Callinex Mines (CNX.V) has strengthened its position in the Bathurst Mining District in New Brunswick with the acquisition of the Headway project, which contains a historical resource estimate of 263,000 tonnes at an average grade of 6.2% zinc, 2.1% lead, 1.4% copper and almost 21 g/t silver in the A and B zones, while a third zone, conveniently called the C zone hosts an additional 54,000 tonnes at an average grade of 3.9% zinc, 1.3% lead, 0.8% copper and 14 g/t silver.
Of course, we shouldn’t fully rely on a historical resource estimate that’s in excess of 50 years old, but it does indicate the Headway acquisition could definitely add value to the Callinex portfolio as it could be a nice satellite deposit to ‘feed’ an existing mill (either a newly built mill at the Nash Creek project, or even the Caribou mill owned and operated by Trevali Mining (TV.TO).
Callinex is issuing 250,000 shares for a total value of just C$25,000, and is issuing a 1% Net Smelter Royalty, of which 0.5% could be repurchased for C$0.5M. Thanks to the historical exploration programs at Headway, no exploration expenditures are required until 2023 to keep the project in good standing, so Callinex can easily wait for better market circumstances before doing any work at Headway.
Go to Callinex’ website
The author has a long position in Callinex Mines. Callinex is a sponsor of the website. Please read the disclaimer
