PINE BAY PROJECT


Highlights

  • District scale land package containing four VMS deposits over a 10km long favorable trend
  • Fast-track potential with vertical shaft and historic underground workings within an area permitted for mining activities
  • Strategic location 16km from HudBay’s Flin Flon processing facilities, which has less than four years of supply remaining
  • Previously controlled by majors with individual claim areas held by Placer Dome, Inmet, Newmont and HudBay

 

Overview

Callinex owns a 100% interest in claims covering +6,000 sq. ha along a 10km long favorable trend in the Flin Flon Greenstone Belt, subject to underlying royalties ranging up to a 2% NSR. The project is accessible by paved and all-weather gravel roads from the City of Flin Flon and has ready access to power and water.

The claim package covers a significant portion of the Baker Patton Felsic Complex, one of the largest and most highly altered exposed packages of felsic volcanic rocks within the Flin Flon Greenstone Belt. Historic exploration activities have outlined four mineral deposits, three of which are located within a mineral lease that has advanced permitting status and includes the right to conduct mining activities. The Pine Bay deposit, the largest of the four historic deposits, has a 212m vertical shaft with significant underground workings from previous exploration activities.

Since 2014, Callinex has completed over 10,000m of drilling which has led to two new discoveries. The newly discovered Pine Bay East Zone, located approximately 300m from historic underground workings, consists of mineralization encountered within four holes over a 175m strike length. Hole PBM-014 intersected 2.3m of 9.3% Zn Eq. while hole PBM-008 intersected 3.2m of 3.3% Cu. All mineralized intersections are located within 440m of surface and almost no drilling has been completed at depth. Both Placer Dome and Inmet, who had mandates to discover a large VMS deposit within the project, identified potential at depth beneath the now known Pine Bay East Zone.

Previously, Placer Dome had a mandate to discover a 30 million ton VMS deposit within the northern area of the project within the Baker Patton Felsic Complex. Callinex plans to complete additional drilling in 2016 and 2017 to further evaluate the size potential of mineralization within the project.

Historic Resources

Pine Bay Historic Resources(1)(2) (3)
Deposit Tons Cu Eq%(2) Cu % Zn % Au g/t Ag g/t
Pine Bay 1,113,200 2.76 2.76 N/A N/A N/A
Sourdough 291,150 2.98 1.46 1.71 1.03 29.8
Cabin 125,000 2.18 0.84 4.02 N/A N/A
Baker Patton 95,000 3.66 0.80 5.28 0.83 56.0
Total 1,624,350 2.81 2.26 0.92 0.24 8.9

 

Notes:

(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).

The technical content of this page has been reviewed and approved by James Pickell, P.Geo, a Consultant to the Callinex, and a Qualified Person as defined by National Instrument 43-101.

Figures:

Figure 1: Pine Bay Overview Map

Figure 2: Longitudinal Section of the Pine Bay East Zone