Callinex Targets Expanding Historic High Grade Copper and Gold Deposits Near Surface in the Flin Flon Mining District, MB

Rhea-AI Summary

Callinex Mines (CLLXF) has outlined four high-priority near-surface target areas for its 2025 exploration program in the Flin Flon Mining District of Manitoba. The program focuses on expanding historic high-grade copper and gold deposits at the consolidated Pine Bay Camp.

The Visionary Target Area features the Leo deposit with historical results including 5.33% Cu over 3.05m and a flanking gold system showing up to 140.7 g/t Au over 0.40m. The historic Leo deposit contains an inferred mineral inventory of 192,292 metric tonnes at 2.29% Cu and 0.91% Zn above the 500-foot level.

Other target areas include: the General Target Area with gold results up to 204.86 g/t Au over 1.62m; the Amulet Target Area with results up to 2.38% Cu and 4.5% Zn; and the Blueberry Target Area showing promising indicators of VMS mineralization. The company plans to use modern exploration techniques including BPEM surveys to better define these targets.

Positive

• Multiple high-grade copper and gold targets identified for exploration
• Historical Leo deposit shows significant grades (2.29% Cu, 0.91% Zn)
• High-grade gold mineralization discovered with up to 204.86 g/t Au
• Strategic location in established Flin Flon Mining District near existing infrastructure

Negative

• Historical resource estimates are not compliant with current NI 43-101 standards
• Additional drilling required to verify and upgrade historical resources
• No exploration for VMS deposits in some areas since 1999

Highlights:

• Four high priority near surface target areas outlined for 2025 exploration program;
• The Visionary Target Area has strong indicators of copper rich VMS targets due to:
  • High grade copper deposit with drill results that include 5.33% Cu over 3.05m and 6.08% Cu over 2.47m; and
  • A flanking high grade gold system with a 200m strike reported drill results that include 140.7 g/t Au over 0.40m and 38.5 g/t Au over 3.0m; and
• The higher grade gold-rich General Target Area is open at depth with potential of a nearby VMS system;
• The Amulet and Blueberry Target Areas reported previous base metal results and remain open at depth; and
• Modern exploration techniques and understanding of VMS targets will be used to better define these high priority targets.

VANCOUVER, BC, March 25, 2025 /PRNewswire/ - Callinex Mines Inc. (the "Company" or "Callinex") (TSXV: CNX) (OTCQX: CLLXF) is pleased to identify its 2025 exploration targets at the Company's consolidated Pine Bay Camp (the "Camp") in the Flin Flon Mining District of Manitoba (Flin Flon District Overview). Investors are invited to view a pre-recorded webinar detailing the exploration objectives outlined below by viewing: Callinex 2025 Exploration Overview: Expanding near surface high grade copper and gold in Canada

The 2025 exploration objectives outlined across four target areas will include further definition and expansion of historic near surface high grade copper, gold, silver and zinc rich Volcanogenic Massive Sulphide ("VMS") deposits and associated high grade quartz-carbonate hosted gold deposits, on the Company's recently consolidated Pine Bay Camp (Northern Pine Bay Camp VTEM with Target Areas and Pine Bay Camp Geology).

Max Porterfield, President and CEO, said, "We are very excited to extend historic resources and drilling intersections for both known near surface high grade copper rich VMS and narrow vein gold deposits. The 2025 exploration program will extend known copper and gold deposits and also target discovery of large VMS deposits, on our newly acquired Alberts Lake property, now consolidated into our Pine Bay Camp.

The Visionary Area: Building on Near Surface High Grade Copper and Gold 

The Visionary area was first staked in the 1920-1928 period, with the first drill discovery at the Leo deposit, interpreted to be on the same horizon that hosts the Descendent deposit 3.5km to the southeast along strike. Historic work on the Leo deposit led Aur Resources Inc. ("Aur") to calculate the following historical "inferred mineral inventory", above the 500 foot level:

• 192,292 metric tonnes in four zones (21, 22, 23, and 24) with an average grade of 2.29% Cu and 0.91% Zn., including the 21 zone of 79,417 metric tonnes at 3.65% Cu and 1.94% Zn. See "Historical Mineral Resource Estimate" below for additional details.

Callinex, believes it is the first company to model the historical drilling in 3D and interprets the Leo deposit to be open at depth based on both historical drilling and past interpretation of Borehole Pulse Electromagnetic ("BPEM") surveys of deeper holes drilled by Aur. 

Historic drilling in the Visionary Area has intersected high grade copper, gold, zinc and silver VMS mineralization near the surface over a strike length of 380m (Target Area Visionary Long Section). The mineralization associated directly with the near surface Leo deposit, based on our new interpretation, has a strike length of 130m and is open at depth. Many of the deposits in the Flin Flon Greenstone Belt, such as Callinex's nearby Rainbow deposit, are elongated with a plunge extent between 5-8 times the strike length.

