VANCOUVER, BRITISH COLUMBIA–(Marketwired – Nov. 16, 2015) – Callinex Mines Inc. (the “Company” or “Callinex”) (TSX VENTURE:CNX)(OTCQX:CLLXF) is pleased to announce a fully-funded 2016 drilling campaign consisting of approximately 10,000m at the Company’s 100% owned Pine Bay Project located near HudBay’s 777 mine and processing facilities in Flin Flon, Manitoba. The 2016 campaign will consist of a winter and summer phase and is expected to commence with two drill rigs in January. The program is anticipated to follow-up on success from the 2015 exploration campaign, which included a VMS discovery adjacent to the Company’s Sourdough Deposit. The objective of the 2016 campaign is to identify additional high-grade VMS mineralization rich in copper, zinc, gold and silver that has potential to be associated with a large deposit.
The Company’s 2015 summer drilling campaign, which included three holes totaling 3,111m, led to the discovery of a VMS zone within drill hole SDB001 that intersected 7.4m of 1.58% Cu Eq. including 2.4m of 2.2% Cu Eq. It is projected that drill hole SDB001 is located at the top corner of a larger mineralized body that continues along strike to the south and at depth for at least 100m in each direction. This projected strike length compares favorably with the historic mines in the belt, which often range between 150m to 250m. It is anticipated that a minimum of 2,000m will be completed in the Sourdough area to follow-up on newly discovered mineralization and high-priority targets.
In addition to planned drilling at the Sourdough area, several holes will be completed in the Pine Bay Deposit area targeting potential for a large mineralized body. During the 1990s, Placer Dome, who had a mandate to identify a 30 million ton VMS deposit at depth, explored the Pine Bay area. Callinex plans to test newly identified targets in areas where Placer Dome also recommended additional drilling including the down-plunge and lateral extensions of the known Pine Bay Deposit.
Based on historic re-logging of drill core at Pine Bay, it has been noted that the best indication of proximity to VMS deposits is the presence of massive chlorite alteration within the immediate footwall of the massive sulphide body. Ongoing compilation work is further outlining the alteration envelopes associated with the Pine Bay, Cabin and nearby VMS mineralized zones at depth and along strike, especially to the south where relatively few deep drill holes have been completed.
Two historic holes requiring follow-up drilling include drill hole BP-4-92 which intersected 20m of massive chlorite, including 17.75m of 0.86% Zn, and drill hole 131-76 which intersected 50m of massive chlorite 720m vertically below surface and immediately adjacent to the known Pine Bay deposit. The massive chlorite schist intersections within these two holes far exceeds the massive chlorite alteration typically known to be associated with the Pine Bay and Cabin deposits, which generally ranges 2 to 5m thick. Nearly all VMS deposits in the Flin Flon Greenstone Belt are stratigraphically underlain by appreciable chloritic alteration, the extent if which can often correlate with the size of the deposit.
The Company anticipates providing further exploration updates in advance of the 2016 drilling campaign, which is scheduled to commence in January.
2015 Exploration Recap
Callinex completed several exploration activities at the Pine Bay and Flin Flon projects during 2015 that included:
- Compilation of over 1,000 shallow drill holes;
- Interpretation of approximately 1,050 line-km of VTEM airborne geophysics;
- Completion of approximately 100 line-km of TDEM ground geophysics;
- Completion of several borehole electromagnetic geophysical surveys;
- Internal resource modelling of the Pine Bay and Sourdough Deposits; and
- Over 4,500m of diamond drilling to test eight targets.
The 2015 drilling campaign was highlighted by drill hole PBM004 which intersected 44.2m of 4.0% Cu Eq. including a higher grade interval of 18.1m of 5.5% Cu Eq. and hole SDB001 which intersected 7.4m of 1.58% Cu Eq. within a new zone near the Sourdough Deposit. The final two holes from the summer program, drilled approximately 500m and 1km to the south of drill hole SDB001, did not intersect any significant mineralization; however, borehole geophysical surveys identified several targets located within favorable geology. It is anticipated that additional drilling may be completed in 2016 to test these targets.
Amendments to Drilling Contract
The Company has signed an initial drilling contract to complete up to 3,200m for the upcoming winter campaign. The Company also negotiated an amendment to a previously disclosed contract whereby Callinex will issue payment for the 2015 summer drilling campaign in cash as opposed to shares. In exchange, Callinex will issue payment for the upcoming winter campaign in shares, which will be issued at a minimum price of $0.317 and include re-sale restrictions. It is expected that a contract for a second drill rig will be awarded in advance of the winter campaign for up to an additional 3,200m.
The technical content of this news release has been reviewed and approved by Christina Taylor, P.Geo, the Company’s Project Geologist, and a Qualified Person as defined by National Instrument 43-101. Ms. Taylor is responsible for the work on the Pine Bay Project.
