VCG.V · 2023-07-10 12:00:00

Callinex Announces High-Grade Copper Maiden Mineral Resource Estimate at its Pine Bay Project in Manitoba

Resource Estimates

Callinex Announces High-Grade Copper Maiden Mineral Resource Estimate

at its Pine Bay Project in Manitoba

Highlights:

Rainbow deposit Indicated Mineral Resource of 3.44 Mt at 3.59% CuEq and Inferred Mineral Resource of 1.28 Mt at 2.95% CuEq;

Pine Bay deposit Inferred Mineral Resource of 1.0 Mt at 2.62% Cu;

Fully funded

20,000m

drilling is ongoing to explore in depth and to further define parallel deposit targets at the Project; and

Table 1 and Table 2 below provide further information of the mineral resources estimate together with sensitivity to cut-off grades and

determination of CuEq.

VANCOUVER, BC

July 10, 2023

/CNW/ -

Callinex Mines Inc.

(the "Company" or "Callinex") (TSXV: CNX) (OTC: CLLXF) is pleased to announce a high-grade

copper maiden mineral resource estimate for its 100% owned Pine Bay Project (the "Project") in

Manitoba

. The Project hosts the high grade copper, zinc, gold

and silver Rainbow deposit which is open for expansion in addition to the Pine Bay deposit that sits in close proximity. The deposits at the Pine Bay Project are

Volcanogenic Massive Sulphide ("VMS") which contain significant copper, zinc, gold and silver that the Flin Flon Mining District is well known for. The resource

estimate was prepared by Kirkham Geosystems Ltd. ("Kirkham") for the Company.

The mineral resource estimate, contained within the mineral lease, consists of

the Rainbow deposit with an Indicated Mineral Resource of 3.44 Mt at 3.59%

copper equivalent ("CuEq") containing 272.4 Mlb CuEq (comprised of 238.3 Mlb Cu, 56.9 Mlb Zn, 37.6 koz Au, 692.8 koz Ag, 2.3 Mlb Pb), an Inferred

Mineral Resource of 1.28 Mt at 2.95% CuEq containing 83.4 Mlb CuEq (comprised of 72.1 Mlb Cu, 19.5 Mlb Zn, 11.1 koz Au, 222.2 koz Ag, 0.8 Mlb Pb)

and the Pine Bay deposit with an Inferred Mineral Resource of 1.0 Mt at 2.62% Cu containing 58.1 Mlb Cu (

Pine Bay Project Block Models Projected to Surface

)

Pine Bay Project Block Models Projected to Surface (CNW Group/Callinex Mines Inc.)

Max Porterfield

, President & CEO stated,

"We are thrilled to be announcing a high-grade copper maiden mineral resource estimate at the Pine Bay Project,

after discovering the Rainbow deposit in late 2020 the Project has grown to become one of the largest initial published resources to date in the

Flin Flon

district's robust history." Mr. Porterfield continued, "With this maiden mineral resource estimate complete, we will now focus on continuing our aggressive

drilling program at depth and along the trend that hosts the deposits at Pine Bay. Completion of the maiden resource is also a key milestone and critical step in

our goal to develop the Project for the benefit of all stakeholders and the surrounding communities."

Peter R. Jones

, a member of Callinex's technical team said,

"The Pine Bay Project maiden resource has extraordinary copper grades and excellent tonnage in

two deposits about

900m

apart. The opportunity to further increase resource tonnage both in depth and from parallel structures is considerable. I look forward

to the ongoing results from the well funded exploration program."

Table 1: Pine Bay Project Resource Estimate Summary at 1.3% CuEq Base Case Cut-off

Rainbow Deposit Indicated Mineral Resource

Resource Area

Tonnes

g/t

Mlb

koz

Mlb

koz

Mlb

CuEq

Mlb

Rainbow

3,442,000

3.14

0.34

0.75

6.26

0.03

238.3

37.6

56.9

692.8

2.3

3.59

272.4

Rainbow Deposit and Pine Bay Deposit Inferred Mineral Resource

Resource Area

Tonnes

g/t

Mlb

koz

Mlb

koz

Mlb

CuEq

Mlb

Rainbow

1,282,000

2.55

0.27

0.69

5.39

0.03

72.1

11.1

19.5

222.2

0.8

2.95

83.4

Pine Bay

1,006,000

2.62

N/A

58.1

N/A

2.62

58.1

Total

2,288,000

2.58

–

130.2

11.1

19.5

222.2

0.8

2.80

141.5

Notes:

(1)

Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability.

(2)

The estimate of Mineral Resources may be materially affected by environmental permitting, legal title, taxation, socio-political, marketing or other relevant issues.

