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Callinex Mines Inc
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Shares Issued 59,193,410
Close 2018-01-22 C$ 0.435
Market Cap C$ 25,749,133
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Callinex drills 53.8 m of 2.8% ZnEq at Nash Creek

2018-01-22 08:14 ET - News Release

Mr. Max Porterfield reports

CALLINEX INTERSECTS EXTENSIVE NEAR-SURFACE ZINC MINERALIZATION AT NASH CREEK IN NEW BRUNSWICK

Callinex Mines Inc. has released assay results from four drill holes as part of the recently completed 35-drill-hole campaign at the company's 100-per-cent-owned Nash Creek deposit located within the Bathurst mining district of New Brunswick. Three of these four drill holes expanded the Nash Creek deposit to the northwest of recently reported drill holes NC17-248, NC17-255, NC17-257 and NC17-269 (see news release dated Jan. 18, 2018). Drill hole NC-249, the northernmost hole, intersected extensive mineralization including 53.8 metres of 2.8 per cent zinc equivalent starting at a depth of 18.5 m including two separate higher-grade intervals of 11.5 m of 5.1 per cent ZnEq and 10.7 m of 4.0 per cent ZnEq within 60 m of surface. These drill holes have expanded the lateral extent of the northernmost area of the Nash Creek deposit up to 260 m.

Highlights from these drill holes include:

  • Hole NC17-246 intersected 12.0 m of 3.9 per cent ZnEq from a starting depth of 44.1 m including 8.4 m of 5.3 per cent ZnEq along with a separate intersection of 3.3 m grading 4.4 per cent ZnEq at a starting depth of 84.7 m;
  • Hole NC17-247 intersected 7.0 m of 1.9 per cent ZnEq at a starting depth of 82.0 m including 1.0 m of 6.1 per cent ZnEq;
  • Hole NC17-249 intersected 53.8 m of 2.8 per cent ZnEq including 11.5 m of 5.1 per cent ZnEq at a starting depth of 18.5 m including 11.5 m of 5.1 per cent ZnEq and 10.7 m of 4.0 per cent ZnEq.

Max Porterfield, president and chief executive officer, stated: "The impressive width of mineralization intersected indicates potential to build additional tonnage in the northern expansion of the Nash Creek deposit. Furthermore, the depth of this mineralization combined with higher-grade zones could add significant value to the upcoming PEA."

Callinex plans to delineate the extent of the Nash Creek deposit along strike in both directions that is coincident with a three-kilometre-long zinc-lead soil anomaly, of which only the southern two kilometres have been drilled. The company also plans to test satellite zones that are open for expansion and commence a district-scale exploration program along the 20 km long land package.

The Nash Creek deposit hosts a near-surface indicated resource totalling 712 million pounds ZnEq and inferred resource totalling 88 million pounds of ZnEq. The company's Superjack hosts an additional near-surface inferred resource totalling 328 million pounds of ZnEq in the Bathurst mining district.

The project benefits from tremendous infrastructure within close proximity. The Nash Creek deposit is located approximately one km from Provincial Highway 11, high-voltage transmission lines and only 25 km by road to Glencore's Brunswick smelter, deepwater port, railway and power plant near the town of Belledune. Callinex is currently working toward publishing an updated resource estimate and maiden preliminary economic assessment (PEA).

The PEA is expected to have a base-case scenario of a stand-alone open-pit operation with potential to process between 15 million and 20 million tonnes of material using dense media separation (DMS) as a preconcentration process before the material would be delivered to a conventional flotation mill.

Metallurgical testwork indicates the Nash Creek deposit is amenable to conventional flotation techniques with recoveries of 91 per cent for zinc and 82 per cent for lead based on a coarse grind size. Additional tests also indicate that the current resource grade could be upgraded with the use of dense media separation to a head grade of 5 to 7 per cent ZnEq (see news release dated Sept. 12, 2016).

Jason Levers, PGeo, a qualified person under National Instrument 43-101 and project geologist for Callinex, has reviewed and approved the technical information in this news release.

