Innovative Canadian exploration company on the move to discover high-grade zinc, gold and copper

When a mineral processing plant runs out of ore near by, its days are numbered. The capital equipment often becomes nothing more than a tax write-off. The businesses and people that depend on servicing the plant suffer. The continent is littered with ghost towns from booms that went bust.

Up in Manitoba, Canada, near Flin Flon, a processing facility that was down to its last four years of ore could be given a new lease on life. Vancouver based Callinex Mines (TSXV:CNX;OTCQX:CLLXF) announced recently a new high-grade zinc, gold, silver and copper discovery at the Company's Pine Bay Project, where past-mining giant Placer Dome explored for a large deposit during the 1990s.

"This is a big step forward for Callinex," said President and CEO Max Porterfield. "The Flin Flon Belt of northern Manitoba has had more than 30 mines since the early 20th century, and is known for some of the highest-grade ore deposits in the world so this discovery is an important milestone for us."

The discovery hole 284-3-93-DPN, intersected 10.3m grading 13.1% zinc equivalent mineralization ("Zn Eq.") containing 6.0% Zn, 1.8 g/t Au, 60.4 g/t Ag, 0.7% Cu and 0.4% Pb including a higher grade interval over 4.2m grading 20.8% Zn Eq. containing 11.8% Zn, 2.4 g/t Au, 73.8 g/t Ag, 0.7% Cu and 0.7% Pb. The discovery was made by extending a historic Placer Dome drill hole by 38 meters. The historic drill hole, which ended in copper-bearing sulphide mineralization, was initially drilled as part of their mandate to discover a 30 million ton Volcanogenic Massive Sulphide ("VMS") deposit at the Pine Bay Project.

Many of the largest deposits within the Flin Flon Greenstone Belt have been discovered at depth, such as the 777 Mine that was discovered at a down-hole depth of 1,278m and the Lalor Mine that was discovered at a down-hole depth of 781m. HudBay's nearby 777 Mine has proven and probable reserves totaling 6.3 Mt grading approximately 11% Zn Eq. over an average width of 8 meters to a vertical depth of approximately 1,500m. Exploration efforts have reportedly been unable to extend the life of mine, despite the operation having produced close to $2 billion in net profits for HudBay.

"The existence and abundance of zinc, gold and silver indicates that the hole may have intersected the edge of the VMS system," Mr. Porterfield added. "The high-grade nature and strong continuity of gold and silver, with assays including 2.4 g/t Au and 74 g/t Ag over 4.2m suggests that the system is long-lived and robust."

Callinex announced plans to follow-up on this new discovery and drilling is ongoing to further expand the known mineralization. This program recently garnered attention from legendary resource investor Rick Rule and the Sprott Group of Companies who recently led a $5M private placement for Callinex. At the time of writing, Callinex has a market capitalization of approximately $35 million including a cash position of $8.5 million.

For geologists and market participants, these indications tell a detailed story.