Callinex Extends Pine Bay Project with Acquisition of Mining Claim Adjacent to High-Grade Massive Sulphide Mineralization

January 8, 2015

Highlights:

  • Acquisition of the Bay 1 mining claim, located 400m along trend of Hudbay’s past producing Centennial Mine;
  • The claim is located 100m from Hudbay’s claims hosting the Centennial Mine where 9 of 12 holes from historic drilling intersected visual chalcopyrite and sphalerite*; and
  • No known modern exploration work completed within property boundary.

 

Vancouver, British ColumbiaCallinex Mines Inc. (the “Company” or “Callinex”) (TSX-V: CNX; OTCQX: CLLXF) is pleased to announce it has acquired the Bay 1 mining claim (the “Claim”) located at the south end of its 100% owned Pine Bay Project and approximately 400m along trend from Hudbay’s past-producing Centennial Mine. The Company acquired the claim based on a review of historic drilling within the vicinity of the Project that identified significant intersections approximately 300m from the Centennial Mine shaft and approximately 100m from the newly acquired Claim boundary (See Figure 1 & 2). These intersections were reported in drill logs where visual estimates outlined*:

  • Hole SAL 9 with 14.1m of massive sulphides ranging up to 35% chalcopyrite and 10-20% sphalerite;
  • Hole SAL 11 with 8.7m of massive sulphides ranging up to 10% chalcopyrite and 30-40% sphalerite; and
  • Hole SAL 12 with 11.1m of massive sulphides ranging up to 10-15% chalcopyrite and 10-20% sphalerite.

*The mineral chalcopyrite consists of approximately 35% copper, 35% sulfur and 30% iron while the mineral sphalerite consists of approximately 64% zinc, 33% sulfur and 3% iron. The Company has not verified the above information and it is not necessarily indicative of mineralization on the Bay 1 mining claim.

No assays were included in the drill logs included with the assessment report. Full drill results for the 12 holes adjacent to the Bay 1 claim are available at: http://www.gov.mb.ca/data/em/application/assessment/98616.pdf

In addition to the close proximity to historic high-grade mineralization, the claim area is interpreted to cover the Centennial-Sourdough geological trend, an extension of the stratigraphy that hosts the Centennial Mine and Callinex’s Sourdough Bay deposit. A significant section of this prospective extension has not been subjected to modern geophysical exploration. The Centennial-Sourdough stratigraphy is believed to extend for multiple kilometers onto the Pine Bay Project area and is one of several stratigraphic horizons on the property known to host VMS mineralization. The Company acquired the Claim from the vendor for an immaterial cash payment.

The Pine Bay Project consists of a recently consolidated land package located 16km east of Hudbay’s 777 Mine and hosts four high-grade VMS deposits rich in copper and zinc. Previous operators reported historical 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. This historic resource should not be relied upon.

 

Figure 1: Map of Bay 1 Claim Area

Map-12

Figure 2: Map of Pine Bay Project

Map-22

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 historic 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

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)   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
E-mail: info@callinex.ca

 

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.