Callinex Provides Flin Flon Exploration Update and Outlines 2017 Exploration Campaign for Project Portfolio
wwwsoutsoussflightg
Callinex Provides Flin Flon Exploration Update and Outlines
2017 Exploration Campaign for Project Portfolio
• Six additional drill holes have been completed at the Pine Bay Project near Flin
Flon, Manitoba with assays expected by end of March;
• Three additional drill holes to be completed by spring break-up with drilling to
recommence by June; and
• 2017 drilling campaign outlined for the Nash Creek and Superjack projects located
in the Bathurst Mining District of New Brunswick.
Vancouver, British Columbia – March 1, 2017 – Callinex Mines Inc. (the “Company” or
“Callinex”) (TSX-V: CNX; OTCQX: CLLXF) is pleased to provide an update on the current drilling
campaign at the Pine Bay Project in the Fli n Flon Mining District of Manitoba. The Company has
drilled six holes totaling 3, 015m since the last exploration update in late- January. Two drill rigs
are currently operating, with one drilling to test the southern strike extension of the Cabin VMS
Horizon while the other is deepening the previously drilled hole PBM- 008 to reach the sparsely
tested portions of the Pine Bay VMS Horizon to the north of the historic Pine Bay Deposit.
Assay results for six recently completed drill holes are expected to be returned towards the end of
March. Two of the six holes were drilled in the Sourdough Area and three of the six drill holes in
the Pine Bay Area of Callinex’s Pine Bay Project. Additionally, one short drill hole was completed
on a recently acquired claim block located approximately 8 km west of the Pine Bay Area.
The focus of the current campaign has been to identify opportunities with the potential to host
significant volcanogenic massive sulphide (VMS) mineralization within the project area. This
approach has been based on a combination of geology, geochemistry and geophysics.
Petrophysical tests completed on core samples containing massive sulphides indicate that the
mineralization in the area can be weakly to non- conductive, meaning that it can often go
undetected using conventional borehole Electromagnetic (EM) technology. At least four drill holes
have been selected for testing with a Crone induction probe with the objective of identifying
improved in- hole and off -hole responses from the massive sulphide mi neralized zones
intersected to date. Additional borehole geophysical testing is being considered along with an
airborne ZTEM TM (Z-Axis Tipper Electromagnetic) survey that has the ability to identify large,
steeply-dipping targets at depths of up to 2km.
The current drilling campaign is expected to complete three additional holes before the spring
break-up period begins in mid to late-March. The drilling program is anticipated to resume in June
once the new geophysical work has been completed and ground conditions improve.
2017 Bathurst District Exploration Campaign
The Company has outlined an initial drilling campaign at its projects located in the Bathurst
Mining Camp of New Brunswick. The campaign will be mainly focused on increasing the near -
surface resource estimate at the Nash Creek Project in advance of a Preliminary Economic
Assessment that is tentatively scheduled in late- 2017. The project currently hosts a significant
mineral resource (See Table 1) which is open for expansion in multiple directions ( See news
release dated November 9, 2016). Interestingly, previous drilling has only been focused along the
southern portion of a 2.5km long combined Zn- Ag-Pb in soil anomaly. The southern portion,
which accounts for approximately 1.4km of the 2.5km long soil anomaly, hosts the current mineral
resource.
The Nash Creek Project has potential for a bulk tonnage operation and, in conjunction with dense
media separation, it is expected that a potential head grade of 5- 7% Zn Eq. could be reached
based on previous test work. Initial metallurgical tests have also indicated excellent recoveries of
91% for zinc and 82% for lead with a zinc concentrate grading up to 64% Zn and 126 g/t Ag.
At the Superjack Project a drilling campaign is anticipated to be completed with t he objective of
exploring a large gravity target, a number of untested soil anomalies and the down- dip extension
of the “A” Zone deposit. The “A” Zone deposit has been defined down to a vertical depth of 450m
and across an average 225m strike length. The three deepest Superjack “A” Zone drill holes
intersected high-grade mineralization as follows:
• NP11-39 with 11.2m of 7.5% Zn Eq. including 2.6m of 17.5% Zn Eq.
• NP 11-54 with 6.4m of 10.4% Zn Eq. including 1.7m of 16.5% Zn Eq.
