PROJECTS

PINE BAY, FLIN FLON, MB

  • District scale land package containing seven known VMS deposits spanning over a 10km long favorable trend; including three high grade copper VMS deposits discovered by Callinex (Rainbow, Descendent and Alchemist) that are hosted within the largest accumulation of Felsic Volcanic Rocks within the Flin Flon-Snow Lake Greenstone belt
  • Mineral Resource Estimate contained within a mineral lease that consists of an Indicated 3.44 Mt at 3.59% CuEq and an Inferred 1.28 Mt at 2.95% CuEq hosted within the Rainbow Deposit, and an inferred 1.0 Mt at 2.62% CuEq hosted within the Pine Bay Deposit 
  • Potential to significantly increase tonnage through the advancement and delineation of the Alchemist, and Descendent VMS Deposits combined with exceptional exploration potential to make additional high grade copper VMS discoveries.
  • Fast-track to production potential utilizing existing infrastructure including: a vertical shaft and historic underground workings, government-maintained road systems, and high voltage transmission power lines; all located within an area that is permitted for mining activities
  • Strategically located 16km from the city of Flin Flon, MB where HudBay’s processing facilities are currently under care and maintenance awaiting the opportunity to resume operations upon the discovery and production of new mineral resources.
  • Previously controlled by majors mandating the discovery of a 30 Mt VMS deposit, which included individually claimed areas held by Placer Dome, Inmet, Newmont and HudBay

Overview

Located within the prolific Flin Flon Mining District, Callinex owns a 100% interest in the claims at the Pine Bay project which consists of an over 6,000 hectare land package along a 10km favorable trend of felsic volcanic rocks within the Flin Flon Greenstone Belt. The project area is located 16km from the City of Flin Flon and is accessible by paved and all-weather gravel roads with established access to power, reliable water sources, and has the ability to operate year-round.

The Pine Bay Project area encompasses the majority of the Baker Patton Felsic Complex, which is the largest exposed accumulation of felsic volcanic rocks within the Flin Flon-Snow Lake Greenstone belt. Which is the easternmost Volcanogenic Massive Sulphide hosting domain within the Flin Flon portion of the Flin Flon-Snow Lake Greenstone Belt. Volcanogenic Massive Sulphide deposits that occur within the Flin Flon Belt are almost exclusively hosted by rhyolitic flows and felsic volcaniclastic rocks within the predominantly mafic arc tholeiite terrane. Outcropping within the exploration area, is an exposure of intensely altered (chloritized, sericitized, and silicified) felsic volcanic rocks with a minimum footprint of 700m by 1000m, that has collectively been defined as the Baker Patton Alteration Zone. This extensive hydrothermal alteration zone occurs within a growth fault corridor that is host to the: Pine Bay, Cabin, Baker Patton, and Sourdough VMS deposits. 

Callinex has been actively exploring the Pine Bay project since 2014 utilizing a multifaceted exploration approach including geology, geophysics and geochemistry. A number of geophysical tool sets including Induced Polarity (“IP”), Surface Pulse Electromagnetics (“SPEM”), Bore Hole Pulse Electromagnetics (“BPEM”) and Magnetotelluric (“MT”) surveys to generate exploration targets that are followed up by diamond drill testing.  The Company has successfully completed 174 diamond drill holes including 24 wedges and the deepening of 13 historic and recently active holes producing 112,039m of drill core. This work led to the discovery of the Rainbow, Alchemist, and Descendent VMS deposits.

Exploration efforts lead to the discovery of the Rainbow Deposit in August 2020 at the Pine Bay Project in drill hole PBM-111, which was designed to test a previously identified BPEM anomaly (Anomaly A) with a coincident IP anomaly; upon drill testing, PBM-111 intersected massive and disseminated sulphides between 892.04-895.00m representing Anomaly A, returning 2.96m of 3.09% Cu, 0.75 g/t Au, 13.35 g/t Ag, 1.88% Zn. Which was then followed by a second interval of massive and disseminated sulphides between 993.24-937.55m returning 4.31m of 4.12% Cu, 0.22 g/t Au, 2.21 g/t Ag, 0.06% Zn. These massive sulphide lenses intersected within the Rainbow Deposit discovery hole, were then defined as the Yellow and Orange Zones.

