Highlights:
- Rainbow deposit Indicated Mineral Resource of 3.44 Mt at 3.59% CuEq and Inferred Mineral Resource of 1.28 Mt at 2.95% CuEq;
Pine Bay deposit Inferred Mineral Resource of 1.0 Mt at 2.62% Cu;- Fully funded 20,000m drilling is ongoing to explore in depth and to further define parallel deposit targets at the Project; and
- Table 1 and Table 2 below provide further information of the mineral resources estimate together with sensitivity to cut-off grades and determination of CuEq.
The mineral resource estimate, contained within the mineral lease, consists of the Rainbow deposit with an Indicated Mineral Resource of 3.44 Mt at 3.59% copper equivalent ("CuEq") containing 272.4 Mlb CuEq (comprised of 238.3 Mlb Cu, 56.9 Mlb Zn, 37.6 koz Au, 692.8 koz Ag, 2.3 Mlb Pb), an Inferred Mineral Resource of 1.28 Mt at 2.95% CuEq containing 83.4 Mlb CuEq (comprised of 72.1 Mlb Cu, 19.5 Mlb Zn, 11.1 koz Au, 222.2 koz Ag, 0.8 Mlb Pb) and the Pine Bay deposit with an Inferred Mineral Resource of 1.0 Mt at 2.62% Cu containing 58.1 Mlb Cu (Pine Bay Project Block Models Projected to Surface).
Table 1: Pine Bay Project Resource Estimate Summary at 1.3% CuEq Base Case Cut-off
Rainbow Deposit Indicated Mineral Resource
Resource Area | Tonnes | Cu % | Au g/t | Zn % | Ag g/t | Pb % | Cu Mlb | Au koz | Zn | Ag koz | Pb Mlb | CuEq % | CuEq Mlb |
Rainbow | 3,442,000 | 3.14 | 0.34 | 0.75 | 6.26 | 0.03 | 238.3 | 37.6 | 56.9 | 692.8 | 2.3 | 3.59 | 272.4 |
Rainbow Deposit and Pine Bay Deposit Inferred Mineral Resource
Resource Area | Tonnes | Cu % | Au g/t | Zn % | Ag g/t | Pb % | Cu Mlb | Au koz | Zn | Ag koz | Pb Mlb | CuEq % | CuEq Mlb |
Rainbow | 1,282,000 | 2.55 | 0.27 | 0.69 | 5.39 | 0.03 | 72.1 | 11.1 | 19.5 | 222.2 | 0.8 | 2.95 | 83.4 |
Pine Bay | 1,006,000 | 2.62 | N/A | N/A | N/A | N/A | 58.1 | N/A | N/A | N/A | N/A | 2.62 | 58.1 |
Total | 2,288,000 | 2.58 | - | - | - | – | 130.2 | 11.1 | 19.5 | 222.2 | 0.8 | 2.80 | 141.5 |
Notes: | |
(1) | Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability. |
(2) | The estimate of Mineral Resources may be materially affected by environmental permitting, legal title, taxation, socio-political, marketing or other relevant issues. |
(3) | |
(4) | The inferred mineral resource in this resource estimate has a lower level of confidence than that applied to an indicated mineral resource and must not be converted to a mineral reserve. It is reasonably expected that a majority of the inferred mineral resource could be upgraded to an indicated mineral resource with continued exploration. |
(5) | The indicated and inferred resource estimate uses a copper equivalent cut-off grade of 1.3% CuEq. |
(6) | Copper equivalent resources for the |
(7) | Metallurgical recoveries have been assumed to be 80% Cu, 80% Zn, 40% Au and 40% Ag. |
(8) | Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution. |
(9) | All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely. |
The Company will file a National Instrument 43-101 Technical Report that supports the disclosure of the Mineral Resource Estimate within 45 days of this news release.
