The Headway project has a historical ore reserve and shares a property boundary with the formerly massive and now-closed Brunswick No 12 zinc mine.
Callinex Mines (TSXV:CNX) has announced it’s expanded its New Brunswick zinc assets with the purchase of the Headway project in the Bathurst mining district.
The company is clearly betting on geographic proximity to the shuttered Brunswick No 12 mine, which the Headway project shares a property boundary with.
The No 12 mine, owned by Glencore (LSE:GLEN) was formerly the world’s largest underground zinc mine, according to Callinex.
“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,” said President and CEO of Callinex, Max Porterfield.
“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.”
According to the release, the historic ore reserve for the A and B zone of the deposit stands at 263,100 tonnes of ore grading 11.6 percent zinc equivalent, or 6.2 percent zinc, 2.1 percent lead, 1.4 percent copper and 20.9 grams per tonne (g/t) of silver.
A smaller zone, zone C, held 54,000 tonnes of ore graded at 7 percent zinc equivalent.
Callinex added however, that the reliability of the estimates from the 60s was unknown — noting the methods used to calculate it were a mystery— but still represents a significant target for the company to explore.
The task ahead for Callinex then is to digitise the historic drilling and corroborate what estimates it has through a surface induced polarized survey and more drilling in the future.
To secure the property, the company issued 250,000 shares to the current owner of the site for an implied value of C$25,000. Callinex also issued a 1 percent net smelter return royalty.
“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.”
Callinex will be adding the Headway project to its portfolio of projects throughout Canada, including the Nash Creek project in New Brunswick and the Pine Bay, Flin Flon and Big Island projects in Manitoba.
On the TSXV, Callinex’s share value remained flat at C$0.095 on Wednesday (November 14).
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Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.