Representative geology of the Rainbow deposit to date is dominated by a felsic volcanic assemblage including: Dacitic and Rhyodacitic flows (locally autobrecciated hyaloclastite), quartz (+/- feldspar) porphyric intrusives, and diorites. With proximal footwall hydrothermal alteration (sericite, chlorite, silica) preceding the base metal rich massive sulphide lenses.

The discovery of the Rainbow Deposit warranted Callinex to increase the amount of drill rigs on-site, and upgrade the capacity of the on-site core shack facility that is fully equipped with designated areas for core logging, core splitting, office space, and a heated workshop. Allowing for the aggressive advancement of the Rainbow deposit to its Maiden NI 43-101 Mineral Resource Estimate while continuing with further exploration. Following the discovery of the Rainbow deposit in 2020, Callinex Mines Inc completed 66 diamond drill holes including 12 wedges totaling 38,769m in 2021, and in 2022 Callinex completed 37 diamond drill holes including 6 wedges totaling 19,536m.

Highlighted by diamond drill hole PBM-129W2, which intersected mineralization over 67.0m of 2.73% Cu, 0.13 g/t Au, 3.46 g/t Ag, and 0.12% Zn, and the most significant intersection to date, occurring within diamond drill hole PBM-138, which intersected the Rainbow Horizon 210m vertically above and along strike to the north of PBM-129W2. Intersecting 37m of 6.00% Cu, 0.35 g/t Au, 6.13 g/t Ag, and 0.09% Zn, which included two high grade one metre intervals returning over 18% Cu.

Upon the completion of the required delineation drilling of the Rainbow Deposit in 2022, a NI 43-101 Maiden Mineral Resource Estimate was published for the Rainbow Deposit, which included an updated resource estimate for the Pine Bay Deposit, in August 2023. See Below.

Rainbow Deposit Indicated Mineral Resource

Resource AreaTonnesCu 

%

Au

g/t

Zn 

%

Ag

g/t

Pb

%

Cu

Mlb

Au

koz

Zn MlbAg

koz

Pb

Mlb

CuEq

%

CuEq

Mlb

Rainbow3,442,0003.140.340.756.260.03238.337.656.9692.82.33.59272.4

Rainbow Deposit and Pine Bay Deposit Inferred Mineral Resource

Resource AreaTonnesCu 

%

Au

g/t

Zn 

%

Ag

g/t

Pb

%

Cu

Mlb

Au

koz

Zn MlbAg

koz

Pb

Mlb

CuEq

%

CuEq

Mlb

Rainbow1,282,0002.550.270.695.390.0372.111.119.5222.20.82.9583.4
Pine Bay1,006,0002.62N/AN/AN/AN/A58.1N/AN/AN/AN/A2.6258.1
Total 2,288,0002.58130.211.119.5222.20.82.80141.5

See news release dated July 10, 2023 for further details on the mineral resource estimate

Callinex successfully discovered the Alchemist VMS Deposit in 2022 at the Pine Bay Project. The Alchemist discovery hole, ALC-111, was collared 1500m southwest of the Rainbow Deposit and was designed to test a Bore Hole Pulse Electromagnetic anomaly defined as Anomaly B. Drill testing led to the intersection of Massive Sulphides occurring between 713.56-716.00m, returning 2.44m of 0.90% Cu, 1.76% Zn, 0.22 g/t Au and 7.05 g/t Ag.