To view Figure 1: Pine Bay Project Map, please visit the following link: http://media3.marketwire.com/docs/1033023-F1.pdf
About The Pine Bay Project
The Pine Bay Project is located 16km east of Flin Flon, MB, and covers a large area totaling approximately 6,000 sq. ha., consisting of both mining claims and a mineral lease. Previous exploration has identified four historic deposits and led to the development of several mines within the project area. The Pine Bay deposit, the largest on the project, has a 212m vertical shaft with significant underground workings in place from previous exploration and mining activities conducted during the 1970s. The current property position was previously owned or operated by majors including Placer Dome, Newmont, HudBay and Cameco and was recently consolidated for the first time.
The project covers approximately 10km of a productive trend, comprising of favorable NW-SE geologic horizons known to have formed at least five VMS deposits. The northern portion of the Pine Bay Project, known as the Pine Bay area, hosts three historic deposits (Pine Bay, Cabin and Baker Patton) at the margins of the Baker Patton Felsic Complex. The southern portion of the Pine Bay Project, known as the Sourdough area, hosts the Sourdough deposit and a newly discovered VMS zone with high-grade mineralization adjacent to the Sourdough deposit.
In the 1990s, the Pine Bay area was primarily explored by Placer Dome, who conceptualized potential for a large VMS deposit at depth near the Pine Bay, Cabin and Baker Patton deposits. An extensive alteration zone up to 1,500m long and up to 740m wide has been mapped at surface. It is believed the alteration zone is part of a more extensive system that may have been displaced by faulting and folding. Historic drilling intersected a 210m wide alteration zone that includes 50m of chloritic alteration at depth which has not been followed up on. Nearly all VMS deposits in the Flin Flon Greenstone Belt are immediately related to a chloritic alteration zone and the extent of which typically has a correlation to the deposit size.
The Sourdough area hosts a historic deposit and is immediately adjacent to HudBay’s past-producing Centennial Mine.. Both the Centennial Mine and Sourdough deposit host significant moderate-grade copper, zinc, gold and silver mineralization.
|Pine Bay Historic Resources(2)|
|Deposit||Tons||Cu Eq%(2)||Cu %||Zn %||Au g/t||Ag g/t|
|(1)||Values have been converted from the imperial to metric system|
|(2)||Historical resource estimates include (a) a Cerro-Mining-Guggenheim Joint Venture report titled “Feasibility Study for 550 ton per day mine & mill”, prepared by Wright Engineers Limited in 1971, reported a “geological ore reserve” 1,113,200 tons at 2.76% Cu at the Pine Bay deposit, (b) a Keys report in 1963 reported a historical resource estimate of 291,150 tons at 1.46% Cu at the Sourdough deposit, (c) a Pine Bay Mines report in 1976 reported a historical resource estimate of 125,000 tons at 0.84% Cu at the Cabin deposit and (d) a Macmillan report in 1968 reported a historical resource estimate of 95,000 tons at 0.80% Cu at the Baker Patton deposit. The historical “geological ore reserve” and resource estimates cited above is mentioned for historical purposes only and uses terminology not compliant with current reporting standards. The reliability of these historical estimates is unknown but considered relevant by the Company as it represents a significant target for future exploration work by the Company. The assumptions, parameters and methods used to calculate this historical resource estimate are not known to the Company. The qualified person has not made any attempt to re-classify the estimates accordingly to current NI 43-101 standards of disclosure or the CIM definitions. In order for these resources to be current, the Company will be required to conduct additional drilling on the Pine Bay Property. The Company is not treating this estimate as current mineral resources or mineral reserves as defined in NI 43-101. Although the Historical resource estimate was also designated as “ore” it cannot be compared to mineral reserves as it is not supported by at least a current pre-feasibility study.|
|(3)||Copper equivalent grades are based on metal prices of: copper US$3.00/lb, zinc $1.00/lb, gold US$1200 per oz, silver US$20 per oz. Metal recoveries of 100% are applied in the copper equivalent calculation. The copper equivalent calculation is as follows; Cu Eq = Cu grade + ((Zn grade%/100*2000 x Zn price) + (Au grade/32.15 x Au price) + (Ag grade/32.15 x Ag price)/Cu price/20).|
About Callinex Mines Inc.
Callinex Mines Inc., a Canadian mineral exploration company, is focused on discovering the next copper-zinc rich VMS mine within Manitoba’s prolific Flin Flon mining district. The Company’s flagship projects are the Pine Bay and Flin Flon projects which host significant historic VMS deposits and are within close proximity to a processing facility. The Flin Flon district has yielded more than 145 million tonnes of production from 32 mines.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the ability to complete contemplated work programs and the timing and amount of expenditures. Callinex does not assume the obligation to update any forward-looking statement.
President and Chief Executive Officer