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In the Pursuit of Gold, Silver, Copper and Zinc: Canadian Explorer Strikes New Zones

Stockhouse Editorial
0 Comments| June 30, 2020

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(Image via Callinex Mines Inc.)

Click to enlargeJune 2020 has been a busy month for Canadian explorer and developer Callinex Mines Inc. (TSX-V: CNX, OTCQX: CLLXF, Forum). The Company is advancing through exploration across its project portfolio that are all within known mining districts that benefit from existing infrastructure. Its portfolio of base and precious metals rich Volcanogenic Massive Sulphide (VMS) deposits is highlighted by its Nash Creek Project in New Brunswick’s Bathurst Mining District, Pine Bay Project in the Flin Flon Mining District of Manitoba and the Point Leamington Project in the Buchans Mining District of Newfoundland.

Callinex kicked off June with results from eight of 18 drill holes completed during the 2019 / 2020 drilling campaign at its 100%-owned Nash Creek Project. This campaign saw the discovery of a new silver zone 9.6 kms along strike from the Nash Creek deposit. This new silver zone lies to the south of the project, along the Black Point Arleau Brook Fault that extends from the Nash Creek deposit to the south for 11 kms.

Drill highlights include: 19m of 36.53 g/t Ag, 0.52% Pb and 0.38% Zn at a starting depth of 34.0m including 3m of 130 g/t Ag, 0.98% Pb and 0.16% Zn in drill hole NC19-306. For further highlights on returns, click here.

This built upon momentum from the Company, who recently intersected 28.6m of 57 g/t Ag, including 16.5m of 94 g/t Ag near surface. This hole is located 2.8 km along strike south of Nash Creek Deposit and only the second drill hole, other than the previously announced NC19-306 hole, to test an 11 km unexplored trend south of the deposit

(Image via Callinex Mines Inc. Click to enlarge)

Most recently, CNX followed this news up with impressive results in late June 2020 from its 2019 / 2020 drilling campaign at its Pine Bay Project, which tested eight target areas that have the potential to host high-grade zinc, copper, gold and silver-rich VMS deposits. Located 16 km away from processing facilities in Flin Flon, Manitoba, multiple highly conductive anomalies identified off-hole from sulphide stringers that include copper, zinc, gold, and silver mineralization.

This positive news flow has been reflected in CNX stock, which has been trending higher over the past month and with a $8.5 million market capitalization, this makes for a good value for investors.

(Callinex stock chart April – June 2020. Click image to link to chart)

Let’s dig a little deeper into these results and find out what’s to come for the Company with Callinex President and CEO Max Porterfield.

SH: Recent near-surface silver discoveries at Nash Creek highlights its prospectivity, what does the Company expect under the surface with the extent of this mineralization?

MP: We are very excited by these recent discoveries at the Nash Creek Project. The focus of the campaign was to test regional targets to discover additional mineralization to build upon the Nash Creek deposit and the maiden PEA published in 2018. The known deposit its located offset from the main controlling Black Point Arleau Brook Fault, which spans 18km. We believe that there is potential for additional mineralization to be hosted along this trend and we have only scratched the surface with the two discoveries we have made.

SH: A potential district scale silver discovery, have you encountered anything like this new discovery before in your experience?

MP: Our technical team has been accredited with numerous discoveries that went on to become producing mines, including three of the four largest in the Flin Flon Mining District’s history. This discovery is unique in that we control a large district scale land package that has had very limited exploration historically. VMS deposits occur in clusters and make up known mining districts like Bathurst and Flin Flon. The Nash Creek deposit is the only known deposit to be hosted along this trend. These two discoveries are a 6.8km apart and there’s been no historic drilling to test the controlling fault between them which really highlights the potential the project hosts.

SH: The Company also announced a number of Zinc and Lead rich intercepts in the Central Zone area that is earmarked for further follow-up, what can you tell us about this zone?

MP: The Company announced four widely spaced drill intercepts across a 1.1km strike extent in the Central Zone area. These holes intersected geology and alteration that mimics a mineralized sequence that makes up the Nash Creek deposit, located 1.3km to the west. The extent of the IP anomalies we were testing in these holes suggest this area may host significant mineralized lenses. The Company is planning follow-up drilling to further delineate this zone.

SH: Looking to the Company’s Pine Bay Project in Manitoba, multiple highly conductive anomalies were identified off-hole from sulphide stringers that include copper, zinc, gold and silver mineralization, where past-producing projects were located, can you speak to the exceptional exploration opportunity found here?

MP: Electromagnetics, which identifies conductive sources, has been a critical exploration tool used to discover many of the 32 mines that have been discovered in the Flin Flon Mining District. A probe is sent down the drill hole and pulsed to look for conductive sources off-hole and assist in vectoring directly towards massive sulphide mineralization. The fact that these large and highly conductive anomalies are located off-hole from base and precious metals mineralization, on a known mine horizon, make them compelling targets that require immediate drill testing. The community of Flin Flon is in need of a discovery with the impending shutdown of Hudbay’s 777 mine in 2022. We are optimistic that we are vectoring towards a discovery that can benefit both our shareholders and the community.

SH: Can you expand upon Induced Polarization and how the Company took a second look and utilized reinterpretation of historic data?

MP: IP has proven to be a successful toolset as noted by the recent discoveries the Company has announced in New Brunswick. We utilized IP at our Pine Bay Project to vector us to the disseminated sulphide halo that would be in close proximity of a massive sulphide deposit. The survey highlighted many new target areas that we drill tested and have now utilized borehole EM to vector directly toward a discovery. This is how the Company was able to identify the new anomalies we’ve discussed earlier. Reinterpretation of historic drilling and geophysical data has aided in this process.

SH: What is the timetable for the Company’s follow-up activities to determine the extent of these discoveries?

MP: Our team is moving quickly to plan a follow-up exploration campaign both at Nash Creek and our Pine Bay Project in Manitoba. We are eager to get back into the field as soon as possible.

SH: Thank you for your time, Max. Anything else to add?

MP: Callinex is focused on making discoveries to benefit our shareholders and the local communities that depend on mining at a time when they need it most. Our distinguished technical team has made many discoveries that went on to become producing mines and I have confidence that we will achieve our ambitious goals.

FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.

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