Since 1997, exploration drilling has identified several significant intersections including:

• 3.13% Cu, 10.48% Zn, 10.39 g/t Ag and 1.28 g/t Au over 1.52m (98-LW-18)
• 5.33% Cu, 0.66 g/t Au, 4.94 g/t Ag over 3.05m (98-LW-16)
• 1.25% Cu over 11.27m including 2.58% Cu, 0.17 g/t Au, 1.73 g/t Ag over 1.83m (98-LW-16)
• 1.23% Cu, 0.19 g/t Au, 1.39 g/t Ag over 3.48m (98-LW-14)

No exploration for VMS style deposits has occurred in the immediate area since Aur ceased exploration in 1999. 

In the 2025 exploration season Callinex plans either reaming drill hole 99-LW-25 to a larger diameter, suitable for a modern BPEM survey or drilling a new hole to test an historical BPEM anomaly consistent with the reinterpretation by Callinex, along the plunge line of the Leo deposit.

Flanking High Grade Gold System

Large VMS systems, such as Hudbay's Lalor mine currently in operation in the Snow Lake Camp of the Flin Flon Greenstone Belt, have a significant gold endowment sometimes located nearby the base metals rich VMS deposit. The Company believes that the Visionary Area possesses similar potential. 

In 2025 Calinex plans follow up drilling to historical intersections, to further test the potential of a flanking high grade gold system which includes historical intersections of (Visionary Plan View with Gold Highlights):

• 9.19 g/t Au and 14.84 g/t Ag over 4.57 m (97-LW-1)
• 140.70 g/t Au and 220.00 g/t Ag over 0.4 m (98-LW-14) 
• 38.50 g/t Au and 49.80 g/t Ag over 3.0 m (98-LW-16)
• 31.60 g/t Au and 32.00g/t Ag over 0.30 m (98-LW-17)
• 74.60 g/t Au and 56.00 g/t Ag over 0.36 m (98-LW-20)

The high grade gold mineralization has been intersected over a strike length of 200m and remains open at depth and has not been tested since exploration ceased (2005).

The General Target Area: Near Surface Gold with VMS Potential 

The General Target Area has historically been a focus for gold exploration. Historically 83 holes have been drilled over a 500m strike length to more than 300m vertical depth. Selected historical drilling results include (Target Area General: Alberts Gold Deposit Long Section):

• 204.86 g/t Au and 6.24 g/t Ag over 1.62m (AL1-16)
• 3.80 g/t Au and 7.21 g/t Ag over 8.50m (AL1-61)
• 4.27 g/t Au and 9.77 g/t Ag over 8.3m (AL1-24)
• 6.65 g/t Au and 11.40 g/t Ag over 2.50m (AL1-37) 

Callinex believes there is strong potential for gold mineralization at the Alberts Gold Deposit to continue at depth. The Company plans to drill-test this theory and advance to an NI 43-101 mineral resource estimate based on both historical and new drilling results.

Moving forward Callinex also plans to complete an IP survey, similar to what has previously been done at Visionary, as a first step to determining whether a VMS deposit may be associated with the Alberts Gold Deposit (General/Visionary Area Cross Section).

Amulet Target Area - Targeting High Grade Copper/Gold/Silver/Zinc Deposit

The Amulet VMS deposit ("Amulet") occurs 3km along strike to the northeast of the Company's Rainbow Deposit in the same felsic volcanic stratigraphy. The near surface Amulet has not been explored at depth and previous drilling results include (Target Area Amulet Long Section):

• 1.40% Cu, 0.43 g/t Au and 3.99 g/t Ag over 5.42m (Amulet-2)
• 3.2% Zn, 0.42 g/t Au and 0.42 g/t Ag over 4.26m (Amulet-6)
• 1.43% Cu, 0.61 g/t Au and 1.97 g/t Ag over 5.33m (Amulet-11)
• 2.38% Cu, 4.5% Zn, 1.37 g/t Au and 24.59 g/t Ag over 0.79m (Amulet-15) 

The largest proportion of exploration work in the Amulet Lake area was done by Hudbay between 1945-53 during which time 61 drill holes tested several targets. Subsequent exploration by Guggenheim Exp. (1969-72) and Granges (1980-84) tested specific targets (total 7 drill holes). The historic Amulet deposit hosts three small VMS lenses. The area has also been explored by trenching and an adit.

Callinex believes the Amulet target area hosts the potential for another high grade copper VMS deposit similar to Rainbow and in 2025 the Company plans to drill test down plunge from the historic high grade mineralization and also use a modern BPEM survey, which has not been previously used on this deposit.

