Callinex zeroes in on maiden PEA for Nash Creek, Superjack

Callinex Mines Inc. [CNX-TSXV, CLLXF-OTCQX: CLLXF] on Friday April 6 released the final batch of results from drilling at its 100%-owned Nash Creek Project in New Brunswick.

Callinex has a portfolio of projects in the Bathurst Mining District that is led by its Nash Creek Project, which hosts a large, near-surface zinc-lead-silver deposit. The portfolio includes the Superjack Project, which is located about 50 km south of Nash Creek.

The company said it is pleased to report that 13 of the 15 holes intersected significant zinc mineralization. The holes were drilled to test for extensions of mineralization along the margins of the Nash Creek deposit, while also confirming historic drill holes completed at the Hickey Zone during the 1970s.

Significant results include Drill hole NC17-261, which intersected 23 metres of 4.2% zinc equivalent from a starting depth of 11 metres, including 8.3 metres of 6% zinc equivalent.

Drill hole NC17-273 intersected 10 metres of 2.6% zinc equivalent from a starting depth of 29 metres, including 5.0 metres of 3.8% zinc equivalent.

Drill hole NC17-279 intersected 23 metres of 2.6% zinc equivalent from a starting depth of 62 metres, including 8.0 metres of 3.7% zinc equivalent and a separate intersection of  8.0 metres of 3.7% zinc equivalent from a starting depth of 106 metres.

The latest batch of holes are part of the recently completed 35-hole campaign. The drill holes were designed to expand the deposit laterally and along strike in the northern area of the Nash Creek deposit.

The reported holes were also drilled to support an updated NI 43-101 mineral resource estimate that is scheduled to be announced within 15 days, the company said in press release.

The updated mineral resource estimate will include an additional 59 drill holes completed in 2017 that materially expanded the size of the Nash Creek deposit to the north, where mineralization remains open for expansion.

The 2016 mineral resource estimate for the Nash Creek deposit estimates a near surface indicated resource totalling 712 million pounds of zinc equivalent, and an inferred resource of 88 million pounds of zinc equivalent.

Callinex also anticipates announcing results for its maiden Preliminary Economic Assessment on Nash Creek and the Superjack Project in late May. In September 2017, the company said it hired P&E Mining Consultants Inc. and has since completed significant work towards completion of the PEA.

Callinex owns 100% of the Superjack Project, which hosts three separate volcanogenic massive sulphide (VMS) zones, the largest of which is the A Zone. The project hosts a near-surface inferred mineral resource of 3.2 million tonnes, grading 4.6% zinc equivalent, containing 328 million pounds of zinc equivalent.

On Friday, Callinex shares eased 1.82% or $0.005 to 27 cents. The shares trade in a 52-week range of 47.5 cents and 26.5 cents.