VANCOUVER, BRITISH COLUMBIA–(Marketwired – Sept. 14, 2015) – Callinex Mines Inc. (the “Company” or “Callinex”) (TSX VENTURE:CNX)(OTCQX:CLLXF) is pleased to announce that the first hole completed in the ongoing Phase Two drilling campaign has discovered a new exhalative volcanogenic massive sulphide horizon (the “New Horizon”) that hosts copper, zinc, gold and silver at the Company’s Pine Bay Project. Hole SDB001 intersected the New Horizon with assays over 7.4 meters of 1.58% copper equivalent mineralization including 2.4 meters of 2.22% copper equivalent mineralization preceded by a 176 meter extensively altered sericite-chlorite zone (the “Alteration Zone”). The Company is highly encouraged by the results because the New Horizon has not previously been explored. Furthermore, both geological and geophysical interpretations indicate the hole is potentially located at the margins of a larger mineralized body, which is projected along strike to the south.
Max Porterfield, President and CEO stated, “We are excited that the first hole into this new horizon, located adjacent to the Sourdough deposit, intersected copper, zinc, gold and silver mineralization.” Mr. Porterfield continued, “Geological and geophysical indicators suggest that there is excellent potential to expand this mineralization with higher grades as we conduct further drilling into this system.”
The New Horizon is located 100 meters east of the Sourdough deposit and approximately 3km northeast of HudBay’s past-producing Centennial Mine, where HudBay is concurrently drilling exploration targets (See Figure 1). Interpretation of the drill core indicates that the polymetallic mineralization encountered is hosted within the same stratigraphic sequence and host rocks as the Centennial Mine. Additionally, the presence of two separate stacked mineralized horizons with pervasive alteration in the Sourdough area demonstrates that the local mineralized system occurred over various cycles and could host significant VMS deposits.
The hole was originally intended to test a target down dip of the historic Sourdough deposit and was extended beyond planned targeted depth based on sericite and chlorite altered intermediate and felsic volcanic tuffs/flows. This led to the discovery of the New Horizon, which hosts the copper, zinc, gold and silver mineralization. Historic drilling along the Sourdough horizon was drilled east to west, and thus went over the New Horizon while SDB001 was drilled west to east. The Company believes that additional drilling has a high probability of identifying further mineralization along strike and at depth.
A borehole electromagnetic geophysical survey identified an off-hole anomaly beneath the hole, which may have a correlation to the horizon that hosts the Sourdough deposit, and a broad in-hole anomaly relating to copper mineralization discovered in the New Horizon. Copper is interpreted to be the primary source of the in-hole conductor while pyrite demonstrated low conductivity because the individual sulphide grains are encrusted with silica, an electric insulator as opposed to a conductor. The in-hole anomaly is modeled to have considerable strike and depth extent.
Callinex plans to complete two widely spaced holes along the stratigraphy to test targets on the Sourdough horizon and the New Horizon (See Figure 1). Borehole surveys will be conducted on all holes at the completion of the current drilling program, which will consist of three holes totaling approximately 3,000 meters, by Koop Geotechnical Services with both Crone and EMIT borehole systems. Additionally, samples are being taken for lithogeochemical analysis. This data, which will cover a 1km strike length, will ensure that future drilling tests the highest priority targets given that the New Horizon has not previously been explored.
The Company anticipates completing a step-out drilling campaign to delineate the extent of the newly discovered mineralization this upcoming winter. A winter program will utilize lake-based drilling, which will allow for shallower holes to follow-up on the new mineralization.
|SDB001 Drill Results: Assays from the New Horizon|
|Weighted Average of New VMS Zone|
|1.||Copper equivalent grades are based on the following metal prices: copper US$2.55/lb, zinc US$0.95/lb, gold US$1225 per oz, silver US$16.65 per oz, lead US$0.90/lb. 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*2205 x Zn price) + (Pb grade%/100*2205 x Pb price) + (Au grade/32.15 x Au price) + (Ag grade/32.15 x Ag price)/Cu price/20).|
|2.||Drill composites were calculated using a 1.00% for copper equivalent mineralization with a minimum down-hole length of 0.4 meters.|
|3.||Dip and azimuth for hole SDB001 is -68 and 85|
|4.||True widths are currently unknown|
|5.||Numbers may not add due to rounding.|
Figure 1: Phase Two Drilling Campaign Plan Map
To view Figure 1, please visit: http://www.callinex.ca/wp-content/uploads/2015/09/Drilling-Plan-Map.jpg.
Figure 2: Drill Core Photos 564.68m – 590.00m
To view Figure 2, please visit: http://www.callinex.ca/wp-content/uploads/2015/09/SDB001_BX_131_132_564.08m_572.83m_wet.jpg and http://www.callinex.ca/wp-content/uploads/2015/09/SDB001_BX_133_136_572.83m_590.00m_wet.jpg.
Figure 3: Project Map
To view Figure 3, please visit: http://www.callinex.ca/wp-content/uploads/2015/09/Pine-Bay-Projet-Map.jpg
Individual samples were labeled, placed in plastic sample bags, and sealed. Groups of samples were then placed in security sealed bags and shipped directly to AcmeLabs in Vancouver, B.C. for analysis. Samples were crushed and pulverized to produce a 250g split. All samples were analyzed for gold by Fire Assay of a 30 gram (1 assay ton) charge by AAS, or if over 10.0 g/t were re-assayed and completed with a gravimetric finish. Ag, Cu, and Zn were determined by ICP-MS, with overlimits (>100 ppm Ag, >20,000 ppm Zn, and >10,000 ppm Cu) completed by fire assay with gravimetric finish (Ag) or 4-acid digestion with ICP-ES finish (Cu). QA/QC included the insertion and continual monitoring of numerous standards and blanks into the sample stream at a frequency of 1 per 10 samples, and the collection of duplicate samples at random intervals within each batch at a frequency of 1 per 10 samples.
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.
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 212 meter 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 horizon with high-grade mineralization adjacent to the Sourdough deposit.
In the 1990’s, 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 1,500 meters long and up to 740 meters wide has been mapped at surface. It is believed the alteration zone is part of a more extensive system that has been displaced by faulting. Historic drilling intersected 210 meter wide alteration zone that includes 50 meters 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. Despite being located within 300 meters along strike of the Centennial Mine, the Sourdough area has not been explored with modern geophysics. Callinex has identified significant exploration potential between HudBay’s past producing Centennial Mine, located approximately 2km to the southwest, and the Sourdough deposit. Both the Centennial Mine and Sourdough deposit host significant high-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 Flin Flon and Pine Bay 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