Callinex reports wide intersections of copper at Rainbow

Drilling at Callinex Mines’ (TSXV: CNX; US-OTC: CCLXF) Rainbow deposit in Manitoba has returned wide intersections of high-grade copper.

Drill hole PBM-129-W2 hit a broad interval of 67 metres grading 2.73% copper, 0.13 grams gold per tonne, 3.46 grams silver per tonne and 0.12% zinc (2.89% copper equivalent), starting from 776 metres downhole, including 2.5 metres of 17.6% copper, 0.49 grams gold per tonne, 24.81 grams silver per tonne silver and 0.24% zinc (18.23% copper equivalent).

A second hole, PBM-131, intersected 20.53 metres of 2.58% copper, 0.22 grams gold per tonne, 6.63 grams silver per tonne and 1.11% zinc (3.21% copper equivalent) from 709 metres. The drill hole also returned 7.84 metres of 5.5% copper, 0.21 grams gold per tonne, 7.17 grams silver per tonne and 0.11% zinc (5.74% copper equivalent) and 14.75 metres of 2.83% copper, 0.23 grams gold per tonne, 8.24 grams silver per tonne and 1.51% zinc (3.64% copper equivalent).

“These are the two widest intersections we’ve seen in the almost seven years we’ve been working this project up,” Max Porterfield, the company’s president and CEO, said in an interview. “They add to our belief that Rainbow is the crown jewel in our portfolio.”

Callinex says the drill results appear to show two zones, called Orange and Yellow, converging in drill hole PBM-129-W2, and noted that the wide intersections are typical of the pinching and swelling in volcanogenic massive sulphide lenses.

Drill core from Callinex Mines’ Pine Bay project in Manitoba. Credit: Callinex Mines.

“These drill results represent continued, comprehensive progress [we have] made in developing this project,” says Porterfield

The company has two drills working and plans to keep them turning through the summer and possibly into the fall.

“We want to find consistent grades, because that’s where you build tonnage,” he says. “We know we’re hitting it in spades now, but we want to build on that. The need for clean copper, high-grade copper, has never been more important owing to tight supply issues and increasing demand as we move to a greener economy. Couple that with a deposit in one of the best mining jurisdictions in the world and we truly believe we’re sitting on something special.”

The company has completed 11,323 metres of its 30,000 metre drill program at Rainbow, which is part of the company’s 100%-owned Pine Bay project.

The Pine Bay project is a district scale land package consisting of claims covering more than 6,000 sq. hectares. It is located 16 km west of the city of Flin Flon, where Hudbay (TSX: HBM; NYSE: HBM) has processing facilities.

At presstime Callinex was trading at $4.38, within a 52-week range of 92¢ and $6.50 per share. The company has about 11.8 million outstanding shares and a market capitalization of $57.5 million.