Adding To Promising Nash Creek Project
Reprocessing and interpretation of a regional 2006 airborne Versatile Time Domain Electromagnetic (VTEM) geophysical survey has identified a number of new targets at Callinex Mines Inc.’s (TSXV: CNX) (OTC: CLLXF) 100% owned Nash Creek Project located within the Bathurst Mining District of New Brunswick.
In May 2020 the company retained EarthEx Geophysical Solutions to complete a thorough interpretation of the VTEM data. In total, 367 line-km were reprocessed, imaged, mapped and interpreted that has yielded 20 targets which may be considered for further investigation.
The work by EarthEx has identified numerous conductive targets along the 6.8 km trend between Callinex’s discovery holes NC20-313 and NC19-306. Drill hole NC20-313, which intersected 28.6m of 57 g/t silver at a vertical depth of 120m including 16.5m of 94 g/t silver, was drilled 350m to the north of the weakest of the four conductive anomalies identified in the VTEM data.
President and CEO, Max Porterfield, said the company believes that the stronger anomalies to the south have the potential to represent more sulphide mineralization that was discovered in NC20-313. In addition to the silver discovered in NC20-313, drill hole NC19-306 intersected 19m of 36.53 g/t silver, 0.52% lead and 0.38% zinc at a starting depth of 34.0m
Mr Porterfield said the company is encouraged by the recently reprocessed VTEM data results, along with Induced Polarisation data, and results from the ongoing soil sampling program will assist in vectoring towards higher grade silver mineralization in future drilling campaigns.
Once the soil sampling programme is completed, the company plans on initiating a robust drilling campaign to systematically test the extent of these two silver discoveries.
In May 2018 a 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 $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
He said the results from the two widely spaced silver discoveries puts the company on a path to realise this opportunity through additional exploration.