)||Tonnes||Zn Eq (%)||Zn (%)||Au (g/t)||Ag (g/t)||Cu (%)||Pb (%)|
- CIM definition standards were followed for the resource estimate.
- The 2013 resource models used Inverse Distance grade estimation within a three-dimensional block model with mineralized zones defined by wireframed solids.
- A base cutoff grade of 4.0 % ZnEq was used for reporting resources.
- Densities varied by rock type and ranged from 2.6 for the volcanics to 3.7 for the massive sulphides.
- Numbers may not add exactly due to rounding.
- Zinc Equivalent (ZnEq) calculated using $0.94/lb for Zinc, $1.00/lb for Lead, $3.69/lb for Copper, $1380 /oz Au for gold and $22.73/oz Ag for silver and metallurgical recoveries and net smelter returns are assumed to be 100%.
- Mineral Resources that are not mineral reserves do not have economic viability.
- The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.
Tetra Tech Inc. (“Tetra Tech”) of Sudbury, Ontario, Canada has completed the Point Leamington Inferred Resource Estimate at a cut-off grade of 4.0% ZnEq in 2013, The Resource Estimate was prepared by independent qualified person Todd McCracken, P. Geo. of Tetra Tech. The mineral resource estimate is based on the combination of geological modeling, geostatistics and conventional block modeling using the Ordinary Krig methodology of grade interpolation. The mineral resources were estimated using a block model with parent blocks of 10m X 10m X 10m. The geological model including mineralized intercepts was generated by Tetra Tech.
The technical content of this page has been reviewed and approved by James Pickell, P.Geo, a Consultant to the Callinex, and a Qualified Person as defined by National Instrument 43-101. Mr. Pickell has also reviewed the Technical Report and Resource Estimate prepared by Tetra Tech.
Figure 1: Point Leamington Zinc-Gold VMS Project Area Map
Figure 2: Point Leamington VMS Deposit