Callinex Files Technical Report for Updated Resource Estimate at the Nash Creek Project

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Jun 07, 2018, 08:30 ET

VANCOUVER, June 7, 2018 /PRNewswire/ - Callinex Mines Inc. (the "Company" or "Callinex") (TSXV: CNX) (OTCQX: CLLXF) is pleased to announce that it has filed a NI 43-101 Technical Report ("Technical Report") for its 100% owned Nash Creek Project located within the Bathurst Mining District of New Brunswick. The updated resource estimate outlined a major increase in contained zinc, lead and silver mineralization within Indicated and Inferred categories (See News Release dated April 16, 2018). The Technical Report can be viewed by clicking here or by visiting the Company's SEDAR profile at www.sedar.com.

A 2018 maiden Preliminary Economic Assessment ("PEA") on the Company's Nash Creek and Superjack projects outlined potential for an open pit mining operation that generates a strong economic return with a pre-tax internal rate of return ("IRR") of a 34.1% (25.2% post-tax) and a pre-tax Net Present Value ("NPV") at an 8% discount rate of C$230 million (C$128 million post-tax) over a ten year mine life (See News Release dated May 14, 2018). The Company believes there is a clear opportunity to significantly enhance the project's economics with additional exploration. A technical report for the PEA will be issued within 30 days.

A two-minute video presentation of the Nash Creek Project can be accessed by clicking here.

Cautionary Note on PEA. The PEA is preliminary in nature and it includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the PEA will be realized.

The current mineral resource at Nash Creek now hosts Indicated mineral resource totaling 13.6 Mt averaging 3.2% Zn Eq. (2.7% Zn, 0.6% Pb and 17.9 g/t Ag) containing 963 million pounds of zinc equivalent mineralization and an Inferred mineral resource totaling 5.9 Mt averaging 3.1% Zn Eq. (2.7% Zn, 0.5% Pb and 14.0 g/t Ag) containing 407 million pounds of zinc equivalent mineralization.

The Company's project portfolio now contains indicated resources of 13.6 Mt averaging 3.2% Zn Eq. for a total of 963 million pounds and total inferred resources of 23.2 Mt averaging 5.2% Zn Eq. for a total of 2.7 billion pounds from the Nash Creek, Superjack and Point Leamington projects (See News Release dated April 16, 2018).

J.J. O'Donnell, P.Geo, a qualified person under National Instrument 43-101 and a Consulting Geologist for Callinex, has reviewed and approved the technical information in this news release.

Figure 1: Map of the Bathurst Mining District of New Brunswick

Figure 2: Nash Creek Land Package

About Callinex Mines Inc.

Callinex Mines Inc. (TSXV: CNX) (OTCQX: CLLXF) is advancing its portfolio of zinc rich deposits located in established Canadian mining jurisdictions. The portfolio is highlighted by its Nash Creek and Superjack deposits in the Bathurst Mining District of New Brunswick. A 2018 PEA outlined a mine plan that generates a strong economic return with a pre-tax IRR of a 34.1% (25.2% post-tax) and a pre-tax NPV8% of C$230 million (C$128 million post-tax). The projects have significant exploration upside over a district-scale land package that encompasses several high-grade mineral occurrences along a 20 km trend.

Callinex has a project portfolio that also includes projects within the Flin Flon Mining District of Manitoba that are located 25 km to an operating processing facility that requires additional ore. The Company's projects host Indicated resources of 13.6 Mt averaging 3.2% Zn Eq. totaling 963 million pounds and Inferred resources of 23.2 Mt averaging 5.2% Zn Eq. totaling 2.7 billion pounds (See News Release dated April 16, 2018).

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the ability to complete the proposed drill program and the timing and amount of expenditures. Except as required under applicable securities laws, Callinex does not assume the obligation to update any forward-looking statement.

SOURCE Callinex Mines Inc.