Highlights:
- Renewed focus on the discovery and development of high-grade copper and zinc rich VMS deposits within the Flin Flon Greenstone Belt, where 58 deposits have developed into 32 mines;
- Flin Flon and Pine Bay projects to be focus of future exploration;
- The Flin Flon Project, 3 km from Hudbay's 777 Mine, hosts several untested geophysical target areas with significant potential including a high priority target that overlaps claims held by both Callinex and Hudbay; and
- The Pine Bay Project, 16 km east from the 777 Mine, was identified by Placer Dome as having potential for a large deposit at depth and previous operators reported historical resource estimates totalling 1.62 million tons at a grade of 2.81% copper equivalent(1).
Vancouver, British Columbia / ACCESSWIRE / November 20, 2014 / Callinex Mines Inc. (the "Company" or "Callinex") (TSX-V: CNX; OTCQX: CLLXF) announced an aggressive new strategy to discover and develop high-grade copper and zinc rich volcanogenic massive sulphide ("VMS") deposits. The Company has identified its Flin Flon and Pine Bay projects as the focus of future exploration based on potential to host the region's next VMS deposit. Both projects are located within 20 km by road to Hudbay Minerals Inc.'s processing facility in Flin Flon, MB, which is projected to require additional ore in the coming years.
Max Porterfield, President and CEO stated, "I am eager to lead the renewed exploration focus on VMS deposits within the Flin Flon mining camp. Prior to the 2011 spinout from Callinan Mines, the Company has benefited from several VMS discoveries based in its project portfolio, including the Callinan and 777 mines. Additionally, existing infrastructure and Manitoba's favorable permitting environment can be leveraged to significantly reduce capital costs and lead times to production." Mr. Porterfield added that the strategic shift in focus, "comes at a time when the zinc market faces a medium-term supply deficit and copper continues to have positive long-term fundamentals."
Chairman Mike Muzylowski, who played a lead role in the discovery of 13 VMS mines in the Flin Flon Greenstone Belt, noted, "The Flin Flon and Pine Bay Projects are significantly underexplored at depth and have highly prospective targets defined by modern geophysics. A 2012 airborne electromagnetic survey flown over the Flin Flon Project identified several anomalies along favorable geological structures known to host VMS deposits."
Located within 5 km of a processing facility, the Flin Flon Project hosts several highly prospective target zones including a high priority target with significant potential that overlaps claims of both Callinex and Hudbay. This recently identified high priority target is a 350 m x 400 m electromagnetic conductor with an off-set magnetic anomaly located along a mapped fault within geology favorable for VMS mineralization. The existence of both electromagnetic and magnetic anomalies increases confidence for potential massive sulphide mineralization, as many non-massive sulphide conductors do not demonstrate magnetic responses. The target is interpreted to be of significant thickness based on responses from the electromagnetic survey; however, the target has yet to be proven by drilling, and additional work is required.
Regarding the Pine Bay Project Mr. Muzylowski noted, "The project has four known historic deposits and is underexplored at depth where larger deposits are increasingly being found. Discoveries at depth in the Flin Flon Greenstone Belt include the Trout Lake, 777 and Lalor mines. My view coincides with Placer Dome's previous exploration thesis that the historic deposits and an exceptionally large alteration zone are related to a larger deposit."
The Pine Bay Project consists of a recently consolidated land package that hosts a large alteration zone related to three of the four historic resource estimates(1). It is believed that the alteration zone and deposits are part of a more extensive system that has been displaced by faulting. This hypothesis requires additional drilling, however, drilling by a previous company identified at depth a 210 m wide alteration zone that includes 50 m of chloritic alteration which has not been followed up on. Nearly all VMS deposits in the Flin Flon Greenstone Belt are immediately related to a chloritic alteration zone and the extent of which typically has a correlation to the deposit size. In a 1993 assessment report filed with the Manitoba Government, Placer Dome opined that one of the claim blocks had potential for a large VMS deposit at depth; limited exploration has been conducted since.
The Flin Flon and Pine Bay projects are located in Manitoba, a world-class mining jurisdiction where 67 mines have been developed since 1913. In addition to an established permitting process and demonstrated geologic potential, Manitoba offers financial incentives to exploration companies including a cash subsidy for up to 40% of eligible exploration expenditures to a maximum payout of $200,000 per year.
Regional Map of the Flin Flon Area
The Company has not verified the information on deposits in the Flin Flon Area and it is not necessarily indicative of mineralization on the Flin Flon and Pine Bay Projects.
About the Flin Flon Greenstone Belt
The Flin Flon area is one of the world's largest VMS districts with at least 58 deposits including 32 mines that have produced over 145 million tonnes of ore. Since 2000, over $1.6 billion has been invested in infrastructure related expenses to advance mineral properties in the Flin Flon Greenstone Belt. The use of modern geophysics has spurred recent discoveries that include the 777, Lalor and Reed Lake mines which are all currently in production and operated by Hudbay. At present, there are two operating processing facilities with plans to construct third facility.
