Callinex Mines Inc. (
TSX: V.CNX,
Stock Forum) said Friday it intersected high grade copper mineralization while drilling at its Pine Bay project east of Flin Flon, Manitoba.
Highlights included 18.1 metres of 5.5% copper equivalent over a larger interval of 44.2 metres of 4% copper equivalent at Pine Bay, which covers 6,000 hectares, the company said in a press release.
Trading at 32 cents on Monday, Callinex has a market cap of $10.8 million, based on 33.8 million shares outstanding. The 52-week range is 50 cents and 16 cents.
Callinex, founded by Jack Callinan in 1927, has maintained a major presence in the Flin Flon mining district. The company recently acquired new data to assist exploration and recently compiled and digitized historic data, including over 500 drilling. It has also modeled historic deposits in 3-D and identified potential areas for expansion.
On Friday the company said high grade copper mineralization was intersected in a two-phase 4,000 metre drilling campaign that included 5 holes located in the vicinity of the Pine Bay deposit.
The Phase One drilling campaign focused on confirming historic mineralization and testing targets in the immediate vicinity of the Pine Bay deposit.
“These results demonstrate that Pine Bay hosts high grade mineralization over considerable widths in proximity to historic underground workings and nearby processing facilities,’’ said Callinex President and CEO Max Porterfield.
“Our team now has confidence in our database to support a modern resource estimate, which is significant given that nearly all historic drilling was completed in the 1960s,’’ he said.
“We will be expanding Phase Two of our drilling campaign this summer and are looking forward to testing several high priority land-based targets.’’
The expanded Phase Two drilling campaign will consist of approximately 10 holes totalling a minimum of 2,500 metres.
Having recently worked for U.S. fund manager Frank Holmes, Porterfield is operating under the direction of Mike Muzylowski, a renowned Canadian geologist with a long record of discoveries.
Historic estimates on the property total 1.62 million tonnes at a grade of 2.91% copper equivalent for the Pine Bay, Cabin, Baker Patton and Sourdough deposits. However, these estimates were made in the 1960s and 1970s and are not compliant with the current NI 43-101 rule, that requires a qualified person to sign off on the estimate.
The company said the project is at an advanced permitting stage and includes a 212-metre vertical shaft with 760 metres of underground workings.
The Pine Bay deposit is open at depth beneath 400 metres and a significant electromagnetic conductor suggests the potential for additional mineralization, the company has said.