• SJ15-86 with 2.4 of 5.2% Zn Eq. including 0.7m of 11% Zn Eq. (with no Au assays completed)
In 2016, Callinex completed two additional borehole geophysical surveys on “A” Zone drill holes
NP11-54 and SJ15- 86. Interpretation of these two surveys indicates that m ineralization is
projected to continue at depth. Additional work in 2016 also included gravity and magnetic
inversion modelling. Gravity modelling indicates that the massive sulphides associated with all
three known Superjack mineralized zones (i.e., the “ A”, “B” and “C” Zones) can readily be
detected and all appear to have isoclinal fold and/or strike connections at depth requiring high-
priority drill follow-up.
The Bathurst Mining District, alongside the Flin Flon Mining District, is one of the largest
volcanogenic massive sulphide districts in the world. There have been over 45 deposits
discovered in the district, including the 230 Mt Brunswick No. 12 deposit. The Company’s
exploration focus mirrors its approach in the Flin Flon Mining District where eff orts are focused on
discovering and developing base and precious metal -rich massive sulphide deposits within
established Canadian mining jurisdictions.
Additional updates will be provided as to the status of the current and upcoming drilling
campaigns within Callinex’s portfolio of zinc deposits.
James Pickell, P.Geo, a Qualified Person under National Instrument 43- 101 and a consultant to
Callinex, has reviewed and approved the technical information in this news release.
Table 1: Mineral Resource Estimat es for the Nash Creek, Superjack and Point Leamington
Projects
Indicated Mineral Resources
Project Tonnes Zn
Eq.
(%)
Zn
(%)
Pb
(%)
Ag
(g/t)
Au
(g/t)
Cu
(%)
Contained Zn
Eq. (‘000 pounds)
Nash Creek 9,033,000 3.58 2.79 0.57 18.16 n/a n/a 711,991
Total 9,033,000 3.58 2.79 0.57 18.16 n/a n/a 711,991
Inferred Mineral Resources
Project Tonnes Zn
Eq.
(%)
Zn
(%)
Pb
(%)
Ag
(g/t)
Au
(g/t)
Cu
(%)
Contained Zn
Eq. (‘000 pounds)
Point
Leamington
14,093,000 6.15 1.86 0.02 17.12 1.07 0.42 1,911,000
Superjack 3,211,000 4.63 3.01 0.78 29.46 n/a 0.27 327,618
Nash Creek 1,113,000 3.58 2.83 0.57 15.51 n/a n/a 87,883
Total 18,417,000 5.73 2.13 0.19 19.17 0.82 0.37 2,326,501
Notes:
1) Resources are categorized according to CIM Definition Standards; it cannot be assumed that
all or any part of Inferred Mineral Resources will be upgraded to Indicated or Measured as a
result of continued exploration.
2) The Nash Creek mineral resource estimate includes the Hickey Zone and Hayes Zone
3) The Superjack mineral resource estimates includes the Nepisiguit A and Nepisiguit C Zones
4) Zinc equivalent resources for the Nash Creek Project were calculated using metal prices of
$0.90/lb for zinc, $0.87/lb for lead, and 17.73/oz for silver. Metallurgical recoveries have been
assumed to be 90.5% for zinc, 81.5% for lead and 50% for silver. A cut -off grade of 2.0% Zn Eq.
was utilized in the resource estimate.
5) Zinc equivalent resources for the Superjack Project were calculated using metal prices of
$1.12/lb for zinc, $1.06/lb for lead, $2.97/lb for zinc and 20.38/oz for silver. Metal recoveries have
been assumed to be 100% for zinc, 72% for lead, 86% for copper and 70% for silver. A cut -off
grade of 1.5% Zn Eq. was utilized in the resource estimate.
6) Zinc equ ivalent resources for the Point Leamington Project were calculated using metals
prices of $0.94/lb for zinc, $1.00/lb for lead, $3.69/lb for copper, $1,380/oz for gold and $22.73/oz
for silver. Metallurgical recoveries have been assumed to be 100%. A cut -off grade of 4.0% Zn
Eq. was utilized in the resource estimate.
About Callinex Mines Inc.
Callinex Mines Inc. is focused on discovering and developing zinc and copper rich mines within
prolific Canadian VMS mining jurisdictions. The Company is actively exploring its Pine Bay
Project, located in the Flin Flon mining district of Manitoba, which hosts significant historic VMS
deposits that are within close proximity to a processing facility. The larger project portfolio hosts
three significant zinc rich mineral resources including the Point Leamington, Nash Creek and
Superjack Projects located in Eastern Canada.
For additional information, please contact:
Callinex Mines Inc.
Max Porterfield, President and Chief Executive Officer
Phone: (604) 605-0885
E-mail: [email protected]
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 com plete 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.