Callinex Mines Inc.
TSX VENTURE : CNX
OTCQX : CLLXF

Callinex Mines Inc.

September 12, 2016 08:30 ET

Callinex Increases Grade and Total Tonnes of Indicated Mineral Resources at Nash Creek Project

- Updated mineral resource estimate for the Nash Creek Project results in Indicated mineral resources of 9.0 Mt grading 3.58% Zn Eq. containing 712 Mlb of Zn Eq. along with 1.1 Mt of Inferred resources grading 3.58% Zn Eq. containing 88 Mlb of Zn Eq.;

- Total tonnes of Indicated mineral resources, which cover the majority of mineralization, Increased by 16% while the grade increased by 6%; and

- Only two of five known mineralized areas were included within the resource estimate.

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 12, 2016) - Callinex Mines Inc. (the "Company" or "Callinex") (TSX VENTURE:CNX)(OTCQX:CLLXF) is pleased to announce an updated mineral resource estimate on its Nash Creek zinc project (the "Project"), located in the prolific Bathurst Mining Camp ("BMC") of New Brunswick, Canada. Refinement of the previous estimate indicates the Project hosts a larger and higher grade deposit than previously disclosed on May 18, 2016. The Indicated mineral resource totals 9.0 Mt at an average grade of 3.58% zinc equivalent ("Zn Eq.") containing 711,991,000 Zn Eq. lbs and an Inferred mineral resource totaling 1.1 Mt at an average grade of 3.58% Zn Eq. containing 87,883,000 Zn Eq. lbs (See Table 2).

The current mineral resource estimate is based on two of five known mineralized areas, the Hickey and Hayes deposits, where 220 holes totaling 26,835 meters have been drilled by previous operators at the Project since 2004 (See Figure 1). The mineral resources in the Hayes Zone are located within 250 meters from surface and in the Hickey Zone within 110 meters as numerous stacked and sub-horizontal, to gently inclined, tabular bodies. Additional mineralized areas adjacent to the north and east of these deposits are not included within the current resource estimate. Callinex's technical team has also identified exploration potential to the south where the Hayes Zone may be open for expansion.

President and CEO, Max Porterfield, stated, "This latest accomplishment significantly enhances the potential viability of the Nash Creek Project. We believe this project has significant merit given the size of the near-surface resource, proximity to mining infrastructure and positive metallurgical results which have indicated that the average grade of material can be upgraded through a Dense Media Separation process." Mr. Porterfield continued, "Projects such as Nash Creek, with high leverage to zinc prices within established mining jurisdictions, will benefit significantly in a rising zinc price environment."

The current estimate incorporates more than 4,000 specific gravity measurements and includes detailed modelling of mineralized zones not included within the previous resource estimate. As a result, Indicated mineral resources increased in terms of total tonnes by 16% and increased in grade by 6%. Inferred mineral resources, which consist of only a small portion of the mineral resources, declined in terms of total tonnes by 8% but increased in grade by 14%. Mineralized boundaries were set at 2% Zn Eq. and designed to include minimal dilution.

The Nash Creek Project is located within the Bathurst Mining Camp ("BMC") and benefits from excellent infrastructure including a power-line, railway and major highway transecting or adjacent to the Project. Additionally, two processing facilities, a seaport and a lead smelter are located within 100 kilometers by road. The BMC has been one of the most productive and economically significant mining districts in the world. In total, more than 130 million tonnes of ore have been extracted from ten mines, nearly all of which has been mined since the 1950s.

A review of historical drilling concurrent with several geophysical anomalies suggests additional exploration has potential to significantly increase the current mineral resource estimate. In particular, the Central Zone which, lies 1.6 kilometers to the east of the Hayes and Hickey Zones, was discovered by drilling in 2005 and is coincident with a geochemical and airborne EM anomaly. There is a 1,000 meter wide gap which is mostly untested by historic drilling between the Central Zone and the existing mineral resources (See Figure 1).

