Callinex Announces Significant Expansion to the Nash Creek Zinc Deposit and Plans to Complete PEA in Q1 2018

 

Highlights

• Ten drill holes confirm the expansion of the Nash Creek Deposit 500m to the north, an increased strike length of approximately 35%;
• Additional drilling planned in 2017 to further expand the Nash Creek Deposit and deliver an updated resource estimate in Q4; and
• Plans to complete a PEA in Q1 that is envisioned to include open pit mining at the Nash Creek and Superjack Projects with a standalone processing facility.

VANCOUVER, Sept. 5, 2017 /CNW/ - Callinex Mines Inc. (the "Company" or "Callinex") (TSX-V: CNX; OTCQX: CLLXF) is pleased to announce results from 14 drill holes, including ten that confirm the extension of the Nash Creek Deposit (the "Deposit") approximately 500m to the north at the Company's 100% owned Nash Creek Project located within the Bathurst Mining District of New Brunswick (See Figures 1 and 2). Results announced to date from Callinex's initial drilling campaign has successfully increased the strike length of the Deposit by approximately 35% as indicated by a total of 13 drill holes that all intersected significant mineralization (See Table 1 and Figures 3). The Deposit is open for expansion laterally to the north of drill hole NC-241 that intersected 10.6m grading 4.3% zinc equivalent ("Zn Eq.")(See Table 1 and Figure 3).

The southern 1.5km of the 2km long Nash Creek Deposit contains an indicated resource totaling 712 million pounds of Zn Eq. mineralization and an inferred resource totaling 88 million pounds of Zn Eq. mineralization (See Table 2). The Superjack Project located 100 km by highway to the southwest hosts an additional near-surface inferred resource totaling 328 million pounds of Zn Eq. mineralization in the Bathurst Mining Camp (See Table 2 and Figure 1).

Highlights from the northern extension of the Nash Creek Deposit include:

• Hole 229 intersected 11.7m of 4.0% Zn Eq. within a larger intersection over 18.1m grading 3.0% Zn Eq. at a starting depth of 18.0m;
• Hole 233 intersected 9.5m of 6.5% Zn Eq. within a larger intersection over 43.9m grading 3.1% Zn Eq. at a starting depth of 30.1m; and
• Hole 241 intersected 10.6m of 4.3% Zn Eq. with a larger intersection over 20.0m of 3.0% Zn Eq. at a starting depth of 64.5m.

Max Porterfield, President and CEO, stated "We are looking forward to aggressively delineating additional zinc-rich mineralization in the Bathurst Mining District, particularly in advance of an upcoming PEA that will evaluate the economic potential of these deposits. The Nash Creek and Superjack zinc projects, which are directly connected by highway with access to power, represent a unique opportunity to build shareholder value considering their size, location and exploration potential."

Callinex plans to extend its ongoing drilling campaign in the Bathurst Mining District throughout 2017 to further expand the Nash Creek Deposit and conduct additional infill drilling as required to complete an updated resource estimate on the Project. A subsequent announcement will be made regarding the specifics of this program along with exploration plans for the nearby Superjack Project, where initial assays are expected this month.

The Company has also been evaluating proposals with engineering firms to complete a Preliminary Economic Assessment ("PEA") that is envisioned to include open pit mining and a standalone processing facility at the Nash Creek project with the nearby Superjack Project serving as a source of open-pit mineralization. The PEA will be scheduled for completion in Q1, 2018 and additional metallurgical testing at the Superjack Project is already underway. Additional updates will be provided once an engineering firm has been awarded the contract.

The Nash Creek Project is ideally situated approximately 1 km south of Provincial Highway 11 and has access to power supplied by a nearby 450 MW power station (See Figure 1 and 2). Additionally, the Project is located 100 km by road to Trevali's Caribou Mine and 25 km by road to Glencore's Belledune lead/silver smelter, which has direct railway access to Glencore's Canadian zinc smelting and refining operations.

