Vancouver-based Callinex Mines (TSXV: CNX; OTCQX: CLLXF) announced plans to advance the company's Point Leamington deposit in Newfoundland. This project hosts a volcanogenic massive sulphide (VMS) deposit, which contains significant gold, copper, zinc and silver mineralization and is open for expansion. The deposit is located within a mineral lease and is accessible by road followed by trails and is approximately 37 km from the city of Grand Falls-Windsor, Newfoundland and is also 20 km from the Newfoundland hydroelectric power grid.
Max Porterfield, president and CEO of Callinex Mines, stated, "Point Leamington is a large, near surface VMS deposit in the mining friendly province of Newfoundland that has a considerable gold resource in addition to copper, zinc and silver. Given the significant rise in metal prices, in particular gold, the intrinsic value of the Point Leamington deposit has risen dramatically overall and in relation to other deposits Callinex possesses."
Porterfield added: “Additionally, Callinex has strengthened our team with expertise to maximize value at Point Leamington and other projects within the company's robust portfolio. We plan to aggressively advance this project with an exploration campaign to expand the known resource and discover new deposits on the broader land package in tandem with mineralogical and metallurgical test work."
There is an opportunity to significantly expand a higher-grade zone of the deposit with additional drilling at depth. The most recent hole drilled in 2004, PL04-077, intersected 4.67 metres grading 4.37 g/t gold, 15.05% zinc, 57.88 g/t silver and 0.36% copper and PL-056 intersected 4.51 metres grading 2.27 g/t gold, 8.84% zinc, 81.66 g/t silver and 0.61% copper, which are the two deepest holes to intersect the deposit.
The deposit also has potential to host additional tonnage along strike. Drill hole PL04-073, drilled during the 2004 exploration campaign, intersected 3.9m grading 1.65 g/t gold, 5.18% zinc, 33.1 g/t silver and 0.27% copper. The company is currently reprocessing historic borehole pulse electromagnetic data surrounding the largely untested area and additional drilling may be completed in the future.
More information is posted on www.Callinex.ca.
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