Callinex Identifies 1km of Highly Conductive Anomalies Along Strike from Rainbow Discovery at Pine Bay Project in Flin Flon Mining District

Highlights:

• Electromagnetic survey has uncovered four highly conductive anomalies along strike to the south of the Rainbow Discovery;
• The four untested anomalies each have a strike extent of 300m and start within 200m of surface;
• Plans are underway to immediately initiate a drilling campaign to test the four conductive bodies in tandem with continued drilling to define the Orange and Yellow zones; and
• Recent drill results continue to define the Rainbow Discovery at shallower depths.

VANCOUVER, BC, Jan. 21, 2021 /CNW/ - Callinex Mines Inc. (the "Company" or "Callinex") (TSXV: CNX) (OTC: CLLXF) is pleased to announce results from a 10 line km deep penetrating surface pulse electromagnetic survey ("SPEM") (the "Survey") completed in January 2021 and the remaining drill results from the 2020 exploration campaign to expand the Rainbow Discovery (the "Discovery" or "Rainbow") at the 100% owned Pine Bay Project located in the Flin Flon Mining District of Manitoba (District Overview Map). The Rainbow Discovery has been made on Callinex's mineral lease, less than 250m from a high-voltage power-line and 550m from a historic shaft with direct road access to processing facilities in Flin Flon, MB.

Callinex's technical team, working in conjunction with Koop Geotechnical Services Inc. ("Koop"), has identified four highly conductive anomalies located near-surface and along strike to the south of the Orange and Yellow zones of the Rainbow Discovery. The Survey was completed based on the success to date of the Rainbow Discovery and the area to the south had not previously been covered by any deep penetrating electromagnetic system. The identified anomalies expand the strike extent of the Rainbow over 1 km to the south. The three major base metal mines discovered in the Flin Flon/Snow Lake Greenstone Belt with tonnages ranging between 25 - 70 million tonnes (Flin Flon/777, Trout Lake, Chisel/Lalor) have a strike length over 1 km. Based on the recent survey, the Rainbow Discovery has a strike length of at least a kilometre with potential to grow further along strike to the south (See Rainbow Discovery SPEM Survey Plan View).

Mike Muzylowski, Founder of Callinex and 2011 inductee into the Canadian Mining Hall of Fame for the discovery and development of 13 mines in Manitoba, stated, "We acquired the Pine Bay Project because it encompasses one of the largest altered felsic volcanic rock packages that I've come across and with it the potential to host a significant deposit." Mr. Muzylowski continued, "I believe, based on the high-grade mineralization intersected to date coupled with the targets outlined by our team today, that the Rainbow Discovery may become one of the more significant discoveries I've been a part of in my career exploring the Flin Flon Greenstone Belt."

Jim Pickell, 2001 Bill Dennis Award recipient for his role is the discovery of the 777 Mine, commented, "All of the key geological, geophysical and geochemical features that you would ever hope to have for a substantial volcanogenic massive sulphide ("VMS") system have now finally been gathered by the latest round of drilling and geophysical surveys. The potential and future looks quite bright at the western end of the rainbow, a rainbow-shaped highly prospective folded fault structure first noted in December 2015."

Alan Vowles, 2009 Bill Dennis Award recipient for his role in the discovery of the Lalor Mine in Manitoba, stated, "The four anomalies directly south and along strike of the Rainbow Deposit are some of the best that I have seen. The extremely high conductivity of the anomalies match that of the Rainbow Deposit anomaly, which is due to the abundance of copper bearing chalcopyrite in the massive sulphides."

Each of the four modeled conductive anomalies (Anomalies 1-4) have a strike extent of 300 metres and are interpreted to begin at a vertical depth of 200 metres. While none of these plates have been tested by diamond drilling, some historical holes in the vicinity have intersected alteration and geology as seen in recent Rainbow zone drilling. Anomaly 5, which is the modeled conductive body of the Orange and Yellow zones, has a modeled strike extent of 150m, or half the length of Anomalies 1-4 (See Rainbow Discovery Long Section). It should be noted that deposits in the Flin Flon Greenstone Belt typically have a plunge extent on average between 5-8 times the strike of the deposit. Additionally, all larger producing Volcanogenic Massive Sulphide ("VMS") mines are made up of a number of stacked zones or lenses such as the Orange and Yellow zones discovered to date at the Rainbow.

The Survey was completed when Callinex's technical team recognized the importance of the southern area based on known favorable geology, very limited drill testing and having never been covered by SPEM. The SPEM survey was initiated during the first week of January and consisted of 9 (~1km) survey lines spaced 150 metres apart. Initially Koop surveyed over the known Rainbow zones to see if it was possible to locate the known mineralization with their system (See Plate 5 on Rainbow Discovery Plan View) and after having success continued southerly with the survey.

Results from three additional drill holes mark the end of Callinex's 2020 drilling campaign (See Table 1):

Drill Hole PBM-113-W2 intersected the Rainbow Horizon 225 metres vertically above the PBM-111 discovery hole which demonstrates that mineralization will continue to be defined closer to the surface. Correlation between its parent hole PBM-113 which is 100 metres vertically below PBM-113-W2 is supported by the intersection of the Orange Zone which returned 5.7m of 4.72% copper equivalent (CuEq) comprising of 3.57% copper, 0.54 g/t gold, 21.41 g/t silver and 1.56% zinc.