The mineral resource estimate utilized metallurgical recoveries of 90.5% for zinc, 81.5% for lead and 50% for silver based on preliminary flotation studies. In 2011, four composite samples were submitted to RPC to evaluate potential for a pre-concentration process known as Dense Media Separation ("DMS"). DMS is a well-established process designed to concentrate sulphide mineralization and reject fine alteration clays thereby increasing the average head grade of material for mill processing.

The DMS results demonstrated significant upgrading potential ranging from a 40% to 173% increase in the average head grade of material with only an indicated loss of less than 10% of the contained sulphides (See Table 1).

Table 1: Initial results from preliminary pre-concentration DMS study

Original Sample Grade Resultant Mill-Feed Grade Upgrade Factor
Samples Zinc
(%)
Lead
(%)
Silver
(g/t)
Zinc
(%)
Lead
(%)
Silver
(g/t)
(%)
3 6.6 1.2 11 9.1 1.7 15 140
4 4.3 0.9 24 12 2.3 63 273
5 4.9 0.8 13 7.3 1.2 19 152
6 1.5 0.2 13 2.5 0.4 24 175

Updated Mineral Resource Estimate

The mineral resource estimate was prepared by Tetra Tech EBA Inc., with an effective date of August 23, 2016. A NI 43-101 technical report supporting the updated estimate will be filed by the Company within 45 days.

Table 2: 2016 Nash Creek Mineral Resource Estimate

Resource Classification Tonnes Zn. Eq.
(%)
Zn
(%)
Pb
(%)
Ag
(g/t)
Hickey Deposit
Indicated 3,174,000 3.09 2.38 0.53 15.8
Inferred 177,000 3.09 2.24 0.68 16.7
Hayes Deposit
Indicated 5,859,000 3.84 3.01 0.59 19.4
Inferred 936,000 3.67 2.95 0.55 15.3
Total
Indicated 9,033,000 3.58 2.79 0.57 18.16
Inferred 1,113,000 3.58 2.83 0.57 15.51

Notes:

  1. Estimation and reporting of the mineral resource estimate adheres to NI 43-101 guidelines and CIM Definition Standards.

  2. Zn. Eq. is calculated using three-year trailing metal prices of $0.90/lb Zn, $0.87/lb Pb and $17.73/oz Ag, and recoveries of 90.5% Zn, 81.5% Pb and 50% Ag based on preliminary results from metallurgical testing.

  3. Mineralization was constrained using a 2.00% Zn. Eq. wireframe, and segmented in 16 domains in the Hickey Zone, and 5 domains in the Hayes Zone. The cut-off grade for the mineral resource estimate is 2.00% Zn. Eq. which is considered suitable for reporting mineral resources for a potential open pit project and depth of mineralization. The estimate is not constrained by a conceptual pit.

  4. Densities vary by grade and rock type with an average specific gravity of 2.84 for the Hayes Deposit and of 2.82 for the Hickey Deposit.

  5. The mineral resource estimate was calculated using an ordinary kriging (OK) methodology. The block model was constructed with block dimensions of 5 x 5 x 5 meters.

  6. Mineral resources that are not mineral reserves and have not been demonstrated to have economic viability for extraction. 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.It is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.

  7. Numbers may not add exactly due to rounding.

The Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects for this news release is James Barr, P.Geo of Tetra Tech EBA Inc., who is independent of Callinex and has approved its contents.

Cick here to view Figure 1: Nash Creek Plan Map with Drill Collars: http://media3.marketwire.com/docs/Figure1NashCreek.pdf

About Callinex Mines Inc.

Callinex Mines Inc. is focused on discovering and developing zinc and copper rich mines within prolific Canadian VMS mining jurisdictions. The Company is actively exploring its Pine Bay Project, located in the Flin Flon mining district of Manitoba, which hosts significant historic VMS deposits that are within close proximity to a processing facility. The larger project portfolio hosts three significant zinc rich mineral resources including the Point Leamington, Nash Creek and Superjack Projects located in Eastern Canada.

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 contemplated work programs and the timing and amount of expenditures. Callinex does not assume the obligation to update any forward-looking statement.

Contact Information

  • Callinex Mines Inc.
    Max Porterfield
    President and Chief Executive Officer
    (604) 605-0885
    info@callinex.ca