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Callinex provides exploration update for Nash Creek Zinc project

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Global Mining Review,

Callinex Mines Inc. has provided an update on its upcoming exploration programme at the company’s 100% owned Nash Creek Zinc Project located in the Bathurst Mining District of New Brunswick, Canada.

Callinex provides exploration update for Nash Creek Zinc project

The upcoming exploration campaign is anticipated to include approximately 20 to 40 drill holes totalling 3500 to 7000 m along and up to 160 line km of ground induced polarization (IP) surveys. The primary focus of the exploration campaign will be to test potential for satellite zinc-lead-silver deposits periphery to the Nash Creek Deposit, where limited drilling has occurred outside of the Hickey and Hayes zones. The diamond drilling phase of the campaign is anticipated to commence next week and the ground IP surveys will follow soon after.

There are six main target areas that surround the Nash Creek Deposit and include: Hayes South, Hayes North, Hickey East, NW Soil Anomaly, Hickey North and the Central Zone.

The Hayes South exploration area will test the southeast extension of the Hayes Zone, which represents one of the highest grade and widest mineralized zones discovered to date at the Project. Drilling will test the down-plunge portion of the Hayes Zone which has potential for an underground operation to follow the open-pit mining scenario outlined in the 2018 Preliminary Economic Assessment (PEA).

The Hayes North Expansion will consist of a few drill holes to test a gap along the Hayes Fault that hosts the Hayes Zone and the historic McMillan Zone. Mineralisation in the Hayes and McMillan zones occur within the felsic volcanic rocks whereas the mafic volcanic rocks host the Hickey Zone. There is an approximate 900 m long by 250 m wide gap in drilling between the Hayes and McMillan zones along the Hayes Fault.

The Hickey East expansion will be completed to expand drill coverage along a 250 m long by 200 m wide untested portion of an IP target. The majority of this IP target has already been drilled and represents relatively higher grade zinc and lead mineralisation within the Hickey Zone. The company is working towards submission of a permit application to access this target area.

The NW Soil Anomaly target covers an approximate 800 m long by 400 m wide area covering an untested portion of a 3 km long soil anomaly. The southern 2 km of the soil anomaly represents the Nash Creek Deposit. It is anticipated that this target area could host near-surface mineralisation and is situated along the eastern boundary of the north-south trending Black Point-Arleau Brook Fault, which is the major basin bounding fault of the half-graben that hosts the Nash Creek Deposit.

The Hickey North area consists of the projected strike extension of the Hickey Zone and covers the northeastern portion of the 3 km long soil anomaly. Drilling will be completed to identify the depth of favourable host stratigraphy approximately 700 m north of the northernmost extent of the Hickey Zone.

The Central Zone represents an interesting target in an area with limited drilling. The Central Zone is reported to occur within the same stratigraphic package as the Nash Creek Deposit. Limited drilling consisting of four holes along a 550 m long trend has intersected significant zinc and lead intersections in all drill holes. A 60-line km ground IP survey will be completed to further delineate zinc-lead-silver mineralisation and potential to discover new deposits.

The IP programme may be expanded up to 160 line km to cover high-priority target areas along a 20 km trend of mineral occurrences grading up to 19% Pb+Zn. To date, most of the drilling along these IP targets have demonstrated a strong correlation with the 2018 mineral resource estimate.

The 2018 PEA outlined a high-margin, open-pit mine plan that generates a pre-tax internal rate of return of 34.1% and Net Present Value at an 8% discount rate of CAN$230 million. The life of mine all-in sustaining costs (AISC) were estimated at approximately CAN$0.37 per pound of zinc produced, net of by-product credits. There is a clear opportunity to significantly enhance the project’s economics with additional exploration that extends the mine life and/or allows for higher grade material to be scheduled earlier in the mine plan.

A two-minute overview video for the Nash Creek Project can be viewed by clicking here.

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