Callinex Mines Inc. says four of five winter holes drilled at the Pine Bay Project near Flin Flon have resulted in significant findings, and the company has announced plans to raise up to $1 million to continue exploration at the site.
Significant copper mineralization and intense black chlorite alteration were intercepted in four drill holes, according to a news release from the company.
One of the drill holes, PBM-009, intersected 10.6 metres of 1.4 per cent copper at only 50 metres below the surface, which included a higher grade interval of 3.6 metres of 2.0 per cent copper. The find appreciably expands the known mineralization related to the historic Baker Patten VMS deposit. The company has said additional drilling is considered a high priority.
Other findings included 1.45 metres of 1.77 per cent copper, 0.3 metres of 3.56 per cent copper and 0.92 grams per tonne of gold intersected at drill hole PBM-007.
Four separate copper intersections were found down to an approximate depth of 370 metres at drill hole PBM-010.
Findings from hole PBM-008, reported in March, included 3.3 metres of 3.2 per cent copper and 5.9 metres of 2.2 per cent zinc.
The recent drill holes are in the newly interpreted Lower VMS that occurs parallel to and roughly 200 metres below the west-facing and steeply overturned Upper VMS.
Callinex has reported results from six of 12 holes completed during the winter drilling campaign and anticipates releasing results from the final six holes shortly.
With the most recent results, Callinex announced that it intends to raise up to $1 million through a non-brokered private offering, consisting of 2.5 million flow-through shares at $0.30 per share, with an additional 833,333 non-flow-through units at the same price.
The stock market reacted quickly to the news, with shares rising 26.67 per cent from opening prices on Monday, when the company released its findings.
Callinex Mines Inc. (CVE:CNX) opened at $0.34 per share Monday and closed at $0.38.
By press time Tuesday, the stock had risen to $0.43, down slightly from a mid-morning high of $0.45. It is the highest the stock has traded in the past year.
The Pine Bay Project is located 16km east of Hudbay’s 777 mine and spans 6,000 sq hectares.
