Research: Callinex Mines

by Lsigurd on October 18, 2020

only 11mm shares outstanding, $33mm market cap
targeting zinc rich deposits
these guys were founded out of Callinan mines, which discovered 777 mine
targeting VMS deposits
two mining districts Bathhurst and Flin Flon, also have a property in NFLD – Bichans district
Even though I talk Bathhurst first, its the Flin Flon property that is the interesting one:

Bathhurst – New Brunswick

3 properties: Nash, Headway, Superjack
they have a PEA at Nash Creek
10 year 3,900 tpd open pit mine
963 million lbs of Zn Eq
would use existing Brunswick smelter
it wasn’t a huge mine, but not terrible either:

unfortunately it looks like it is a Zn/Pb deposit which isn’t super exciting
from what I can tell zinc is going to be in surplus for a while
but latest results seem to be finding silver
NC 20-313 intersected 28.6m of 57 g/t silver at a vertical depth of 120m including 16.5m of 94 g/t silver and NC19-306 which intersected 19m of 36.53 g/t silver, 0.52% lead and 0.38% zinc at a starting depth of 34m
the silver could be on to something but who knows
overall I’d give this project an – “ehh”

Flin Flon

right around historic mines
Callinex claims are right around the Hudbay 777 mine – they are maybe 10km to the east of Flin Flon
just like generally, it is kinda crazy that a $30mm company has this much land leased right around Flin Flon:

they call recent discovery Rainbow – it is at Pine Bay project (to the east)
targeting 3 anomolies they’ve found:

within a larger VMS corridor with a number of other mines
in Sept announced some high-grade but narrow intercepts:
PBM-111 – 3.09% copper, 0.75 g/t gold, 13.35 g/t silver, 1.88% zinc over 2.96m
and: 4.12% copper, 0.22 g/t gold, 2.21 g/t silver, 0.06% zinc over 4.31m
So that doesn’t look that interesting, pretty narrow, who cares right?
but this is interesting:
the geology suggests something much bigger – they cut across a 260m by 600m anomoly
this walk-through of the Rainbow discovery is pretty interesting, look at the anomaly and where the drill intercepts went: https://vrify.com/embed/decks/9497
It really looks like they sliced across something that potentially could be very big
new release Tuesday that they have drilled two more holes 112 and 113 and they both have hit on something – going to lab and will know more with results then
113 is right into the anomoly, 112 is above anomoly but into massive sulphide core
We should have results on these two holes in the next couple of weeks
So basically, they are in elephant country, they just sliced across something that looks like an elephant
One more thing, after they released the news that they sliced across something that looks like an elephant, the CEO went and bought a bunch more shares at a 52 week high:

I don’t talk exploration stories much on the blog because I usually get them from newsletters and so they aren’t my original ideas. But this one I found from the insider buys and it seems interesting enough to take a position. But these next two holes could miss and the stock could tank, so high risk. The drilling so far caught my attention and just the idea that this dinky little venture company has such a big land package right around Flin Flon and surrounded by Hudbay claims.