Highlights:
- Rainbow open at depth with deepest intercept at Rainbow to
date, a 225m step-out from previous
deepest hole (PBM-111);
- Subsequent borehole EM survey supports the extension of
Rainbow at depth; and
- Multiple near surface copper-gold-zinc assays at the newly
discovered Red Zone.
VANCOUVER, BC, Jan. 31, 2022 /CNW/ - Callinex Mines
Inc. (the "Company" or "Callinex") (TSXV: CNX) (OTCQX: CLLXF) is
pleased to announce results from an additional 13 drill holes
encompassing 5,490m of drilling from
the 2021 exploration campaign to expand the high-grade copper,
gold, silver and zinc Rainbow Deposit (the "Rainbow"). Assay
results from 7,540m of drilling from
17 drill holes completed in Q4 2021 are still pending. The Rainbow
is located at the 100% owned Pine Bay Project within a mineral
lease, less than 250m from a
high-voltage hydroelectric power-line and 550m from a historic shaft with direct road
access to processing facilities in Flin
Flon, Manitoba (District Overview Map).
The interpreted strike and plunging direction has been widened
and opened up significantly at depth with the intersections of the
Yellow Zone in drill holes PBM-146a, PBM-146-W and PBM-158. Drill
hole PBM-158, the deepest and most northern hole intersected to
date at Rainbow, returned 5.0m of
1.56% copper equivalent ("CuEq") (consisting of 1.45% copper
("Cu"), 0.07 g/t gold ("Au"), 1.86 g/t silver ("Ag") and 0.11% zinc
("Zn")). PBM-158 is located 225m
along strike to the North of discovery hole PBM-111, the most
southerly hole to intersect the Rainbow at depth (Rainbow Deposit
Long Section).
Jim Pickell, member of Callinex's
technical team, stated, "Given the intense geochemical alteration
patterns and favourable geology at the deepest explored levels of
the Rainbow VMS deposit, it is exciting that a newly defined strong
borehole (PBM-158) geophysical anomaly is located immediately below
those high-grade massive sulphides."
A subsequent borehole electromagnetic ("BPEM") survey completed
and modeled from PBM-158 indicates significant potential for
Rainbow to continue at depth. This is also supported by intense
sericite and chlorite alteration that is strongest in the deepest
holes drilled into the deposit (Rainbow Alteration Cross Section).
The Yellow Zone starts up at 600m
below surface and has a strike of 225m based on this most recent intersection.
Typically Volcanogenic Massive Sulphide ("VMS") lenses discovered
in the Flin Flon Greenstone belt have a depth extent that's 5-8
times the strike.
Alan Vowles, member of Callinex's
technical team, added, "I am quite encouraged by the off-hole
anomaly in PBM-158 because the Tau indicates it is even a little
more conductive than the original off-hole target in PBM-033 that
we drilled and discovered the Rainbow. Additionally, because the
off-hole target in PBM-158 is below the hole it indicates strong
potential that Rainbow continues at depth".
The BPEM anomaly modeled from PBM-158 measures 190m by 400m. The
Time Constant or Tau, a measure of conductance, of the off-hole
anomaly in PBM-158 is 27.07 milliseconds (ms). By comparison,
the Tau of the anomaly in PBM-033, which vectored to the discovery
of Rainbow, was 22.87 ms.
Six drill holes announced have intersected a newly discovered
copper-gold-zinc rich Red Zone that remains open towards surface
and has been intersected to a depth of 375m below surface. The Red Zone is
highlighted by drill hole PBM-145 which returned 12.0m of 3.43% CuEq (consisting of 0.57% Cu,
0.90 g/t Au, 20.27 g/t Ag and 5.25% Zn). There are still four drill
holes that are pending from the assay laboratory above the
200m level.
JJ O'Donnell, Callinex Exploration Manager, stated, "We are
pleased to have delineated a new zone as we continue to test the
Rainbow horizon to surface. The recent drilling in the Red Zone has
produced the highest returned assays for gold and zinc (PBM-145
266m-267m @ 4.29 g/t Au, PBM-145 235m-236m @ 16.8%
Zn) to date at the Rainbow Deposit. The new Red Zone illustrates
the Rainbow Deposit is a typical VMS displaying stacking of lenses,
and metal zonation from copper rich lenses to more zinc rich
portions."
