CNX Callinex Mines Inc

Highlights:

• Drill hole BLU-111, drilled to test shallow target area Blueberry, intersects stringers and bands of sphalerite mineralization hosted within in a setting typical of footwall alteration;
• Red-brown sphalerite discovered at Blueberry is often an indication of close proximity to VMS discharge systems and potentially a high grade copper, gold, zinc and silver rich VMS deposit;
• Immediate follow-up is planned at Blueberry with additional new shallow high priority target areas on the newly expanded land package to be outlined as part of broader near surface exploration strategy;
• High grade gold, silver and zinc intersected in over 500m step out from Descendent discovery hole; and
• Drilling at Poseidon identifies a highly conductive category "A" off-hole anomaly which relates to the mineralized intersection in the drill hole and associated Rainbow horizon.

VANCOUVER, BC, Feb. 27, 2025 /CNW/ - Callinex Mines Inc. (the "Company" or "Callinex") (TSXV: CNX) (OTCQX: CLLXF) is pleased to provide results from the recently completed exploration drilling campaign at the Company's consolidated Pine Bay Camp (the "Camp") located in the Flin Flon Mining District of Manitoba (See news release dated September 3, 2024) (Pine Bay Camp Plan View).

The exploration campaign encompassed 3,284m to test three target areas.  The program commenced with drill testing at the Poseidon target area followed by a step out at the Descendent discovery and ended with the newly acquired near surface Blueberry target area. Callinex's upcoming drill programs will focus efforts at Blueberry and additional nearby shallow high priority targets.

Max Porterfield, President and CEO, said, "We are very encouraged by the initial results from the first shallow hole into the Blueberry target area on our newly optioned ground.  The expanded land package has substantially expanded the highly prospective footprint of our Pine Bay Camp, which already includes our well defined Rainbow and Pine Bay deposits and other high-grade deposits.  With our extensive technical expertise in the area, we are eager to start a follow-up exploration program at Blueberry as well as the nearby high priority targets.  While the results from the Descendent step out and testing of Poseidon are encouraging, our focus moving forward will be at shallow opportunities we will soon outline."

Target Area Blueberry - A potential near surface discovery unfolding

Drill hole BLU-111, the first drilled by Callinex into our newly identified Blueberry target area ("Blueberry"), intersected 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.

BLU-111 intersected the interpreted Pine Bay horizon, which hosts the Pine Bay deposit to the southeast, associated with the zinc mineralization at a vertical depth of 195m and is the first hole to test the airborne versatile time domain electromagnetic ("VTEM") anomaly interpreted to start at 120m below surface (Blueberry Cross Section).

Samples from BLU-111 are being taken and will be shipped to the lab for assaying. Meanwhile, a borehole pulse electromagnetic ("BPEM") survey is planned for the near future to assist in vectoring which will be included as part of a broader exploration campaign to follow up on Blueberry and other similar exciting target areas.

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).

The Blueberry target area is located on our newly option ground, extending the Pine Bay Camp, where Callinex recently terminated a back-in provision, releasing the property from a deferral of meaningful exploration which had been in place for nearly a quarter of a century.

Blueberry 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 hosts the Amulet deposit to the west and the Leo deposit to the east.  The growth fault corridor that hosts target area Blueberry and the 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, but has seen significantly less exploration (Pine Bay Camp Regional VTEM Survey). 

A recent review of data by Callinex and previous modeling of the VTEM data determined that a conductor begins at 120 meters depth with a conductivity thickness ("CT") of 200 siemens which is also supported by a coincident magnetic anomaly. Any EM conductor with a strike extent over 100m and a CT of over 100 siemens within a known mine horizon is regarded as a highly prospective target within the Flin Flon Mining District.

The target was originally covered with Horizontal Loop EM ("HLEM") ground geophysics, which has a depth penetration less than 50m, in 1980 by Granges Exploration AB ("Granges"); which produced a well defined anomaly. In 1980 Granges drilled a shallow 59.74m (165ft) hole, AM-1, intersecting favorable geology with the most significant assay interval returning 0.6m (2ft) of 1.5% Zn. A shallow follow-up hole was drilled in 1983, AM-3-83, which intersected favorable geology but did not return any significant assay results. 

In 2019 Voyageur Minerals Inc. drilled hole AM-19-06 to test the VTEM anomaly in the same area previously targeted by Granges in 1983. Relogging of AM-19-06 by Callinex interpreted the hole intersected quartz-feldspar phyric rhyodacite with localized intervals of chlorite schist, suggesting the hole intersected indications of strong footwall alteration, prior to intersecting the productive horizon with the most significant assays returning 1m of 0.84% Zn, 4.8 g/t Ag and 0.13% Cu from 75m to 76m and 0.13 m of 1.82% Zn, 5.9 g/t Ag and 0.15% Cu from 109.4m to 109.53m. The hole is interpreted to intersect the horizon within 50m of the surface and too shallow to test the modeled VTEM anomaly. No BPEM survey was completed on the drill hole and no additional follow-up was completed until the recent completion of BLU-111 (Blueberry Plan View).