(3)

The Mineral Resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves, Definitions (2014) and Best Practices (2019) prepared by the CIM Standing Committee on Reserve

Definitions and adopted by CIM Council. It cannot be assumed that all or any of the inferred mineral resources will be upgraded to indicated measured resources as a result of continued exploration.

(4)

The inferred mineral resource in this resource estimate has a lower level of confidence than that applied to an indicated mineral resource and must not be converted to a mineral reserve. It is reasonably expected that a majority of the inferred mineral resource could be upgraded to an

indicated mineral resource with continued exploration.

(5)

The indicated and inferred resource estimate uses a copper equivalent cut-off grade of 1.3% CuEq.

(6)

Copper equivalent resources for the Pine Bay Project were calculated using the following metal prices: Cu at US$3.25/lb, Zn US$1.20/lb, Au at US$1,850/oz, Ag at US$22.50/oz. Foreign exchange rate of CDN$1.00 = US$0.75.

(7)

Metallurgical recoveries have been assumed to be 80% Cu, 80% Zn, 40% Au and 40% Ag.

(8)

Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution.

(9)

All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

The Company will file a National Instrument 43-101 Technical Report that supports the disclosure of the Mineral Resource Estimate within 45 days of this news

release.

Pine Bay Project Access and Geology

JJ O'Donell, Callinex's Exploration Manager said,

"The maiden resource estimate covers a small footprint on our extensive exploration land package in

Manitoba. As part of our ongoing drilling campaign we will test high-priority targets at Rainbow, Alchemist, Odin and Cabin with the objective of adding further

resources."

The Pine Bay Project, consists of a group of 77 contiguous mineral claims (dispositions) and one Mineral Lease totaling 6,795 hectares. Both the Rainbow and

Pine Bay Mineral Resources are located on the Mineral Lease 59 which totals 782 hectares. The Project is located 14 km east of the city of

Flin Flon Manitoba

and access is gained via driving southeast 15 kms along provincial highway #10, heading north for an additional 10 kms along old provincial Highway #10 (~5 kms)

and the fully serviced Northstar Road.

The Rainbow and Pine Bay deposits are a felsic-hosted VMS deposits that dips 78 and 82 degrees (respectively) to the east, with the Rainbow deposit having a

strike length of

310m

and a maximum horizontal thickness of

32.0m

. The Pine Bay deposit has a strike length of

190 m

and a maximum horizontal thickness of

42.0m

. Massive sulphides have been intersected on the Rainbow deposit from 100m below surface to a depth of 897m from a total of 66 drill holes totaling

38,249m

. Massive sulphides have been intersected on the Pine Bay deposit from 10m below surface to a depth of 375m from a total of 76 drill holes totaling

10,123m

Callinex's Pine Bay Project encompasses the majority of the Baker Patton Complex (BPC), the largest exposed felsic (rhyolitic) volcanic accumulation in the

Flin

Flon

portion of the Flin Flon-Snow Lake Greenstone Belt (

Flin Flon Greenstone Belt Regional Geology

). This is especially important since the majority of the VMS

deposits occurring within the Flin Flon Belt of

Saskatchewan

and

Manitoba

are almost always hosted by rhyolitic flows and volcaniclastic rocks within

predominantly mafic terranes. Of additional importance is that these felsic (rhyolitic) rocks only account for a small portion of the total volcanic pile (5-10%). Of

particular exploration interest to Callinex's Pine Bay Project, is the very large exposure of intensely altered (chloritic, sericitic and silicic alteration) felsic rocks that

have collectively been called the Baker Patton Alteration Zone, encompassing an area with a minimum footprint of

700m

1000m

. A very large footwall alteration

system such as this would normally be expected to be accompanied by a large VMS system and has consequently been the target of many exploration

companies preceding Callinex.

Flin Flon Greenstone Belt Regional Geology (CNW Group/Callinex Mines Inc.)

Pine Bay Project Exploration

Jim Pickell

, a member of Callinex's technical team, commented, "

After working and contributing to the discovery of several significant deposits in the

Flin Flon

area, I've always been intrigued by the special geological setting in the Pine Bay area and its continued proven propensity to host prolific VMS systems.

Nothing that I've seen in our current round of exploration reduces that initial level of optimism for the property

The Rainbow deposit was initially discovered with a discovery hole in 2020. In a relatively short time frame, the Company has carried out a number of extensive

drill programs to define a high-grade copper maiden mineral resource at the Rainbow deposit. Additional drilling has targeted a number of high-priority targets

resulting in the discovery of the nearby Alchemist and Odin prospects, which are not part of this maiden resource estimate.

The focus of the Company is to further expand the size of the high-grade Rainbow deposit both laterally and at depth. The last deep hole at the Rainbow deposit,

drill hole PBM-158, was the deepest and most northern hole, which intersected the Yellow zone and 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")).