Representative geology of the Alchemist deposit to date is dominated by a felsic volcanic assemblage including: agglomerate, lapilli tuff, tuffaceous sediments, felsic flows (quartz phyric, and locally autobrecciated), quartz (+/- feldspar) porphyric intrusives, and diorites. With proximal footwall hydrothermal alteration (chlorite) preceding a base metal rich massive sulphide lens.

Callinex followed up on the ALC-111 Alchemist Discovery hole with 4 additional drill holes: ALC-112, ALC-113, ALC-114, and ALC-115. Defining the Alchemist deposit to a strike length of at least 140m, and a vertical extent of 500-800m below surface. Drill hole ALC-112 intersected the Alchemist Horizon vertically above and along strike to the north of ALC-111, returning 4.00m of 0.31% Cu, 0.06 g/t Au, 4.91 g/t Ag, and 1.85% Zn. While the most significant intersection to date occurred vertically below ALC-111, within drill hole ALC-114, which intersected 4.40m of 1.6% Cu, 0.40 g/t Au, 21.78 g/t Ag, and 5.14% Zn.

Returning in 2023, Callinex commenced an exploration diamond drilling campaign, leading to potentially one of the most significant discoveries on the Pine Bay Property, the Descendent Deposit, discovered in August 2023, within discovery diamond drill hole DSC-111, which intersected four massive sulphide lenses in a single drill hole, with significant base and precious metal values within a total core width of 67.7m, including, 7.14m returning 1.70% CuEq (including 3.34% Zn, 0.29 g/t Au, 14.38 g/t Ag, and 0.11% Cu). Showing comparable grades to the distal portion of the Rainbow Deposit. Additional follow up drilling has shown that the deposit extended along strike to the south 50m, and down dip 110m, while remaining open both along strike and down dip.

Drill HoleFrom

(m)

To

(m)

Interval (m)Cu

%

Au g/tAg  g/tZn

%

SgCuEq

%

DSC-1121513.001521.008.000.030.061.080.412.960.20
DSC-1121553.001555.002.000.030.111.310.863.080.37
DSC-1121565.001570.005.000.020.188.230.682.960.32
DSC-112-W11578.591585.597.000.130.5115.802.873.341.71
Including1582.001585.593.590.080.4614.314.683.152.30
DSC-112-W11596.001605.009.000.410.203.440.203.390.65
Including1600.001603.003.000.900.295.190.153.601.20
PBM-024W11018.001022.04.000.080.576.702.213.391.37
Including1018.001021.163.160.100.677.812.643.511.63

See news release dated January 22, 2024 for further details

The current intersections through the four lenses of the Descendant Deposit, coupled with an extensive 1,000m by 700m alteration zone and an interpreted 340m x 840m bore hole pulse electromagnetic anomaly. Supports the potential that the Descendent Deposit may be a massive Copper-Zinc-Gold-Silver VMS deposit.

Callinex plans to advance the Pine Bay Project by aggressively drilling the Descendent Deposit to delineate the deposit and developed the deposit to the Mineral Resource Estimate stage, while also exploring additional exploration targets to make new high grade copper VMS deposit discoveries. Additionally, Callinex plans to conduct geophysical surveys on our pipeline of discoveries at the Pine Bay Project (Rainbow, Alchemist, and target area Odin) which may be followed by diamond drilling. While also focusing on advancing Rainbow to the prefeasibility stage

2024 Exploration Targets at the Pine Bay Project

  • Widely spaced step-out planned to test Descendent deposit down the plunge to vector towards high grade copper VMS mineralization;
  • MT geophysical survey data supports exploration thesis Descendent sits at the hinge of a fold nose indicating the potential of a wider lens of mineralization;
  • New target areas, Poseidon and Ra, outline the potential to host near surface discoveries along strike from existing Rainbow and Pine Bay deposits; and
  • Large resistivity low from MT survey provides additional support and strengthens target area Odin.

