Callinex Mines has started diamond drilling at its 100% owned Nash Creek Zinc Project located in the Bathurst Mining District of New Brunswick, Canada.
The drilling campaign will consist of approximately 20 to 40 drill holes totaling 3,500 to 7,000m to test potential for satellite zinc-lead-silver deposits periphery to the Nash Creek Deposit.
The company recently completed a Preliminary Economic Assessment (“PEA”) which 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 (See News Release dated May 14, 2018).
The current drill program 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.
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. Drilling has commenced in the NW Soil Anomaly area and will generally proceed in a southern direction.
A 60 line km ground induced polarization (“IP”) survey will be completed at the Central Zone shortly to further delineate zinc-lead-silver mineralization and potential to discover new deposits. The IP program 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.
Source: Company Press Release