Callinex Mines Inc. [CNX-TSXV; CLLXF-OTCQX] has released initial results from of the fully funded 2022 exploration campaign to expand and delineate the high-grade copper, gold, silver and zinc Rainbow deposit and test new target areas. The Rainbow is located at the 100%-owned Pine Bay Project within a mineral lease, less than 250 metres from a high-voltage hydroelectric power-line, 550 metres from a historic shaft with direct road access to processing facilities in Flin Flon, Manitoba and 1.4km from the newly discovered Alchemist deposit.
Delineation drilling at Rainbow continues to impress with PBM-177 which intersected the Orange zone and returned 33.67 metres of 4.29% copper (Cu), 0.22 g/t gold (Au), 4.63 g/t silver (Ag), 0.31% zinc (Zn) or 4.60% copper equivalent (CuEq) including 10.47 metres of 5.90% Cu, 14.43 metres of 5% Cu and 7 metres of 6.38% Cu.
PBM-178-W1 expanded the Yellow zone with a step-out vertically above PBM-113-W2, which intersected 11.00 metres of 2.43% Cu, 0.24 g/t Au, 5.00 g/t Ag and 0.89% Zn, or 2.98% CuEq which was followed by the Orange zone which returned 11.65 metres of 2.44% Cu, 0.22 g/t Au, 4.36 g/t Ag and 0.36% Zn or 2.76% CuEq.
Max Porterfield, President and CEO, stated, “Drill results outlined today continue to deliver some of the widest intervals and highest copper grades intersected at the Rainbow Deposit to date. We are incredibly pleased with the success of our step out drill holes to date, which has expanded the Rainbow Deposit in multiple areas.”
Drill hole PBM-176 was a significant step-out that expanded both the Orange and Yellow zones. PBM-176 intersected the Yellow zone and returned 3.00 metres of 1.96% CuEq (1.86% Cu, 0.08 g/t Au, 4.19 g/t Ag,and 0.06% Zn) in a 75-metre step-out from PBM-178-W1 and 95-metre step-out from PBM-161-W2 that returned 6.50 metres of 5.47% CuEq (4.48% Cu, 0.50 g/t Au, 9.06 g/t Ag and 1.48% Zn). PBM-176 intersected the Orange zone and returned 3.50 metres of 2.99% CuEq (2.74% Cu, 0.19 g/t Au, 3.03 g/t Ag or 0.24% Zn) in a 82-metre step-out to the south from PBM-131 which previously returned 20.53 metres of 3.21% CuEq (2.58% Cu, 0.22 g/t Au, 6.63 g/t Ag and 1.11% Zn).
JJ O’Donnell, Callinex Exploration Manager, stated, “Additional drilling into the Rainbow horizons has further defined the three massive sulphide lenses with widths and grades similar to previous neighbor holes, suggesting good correlation within the mineralized horizons.”
The company has now completed the necessary drilling to delineate Rainbow within the first 800 metres of surface in anticipation of publishing a maiden resource estimate. Callinex completed 33 holes (including 6 wedges) encompassing 19,840 metres of drilling at the Rainbow deposit as part of the fully funded drilling campaign. Since the company discovered the Rainbow Deposit in August 2020, the company has drilled 81 holes (including 19 wedges) for a total of 42,000 metres into the deposit area. Callinex has 12 delineation drill holes pending at the assay lab encompassing 6,300 metres of drilling into the Rainbow deposit area.
Callinex is currently completing the final exploration hole of the current exploration campaign to test Target Area Odin, which is located in between the Rainbow and the newly discovered Alchemist deposits. The company has completed 8,500 metres of exploration drilling as part of the broader 2022 drilling campaign and has only announced 3,920 metres encompassing 4 drill holes to date.
The focus of Callinex’s 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).
In morning trading shares of Callinex gained $0.40 to $2.82.