Delineation drilling of Rainbow continues to return high-grade
copper. PBM-138-W1 intersected the Orange Zone and returned
31.0m of 3.53% CuEq comprising 3.04%
Cu, 0.26 g/t Au, 3.55 g/t Ag and 0.74% Zn. PBM-138-W1 is located
15m above PBM-138 which intersected
37m of 6% copper, 0.35 g/t gold, 6.13
g/t silver, 0.09% zinc or 6.33% CuEq and 50m below PBM-118 which returned 5.55m of 7.77% CuEq (See News Release Dated
September 7, 2021 and News
Release Dated April 26, 2021)
The Company plans to delineate Rainbow within the first 1km of
surface and test Rainbow at depth. In anticipation of publishing a
maiden resource estimate for the deposits at the Pine Bay Project,
drilling will also be completed on the historic Pine Bay Deposit
located 650m away. Since the Company
discovered the Rainbow Deposit in August
2020, the Company has drilled 71 holes (including 15 wedges)
for a total of 39,950m into the
deposit area.
Callinex will soon outline high-priority targets located
within the interpreted growth fault corridor which hosts
Rainbow and five other deposits, three of which have seen some
level of historic production. Additionally the Company will outline
targets from the regional Induced Polarization survey that covers
5.5 km of the trend that hosts the Rainbow and Sourdough deposit to
the south.
The Company has also received a majority of the assays from the
limited drilling to follow-up on silver discovered near surface at
the Nash Creek Project located in the Bathurst Mining District, NB
during the 2019/2020 exploration campaign. None of the assay
results received contain appreciable amounts of silver, a focus of
the campaign. A 2018 PEA on the Company's zinc rich
Bathurst projects outlined a mine
plan that generates a strong economic return with a post-tax IRR of
36.6% and NPV8% of $239 million
post-tax at current zinc/lead prices.
Table 1: Pine Bay Drill Results to date
Drill
Hole
|
Zone
|
From
(m)
|
To
(m)
|
Interval
(m)
|
True
Width
(m)
|
Cu
%
|
Au
g/t
|
Ag
g/t
|
Zn
%
|
Sg
|
CuEq
%
|
PBM-128-W1
|
Orange
|
589.6
|
596.6
|
7.60
|
6.87
|
6.28
|
0.60
|
13.03
|
0.39
|
3.93
|
6.95
|
PBM-134
|
Orange
|
525.0
|
531.4
|
6.40
|
5.85
|
1.07
|
0.38
|
8.52
|
2.34
|
3.56
|
2.29
|
PBM-138-W1
|
Orange
|
656.0
|
687.0
|
31.00
|
28.54
|
3.04
|
0.26
|
3.55
|
0.74
|
3.76
|
3.53
|
PBM-145
|
Orange
|
194.0
|
205.0
|
11.00
|
5.50
|
0.15
|
0.26
|
4.40
|
1.29
|
3.15
|
0.86
|
PBM-145a
|
Red
|
232.0
|
244.0
|
12.00
|
6.40
|
0.57
|
0.98
|
20.27
|
5.25
|
3.60
|
3.43
|
PBM-145b
|
Red
|
258.0
|
267.0
|
9.00
|
4.90
|
0.86
|
1.28
|
15.02
|
1.72
|
3.27
|
2.52
|
PBM-148
|
Red
|
Nil
|
|
|
|
|
|
|
|
|
|
PBM-146-W1
|
Yellow
|
770.55
|
774.23
|
3.68
|
2.22
|
2.79
|
0.45
|
6.46
|
0.41
|
3.67
|
3.31
|
PBM-146a
|
Yellow
|
818.0
|
825.0
|
7.00
|
4.40
|
1.34
|
0.19
|
3.15
|
0.50
|
3.16
|
1.68
|
PBM-149a
|
Red
|
214.0
|
219.0
|
5.00
|
2.30
|
0.04
|
0.25
|
3.60
|
2.07
|
3.07
|
1.03
|
PBM-149b
|
Red
|
305.0
|
315.0
|
10.00
|
4.50
|
0.55
|
0.85
|
3.85
|
0.37
|
3.74
|
1.31
|
PBM-150a
|
Red
|
233.0
|
237.0
|
4.00
|
2.40
|
1.08
|
0.05
|
2.14
|
0.39
|
3.15
|
1.29
|
PBM-150b
|
Red
|
257.0
|
260.0
|
3.00
|
1.68
|
0.49
|
0.61
|
20.13
|
2.17
|
3.07
|
1.90
|
PBM-151
|
Red
|
238.0
|
244.0
|
6.00
|
2.44
|
0.01
|
0.13
|
12.43
|
1.78
|
2.98
|
0.89
|
PBM-152
|
Red
|
229.0
|
233.0
|
4.00
|
2.35
|
0.03
|
0.13
|
2.88
|
1.21
|
2.96
|
0.60
|
PBM-153
|
Red
|
194.0
|
198.0
|
4.00
|
2.35
|
0.04
|
0.21
|
7.24
|
3.14
|
3.08
|
1.45
|
PBM-154
|
Red
|
Nil
|
|
|
|
|
|
|
|
|
|
PBM-158
|
Yellow
|
928.0
|
933.0
|
5.00
|
2.94
|
1.45
|
0.07
|
1.86
|
0.11
|
2.90
|
1.56
|
Notes:
|
|
1.
