Acquires Remaining Section Of Black Point Arleau Brook Fault
Callinex Mines Inc. (TSXV: CNX) (OTC: CLLXF) has increased the land package at its 100% owned Nash Creek Project located within the Bathurst Mining District of New Brunswick, Canada.
The company has acquired the remaining 2 km of the 18 km Black Point Arleau Brook Fault that was previously unstaked to the north and south of the existing project boundary.
Callinex has now covered off what it believes to be the key geologically prospective ground in the immediate area. The newly added ground encompasses 9.3 km² and grows the size of the district-scale land package to 127.3 km².
Max Porterfield, Callinex’s President and Chief Executive Officer, said the 18km Fault is spatially associated with two previously announced silver discoveries located 6.8 km apart along that same fault trend. Drill hole NC20-313 intersected 28.6m of 57 g/t silver at a vertical depth of 120m including 16.5m of 94 g/t silver and NC19-306 which intersected 19m of 36.53 g/t silver, 0.52% lead and 0.38% zinc at a starting depth of 34.0m.
A 2018 Preliminary Economic Assessment (PEA) published on the company’s New Brunswick project portfolio 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 C$230 million.
Mr Porterfield said 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.
The results from the two widely spaced silver discoveries puts the Company on a path to realise this opportunity through additional exploration.