PBM-114 tested the Rainbow Horizon 150 metres below hole PBM-112 in an effort to better define the southern edges (plunge) of the Yellow and Orange zones. Narrow widths associated with the Yellow and Orange zones in PBM-114 suggests future drilling needs to trace northerly from this location.

PBM-115 was designed to test the northern strike extent of the Orange and Yellow zones and represents a 75 metre step out from PBM-113-W1. PBM-115 intersected the Yellow Zone 783 metres down hole and intersected 3.13m of 1.95% CuEq consisting of 1.45% copper, 0.20 g/t gold, 6.76 g/t silver and 0.82% zinc.

Plans are underway to immediately initiate a drilling campaign to test the four conductive bodies in tandem with continued drilling to define the Orange and Yellow zones.

Table 1: Pine Bay Drill Results

Notes(1)(2)(3)(4)(5)(6):

1. PBM-113-W2 was wedged off the parent hole (PBM-113) at the depth of 407m and continued to a final depth of 848m. The PBM-113-W2 shares the same collar location as PBM-113 located at the following Universal Transverse Mercator (UTM) coordinates using the North American Datum of 1983 (NAD83) within UTM Zone 14N: 331402m East and 6071286m North. The collar of the hole is 298m above sea level. The dip and azimuth for hole PBM-113-W2 at its 848 metre mark is -29?and 296.7? Az
2. PBM-114 is located at the following Universal Transverse Mercator (UTM) coordinates using the North American Datum of 1983 (NAD83) within UTM Zone 14N: 331378m East and 6071255m North. The collar of the hole is 295m above sea level. The dip and azimuth for hole PBM-114 at its 770 metre mark is -46.6?and 292.8? Az
3. PBM-115 is located at the following Universal Transverse Mercator (UTM) coordinates using the North American Datum of 1983 (NAD83) within UTM Zone 14N: 331445m East and 6071353m North. The collar of the hole is 295m above sea level. The dip and azimuth for hole PBM-115 at its 783 metre mark is -52.5?and 299.6? Az
4. The size of the drill core is NQ.
5. True Width calculations assumed the Rainbow Horizon to strike 032 degrees azimuth, with a 80 degree easterly dip.
6. All CuEq (copper equivalent) assay results in this news release use the following pricing: US$3.00 copper per pound ($6,720/tonne), US$1.15 zinc per pound, US$1,450/troy ounce gold ($46.62/gram), US$16.50/toy ounce silver ($0.53/gram), calculation CuEQ= Cu%+(Zn% x zinc price per pound / copper price per pound)+(Au g/t x Au price per gram / copper price per tonne) x100 + (Ag g/t x Ag price per gram / copper price per tonne) x 100. 100% metal recoveries used, ie no process recoveries or smelter payables were included in the calculation

J.J. O'Donnell, P.Geo, a qualified person under National Instrument 43-101 and Exploration Manager for Callinex, has reviewed and approved the technical information in this news release.

Figure 1: Flin Flon Mining District Region Overview

Figure 2: Pine Bay Project Rainbow Discovery SPEM Survey Plan View

Figure 3: Pine Bay Project Rainbow Discovery Long Section

QA / QC Protocols
Individual samples were labeled, placed in plastic sample bags, and sealed. Groups of samples were then placed in security sealed bags and shipped directly to SGS lab in Vancouver, BC for analysis. Samples were weighed then crushed to 75% passing 2mm and pulverized to 85% passing 75 microns in order to produce a 250g pulverized split. 35 elements including copper, zinc, lead and silver assays were determined by Aqua Regia digestion with a combination of ICP-MS and ICP-AES finish, with over limits rerun using an ore grade analysis (two acid digest ICP-AES). Gold was analyzed by fire assay. Specific gravity (sg) measured for each sample using the pycnometer and water and air method. QA/QC included the insertion and continual monitoring of numerous standards, blanks, and duplicates

About Callinex Mines Inc.
Callinex Mines Inc. (TSXV: CNX) (OTC: CLLXF) is advancing its portfolio of base and precious metals rich deposits located in established Canadian mining jurisdictions. The portfolio is highlighted by the rapidly expanding Rainbow Discovery at its Pine Bay Project located near existing infrastructure in the Flin Flon Mining District. Additionally, Callinex has emerging near-surface silver discoveries at its Nash Creek Project located in the Bathurst Mining District of New Brunswick. A 2018 PEA on the Company's Bathurst projects outlined a mine plan that generates a strong economic return with a pre-tax IRR of 34.1% (25.2% post-tax) and NPV8% of $230 million ($128 million post-tax).

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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 future drill programs 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.

View original content to download multimedia:http://www.prnewswire.com/news-releases/callinex-identifies-1km-of-highly-conductive-anomalies-along-strike-from-rainbow-discovery-at-pine-bay-project-in-flin-flon-mining-district-301212533.html

SOURCE Callinex Mines Inc.