|
BM-128-W1 collar is
located at the following Universal Transverse Mercator (UTM)
coordinates using the North American Datum of 1983 (NAD83) within
UTM Zone 14N 331378m East and 6071255m North and 295.0m above
sea level, and started at 290Az, -83 degree dip with the top of
wedge set at depth 163.5m. PBM-134 collar is located at the
following Universal Transverse Mercator (UTM) coordinates using the
North American Datum of 1983 (NAD83) within UTM Zone 14N: 331378m
East and 6071255m North and 295.0m above sea level, and started at
294Az, -65 degree dip. PBM-138-W1 collar is located at the
following Universal Transverse Mercator (UTM) coordinates using the
North American Datum of 1983 (NAD83) within UTM Zone 14N: 331378m
East and 6071255m North and 295.0m above sea level, and started at
290Az, -80 degree dip with the top of wedge set at depth
392.5m. PBM-145 collar is located at the following Universal
Transverse Mercator (UTM) coordinates using the North American
Datum of 1983 (NAD83) within UTM Zone 14N: 331063m East and
6071424m North and 293.0m above sea level, and started at 320Az,
-70 degree dip. PBM-146a collar is located at the following
Universal Transverse Mercator (UTM) coordinates using the North
American Datum of 1983 (NAD83) within UTM Zone 14N: 331433m East
and 6071327m North and 294.0m above sea level, and started at
300Az, -80 degree dip. PBM-146-W1 collar is located at the
following Universal Transverse Mercator (UTM) coordinates using the
North American Datum of 1983 (NAD83) within UTM Zone 14N: 33143m
East and 6071327m North and 294.0m above sea level, and started at
300Az, -80 degree dip with the top of wedge set at depth 488.5m.
PBM-158 collar is located at the following Universal Transverse
Mercator (UTM) coordinates using the North American Datum of 1983
(NAD83) within UTM Zone 14N: 331450m East and 6071362m North and
298.0m above sea level, and started at 310Az, -85 degree dip.
PBM-148 collar is located at the following Universal Transverse
Mercator (UTM) coordinates using the North American Datum of 1983
(NAD83) within UTM Zone 14N: 331063m East and 6071424m North and
293.0m above sea level, and started at 326Az, -45 degree dip.
PBM-149 collar is located at the following Universal Transverse
Mercator (UTM) coordinates using the North American Datum of 1983
(NAD83) within UTM Zone 14N: 331063m East and 6071424m North and
293.0m above sea level, and started at 325Az, -75 degree dip.
PBM-150 collar is located at the following Universal Transverse
Mercator (UTM) coordinates using the North American Datum of 1983
(NAD83) within UTM Zone 14N: 331063m East and 6071424m North and
293.0m above sea level, and started at 284Az, -70 degree dip.
PBM-151 collar is located at the following Universal Transverse
Mercator (UTM) coordinates using the North American Datum of 1983
(NAD83) within UTM Zone 14N: 331063m East and 6071424m North and
293.0m above sea level, and started at 285Az, -77 degree dip.
PBM-152 collar is located at the following Universal Transverse
Mercator (UTM) coordinates using the North American Datum of 1983
(NAD83) within UTM Zone 14N: 331063m East and 6071424m North and
293.0m above sea level, and started at 301Az, -65 degree dip.
