Callinex Mobilizes Drill Rigs to the Superjack Project in the Bathurst Mining District of New Brunswick

Highlights:

  • Drilling will test the down-dip extension of the A Zone, where one of the deepest holes previously intersected 10.3m of 8.2% Zn Eq. including 6.6m of 10.5% Zn Eq at a depth of 440m;

  • Callinex will also test a 1,300m long by 800m wide gravity inversion anomaly that indicates the A, B and C Zones connect at depth; and

  • 24 holes totaling 4,622m have been completed at the Nash Creek Project with initial results to be released shortly.

VANCOUVER, July 6, 2017 /CNW/ - Callinex Mines Inc. (the "Company" or "Callinex") (TSX-V: CNX; OTCQX: CLLXF) is pleased to announce that it has mobilized drill rigs to the Superjack Project as part of the 2017 Bathurst drilling campaign (the "Campaign") to complete up to 10,000m of drilling in the Bathurst Mining District of New Brunswick (See Figure 1). The Company will release drill results in the coming weeks from holes recently completed at the Nash Creek Project. A total of 24 holes and 4,622m was drilled at the Nash Creek Project during the first phase of the Campaign. Phase two of the Campaign that is currently underway at the Superjack Project is anticipated to include six holes totaling 3,250m (See Figure 2).

The primary exploration objective at Superjack is to test for high-grade extensions of the A Zone at depth (See Table 1). Two of the deepest holes previously drilled intersected thick intervals of high-grade mineralization at a vertical depth of approximately 440m (See Figure 3). Results from these holes include (See news release dated June 19, 2017):

  • NP11-54 intersected 10.3m of 8.2% Zn Eq. (4.0% Zn, 1.7% Pb, 0.4% Cu, 53.3 g/t Ag and 0.3 g/t Au) including a higher-grade interval over 6.6m of 10.5% Zn Eq. (5.3% Zn, 2.2% Pb, 0.4% Cu, 69.0 g/t Ag and 0.5 gt/ Au); and
  • NP11-39 intersected 11.2m of 7.6% Zn Eq. (5.0% Zn, 1.0% Pb, 0.2% Cu, 34.2 g/t Ag and 0.2 g/t Au) including a higher-grade interval over 2.6m of 17.6% Zn Eq. (15.0% Zn, 1.4% Pb, 0.3% Cu, 32.5 g/t Ag).

Borehole electromagnetic surveys completed by Callinex in 2016 on drill holes NP11-54 and SJ15-86 indicates the conductive mineralization has the potential to continue at depth.

In addition, one drill hole will test a 1,300m long by 800m wide gravity inversion anomaly that indicates the three known mineralized zones (A, B and C) connect at depth. This gravity inversion is also supported by historic drilling which intersected graphitic argillite on opposite sides of the A and B zones, in what appears to be the 'nose' of the syncline (See Figure 4).

One drill hole is planned for metallurgical purposes at the A zone to test for amenability to utilize dense media separation ("DMS"). Previous DMS testing at the Company's nearby Nash Creek Project indicates the average grade of mineralization can be enhanced by 80-90% (See News Release dated September 12, 2016).

The Company believes there is potential for the Nash Creek and Superjack projects to have a standalone processing facility or to significantly enhance the viability of a central toll milling operation. Callinex will seek to incorporate exploration results and metallurgical test results as part of the current Campaign into a Preliminary Economic Assessment which is anticipated to be completed in the first quarter of next year.

The Superjack Project benefits from having excellent infrastructure. The project is located 90 km by road from the Company's Nash Creek Project and is approximately 42 km by road to Trevali's Caribou Mine. Mineralization at the Superjack Project is hosted within a similar geological environment as the 'supergiant' Brunswick No. 12 Mine and nearby Caribou Mine. The Brunswick No. 12 Mine, located 15 km to the northeast of the Superjack property, was previously the largest underground mine in the world.

Jason Levers, P.Geo, a qualified person under National Instrument 43-101 and a Staff Geologist for Callinex, has reviewed and approved the technical information in this news release.

Table 1: 2016 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.
('000
pounds)

Nash
Creek

9,033,000

3.58

2.79

0.57

18.16

n/a

711,991

Total

9,033,000

3.58

2.79

0.57

18.16

n/a

711,991


Inferred Mineral Resources

Project

Tonnes

Zn Eq.
(%)

Zn
(%)

Pb
(%)

Ag
(g/t)

Cu
(%)

Contained
Zn Eq.
('000
pounds)

Superjack

3,211,000

4.63

3.01

0.78

29.46

0.27

327,618

Nash
Creek

1,113,000

3.58

2.83

0.57

15.51

n/a

87,883

Total

4,324,000

4.36

2.96

0.73

25.87

0.20

415,501










Notes:


1)

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.



2)

The Nash Creek mineral resource estimate includes the Hickey Zone and Hayes Zone.



3)

The Superjack mineral resource estimates includes the Nepisiguit A (the "A Zone") and Nepisiguit C Zones (the "C Zone").



4)

Zinc equivalent resources for the Nash Creek Project were calculated using metal prices of $0.90/lb for zinc, $0.87/lb for lead, and $17.73/oz for silver. Metallurgical recoveries have been assumed to be 90.5% for zinc, 81.5% for lead and 50% for silver. A cut-off grade of 2.0% Zn Eq. was utilized in the resource estimate.



5)

Zinc equivalent 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 resource estimate.

Figure 1: Map of the Bathurst Mining District of Northern New Brunswick

Figure 2: Plan Map of Superjack Proposed Drill Holes

Figure 3: Long Section of the Superjack A Zone

Figure 4: 3D View of the Superjack Gravity Inversion and Mineralized Zones

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 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.

SOURCE Callinex Mines Inc.

For further information: Callinex Mines Inc., Max Porterfield, President and Chief Executive Officer, Phone: (604) 605-0885, E-mail: info@callinex.ca

RELATED LINKS
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