Descendent - Wide step out intersects high grade gold, silver and zinc

DSC-113 tested the Descendent with a 536m step out vertically below and north of discovery hole DSC-111 and intersected 6.46m of 0.47% CuEq (0.21 Au, 4.16 g/t Ag, 0.04% Cu and 0.68% Zn) including 0.21m of 7.22% CuEq (5.06 g/t Au, 65.59 g/t Ag, 0.60% Cu and 6.77% Zn) (Descendent Discovery Long Section). Prior to reaching the mineralized intersection the hole intersected a broad halo with 800m of VMS style alteration which included sericite, chlorite, silica, with disseminated sulphides which increased downhole, with the last 400 metres commonly intersecting highly-altered (sericite and chlorite schists). The most significant section returned from Descendent discovery  hole DSC-111 returned 7.14m grading 1.70% copper equivalent ("CuEq") with additional intersections including a 10.57m grading 1.36% CuEq (see news release dated September 12, 2023).

A BPEM survey has subsequently been completed and analysed on drill hole DSC-113.  While the results indicate conductivity in three areas of the hole, including directly associated with the high-grade mineralization, none of the anomalies provide a vector to a highly conductive source which could represent a chalcopyrite rich portion of the VMS system at Descendent. Historically, probing of nearby holes has outlined lowly conductive anomalies which have been consistent with the zinc, gold and silver dominant mineralization intersected to date at Descendent which is lowly conductive by nature.

The Descendent still possesses strong potential to grow into a significant discovery in the future but will need additional aid in targeting any future drilling to expand the discovery. The Company is reviewing the potential to complete a radio tomography survey such as the FARA system utilizing existing drill holes into the Descendent discovery and nearby areas. The FARA system uses radio imaging technology to study, in detail, the space between the boreholes and provide multiple characteristics such as thickness and boundaries which could aid in future targeting.

Target Area Poseidon - Chasing a highly conductive body on the Rainbow horizon

Drill hole PBM-197 was drilled to test target area Posiedon and successfully intersected trace VMS mineralization along the Rainbow Horizon, which is host to both the Rainbow deposit to the south and Amulet deposit to the north. PBM-197 intersected a favorable package of strongly chloritized felsic volcanics, with disseminated sulphides consisting of elevated base and precious metals between 290.00-296.00m. Hosted within the broader chloritized and sulphide barring hyaloclastite unit intersected between 280.15-320.54m, which is interpreted as the Rainbow horizon, and supported by a hanging wall/footwall marker unit, chemostratigraphic geochemical signatures, strong chlorite alteration and the presences of base and precious metals. (Target Area Poseidon Long Section).

A subsequent BPEM survey of PBM-197 identified a highly conductive category "A" off-hole anomaly at a down hole depth of ~300m which directly relates to the mineralized intersection in the drill hole and associated Rainbow horizon. BPEM results from the single near surface hole drilled by the Company in 2016, PBM-013, revealed a strong in-hole/off-hole anomaly associated with 7.0 meters of 1.2% Zn and 1.03 g/t Ag intersected in the hole. Additionally, a review of historic BPEM data from drill hole 96-1 provides a vector to a conductive source nearby associated with the historic intersection of VMS mineralization. 

Geology in the very limited drilling nearby has intersected exceptionally favorable package of very strong black chlorite-rich footwall alteration with several key VMS signature elements, such as very strong europium values, sitting within the same 'Rainbow' volcanic package that is dominated by felsic flows / hyaloclastites that are immediately overlain by cherty felsic tuffs.

A follow-up drill hole is being considered to target the highly conductive source that is seen in the BPEM data from three nearby drill holes that all intersected favorable geology.

Engagement of Automated Market Making Services

The Company has engaged the services of ICP Securities Inc. ("ICP") to provide automated market making services, including use of its proprietary algorithm, ICP Premium™, in compliance with the policies and guidelines of the TSX Venture Exchange and other applicable legislation. ICP will receive a fee of C$7,500 plus applicable taxes per month, payable monthly in advance. The agreement between the Company and ICP is for an initial term of three (3) months and shall be automatically renewed for subsequent one (1) month terms (each month called an "Additional Term") unless either party provides at least thirty (30) days written notice prior to the end of the Initial Term or an Additional Term, as applicable. There are no performance factors contained in the agreement and no stock options or other compensation are being granted in connection with the engagement. ICP and its clients may acquire an interest in the securities of the Company in the future.

ICP is an arm's length party to the Company. ICP's market making activity will be primarily to correct temporary imbalances in the supply and demand of the Company's shares. ICP will be responsible for the costs it incurs in buying and selling the Company's shares, and no third party will be providing funds or securities for the market making activities.

Table 1: Drill Hole Results

QA / QC Protocols

Individual samples were labeled, placed in plastic sample bags, and sealed. Groups of samples were then placed in security sealed bags and shipped directly to SGS lab in Vancouver, BC for analysis. Samples were weighed then crushed to 75% passing 2mm and pulverized to 85% passing 75 microns in order to produce a 250g pulverized split. 35 elements including copper, zinc, lead and silver assays were determined by Aqua Regia digestion with a combination of ICP-MS and ICP-AES finish, with over limits rerun using an ore grade analysis (two acid digest ICP-AES).  Gold was analyzed by fire assay. Specific gravity (sg) measured for each sample using the pycnometer and water and air method. QA/QC included the insertion and continual monitoring of numerous standards, blanks, and duplicates.

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).

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.