PBM-153 collar is located at the following Universal Transverse
Mercator (UTM) coordinates using the North American Datum of 1983
(NAD83) within UTM Zone 14N: 331063m East and 6071424m North and
293.0m above sea level, and started at 293Az, -75 degree dip.
PBM-154 collar is located at the following Universal Transverse
Mercator (UTM) coordinates using the North American Datum of 1983
(NAD83) within UTM Zone 14N: 331110m East and 6071474m North and
295.0m above sea level, and started at 299Az, -75 degree
dip.
|
|
|
2.
|
The size of the drill
core is NQ.
|
|
|
3.
|
True Width
calculations assumed the Rainbow Horizon to strike 032 degrees
azimuth, with a 80 degree easterly dip.
|
|
|
4.
|
All CuEq (copper
equivalent) assay results in this news release use the following
pricing: US$3.00 copper per pound ($6,720/tonne), US$1.15 zinc per
pound, US$1,450/troy ounce gold ($46.62/gram), US$16.50/toy ounce
silver ($0.53/gram), calculation CuEQ= Cu%+(Zn% x zinc price per
pound / copper price per pound)+(Au g/t x Au price per gram /
copper price per tonne) x100 + (Ag g/t x Ag price per gram /
copper price per tonne) x 100. 100% metal recoveries used, ie. no
process recoveries or smelter payables were included in the
calculation.
|
J.J. O'Donnell, P.Geo, a qualified person under National
Instrument 43-101, has reviewed and approved the technical
information in this news release.
Figure 1: Flin Flon Mining District Region Overview
Figure 2: Pine Bay Long Section Looking West with 2021
Drilling
Figure 3: Rainbow Deposit Alteration Cross Section
QA / QC Protocols
Individual samples were labeled,
placed in plastic sample bags, and sealed. Groups of samples were
then placed in security sealed bags and shipped directly to SGS lab
in Vancouver, BC for analysis.
Samples were weighed then crushed to 75% passing 2mm and pulverized
to 85% passing 75 microns in order to produce a 250g pulverized
split. 35 elements including copper, zinc, lead and silver assays
were determined by Aqua Regia digestion with a combination of
ICP-MS and ICP-AES finish, with over limits rerun using an ore
grade analysis (two acid digest ICP-AES). Gold was analyzed
by fire assay. Specific gravity (sg) measured for each sample using
the pycnometer and water and air method. QA/QC included the
insertion and continual monitoring of numerous standards, blanks,
and duplicates
About Callinex Mines Inc.
Callinex Mines
Inc. (TSXV: CNX) (OTCQX: CLLXF) is
advancing its portfolio of base and precious metals rich deposits
located in established Canadian mining jurisdictions. The focus of
the portfolio is highlighted by the rapidly expanding Rainbow
Discovery at its rich VMS Pine Bay Project located near existing
infrastructure in the Flin Flon Mining District. The second asset
in the portfolio is the Nash Creek Project located in the VMS rich
Bathurst Mining District of New
Brunswick. A 2018 PEA generates a strong economic return
with a pre-tax IRR of 34.1% (25.2% post-tax) and NPV8% of
$230 million ($128 million post-tax) at $1.25 Zinc. The third asset, 100% owned
Point Leamington Deposit in Newfoundland, is located in one of the richest
VMS and Gold Districts in Canada.
Callinex prepared a pit constrained Indicated Mineral Resource of
5.0 Mt grading 2.5 g/t AuEq for 402 koz AuEq (145.7 koz gold, 60.0
Mlb copper, 153.5 Mlb zinc, 2.0 Moz silver, 1.5 Mlb lead), an pit
constrained Inferred Mineral Resource of 13.7 Mt grading 2.24 g/t
AuEq for 986.5 koz AuEq (354.8 koz gold, 110.2 Mlb copper, 527.3
Mlb zinc, 6.2 Moz silver, 7.0 Mlb lead) and an out-of-pit Inferred
Mineral Resource of 1.7 Mt grading 3.06 g/t AuEq for 168.5 koz AuEq
(65.4 koz gold, 13.3 Mlb copper, 102.9 Mlb zinc, 1.4 Moz Ag, 2.6 Mlb lead).
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 the proposed drill program and the
timing and amount of expenditures. Except as required under
applicable securities laws, Callinex does not assume the obligation
to update any forward-looking statement.
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SOURCE Callinex Mines Inc.