Pine Bay Project Access and Geology
JJ O'Donell, Callinex's Exploration Manager said, "The maiden resource estimate covers a small footprint on our extensive exploration land package in Manitoba. As part of our ongoing drilling campaign we will test high-priority targets at Rainbow, Alchemist, Odin and Cabin with the objective of adding further resources."
The Rainbow and Pine Bay deposits are a felsic-hosted VMS deposits that dips 78 and 82 degrees (respectively) to the east, with the Rainbow deposit having a strike length of 310m and a maximum horizontal thickness of 32.0m.
Pine Bay Project Exploration
The Rainbow deposit was initially discovered with a discovery hole in 2020. In a relatively short time frame, the Company has carried out a number of extensive drill programs to define a high-grade copper maiden mineral resource at the Rainbow deposit. Additional drilling has targeted a number of high-priority targets resulting in the discovery of the nearby Alchemist and Odin prospects, which are not part of this maiden resource estimate.
The focus of the Company is to further expand the size of the high-grade Rainbow deposit both laterally and at depth. The last deep hole at the Rainbow deposit, drill hole PBM-158, was the deepest and most northern hole, which intersected the Yellow zone and returned 5.0m of 1.56% copper equivalent ("CuEq") (consisting of 1.45% copper ("Cu"), 0.07 g/t gold ("Au"), 1.86 g/t silver ("Ag") and 0.11% zinc ("Zn")).
Follow up drilling is also planned to step out vertically above and below Alchemist. The last reported drill hole of Alchemist, ALC-114, intersected 4.40m of 4.02% CuEq including 1.60% copper ("Cu"), 5.14% zinc ("Zn"), 0.40 g/t gold ("Au") and 21.78 g/t silver ("Ag").
The fully funded drill campaign is also targeting Odin, which is directly in between the Alchemist and Rainbow deposits. Drill hole PBM-191 intersected one of the highest precious metals intervals to date at Odin with 0.52m of 5.32g/t Au, 56.67g/t Ag with trace copper and zinc and interpreted to be on the Odin horizon.
The Company is further exploring the high-grade historic Cabin deposit. In late 2016, the Company intersected 10.3m grading 6.0% Zn, 1.8 g/t Au, 60.4 g/t Ag, 0.7% Cu and 0.4% Pb in drill hole 284-3-93-DPN (see news release dated
Table 2: Pine Bay Project Resource Estimate Sensitivity to Copper Cut-off Grade
Rainbow Deposit Indicated Mineral Resource
Cutoff Cu % | Tonnes | Cu % | Au g/t | Zn % | Ag g/t | Pb % | Cu Mlb | Au koz | Zn | Ag koz | Pb Mlb | CuEq % | CuEq Mlb |
0.5 | 4,118,000 | 2.71 | 0.33 | 0.77 | 6.11 | 0.04 | 246.0 | 43.7 | 69.9 | 809.0 | 3.6 | 3.17 | 287.8 |
1.0 | 3,880,000 | 2.85 | 0.34 | 0.78 | 6.25 | 0.04 | 243.8 | 42.4 | 66.7 | 779.7 | 3.4 | 3.31 | 283.1 |
1.1 | 3,766,000 | 2.92 | 0.34 | 0.78 | 6.28 | 0.04 | 242.4 | 41.2 | 64.8 | 756.8 | 3.3 | 3.38 | 280.6 |
