Name of the Project
Nash Creek and Superjack projects.

Location
The projects are located in the Bathurst Mining District of New Brunswick, Canada.

Client
Callinex Mines.

Project Description
The project has indicated mineral resources of 9.14-million grading 3.64% zinc equivalent, 2.8% zinc, 0.58% lead and 17.8 g/t silver.

A preliminary economic assessment (PEA) has outlined a conventional truck-and-excavator openpit mining operation, with an average process plant production rate of 1.43-million tonnes a year over a mine life of about ten years. Mining operations will reach a yearly average total material movement of ten-million tonnes using 11.5 m3 diesel hydraulic excavators, 90 t haulage trucks, and track-mounted diesel-powered drill rigs, with up to 200 mm diameter blastholes drilled on 5-m- and 10-m-height benches.

The mined material will be processed at a new 3 950 t/d dense-media separation plant and a 1 950 t/d grinding and flotation plant located on the project site.

Zinc/silver and lead/silver concentrates will be produced. It is expected that lead concentrates could be processed at the nearby Belledune smelter, and zinc concentrates at Valleyfield. The zinc concentrates also have the potential to be processed overseas using the deep-water port from Belledune, although this alternate option was outside the scope of the PEA and was not investigated.

Yearly production in concentrate is estimated at 95.5-million pounds of zinc equivalent, 76.7-million pounds of zinc, 14.6-million pounds of lead and 400 000 oz of silver.

A review of metallurgical testwork has not identified any deleterious elements that will impact on the marketability of the zinc and lead concentrates, which are considered of good quality.

Potential Job Creation
The PEA assumes that the development of the project will create about 225 full-time jobs.

Net Present Value/Internal Rate of Return
The project has a net present value, at an 8% discount rate, of C$230-million (C$128M post-tax) and a pretax internal rate of return of 34.1% (25.2% post-tax), with a payback of 2.4 years (2.8 years post-tax).

Value
Preproduction capital costs are estimated at C$168-million.

Duration
Not stated.

Latest Developments
Callinex believes that there is a clear opportunity to significantly enhance the project economics through further exploration over the district-scale land package, which could allow for higher-grade material to be scheduled into the mine plan.

Key Contracts and Suppliers
P&E Mining Consultants(PEA).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Callinex Mines president and CEO Max Porterfield, tel +1 604 605 0885 or email info@callinex.ca.