The Nash Creek Project was recently expanded to include several high-grade mineral occurrences up to 19% Zn+Pb to the south of the Nash Creek Deposit and within a similar geological setting. The project area now covers over 40 sq. km within an underexplored volcanogenic massive sulphide belt.

Additionally, the Company has granted options to purchase 1,300,000 common shares to a consulting geologist and key member of the Company's technical team. The options are exercisable at a price of $0.33 per share for a period of five years from the grant date and are subject to certain vesting provisions.

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.

Notes^(1)(2)(3):

1. Zinc equivalent grades are based on the following metal prices: zinc US$2,525/t (1.15/lb), lead US$2,205/t (1.00/lb), and silver US$18.0 per oz. Metal recoveries of 100% were applied in the metal equivalent calculations. The zinc equivalent calculation is as follows: ZnEq = 100 ((Ag Price in (g) x Ag Grade) + (Pb Price*2204.6 x Pb Grade(%)/100) + (Zn Price*2204.6 x (Zn Grade(%)/100))/Zn Price*2204.6).
2. The numbers may not add due to rounding.
3. True widths are not currently known.

Table 2: 2016 Mineral Resource Estimates for the Nash Creek and Superjack Projects

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.

Table 3: NQ Diamond Drill Hole Data

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

Figure 2: Plan Map of the Nash Creek Deposit

Figure 3: Plan Map of the Nash Creek Deposit Expansion Holes

Figure 4: Long Section View of the Nash Creek Deposit

QA/QC

Individual samples were labeled, placed in plastic sample bags, and sealed. Groups of samples were then placed in security sealed bags and shipped directly to SGS Canada Inc in Vancouver, B.C. for analysis. Samples were crushed to 75% passing 2mm and pulverized to 85% passing 75 microns in order produce a 250g split. All copper, zinc and silver assays were determined by Aqua Regia digestion with a combination of ICP-MS and ICP-AES finish, with overlimits (>100 ppm Ag, >10,000 ppm Zn, and >10,000 ppm Cu) completed by fire assay with gravimetric finish (Ag) or Aqua Regia digestion with ICP-AES finish (copper and zinc). All samples were analyzed for gold by Fire Assay of a 30 gram charge by AAS, or if over 10.0 g/t were re-assayed and completed with a gravimetric finish. QA/QC included the insertion and continual monitoring of numerous standards and blanks into the sample stream at a frequency of 1 per 10 samples, and the collection of duplicate samples at random intervals within each batch at a frequency of 1 per 10 samples.

SGS Canada Inc carried out some or all of following methods to obtain the assay results for Callinex: G_LOG02 Pre-preparation processing, G_WGH79 Weighing and reporting, G_PRP89 Weigh, dry, crush, split, pulverize, G_SCRQC QC for crush and pulverize stages, G_CRU22 Crush >3kg, G_DRY11 Dry samples, GE_FAA313 @Au, FAS, AAS, 30g-5ml (Final mode), GE-IC14A Aqua Regia digestion/ICP-AES finish, GE_IMS14B Aqua Regia digestion/ICP-MS package, GE_IMS14 Aqua Regia digestion, GO_FAG303 30g, Fire assay, gravimetric finish (Au)(Final Mode), GO_FAG313 30g, Fire assay, gravimetric finish (Ag)(Final Mode), G0_ICP13B Ore Grade, Aqua Regia digest/ICP-AES. Ag >10ppm was analyzed by ICP and GO_XRF77B-pyrosulfate fusion.

About Callinex Mines Inc.

Callinex Mines Inc. (TSX-V: 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. Callinex is actively drilling these projects in support of an updated resource estimate and maiden PEA planned for Q1 2018.

Additionally, Callinex is actively exploring its projects in the Flin Flon Mining District of Manitoba which notably includes its Pine Bay and Big Island Projects. These projects are located within 25 km to an operating processing facility that requires additional ore within four years.

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.

SOURCECallinex Mines Inc.

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