About the Flin Flon Project
The Flin Flon Project is located 2 km southeast of Flin Flon, MB and covers 2,455 ha with similar geological strata to the main mine horizon that hosts Hudbay's 777 mine. The project was acquired based on the presence of these favorable geological strata, known mineral occurrences, and close proximity to more than ten former producing VMS mines in Manitoba, including Hudbay's operating 777 mine. Recent geophysical exploration completed in 2012 and 2013 identified several prospective untested targets. The Company holds an option to acquire a 100% interest in the Flin Flon Project, subject to a 1% net smelter return royalty.
About the Pine Bay Project
The Pine Bay Project is located 16 km east of Flin Flon, MB, and covers approximately 4,500 ha. The project hosts four past producing VMS mines and a historic resource estimate on each of the Pine Bay, Sourdough, Cabin and Baker Patton deposits(1). In the 1990's, the property was primarily explored by Placer Dome, who conceptualized potential for a large VMS deposit at depth. Subsequently, multiple geophysical surveys have identified new targets, which support the theory that the Pine Bay, Cabin and Baker Patton deposits may be part of a single massive sulphide deposit that has been displaced by faulting.
In 2011, a small drilling program was completed by the Company to test the down-dip extension of the Pine Bay deposit. Subsequent borehole EM and Deep Pulse EM geophysical loop surveys identified a high priority target area located 150 m from drill hole PB-1. This off-hole geophysical anomaly may represent a displaced extension of the Pine Bay deposit.
Pine Bay Historic Resources(1) |
||||||
Deposit |
Tons |
Cu Eq%(2) |
Cu % |
Zn % |
Au g/t |
Ag g/t |
Pine Bay |
1,113,200 |
2.76 |
2.76 |
N/A |
N/A |
N/A |
Sourdough |
291,150 |
2.98 |
1.46 |
1.71 |
1.03 |
29.8 |
Cabin |
125,000 |
2.18 |
0.84 |
4.02 |
N/A |
N/A |
Baker Patton |
95,000 |
3.66 |
0.80 |
5.28 |
0.83 |
56.0 |
Total |
1,624,350 |
2.81 |
2.26 |
0.92 |
0.24 |
8.9 |
Notes:
(1) Historical resource estimates include (a) a Cerro-Mining-Guggenheim Joint Venture report titled "Feasibility Study for 550 ton per day mine & mill", prepared by Wright Engineers Limited in 1971, reported a "geological ore reserve" 1,113,200 tons at 2.76% Cu at the Pine Bay deposit, (b) a Keys report in 1963 reported a historical resource estimate of 291,150 tons at 1.46% Cu at the Sourdough deposit, (c) a Pine Bay Mines report in 1976 reported a historical resource estimate of 125,000 tons at 0.84% Cu at the Cabin deposit and (d) a Macmillan report in 1968 reported a historical resource estimate of 95,000 tons at 0.80% Cu at the Baker Patton deposit. The historical "geological ore reserve" and resource estimates cited above is mentioned for historical purposes only and uses terminology not compliant with current reporting standards. The reliability of these historical estimates is unknown but considered relevant by the Company as it represents a significant target for future exploration work by the Company. The assumption, parameters and methods used to calculate this historical resource estimate are not known to the Company. The qualified person has not made any attempt to re-classify the estimates accordingly to current NI 43-101 standards of disclosure or the CIM definitions. In order for these resources to be current, the Company will be required to conduct additional drilling on the Pine Bay Property. The Company is not treating this estimate as current mineral resources or mineral reserves as defined in NI 43-101. Although the Historical resource estimate was also designated as "ore" it cannot be compared to mineral reserves as it is not supported by at least a current pre-feasibility study.
(2) Copper equivalent grades are based on metal prices of: copper US$3.00/lb, zinc $1.00/lb, gold US$1200 per oz, silver US$20 per oz. Metal recoveries have not been applied in the copper equivalent calculation. The copper equivalent calculation is as follows; Cu Eq = Cu grade + ((Zn grade%/100*2000 x Zn price) + (Au grade/32.15 x Ag price) + (Ag grade/32.15 x Ag price)/Cu price/20).
The technical content of this news release has been reviewed and approved by Jason K. Dunning, MSc., FSEG, P.Geo, a Consultant to the Company and a Qualified Person as defined by National Instrument 43-101.
About Callinex Mines Inc.
Callinex Mines Inc., a Canadian mineral exploration company, is focused on discovering the next VMS mine within Manitoba's prolific Flin Flon mining district. The Company's flagship projects are the Flin Flon and Pine Bay projects which host significant historic VMS deposits and are within close proximity to a processing facility. The Flin Flon district has yielded more than 145 million tonnes of production from 32 mines.
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 complete contemplated work programs and the timing and amount of expenditures. Callinex does not assume the obligation to update any forward-looking statement.
SOURCE: Callinex Mines Inc.