1.2 | 3,609,000 | 3.03 | 0.34 | 0.76 | 6.26 | 0.03 | 241.1 | 39.5 | 60.5 | 726.4 | 2.4 | 3.48 | 276.9 |
1.3 | 3,442,000 | 3.14 | 0.34 | 0.75 | 6.26 | 0.03 | 238.3 | 37.6 | 56.9 | 692.8 | 2.3 | 3.59 | 272.4 |
1.4 | 3,265,000 | 3.27 | 0.33 | 0.72 | 6.23 | 0.03 | 235.4 | 34.6 | 51.8 | 654.0 | 2.2 | 3.71 | 267.0 |
1.5 | 3,130,000 | 3.38 | 0.33 | 0.71 | 6.23 | 0.03 | 233.2 | 33.2 | 49.0 | 626.9 | 2.1 | 3.81 | 262.9 |
1.6 | 3,037,000 | 3.44 | 0.33 | 0.71 | 6.28 | 0.03 | 230.3 | 32.2 | 47.5 | 613.2 | 2.0 | 3.88 | 259.8 |
1.8 | 2,896,000 | 3.55 | 0.34 | 0.71 | 6.31 | 0.03 | 226.7 | 31.7 | 45.3 | 587.5 | 1.9 | 3.98 | 254.1 |
2.0 | 2,752,000 | 3.66 | 0.34 | 0.70 | 6.30 | 0.03 | 222.1 | 30.1 | 42.5 | 557.4 | 1.8 | 4.09 | 248.1 |
Rainbow Deposit Inferred Mineral Resource
Cutoff Cu % | Tonnes | Cu % | Au g/t | Zn % | Ag g/t | Pb % | Cu Mlb | Au koz | Zn | Ag koz | Pb Mlb | CuEq % | CuEq Mlb |
0.5 | 1,541,000 | 2.22 | 0.28 | 0.71 | 5.54 | 0.03 | 75.4 | 13.9 | 24.1 | 274.5 | 1.0 | 2.63 | 89.3 |
1.0 | 1,481,000 | 2.30 | 0.28 | 0.71 | 5.60 | 0.03 | 75.1 | 13.3 | 23.2 | 266.6 | 1.0 | 2.71 | 88.5 |
1.1 | 1,456,000 | 2.33 | 0.28 | 0.71 | 5.60 | 0.03 | 74.8 | 13.1 | 22.8 | 262.1 | 1.0 | 2.74 | 88.0 |
1.2 | 1,345,000 | 2.47 | 0.28 | 0.70 | 5.44 | 0.03 | 73.2 | 12.1 | 20.8 | 235.2 | 0.9 | 2.95 | 87.5 |
1.3 | 1,282,000 | 2.55 | 0.27 | 0.69 | 5.39 | 0.03 | 72.1 | 11.1 | 19.5 | 222.2 | 0.8 | 2.95 | 83.4 |
1.4 | 1,228,000 | 2.62 | 0.28 | 0.69 | 5.41 | 0.03 | 70.9 | 11.1 | 18.7 | 213.6 | 0.8 | 3.02 | 81.8 |
1.5 | 1,166,000 | 2.71 | 0.28 | 0.68 | 5.45 | 0.03 | 69.7 | 10.5 | 17.5 | 204.3 | 0.8 | 3.10 | 79.7 |
1.6 | 1,109,000 | 2.78 | 0.28 | 0.69 | 5.52 | 0.03 | 68.0 | 10.0 | 16.9 | 196.8 | 0.7 | 3.18 | 77.7 |
1.8 | 945,000 | 3.04 | 0.30 | 0.70 | 5.75 | 0.03 | 63.3 | 9.1 | 14.6 | 174.7 | 0.6 | 3.44 | 71.7 |
2.0 | 870,000 | 3.17 | 0.30 | 0.69 | 5.80 | 0.03 | 60.8 | 8.4 | 13.2 | 162.2 | 0.6 | 3.58 | 68.7 |
Pine Bay Deposit Inferred Mineral Resource
Cutoff Cu % | Tonnes | Cu % | Cu Mlb |
0.5 | 1,275,000 | 2.27 | 63.8 |
1.0 | 1,136,000 | 2.45 | 61.4 |
1.1 | 1,082,000 | 2.52 | 60.1 |
1.2 | 1,044,000 | 2.57 | 59.2 |
1.3 | 1,006,000 | 2.62 | 58.1 |
1.4 | 963,000 | 2.68 | 56.9 |
1.5 | 902,000 | 2.76 | 54.9 |
1.6 | 854,000 | 2.83 | 53.3 |
1.8 | 759,000 | 2.97 | 49.7 |
2.0 | 660,000 | 3.13 | 45.5 |
Model Parameters and Methods for the Rainbow Depoist and Pine Bay Deposit Resource Estimates
The database for the mineral resource estimate for Rainbow Deposit consisted of 104 drill holes (including 14 wedges) totalling 60930m, of which a total of 66 drill holes totaling 38,249m intersected the mineralization wireframes used for the mineral resource estimate. The drill hole database contained assays for copper, zinc, gold, silver and lead as well as other metals of no economic importance.