  
                       NASH CREEK DRILL RESULTS (1) (2) (3)  
                                           
Drill           From        To     Interval       ZnEq          Zn       Pb      Ag
hole             (m)       (m)          (m)        (%)         (%)      (%)   (g/t)

NC17-246        44.1      56.0         12.0       3.85        3.09     0.41   17.36
including       47.1      55.6          8.4       5.25        4.23     0.56   22.96
and             84.7      88.0          3.3       4.35        3.22     0.58   27.33
and            109.0     110.0          1.0       3.03        0.84     2.17   12.65
and            133.9     135.4          1.5       3.86        1.50     2.52    7.08
NC17-247        82.0      89.0          7.0       1.90        1.67     0.26    0.14
including       83.0      84.0          1.0       6.11        4.94     1.34    0.09
and            108.8     110.3          1.5       1.90        1.77     0.15    0.07
NC17-249        10.5     113.0        102.5       1.94        1.67     0.26    1.76
including       18.5      72.3         53.8       2.78        2.44     0.35    1.51
including       22.0      33.5         11.5       5.08        4.62     0.45    2.91
and             45.3      56.0         10.7       4.01        3.55     0.51    0.37
NC17-250                                                     no significant results


Notes
(1) Zinc equivalent grades are based on the following metal prices: zinc $2,525 
(U.S.)/t ($1.15/pound), lead $2,205 (U.S.)/t ($1.00/pound) and silver $18.0 (U.S.) 
per ounce. Metal recoveries of 100 per cent were applied in the metal equivalent
calculations. The zinc equivalent calculation is as follows: ZnEq equals 100 ((Ag 
price in (g) times silver grade) plus (Pb price times 2,204.6 times Pb grade (per 
cent)/100) plus (Zn price times 2,204.6 times (Zn grade (per cent)/100))/Zn price 
times 2,204.6).
(2) The numbers may not add due to rounding.
(3) All intervals are reported as core width drilled thicknesses; true thicknesses 
are estimated to be 80 to 100 per cent of drilled thicknesses. 


         2016 MINERAL RESOURCE ESTIMATES FOR THE NASH CREEK AND SUPERJACK PROJECTS
    
                                        Indicated mineral resources   
                                                                  
Project         Tonnes    ZnEq (%)   Zn (%)  Pb (%)  Ag (g/t)  Cu (%)  Contained ZnEq (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    ZnEq (%)   Zn (%)  Pb (%)  Ag (g/t)  Cu (%)  Contained ZnEq (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

(1) Resources are categorized according to Canadian Institute of Mining, Metallurgy and Petroleum 
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 estimate includes the Nepisiguit A and Nepisiguit C zones.
(4) Zinc equivalent resources for the Nash Creek project were calculated using metal prices of 
90 cents/pound for zinc, 87 cents/pound for lead and $17.73/ounce for silver. Metallurgical 
recoveries have been assumed to be 90.5 per cent for zinc, 81.5 per cent for lead and 50 per cent 
for silver. A cut-off grade of 2.0 per cent ZnEq was utilized in the resource estimate.
(5) Zinc equivalent resources for the Superjack project were calculated using metal prices of 
$1.12/pound for zinc, $1.06/pound for lead, $2.97/pound for copper and $20.38/ounce for silver. 
Metal recoveries have been assumed to be 100 per cent for zinc, 72 per cent for lead, 86 per cent 
for copper and 70 per cent for silver. A cut-off grade of 1.5 per cent ZnEq was utilized in the 
resource estimate. 
  

Quality assurance/quality control

Individual samples were labelled, 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 per cent passing two millimetres and pulverized to 85 per cent passing 75 microns in order produce a 250-gram 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 (over 100 parts per million Ag, over 10,000 ppm Zn and over 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 reassayed 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 one per 10 samples, and the collection of duplicate samples at random intervals within each batch at a frequency of one per 10 samples.

SGS Canada Inc. carried out some or all of following methods to obtain the assay results for Callinex: G-LOG02 prepreparation processing, G-WGH79 weighing and reporting, G-PRP89 weigh, dry, crush, split, pulverize, G-SCRQC QC for crush and pulverize stages, G-CRU22 crush over three kilograms, G-DRY11 dry samples, GE-FAA313 at Au, FAS, AAS, 30 grams to five millimetres (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 30 g, fire assay, gravimetric finish (Au) (final mode), GO-FAG313 30 g, fire assay, gravimetric finish (Ag) (final mode), G0-ICP13B ore grade, aqua regia digest/ICP-AES. Ag over 10 ppm was analyzed by ICP and GO-XRF77B-pyrosulphate fusion.

About Callinex Mines Inc.

Callinex Mines 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 preliminary economic assessment planned for Q2 2018.

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