Vancouver, British Columbia – March 2, 2015 – Callinex Mines Inc. (the “Company” or “Callinex”) (TSX-V: CNX; OTCQX: CLLXF) is pleased to announce it has commenced phase one of the Company’s two-phase 4,000m drilling campaign at its 100% owned Pine Bay Project located near Flin Flon, Manitoba and adjacent to HudBay’s 777 Mine. The first phase consists of approximately 8-10 holes totaling 2,000m with completion anticipated towards the end of March. The objectives of the two-phase drilling campaign at the Pine Bay and Flin Flon projects are to confirm, expand and discover high-grade copper and zinc rich massive sulfide mineralization.
The Company has outlined several new targets within the vicinity of the Pine Bay deposit. In particular, recent ground geophysical work has identified a new magnetic and electromagnetic conductor between the Pine Bay and Cabin deposits. Compilation work highlighted hole 112, drilled approximately 50m from the target, which intersected three mineralized zones including 1.52m of 9.4% zinc, 1.4 g/t gold and 0.26% copper(1).
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(2). Callinex has not done sufficient work to classify the historical estimate as a current mineral resource and is not treating the historical estimate as a current mineral resource.
The Pine Bay deposit is open at depth beneath 400m and a significant electromagnetic conductor suggests potential for additional mineralization. New data suggests that the Pine Bay deposit plunges to the northeast rather than a continuation of a near vertical plunge, trending towards hole 112 and the Cabin deposit. Historic drilling was based on the previous assumption of a near vertical plunge; as a result the extension of the newly projected plunge is untested.
In support of the drilling campaign, the Company compiled and digitized historic data from 422 drill holes totaling 66,658m with an average down-hole length of 158m. Additionally, there have been major technological advances in geophysics since Placer Dome completed the last significant program in 1991. Callinex has recently completed a modern geophysical program to comprehensively identify and evaluate prospective targets.
Figure 1: Pine Bay Project
About The Pine Bay Project
The Pine Bay Project is located 16km east of Flin Flon, MB, and covers approximately 6,000ha. 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. Significantly, a favorable geological trend with coincident geophysical anomalies extends for at least 8 km in a northeast-southwest direction and hosts HudBay’s Centennial Mine along with Callinex’s Sourdough and Pine Bay deposits. Previous operators reported historic resources totaling 1.62 million tons at a grade of 2.81% Cu Eq.(2). Callinex has not done sufficient work to classify the historical estimate as a current mineral resource, and is not treating the historical estimate as a current mineral resource.
The project area was recently consolidated 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.
Pine Bay Historic Resources(2)
(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 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 Christina Taylor, P.Geo, the Company’s Project Geologist, 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.