Callinex Mines says it has made a new high-grade mineral discovery near Flin Flon, invigorating company officials and investors alike.
Assay results confirm a copper- and zinc-rich volcanogenic massive sulphide (VMS) discovery, known as the Pine Bay East zone, at Callinex’s Pine Bay Project, the company said Monday.
“We are excited to announce a new discovery within one of the largest past-producing volcanogenic massive sulphide camps in the world,” Max Porterfield, president and CEO of Callinex, said in a news release. “With the additional planned drilling we have the potential to identify high-grade copper and zinc mineralization along a strike length that is consistent with historic mines in the camp.”
In announcing the Pine Bay East zone, Callinex said one of its recent drill holes intersected 3.3 metres of 3.2 per cent copper and 5.9 metres of 2.2 per cent zinc.
The discovery was made 450 metres east of the historic Pine Bay deposit and mine shaft, the company said, adding that it is open along strike in both directions and at depth, where no previous drilling has been completed.
The Callinex news release called the zone “highly prospective” given its location at the margins of “one of the largest and most highly altered package[s] of felsic volcanic rocks within the Flin Flon Greenstone Belt.”
Porterfield said the company looks forward to additional drilling at Pine Bay East along with assay results from a recently completed hole to follow up on a VMS horizon discovered in the same region last summer.
The Vancouver-based company expects to release additional assay results from its 2016 winter drilling campaign in the coming weeks. Nine of 10 planned holes have been completed to date, with assays pending for eight of them.
The investor website Stockcaller.com reported that Callinex’s stock was “a huge mover” on the heels of the announcement.
The stock opened at 32 cents Monday, climbed as high as 37 cents, and closed at 32 cents – one cent higher than the previous closing price.
Another investor website, Equities.com, had this to say about the discovery: “With HudBay having spent $1.6 billion on infrastructure within the belt, there may be synergies with Callinex.”
The Pine Bay Project is located 16 km east of Flin Flon and spans 6,000 sq hectares.