The database for the mineral resource estimate for Pine Bay Deposit consisted of 131 drill holes totalling 25,672m, of which a total of 76 drill holes totaling 10,123m intersected the mineralization wireframes used for the mineral resource estimate. The drill hole database contained assays for copper only. In
- The estimate was carried out using separate block models constrained by 3D wireframes of the individual mineralized zones. The block model is comprised of an array of blocks measuring 10m x 2m x 10m which employ partial percentages for volumetric accuracy, with grades for Cu, Zn, Pb, Ag and Au interpolated using Ordinary Kriging within the Rainbow deposit and Inverse Distance to the
Second Power (ID2) weighting for the Pine Bay deposit for copper grades. Copper equivalent values were subsequently calculated from the interpolated block grades. - The interpolation for Rainbow was carried out in two passes with the first pass using search radii of along strike and down dip of 150m x 150m and 30m perpendicular to dip. Composites were restricted to a minimum of 1 and a maximum of 12 composites, with a maximum of 3 composites from any one drill hole. The second pass used a restricted search radii along strike and down dip of 60m x 60m and 30m perpendicular to dip. Composites were restricted to a minimum of 6 and a maximum of 18 composites, with a maximum of 4 composites from any one drill hole.
- The interpolation for the Pine Bay deposit was carried out in two passes with the first pass using search radii of along strike and down dip of 150m x 150m and 60m perpendicular to dip. Composites were restricted to a minimum of 1 and a maximum of 12 composites, with a maximum of 3 composites from any one drill hole. The second pass used a restricted search radii along strike and down dip of 60m x 60m and 30m perpendicular to dip. Composites were restricted to a minimum of 5 and a maximum of 16 composites, with a maximum of 4 composites from any one drill hole.
- Bulk density was determined on each sample submitted to SGS laboratories in
Burnaby , BC measured by the gas pycnometer method on pulp samples. For each sample interval, sub-samples were taken from each individual length of core and the weighted average for the sample used. Density values were interpolated on a block-by-block basis using an inverse distance to the second power for the Rainbow deposit. An average value of 2.90 t/m3 was assigned to the Pine Bay Deposit. - Composite values have been capped in order to remove the effects of potential overestimation due to statistical outliers. Therefore, outlier values for each of the metals estimated within the Rainbow deposit were capped at the threshold levels of 7.5%-15% copper, 6% zinc, 20-30 gpt silver and 1.5 gpt gold. For Pine Bay deposit the threshold chosen for capping was 4%-4.5% copper.
- The mineralized domain solids were defined using a combination of geological constraints and grade boundaries in addition to consideration of potential reasonable mining thickness. Intervals that were not sampled were assigned a zero grade.
- For all zones, blocks are classified as Inferred if they are included within 150m of at least two drill hole intercept. Blocks within 40m of the nearest intercept and 40m average for all composites, estimated by at least four drill holes and at least 12 composites were classified as Indicated. However, an interpreted boundary is the final determination of indicated and inferred resources in order to remove outlier blocks and the "spotted dog" effect. In addition, continuous potentially underground mining shapes were created to demonstrate "reasonable prospect of eventual economic extraction".
Qualified Person
The contents of this news release have been reviewed and approved by
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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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