See news release dated May 22, 2024 for further details

Stepping out at Descendent

The most significant section returned from discovery drill hole DSC-111 is 7.14m grading 1.70%  copper equivalent (“CuEq”) with additional intersections including a 10.57m grading 1.36% CuEq.(see news release dated September 12, 2023) Step-out drill hole DSC-112-W1 intersected the Descendent 110m vertically below and 50m to the south of discovery hole DSC-111 and returned 7.00m of 1.71% CuEq including 3.59m of 2.30% CuEq among other intervals (see news release dated January 22, 2024). The Descendent remains open to the north, and vertically below DSC-112-W1 (Figure 3: Descendent Discovery Long Section).

The grades intersected to date at the Descendent are comparable to grades intersected at the top of the nearby Rainbow Deposit.  At Rainbow, the average drill hole composite grades are 1.55% CuEq (0.56% Cu, 0.46 g/t Au, 1.63% Zn and 9.27 g/t Ag) within the first 200m (-100m to -300m elevation) of the deposit. The abundance of zinc, gold and silver indicates that the holes intersected into the Descendent to date may have intersected the edge of the VMS system similar to what occurs at the Rainbow Deposit. Additionally, the significant width of the massive sulphide intervals suggests that the system is long-lived and robust.

The base and precious metal bearing massive sulphide intersections into Descendent are associated with a major alteration zone that’s previously been identified at surface and spans 1,100m by 700m as supported by lithogeochemical data. Since the huge alteration zone seen at surface is believed to be structurally overturned, the exploration thesis is that the massive sulphides associated with this fluid mineralizing event would be preserved at depth. Typically, there is a correlation between the size of an alteration zone and the size of the VMS deposit it is associated with. The alteration package around Descendent is approximately ten times larger than the alteration package enveloping the nearby Rainbow Deposit.

The recent 2024 MT geophysical survey over Descendent outlined a resistivity low anomaly that strongly correlates with the halo of stringer mineralization (alteration package) enveloping the Descendent (Figure 4: MT Survey Descendent Line Cross Section). It is also important to note that the resistivity low anomaly associated with the Descendent VMS system remains open at depth, as supported by other geological, geophysical and geochemical data. Additionally, MT survey results at depth further support the Company’s exploration thesis that the Descendent could potentially sit at the nose of the fold where the horizon that hosts the Descendent deposit meets the horizon that hosts the Pine Bay Deposit, located further to the south. Deposits that sit at the nose of a fold can host significantly wider lenses of mineralization and with it the potential to add significant volume more quickly.

Callinex has planned a step-out drill hole to test the Descendent down the plunge line targeting 350m vertically below and 25m north of DSC-111 (see Figures 3 and 4).

Target Area Poseidon

Target area Poseidon is located 1,300 meters along strike to the north of the Rainbow deposit (see Figure 2). This area was covered by the recent MT survey on the Descendent line. The MT survey data outlined a very large resistivity low anomaly interpreted to be mapping the alteration package between the known Rainbow and Pine Bay horizons (see Figure 4).

Poseidon has the potential to host a discovery that comes close to the surface like the Rainbow deposit along strike to the south. A surface pulse electromagnetic survey (“SPEM”) and airborne electromagnetic survey (“VTEM”) previously completed each have confirmed a highly conductive body near the surface that sits along the interpreted Rainbow horizon and on the edge of the MT resistivity anomaly. Callinex has only tested this area with a single drill hole and there have only been a few very shallow historic holes in the immediate vicinity.

Geology in the very limited drilling nearby has intersected exceptionally favorable package of very strong black chlorite-rich footwall alteration with several key VMS signature elements, such as very strong Europium values, sitting within the same ‘Rainbow’ volcanic package that is dominated by felsic flows / hyaloclastites that are immediately overlain by cherty felsic tuffs.

