The latest drill results from Callinex Mines’ Pine Bay Project appear underwhelming compared to the promising geological intersection announced last fall.
Assay results are in from two holes drilled to test the down-plunge extent of an earlier hole known as 284-3-93-DPN, which returned strong zinc and gold grades in October. The follow-up holes were drilled about 300 metres beneath the intersection.
“These holes did not intersect significant massive sulphide mineralization but did intersect very strong alteration within a favourable rock package,” Callinex said in a Jan. 19 news release.
There remains “a large new prospective area open for further exploration,” the company said, adding it will continue with “aggressive exploration” using two drill rigs.
A source within the geological field, who does not speak on behalf of Callinex, said the results were disappointing following the 284-3-93-DPN results.
The market did not respond positively. The same day Callinex announced the follow-up results, the company’s share price tumbled by 20 per cent, from 44 cents to 35 cents, though it was back up to 40 cents on Monday.
Callinex stock had climbed as high as 65 cents in the weeks after the 284-3-93-DPN intersection was discovered at Pine Bay, located 16 km east of Flin Flon.
Asked how he viewed the latest drill results, Max Porterfield, president and CEO of Callinex, suggested the company remains optimistic about the property.
“Results over the last four months at the Pine Bay Project have demonstrated that a large alteration and mineralized system is present along three volcanogenic massive sulphide (VMS) horizons,” he told The Reminder. “This is an ideal environment to conduct exploration. It is a process to vector into the strongest areas of a mineralized VMS system and we continue to do so with two drill rigs.”
The company also recently completed another drill hole, PBM-017, and anticipated shutting down rig drilling at a fourth hole, PBM-019, last week.
A Borehole Pulse ElectroMagnetic (BPEM) survey completed on PBM-017 did not appear to identify any nearby conductors and a survey will soon be completed PBM-019, Callinex said.
