Callinex Announces PEA Results at Nash Creek and Superjack

Callinex Mines Inc. (TSXV:CNX) announced results from an independent initial preliminary economic assessment (“PEA”) on the company’s 100 percent owned Nash Creek and Superjack projects located in the Bathurst Mining District of New Brunswick, Canada.

Highlights are as follows:

• Average annual production of 77M pounds of zinc, 15 million pounds of lead and 437,000 ounces of silver over a ten year mine life;
• Life of Mine (“LOM”) undiscounted pre-tax net cash flow of C$483M (C$293M post-tax);
• Pre-tax IRR of a 34.1 percent (25.2 percent post-tax) and a pre-tax NPV8 percent of C$230M (C$128M post-tax) with a payback period of 2.4 years (2.8 years post-tax);
• LOM all-in sustaining costs (“AISC”) of C$0.37 per pound of zinc produced, net by-product credits;
• Total pre-production capital costs of C$168 million (including 18 percent contingency);
• Assumed metal prices of US$1.25 per lb of zinc, US$1.10 per lb of lead, US$17 per ounce of silver and a C$/US$ exchange rate of 0.77; and
• Potential to materially enhance the economic return with additional drilling over the district-scale land package.

Max Porterfield, president and CEO, commented:

We are very pleased with the results of this initial PEA that outlines the potential for a new zinc mine at our Nash Creek Project. The results of this PEA, combined with close proximity to infrastructure and a district-scale land package, represents a highly attractive scenario for Callinex shareholders.

Click here to read the full Callinex Mines Inc. (TSXV:CNX) press release.