Follow up drilling is also planned to step out vertically above and below Alchemist. The last reported drill hole of Alchemist, ALC-114, intersected

4.40m

of 4.02%

CuEq including 1.60% copper ("Cu"), 5.14% zinc ("Zn"), 0.40 g/t gold ("Au") and 21.78 g/t silver ("Ag")

The fully funded drill campaign is also targeting Odin, which is directly in between the Alchemist and Rainbow deposits. Drill hole PBM-191 intersected one of the

highest precious metals intervals to date at Odin 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 Company is further exploring the high-grade historic Cabin deposit. In late 2016, the Company intersected

10.3m

grading 6.0% Zn, 1.8 g/t Au, 60.4 g/t Ag,

0.7% Cu and 0.4% Pb in drill hole 284-3-93-DPN

(

see news release dated

October 18, 2016

). Since the discovery of Rainbow and now Alchemist, the

Company has a deeper understanding of how VMS deposits sit along the stacked horizons located within the main controlling growth fault corridor at the Project.

The Company has now refined exploration target areas and is currently drill testing these targets to follow up on previous high-grade intersections.

Table 2: Pine Bay Project Resource Estimate Sensitivity to Copper Cut-off Grade

Rainbow Deposit Indicated Mineral Resource

Cutoff

Cu %

Tonnes

g/t

Mlb

koz

Mlb

koz

Mlb

CuEq

Mlb

0.5

4,118,000

2.71

0.33

0.77

6.11

0.04

246.0

43.7

69.9

809.0

3.6

3.17

287.8

1.0

3,880,000

2.85

0.34

0.78

6.25

0.04

243.8

42.4

66.7

779.7

3.4

3.31

283.1

1.1

3,766,000

2.92

0.34

0.78

6.28

0.04

242.4

41.2

64.8

756.8

3.3

3.38

280.6

1.2

3,609,000

3.03

0.34

0.76

6.26

0.03

241.1

39.5

60.5

726.4

2.4

3.48

276.9

1.3

3,442,000

3.14

0.34

0.75

6.26

0.03

238.3

37.6

56.9

692.8

2.3

3.59

272.4

1.4

3,265,000

3.27

0.33

0.72

6.23

0.03

235.4

34.6

51.8

654.0

2.2

3.71

267.0

1.5

3,130,000

3.38

0.33

0.71

6.23

0.03

233.2

33.2

49.0

626.9

2.1

3.81

262.9

1.6

3,037,000

3.44

0.33

0.71

6.28

0.03

230.3

32.2

47.5

613.2

2.0

3.88

259.8

1.8

2,896,000

3.55

0.34

0.71

6.31

0.03

226.7

31.7

45.3

587.5

1.9

3.98

254.1

2.0

2,752,000

3.66

0.34

0.70

6.30

0.03

222.1

30.1

42.5

557.4

1.8

4.09

248.1

Rainbow Deposit Inferred Mineral Resource

Cutoff

Cu %

Tonnes

g/t

Mlb

koz

Mlb

koz

Mlb

CuEq

Mlb

0.5

1,541,000

2.22

0.28

0.71

5.54

0.03

75.4

13.9

24.1

274.5

1.0

2.63

89.3

1.0

1,481,000

2.30

0.28

0.71

5.60

0.03

75.1

13.3

23.2

266.6

1.0

2.71

88.5

1.1

1,456,000

2.33

0.28

0.71

5.60

0.03

74.8

13.1

22.8

262.1

1.0

2.74

88.0

1.2

1,345,000

2.47

0.28

0.70

5.44

0.03

73.2

12.1

20.8

235.2

0.9

2.95

87.5

1.3

1,282,000

2.55

0.27

0.69

5.39

0.03

72.1

11.1

19.5

222.2

0.8

2.95

83.4

1.4

1,228,000

2.62

0.28

0.69

5.41

0.03

70.9

11.1

18.7

213.6

0.8

3.02

81.8

1.5

1,166,000

2.71

0.28

0.68

5.45

0.03

69.7

10.5

17.5

204.3

0.8

3.10

79.7

1.6

1,109,000

2.78

0.28

0.69

5.52

0.03

68.0

10.0

16.9

196.8

0.7

3.18

77.7

1.8

945,000

3.04

0.30

0.70

5.75

0.03

63.3

9.1

14.6

174.7

0.6

3.44

71.7

2.0

870,000

3.17

0.30

0.69

5.80

0.03

60.8

8.4

13.2

162.2

0.6

3.58

68.7

Pine Bay Deposit Inferred Mineral Resource

Cutoff

Cu %

Tonnes

Mlb

0.5

1,275,000

2.27

63.8

1.0

1,136,000

2.45

61.4

1.1

1,082,000

2.52

60.1

1.2

1,044,000

2.57

59.2

1.3

1,006,000

2.62

58.1

1.4

963,000

2.68

56.9

1.5

902,000

2.76

54.9

1.6

854,000

2.83

53.3

1.8

759,000

2.97

49.7

2.0

660,000

3.13

45.5

Model Parameters and Methods for the Rainbow Depoist and Pine Bay Deposit Resource Estimates

The database for the mineral resource estimate for Rainbow Deposit consisted of 104 drill holes (including 14 wedges) totalling

60930m

, of which a total of 66

drill holes totaling

38,249m

intersected the mineralization wireframes used for the mineral resource estimate. The drill hole database contained assays for

copper, zinc, gold, silver and lead as well as other metals of no economic importance.

