VANCOUVER, Sept. 5, 2018 /CNW/ - Callinex Mines Inc. (the "Company" or "Callinex") (TSXV: CNX) (OTCQX: CLLXF) is
pleased to announce that it has a 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.
Figure 1: Map of the Bathurst Mining District of New Brunswick
Figure 2: Nash Creek Land Package
Figure 3: Nash Creek Deposit Correlation with 2011 IP Survey
Figure 4: 2018 IP Survey at Nash Creek Project
Table 1: 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.
(M lbs)
|
Nash Creek
|
13,592,000
|
3.21
|
2.68
|
0.58
|
17.8
|
n/a
|
963
|
Total
|
13,592,000
|
3.21
|
2.68
|
0.58
|
17.8
|
n/a
|
963
|
|
Inferred Mineral Resources
|
Project
|
Tonnes
|
Zn Eq.
(%)
|
Zn
(%)
|
Pb
(%)
|
Ag
(g/t)
|
Cu
(%)
|
Contained Zn Eq.
(M lbs)
|
Superjack
|
3,211,000
|
4.63
|
3.01
|
0.78
|
29.5
|
0.27
|
328
|
Nash Creek
|
5,929,000
|
3.11
|
2.68
|
0.47
|
13.9
|
n/a
|
407
|
Total
|
9,140,000
|
3.64
|
2.80
|
0.58
|
19.4
|
0.09
|
735
|
Notes:
- 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.
Engagement Agreement
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).
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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SOURCE Callinex Mines Inc.
View original content: http://www.newswire.ca/en/releases/archive/September2018/05/c1348.html