VCG.V · 2023-08-28 12:00:00

Callinex Files Technical Report Regarding its High-Grade Mineral Resource Estimate and Provides Exploration Update at its Pine Bay Project in Manitoba

Resource Estimates Technical Reports (NI 43-101) Exploration Programs

Callinex Files Technical Report Regarding its High-Grade Mineral Resource

Estimate and Provides Exploration Update at its Pine Bay Project in

Manitoba

Highlights:

Filed NI 43-101 technical report to support the high-grade copper maiden mineral resource estimate for its Pine Bay Project;

Completed

6,455m

of drilling as part of the fully funded 2023 exploration campaign and awaits results; and

Callinex receives a

$500,000

grant from the Manitoba Mineral Development Fund to advance the discoveries at Pine Bay

VANCOUVER, BC

Aug. 28, 2023

/CNW/ -

Callinex Mines Inc.

(the "Company" or "Callinex") (TSXV: CNX) (OTCQX: CLLXF) is pleased to announce that it has

filed on SEDAR a National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") technical report (the "Technical Report") to support the

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

Manitoba

, previously announced in the Company's

news release dated

July 10, 2023

. The Technical Report titled "NI 43-101 Technical Report – Pine Bay Project –

Flin Flon, Manitoba

" dated

August 24, 2023

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

)

The Company's focus remains to continue its exploration campaign at depth and along the trend that hosts the deposits at Pine Bay. The technical team is

eagerly awaiting the results from this ongoing drilling campaign. To date, the Company has drilled

6,455m

of the previously announced fully-funded campaign (

See news release dates

March 27, 2023

The Company is currently testing the high priority target on the Cabin and Pine Bay horizons as part of its 2023 exploration campaign (

Cabin Horizon Long Section

) (

See news release dated

January 30, 2023

). Callinex's first discovery in 2016 at the Project was at depth below the historic Cabin deposit which 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

). Additionally,

drill hole PBM-024, one of the last holes completed in the vicinity, intersected

2.6m

of 3.4% CuEq.

Pine Bay Project Cabin Horizon Long Section August 2023 (CNW Group/Callinex Mines Inc.)

The high-grade intervals at the Cabin horizon are associated with a major alteration zone that was previously identified at surface and spans

1,100m

700m

supported by lithogeochemical data. Since the huge alteration zone seen at surface is believed to be structurally overturned, the exploration thesis is that the

copper/zinc/gold/silver bearing 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 exploration model for large VMS deposits within the Flin Flon

Greenstone Belt, such as the Lalor and 777 deposits, includes having several smaller deposits in close proximity to a large alteration system within a felsic

volcanic centre.

The Company will announce drill results and plans for the continuation of this year's exciting exploration campaign once assays are received from the current drill

hole. Additionally, the Company is grateful to have received a

$500,000

grant from the Manitoba Mineral Development Fund ("MMDF") to continue to advance the

discoveries at Pine Bay. The MMDF was launched by the

Manitoba

government in 2020 with the specific goal of jump-starting mineral and economic development

initiatives throughout the province. The MMDF aims to support new economic development opportunities that capitalize on existing assets across

Manitoba

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.

Model Parameters and Methods for the Rainbow Deposit 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 x

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 x

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 Geosystems Ltd., and Georgi Doundarov, P.Eng., Chief Executive Officer of Magemi Mining Inc., who are both independent

of the Company. Mr. O'Donnell, Mr. Kirkham and Mr. Doundarov 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 08:30e 28-AUG-23

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