Callinex shares jump on new discovery in Manitoba

Callinex Mines (TSXV: CNX) announced on Wednesday two new high-grade copper, gold, silver and zinc lenses at its Pine Bay project, located 16 km away from Flin Flon, Manitoba.

The Rainbow discovery hole, PBM-111, intersected 2.96 metres of 3.09% copper, 0.75 g/t gold, 13.35 g/t silver, 1.88% zinc and a second interval of 4.31 metres of 4.12% copper, 0.22 g/t gold, 2.21 g/t silver, 0.06% zinc.

The discovery has been made on Callinex’s mineral lease, less than 500 metres from a high-voltage power-line and 800 metres from a historic shaft with direct road access to processing facilities in Flin Flon.

Callinex has mobilized a drill to commence a second hole to test a highly conductive off-hole anomaly defined to the north.

“The two high-grade copper, gold, silver and zinc lenses discovered, coupled with subsequent borehole survey results, suggest we are at the early stages of a substantial discovery in Manitoba,” Max Porterfield, Callinex president and CEO said in a media release.

The Flin Flon project area covers 2,455 ha with similar geological strata to the main mine horizon that hosts Hudbay’s 777 mine.

Hudbay’s 777 mine, which began commercial production in 2004 and employs 900 people, is expected to be depleted in 2022.

“The community of Flin Flon has been through a storm with a great deal of uncertainty about its future with the impending shutdown of the 777 mine. We believe the Rainbow discovery has the potential to provide a bright future for Flin Flon and our shareholders,” Porterfield said.

Midday Wednesday, Callinex’s stock was up nearly 20% on the TSXV. The company has a C$34 million market capitalization.