POINT LEAMINGTON PROJECT
- Large VMS deposit 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
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.
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.
Point Leamington Zinc-Gold VMS Project Area Map
Historical Mineral Resource Estimate and Sensitivity
The historical resource estimate is contained a Technical Report dated July 4, 2013 titled “Technical Report and Resource Estimate on the Point Leamington Property, Newfoundland, Canada” prepared by Tetra Tech Inc. (“Tetra Tech”) for Raystar Capital Inc. The historical mineral resource estimate, termed “inferred mineral resource”, which is a category set out in CIM, was based on previous drill hole assays, and calculated using ordinary kriging to estimate gold grades in 10 x 10 x 10 foot blocks. Accordingly, Callinex considers this historical estimate reliable as well as relevant as it represents key targets for exploration work by Callinex. Callinex has not done sufficient work to classify the historical estimate as a current mineral resource and Callinex is not treating this historical estimate as current mineral resources.
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.
Point Leamington VMS Deposit