[caption id="attachment_1003723201" align="aligncenter" width="486"] The port of Belledune, N.B., is only 25 km by road from Callinex’s Nash Creek project. (Image: Callinex Mines)
NEW BRUNSWICK – Callinex Mines
of Vancouver has completed the preliminary economic assessment for the Nash Creek and Superjack zinc-lead projects not far from Belledune.
The preliminary economic assessment outlines a 10-year, 3,900 t/d open pit mine with a dense media separation (DMS) plant and 1,950 t/d conventional flotation circuits at the Nash Creek site.
The PEA generates a strong economic return with a pre-tax internal rate of return of a 34.1% (25.2% post-tax) and a pre-tax net present value at an 8% discount rate of $230 million ($128 million post-tax) based on preproduction capital costs of $168 million and a zinc price of US$1.25/lb.
Callinex believes the economics may be further improved by more exploration for higher grade material that would be mined and treated early in the project. The Nash Creek deposit is open in several directions, and there are several untested high grade mineral occurrences along a prospective 20-km trend.
The Nash Creek deposit is located only 25 km by road from Glencore’s Brunswick smelter, a deep water port, railway and power plant at Belledune. The Superjack deposit is 90 km by highway from Nash Creek and 15 km southwest of the historic Brunswick No. 12 zinc-lead mine.
Read the entire PEA at www.Callinex.ca