Callinex Intersects 18.7 Meters of 5.8% Zn Eq. at the Nash Creek Zinc Project

VANCOUVER, Sept. 12, 2017

• Drill hole NC17-245 intersected 18.7m of 5.8% Zn Eq. including a higher grade interval of 5.0m grading 8.9% Zn Eq.; and
  
  
• NC17-245 was completed to test the theory that historic drilling intersected unreported mineralization due to inadequate sampling based on visual observations.

VANCOUVER, Sept. 12, 2017 /PRNewswire/ - Callinex Mines Inc. (the "Company" or "Callinex") (TSX-V: CNX; OTCQX: CLLXF) is pleased to announce results from four drill holes completed at the Company's 100% owned Nash Creek Project located within the Bathurst Mining District of New Brunswick (See Figures 1 and 2). Hole NC17-245 was drilled approximately 20m from historic drill hole NC79-06 that had only one 1.3m sample taken which assayed 2.2% Zn and 0.4% Pb (See Figure 3). The drill hole was completed to test the theory that historic drilling may have intersected unidentified mineralization due to inadequate sampling based on visual observations (See Figure 4). Drill hole NC17-245 was collared into mineralization and the first 19 samples all intersected above 2.5% zinc equivalent mineralization ("Zn Eq.") resulting in an 18.7m intersection grading 5.8% Zn Eq. (4.6% Zn, 0.7% Pb and 23.1 g/t Ag) beginning at 10m depth including a higher grade interval of 5.0m of 8.9% Zn Eq. (7.2% Zn, 1.2% Pb and 31.4 g/t Ag) (See Table 1).

Max Porterfield, President and CEO, stated, "It is becoming evident that there is a significant opportunity to expand the size and grade of the Nash Creek Deposit by conducting additional drilling within and outside the limits of the current mineral resource. Discovering additional mineralization within a conceptual open pit should improve the economics of the project in an upcoming Preliminary Economic Assessment."  

The 1.3m of 2.2% Zn and 0.4% Pb intersected in historic drill hole NC79-06 was the only sample submitted from the hole for assaying. This sample from hole NC79-06 compares favorably with a similar intersection in hole NC17-245 at approximately the same depth that is contained within the larger 18.7m interval grading 5.8% Zn Eq. Interestingly, the sample from NC79-06 was obtained further down hole than the high-grade zone of 5.0m grading 8.9% Zn Eq. in drill hole NC17-245.

The Company's technical team was aware of limitations with relying on visual estimates for selecting drill core samples. Prior to Callinex's initial exploration campaign at Nash Creek a rigorous core sampling policy was implemented. It is also noteworthy that approximately 48% of historic drill holes in the Company's database were not drilled beyond 100m depth, where potential open pit mineralization exists within certain areas of the deposit. Additionally, of all the holes drilled prior to 2017 less than 30% of the total hole length was sent to a laboratory for analytical testing. As a result, there may be an opportunity for additional testing to identify mineralization that could be included within an conceptual open pit. Further work will be required to evaluate the potential for additional unreported mineralization.

Drill hole NC17-242 also intersected significant mineralization including 13.3m of 3.3% Zn Eq. (2.6% Zn, 0.5% Pb and 14.4 g/t Ag) at a starting depth of 77.9m. This hole intersected a mineralized zone known as the "Satellite Zone" that may represent an additional opportunity for resource expansion near the southern area of the deposit. Recently, Callinex announced that it has expanded the Nash Creek Deposit approximately 500m to the north based on recent drilling (See News Release dated September 5, 2017).

The Nash Creek Project is ideally situated approximately 1 km south of Provincial Highway 11 and has access to power supplied by a nearby 450 MW power station (See Figure 1 and 2). Additionally, the Project is located 100 km by road to Trevali's Caribou Mine and 25 km by road to Glencore's Belledune lead/silver smelter, which has direct railway access to Glencore's Canadian zinc smelting and refining operations.