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.