Callinex Mines CNX Superjack Nash Creek

Callinex Mines (CNX.V) has released an updated resource estimate for the Nash Creek project which was recently acquired from Slam Exploration. The indicated resource category now contains 9 million tonnes at an average grade of 2.79% zinc, 0.57% lead and 18.16 g/t silver for a total zinc-equivalent grade of 3.58%. The inferred resource contains 1.1 million tonnes at approximately the same zinc-equivalent grade, which means the total amount of zinc-equivalent pounds in both categories now stands at approximately 800 million.

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Nash Creek was the call option on the zinc price as a zinc-equivalent grade of 3.58% isn’t very high, but as the resource is located within 250 meters from surface at the Hayes zone and within 110 meters from surface at the Hickey Zone, Nash Creek might be an interesting optionality-play. Callinex realizes this as well, and CEO Max Porterfield confirms the project has a high leverage to zinc prices, but the access to existing infrastructure and the positive metallurgical test results are a clear thumbs up for the property.

We are positively surprised by the improvement of the resource estimate as the total tonnage in the indicated resource increased by 16% whilst the total average grade increased by 6% as well. The tonnage in the inferred category did decrease (but Callinex added more tonnes to the indicated category than the total tonnage it ‘lost’ in the inferred category), but the average grade increased by approximately 14%.

These results do indicate Callinex Mines knows what it’s doing, and we’re looking forward to see more results from the Point Leamington VMS project. We published an extensive Q&A report with CEO Porterfield a few weeks ago (you can read it HERE ), and if the company’s theory proves to be right, the value of Point Leamington could increase tremendously, putting Callinex Mines on the map as an important player in the base metal exploration sub-segment.

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The author has a long position in Callinex Mines. Callinex is a sponsor of the website. Please read the disclaimer

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