Callinex Mines Inc. [CNX-TSXV, CLLXF-OTCQX] on Wednesday February 14 released new assays results from drilling at its 100%-owned Nash Creek zinc deposit in New Brunswick.
Assays are from three holes that were drilled as part of the recently completed 35-hole campaign.Â The drill holes were designed to expand the deposit laterally and along strike in the northern area of the Nash Creek deposit.
Significantly, drill hole NC17-263 intersected 11.8 metres of 3.9% zinc equivalent mineralization and expanded the deposit to the east. Drill hole NC17-278 intersected three separate near-surface zones, including 10.0 metres of 3.6% zinc equivalent and nine metres of 3.3% zinc equivalent.
Drill hole NC17-280, the northernmost hole, drilled as part of the expansion program, intersected 4.1 metres of 4.6% zinc equivalent.
The reported drill holes were completed to support an updated NI 43-101 mineral resource estimate that is scheduled for completion in March, 2018, the company said in press release.
â€œThese results indicate that the deposit remains open along strike, which is coincident with a considerable lead-in-soil anomaly,â€ Â the company said. The latest drill holes also show that the bulk of 2017 drilling intersected the man mineralized body.
Nash Creek hosts a sizeable volcanogenic massive sulphide deposit that contains a near-surface indicated resource of nine million tonnes, grading 3.6% zinc equivalent, or 712 million pounds of zinc equivalent, along with 1.1 million tonnes of inferred resources, grading 3.6% zinc equivalent or 88 million pounds of zinc equivalent.
The current NI 43-101-compliant mineral resource estimate is based on only two of five known zones, which are open for expansion, the company has said.
Callinex plans to delineate the extent of the Nash Creek deposit along strike in both directions along a 3-km long zinc-lead soil anomaly, of which only the southern 2 km has 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 company has said the project benefits from its close proximity to necessary infrastructure. It is located approximately 1 km from Provincial Highway 11, and high voltage transmission lines. The project is also situated 25 km by road from Glencore AGâ€™s Brunswick smelter, a deep water port, railway and power plant near the town of Belledune.
As well as the updated resource estimate, Callinex is working towards a maiden Preliminary Economic Assessment (PEA).
â€œWe are targeting the PEA to have a base-case scenario of a standalone open pit operation with potential to process between 15 to 20 million tonnes of material,â€™â€™ said Callinex President and CEO Max Porterfield.
On Wednesday, Callinex shares eased 1.56% or $0.005 to 31.5 cents. The shares are trading in a 52-week range of 47.5 cents and 27.5 cents.