The database for the mineral resource estimate for Pine Bay Deposit consisted of 131 drill holes totalling

25,672m

, of which a total of 76 drill holes totaling

10,123m

intersected the mineralization wireframes used for the mineral resource estimate. The drill hole database contained assays for copper only. In

October

2022

, Kirkham carried out data verification on the historical data and check sampling to validate the use of the database for estimation of the inferred resource at

Pine Bay. The methodology employed for the resource estimation at Rainbow and Pine Bay is a follow:

The estimate was carried out using separate block models constrained by 3D wireframes of the individual mineralized zones. The block model is comprised of

an array of blocks measuring

10m

which employ partial percentages for volumetric accuracy, with grades for Cu, Zn, Pb, Ag and Au interpolated

using Ordinary Kriging within the Rainbow deposit and Inverse Distance to the Second Power (ID

) weighting for the Pine Bay deposit for copper grades.

Copper equivalent values were subsequently calculated from the interpolated block grades.

The interpolation for Rainbow was carried out in two passes with the first pass using search radii of along strike and down dip of

150m

and

30m

perpendicular to dip. Composites were restricted to a minimum of 1 and a maximum of 12 composites, with a maximum of 3 composites from any one drill

hole. The second pass used a restricted search radii along strike and down dip of

60m

and

30m

perpendicular to dip. Composites were restricted to a

minimum of 6 and a maximum of 18 composites, with a maximum of 4 composites from any one drill hole.

The interpolation for the Pine Bay deposit was carried out in two passes with the first pass using search radii of along strike and down dip of

150m

and

60m

perpendicular to dip. Composites were restricted to a minimum of 1 and a maximum of 12 composites, with a maximum of 3 composites from any

one drill hole. The second pass used a restricted search radii along strike and down dip of

60m

and

30m

perpendicular to dip. Composites were

restricted to a minimum of 5 and a maximum of 16 composites, with a maximum of 4 composites from any one drill hole.

Bulk density was determined on each sample submitted to SGS laboratories in

Burnaby

, BC measured by the gas pycnometer method on pulp samples. For

each sample interval, sub-samples were taken from each individual length of core and the weighted average for the sample used. Density values were

interpolated on a block-by-block basis using an inverse distance to the second power for the Rainbow deposit. An average value of 2.90 t/m

was assigned

to the Pine Bay Deposit.

Composite values have been capped in order to remove the effects of potential overestimation due to statistical outliers. Therefore, outlier values for each of

the metals estimated within the Rainbow deposit were capped at the threshold levels of 7.5%-15% copper, 6% zinc, 20-30 gpt silver and 1.5 gpt gold. For

Pine Bay deposit the threshold chosen for capping was 4%-4.5% copper.

The mineralized domain solids were defined using a combination of geological constraints and grade boundaries in addition to consideration of potential

reasonable mining thickness. Intervals that were not sampled were assigned a zero grade.

For all zones, blocks are classified as Inferred if they are included within

150m

of at least two drill hole intercept. Blocks within

40m

of the nearest intercept

and

40m

average for all composites, estimated by at least four drill holes and at least 12 composites were classified as Indicated. However, an interpreted

boundary is the final determination of indicated and inferred resources in order to remove outlier blocks and the "spotted dog" effect. In addition, continuous

potentially underground mining shapes were created to demonstrate "reasonable prospect of eventual economic extraction".

Qualified Person

The contents of this news release have been reviewed and approved by J.J. O'Donnell, P. Geo, the Exploration Manager of the Company, and by

Garth Kirkham

P.Geo, FGC, President of Kirkham Geosciences Ltd., who is independent of the Company. Mr. O'Donnell and Mr. Kirkham are Qualified Persons as defined by

NI 43-101. Mr. O'Donnell is the Qualified Person for all technical information in this news release, excluding the Mineral Resource Estimate.

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 and Alchemist deposits 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.

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For further information:

Callinex Mines Inc., Max Porterfield, President and Chief Executive Officer, Phone: (604) 605-0885, E-mail: [email protected]

CO: Callinex Mines Inc.

CNW 10:10e 10-JUL-23

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