Callinex Mines has acquired the Headway Project located near the Brunswick No 12 Mine in the Bathurst Mining District of New Brunswick in Canada.
The Project contains a high-grade zinc-lead-copper-silver deposit located along the prolific ‘Brunswick Horizon’ where limited historic near-surface drilling delineated the deposit to a depth of 160m.
The Project shares a property boundary and similar geology with Glencore’s Brunswick No 12 mine, previously the world’s largest underground zinc mine, where production totaled 137 million tons grading 8.74% Zn, 3.44% Pb, 0.37% Cu, and 102 g/t Ag from 1964-2013.
Callinex Mines president and CEO Max Porterfield said: “This acquisition, completed at attractive terms as a result of current market conditions, fits well with our existing project portfolio in the Bathurst Mining District.
“The high-grade Headway deposit is a compelling exploration opportunity considering its very limited exploration history, proximity to the world-class Brunswick No 12 Mine and its strategic location within potential trucking distance to the Nash Creek Project.”
The Headway Deposit was outlined by 35 drill holes from 1965-66 and is reported to be 950m long, 160m deep and up to 15m thick. In assessment report 472314 prepared by Headway Red Lake Gold Ltd. in 1966, a historical “ore reserves” of 263,100 tonnes grading 11.6% Zn Eq. (6.2% Zn, 2.1% Pb, 1.4% Cu and 20.9 g/t Ag) between the A and B zones while the C zone reported 54,000 tonnes grading 7.0% Zn Eq. (3.9% Zn, 1.3% Pb, 0.8% Cu and 14. g/t Ag).
The historical “ore reserves” noted above is mentioned for historical purposes only and uses categories not consist with the definitions of “resources” and “reserves” as set forth by CIM. The reliability of this historical estimate is unknown but considered relevant by the Company as it represents a significant target for future exploration work by the Company.
The assumption, parameters and methods used to calculate this historical resource estimate are not known to the Company. The qualified person has not made any attempt to re-classify the estimates accordingly to current CIM standards of disclosure or the CIM definitions. The Company is not treating this estimate as current mineral resources or mineral reserves as defined by CIM.
Although the historical resource estimate was also designated as “ore” it cannot be compared to mineral reserves as it is not supported by at least a current pre-feasibility study. In order for this historical resource estimate to be current, the Company will be required to carry out shallow drilling on the Headway Deposit.
Mid-tier zinc producer Nexa Resources SA (formerly known as Votorantim Metals Canada Inc.) is the only company within the past 40 years to have completed drilling on the project, consisting of just two drill holes in 2011, as it had been closely held by a single owner.
Callinex plans to digitize historic drilling, complete a surface induced polarization survey and drilling in the future.
Subject to TSX Venture Exchange approval, the Company has issued the vendor 250,000 shares, representing an implied transaction value of $25,000, and a 1.0% NSR royalty, of which half can be re-purchased for $500,000.
The acquisition of the Headway Project also includes $44,800 in work credits, which will allow the claims to remain in good standing until late-2023.
Zinc equivalent grades for the historic resource estimate are based on the following metal prices: zinc US$1.15/lb, lead US$0.90/lb, copper US$2.70/lb and silver US$14.50 per oz. Metal recoveries of 100% were applied in the metal equivalent calculations. The zinc equivalent calculation is as follows: ZnEq = 100 ((Ag Price in (g) x Ag Grade) + (Pb Price*2204.6 x Pb Grade(%)/100) + (Cu Price*2204.6 x Cu Grade(%)/100) + (Zn Price*2204.6 x (Zn Grade(%)/100))/Zn Price*2204.6).
Source: Company Press Release