- Fully funded 2015 exploration program including a two-phase 4,000 meter drilling campaign focused on the Pine Bay and Flin Flon VMS Projects;
- Objectives to confirm and expand high-grade mineralization at the Pine Bay Project and test high priority targets with potential for new discoveries; and
- Drilling to commence within 60 days.
Vancouver, British Columbia – January 15, 2015 – Callinex Mines Inc. (the “Company” or “Callinex”) (TSX-V: CNX; OTCQX: CLLXF) is pleased to announce its fully funded 2015 exploration program focusing on its Pine Bay and Flin Flon projects located near Flin Flon, Manitoba. The objectives of the two-phase drilling campaign are to confirm, expand and discover high-grade copper and zinc rich massive sulfide mineralization. The Company has recently compiled and re-evaluated historic data on the Pine Bay and Flin Flon projects in support of its 2015 exploration program. Phase one of the drilling campaign is anticipated to commence within 60 days.
Max Porterfield, President & CEO, stated, “Today’s announcement is a significant milestone towards our renewed focus on discovering and developing economic VMS deposits near Flin Flon. I am excited by the opportunities ahead to advance our projects and provide shareholders with exposure to potential for new discoveries within close proximity to Hudbay’s mining operations.”
The exploration program is well underway with ongoing interpretation of existing geological and geophysical data and plans for additional ground geophysics on prospective targets. Phase one of the drilling campaign consists of approximately 2,000m and will be focused on expanding high-grade mineralization at Pine Bay.
The second phase of exploration is planned to commence this summer and will include additional geophysics and approximately 2,000m of drilling with an objective to follow up on initial results and test additional prospective geophysical targets hosted within favorable geology.
The Pine Bay Project is located 16km east of Hudbay’s 777 Mine and hosts four high-grade VMS deposits. The project is at an advanced permitting stage and includes a 212m vertical shaft with 760m of underground workings nearby historic resources. Previous operators reported historic resource estimates totaling 1.62 million tons at a grade of 2.81% copper equivalent(1). This is a historic estimate and has not been verified by the Company and should not be relied upon.
Based on the terms of the drilling contract, the Company has pre-paid all cash expenditures to the drilling contractor for completion of the two-phase drilling campaign. The Company anticipates providing further details at or before the start of each drilling phase.
Figure 1: Map of Pine Bay Project
Figure 2: Map of Flin Flon Project
About The Pine Bay Project
The Pine Bay Project is located 16km east of Flin Flon, MB, and covers approximately 4,500ha. The project includes a mineral lease that allows for the right to operate a mine and covers a 212m vertical shaft with 760m of underground development accessing high-grade copper mineralization. In addition to the right to operate a mine, the project hosts four past producing VMS mines and historic resources totaling 1.62 million tons at a grade of 2.81% Cu Eq.(1).
The property consists of recently consolidated land package with individual claim blocks previously owned or operated by Placer Dome, Newmont, Hudbay and Cameco. In the 1990’s, the northern section of the property 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. The Baker Patton deposit, which may represent a feeder zone, is located within a large and intensely altered zone up to 1,500m long and up to 740m wide. This alteration zone overlies a 540m x 360m stringer zone, a large gravity anomaly and both electromagnetic (EM) and magnetic anomalies.
It is believed the alteration zone is part of a more extensive system that has been displaced by faulting. Drilling by a previous operator identified at depth a 210m wide alteration zone that includes 50m of chloritic alteration 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.
In 2011, a small drilling program was completed by the Company to test the down-dip extension of the Pine Bay deposit. Subsequent borehole EM and Deep Pulse EM geophysical loop surveys identified a high priority target area located near the Pine Bay deposit. This off-hole geophysical anomaly may represent a displaced extension of the deposit.
|Pine Bay Historic Resources(1)|
|Deposit||Tons||Cu Eq%(2)||Cu %||Zn %||Au g/t||Ag g/t|
(1) 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.
(2) 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 Ag price) + (Ag grade/32.15 x Ag price)/Cu price/20).
The technical content of this news release has been reviewed and approved by Gilles Dessureau, MSc., P.Geo, a Consultant to the Company and a Qualified Person as defined by National Instrument 43-101.
About Callinex Mines Inc.
Callinex Mines Inc., a Canadian mineral exploration company, is focused on discovering the next 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.
For additional information, please contact:
Callinex Mines Inc.
Max Porterfield, President and Chief Executive Officer
Phone: (604) 605-0885
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.