BHPEM results from the single near surface hole drilled by the Company in 2016, PBM-013, revealed a strong in-hole/off-hole anomaly associated with 8 meters of mineralization intersected in the hole.  Additionally, PBM-024-DPN intersected the Rainbow horizon at depth and is accompanied by a very strong BPEM off-hole anomaly that corresponds with the horizon as well as the BPEM anomaly identified closer to surface in PBM-013.

A drill hole has been proposed from the surface to test Poseidon where it is supported by the VTEM, SPEM and MT resistivity low anomalies (see Figure 2 and 4).

Target Area Ra

Target area Ra is located 1,700 meters along strike to the south of the Pine Bay deposit and was covered by the recent 2024 MT survey on the Odin line (see Figure 2). The MT data has outlined a very large resistivity low anomaly interpreted to be mapping the alteration package between the known Rainbow and Pine Bay horizons, which host each respective deposit (Figure 5: Pine Bay Project MT Survey Odin Line Cross Section).

This area has previously been highlighted for drilling based on a large 250m by 650m, moderately strong chargeability isoshell identified in a 2021 Induced Polarization geophysical survey that may be associated with a pyritic footwall alteration envelope as at the nearby Pine Bay deposit. The northern edge of the IP chargeability high is also semi-coincident with a SPEM anomaly that was targeted for testing by drill hole PBM-120.

Drill hole PBM-120 intersected highly prospective, strongly sericitized felsic volcanics starting at 1,149m and which are immediately along strike to the south from similarly altered volcanics hosting Pine Bay deposit. A subsequent BPEM survey was unsuccessful in surveying the bottom of the hole due to blockage.

The Company has planned a new parent hole to test Ra (see Figure 2 and 5).

Target Area Odin

Target area Odin is located between the Alchemist and Rainbow deposits where the growth fault corridor intersects the Centennial Mine Horizon, which hosts the Sourdough deposit and past producing Centennial mine further to the south.

The Company completed drill hole PBM-191 to follow-up on a anomaly modeled from BPEM survey data on drill hole PBM-182, which previously intersected a favorable rock package made of up dominantly altered felsic tuff/flows, with alteration (chlorite/sericite) normally seen with the Rainbow deposit.

Drill hole PBM-191 intersected one of the highest precious metals intervals to date at the Project with 0.52m of 5.32g/t Au, 56.67g/t Ag with trace copper and zinc and interpreted to be on the Odin horizon. The mineralization is hosted in a chlorite schist with 12% Pyrite, trace chalcopyrite, and silica flooding.  Elevated precious metals, silver in particular, are a strong vectoring tool towards massive sulphides within VMS systems.

MT has given confidence to the true location of the Odin which corresponds to the mineralization intersected in PBM-191, which is located 370m to the north of the Odin MT line.  Drilling within 150m of the MT survey line is sparse with only a couple of holes that tested within the first 300m of surface and intersected excellent geology. The MT data suggests that the target area on the interpreted Odin horizon starts below 300m of surface (see Figure 5).

The Company plans to deepen drill hole ALC-112 to intersect the projected Odin horizon and test the MT resistivity low and supporting BPEM anomalies identified in surveying drill holes survey in the vicinity.

Newly Acquired Growth Fault Corridor

The Company recently announced the option to acquire a 100% interest in the Alberts Lake Project which encompasses 5,064 hectares of contiguous ground to the north of the existing Pine Bay Project boundary. The land package contains several prospects hosting both copper-zinc-gold-silver bearing VMS mineralization as well vein-hosted gold-silver.

BATHURST MINING DISTRICT

In 2020 the company announced near surface silver discoveries 6.8km apart and in close proximity to its Nash Creek deposit in the Bathurst Mining District of New Brunswick. A 2018 PEA on its Bathurst Project portfolio outlined a mine plan that generates a strong economic return with a pre-tax IRR of 34.1% and NPV8% of $230 million ($128 million post-tax).

 

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BUCHANS MINING DISTRICT

Callinex owns the Point Leamington Deposit that hosts a significant zinc and gold-rich VMS deposit that is open for expansion.

 

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