Blueberry Target Area - A Potential Near Surface Discovery 

The Blueberry Target Area consists of two anomalies identified from a 2010 VTEM survey that are interpreted to be located at the contact between felsic and mafic volcanic rocks on the Pine Bay horizon which hosts the Pine Bay copper VMS deposit located 2km along strike to the southeast.

Blueberry is situated within a growth fault corridor that also hosts the Amulet deposit to the west and the Leo deposit to the east. The growth fault corridor that hosts the Blueberry, Amulet and Leo deposits is similar to the growth fault corridor immediately to the south that hosts 8 VMS deposits including the high-grade copper rich Rainbow. 

Drill hole BLU-111, the first drilled by Callinex into Blueberry, intersected the interpreted Pine Bay horizon with 4.1m of stringers and bands of red-brown sphalerite mineralization hosted within a setting typical of a footwall alteration zone in a broader unit of sericite altered dacite flow and hyaloclastite with disseminated pyrite and pyrrhotite mineralization, intersected between 223.95-247.25m from the hole collar (See news release dated February 27, 2025). 

Red-brown sphalerite, or zinc sulphide, is often an indication of higher temperatures and close proximity to VMS discharge systems and potentially high grade copper, gold, zinc and silver rich volcanogenic massive sulphide ("VMS") deposits. As a recent example, in 2020 Callinex intersected a much narrower 1m interval of red-brown sphalerite stringer bearing sulphide stringers much deeper, 945.8m downhole, in drill hole PBM-033. A subsequent BPEM survey of PBM-033 provided a highly conductive off-hole anomaly that's now become the high-grade copper rich Rainbow deposit (See news release dated July 21, 2020).

Samples from BLU-111 have been shipped for laboratory assaying. Meanwhile, a borehole pulse electromagnetic ("BPEM") survey is planned and once complete together with assay data modelling a decision on the next exploration steps will be made.

Aaryn Hutchins, P.Geo, a qualified person under National Instrument 43-101, has reviewed and approved the technical information in this news release.

About Callinex Mines Inc.

Callinex Mines Inc. (TSXV: CNX) (OTCQX: CLLXF) is advancing its portfolio of base and precious metals rich deposits located in established Canadian mining jurisdictions. The focus of the portfolio is highlighted by the rapidly expanding Rainbow deposit at its rich VMS Pine Bay Project located near existing infrastructure in the Flin Flon Mining District. Callinex prepared an indicated mineral resource on the Rainbow deposit of 3.44 Mt grading 3.59% CuEq for 272.4 Mlb CuEq (238.3 Mlb Cu, 56.9 Mlb Zn, 37.6 koz Au, 692.8 koz Ag, 2.3 Mlb Pb), an inferred mineral resource on the Rainbow deposit of 1.28 Mt grading 2.95% CuEq containing 83.4 Mlb CuEq (72.1 Mlb Cu, 19.5 Mlb Zn, 11.1 koz Au, 222.2 Koz Ag, 0.8 Mlb Pb) and an inferred mineral resource at the Pine Bay deposit of 1.0 Mt grading 2.62% Cu containing 58.1 Mlb Cu (see news release dated July 10, 2023). 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 (see news release dated May 14, 2018). 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), a 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) (see news release dated October 25, 2021).

Historical Mineral Resource Estimate

Historical resource estimates include a geological report titled "The 1997 and 1997 diamond drilling programs on the Lew Property" dated June 1998, prepared by Aur Resources Inc., reported an "inferred mineral inventories" of 192,292 t (short tons) at 2.29% Cu and 0.91% Zn at the Leo Lake Copper deposit and the historical resource estimates cited above are mentioned for historical purposes only and use terminology not compliant with current reporting standards. The reliability of these historical estimates is unknown but considered relevant by the Company as they represent significant targets for future exploration work by the Company. The assumptions, 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 according 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 Alberts Lakes Property. The Company is not treating this estimate as current mineral resources or mineral reserves as defined in NI 43-101.

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 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.

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SOURCE Callinex Mines Inc.

FAQ

What are the key exploration targets for CLLXF in 2025 at the Pine Bay Camp?

CLLXF has identified four high-priority targets: Visionary, General, Amulet, and Blueberry areas, focusing on expanding near-surface high-grade copper and gold deposits.

What are the historical grades reported at CLLXF's Leo deposit in the Visionary Target Area?

The Leo deposit has a historical inferred mineral inventory of 192,292 metric tonnes grading 2.29% Cu and 0.91% Zn above the 500-foot level.

What are the highest gold grades reported in CLLXF's General Target Area?

The General Target Area reported historical drilling results including 204.86 g/t Au over 1.62m and 3.80 g/t Au over 8.50m.

What are the notable copper grades from CLLXF's Amulet Target Area?

The Amulet Target Area reported drilling results including 1.40% Cu over 5.42m and 2.38% Cu with 4.5% Zn over 0.79m.