Drill Tracker Weekly: Callinex Discovers New Horizon at Pine Bay VMS Project

Base Metals Investing

Highlights from current drilling include 7.4 meters grading 0.9 percent copper, 0.78 percent zinc, 0.2 percent lead, 0.28 g/t gold and 12.84 g/t silver starting at a depth of 572 meters.

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: $0.36

Market cap: $15 million

Cash estimate: $4 million

Project: Pine Bay

Country: Canada

Ownership: 100 percent

Reserves: Historic (non 43-101) — 1.5 MT @ 2.81% Cu Eq

Project status: Discovered new horizon

  • Callinex Mines announced the discovery of a new Volcanogenic Massive Sulphide (VMS) horizon on its 100% owned Pine Bay project 16 kilometres east of the Flin Flon mining camp in Manitoba.
  • Highlights from the current drilling include 7.4 metres grading 0.90% Cu, 0.78% Zn, 0.20% Pb, 0.28 g/t Au and 12.84 g/t Ag starting at a depth of 572 metres. The hole is located 100 metres east of the historic resource at Sourdough and three kilometres northeast of Hudbays (TSX: HMB) closed Centennial Mine.
  • The new horizon was discovered when the drilling was extended beyond the original target due to extensive sericite and chlorite alteration encountered in the felsic volcanic tuffs and flows over a core length of 176 metres. A subsequent downhole electromagnetic survey identified a large off-hole anomaly indicating the possibility of additional mineralization along strike to the south. While not a high-grade interval it opens up a new exploration target with promising geophysics.
  • The Company intends to drill two additional wide spaced holes to test the anomaly for subsequent targeting. The three hole program will give a total of one kilometre of drill testing along the proposed strike of the new horizon. In addition, the Company plans to complete a step out drilling program this winter drilling off the ice to follow up the newly discovered horizon.
  • The Pine Bay historical resource comprises three deposits: The Pine Bay, Cabin and Baker Patton. The total (non 43-101 resource is 1.28 million tonnes grading 2.52% Cu, 0.78% Zn, 0.06 g/t Au and 4.16 g/t Ag.

Exploration history: Explored in the 1960s and 70s by a number of companies. Placer Dome explored in 1990s. Callinex aquired the project in 2014 and owns 100% of the core project subject to a 1% NSR.

Current drilling: 7.4 metres @ 0.90% Cu, 0.78% Zn, 0.20% Pb, 0.28 Au, 12.84 g/t Ag including: 0.8 metres @ 3.74% Cu, 0.02% Zn, 0.02% Pb, 0.10 g/t Au, 16.80 g/t Ag

Risk 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 research analyst’s household owns and/or has options to acquire shares of the subject issuer. At the date of this release the author, Wayne Hewgill, owns no shares in the companies in this report. 
  2. Lake Shore Gold Corp. (LSG) is covered by Mackie Research Capital Corp. 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.

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