Drill Tracker Weekly: Callinex Confirms Historical Drilling at Pine Bay Copper Project

Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.

Callinex Mines (TSXV:CNX)

Price: $0.325

Market cap: $10 million

Cash estimate: $0.6 million

Project: Pine Bay

Country: Manitoba, Canada

Ownership: 100 percent

Historical resources: 1.13 MT @ 2.76% Cu

Project status: Resource confirmation

• Callinex Mines announced initial results from its Phase I drilling program on its 100% owned Pine Bay project in Manitoba. The volcanogenic massive sulphide (VMS) deposit is located 16 kilometres to the east of the 100 million tonne Flin Flon mining camp. The Pine Bay project was discovered in the 1960’s and was advanced to feasibility stage in 1970. The property is subject to a 1% Net Smelter Royalty and a 5.12% Net Profits Royalty.

• Highlights from the current confirmation drilling include 44.2 metres grading 3.9% Cu, 0.1 g/t Au and 2.9 g/t Ag starting from a depth of 45.5 metres. The Company has compiled and digitized the historical database which includes over 700 drill holes. The Company is currently conducting a ground geophysical program to assist in targeting the Phase II drill campaign. The results of the geophysical survey correlate well with the historical resource.

• The project has a historical (non- NI 43-101 compliant) resource completed by the Cerro-Mining Guggenheim joint venture in 1970 outlining 1.13 million tonnes grading 2.76% Cu.

• The next phase of drilling is expected to start this summer and will include 10 holes for a total of approximately 2,500 metres.

• In 2011, Callinan split into two entities with Callinan Royalties (TSX:CAA) holding a 4% NSR on Hudbay Minerals (TSX:HBM) producing 777 Mines in Flin Flon, Manitoba. On April 29, 2015, shareholders of Callinan Royalties agreed to a plan of arrangement that will see Altius Minerals acquire Callinan Royalties, thus combining their royalty interests.

Discovery history: Historical resource and feasibility studies completed in 1970.

Current drilling: 44.2 metres @ 3.9% Cu including; 18.1 metres @ 5.4% Cu

Risks Analysis

Data contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note – a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity – it is an information reference source to help quantify the meaning and relevance of early stage exploration results. 

Relevant Disclosures Applicable to: Drill Tracker Weekly 

1. The research analyst or a member of the analyst’s household owns and/or has options to acquire shares of the subject issuer. At the date of this release, Wayne Hewgill, owns no shares in any companies in this report.

2. Foran Mining Corp. (FOM) is covered at Mackie Research Capital Corporation by analyst Peter Campbell.

• In February 2013, an Analyst from Mackie Research Capital Corporation visited Foran’s McIlvenna Bay Project site. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.

3. Lake Shore Gold Corp. (LSG) is covered at Mackie Research Capital Corporation by analyst Barry Allan.

Analyst Certification

I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.