Callinex Intersects 24.9m of Volcanogenic Massive Sulphide Mineralization at Sourdough Area of Pine Bay Project

Callinex Mines Inc. (the "Company" or "Callinex") is pleased to announce that the first hole from its ongoing drilling campaign, drill hole SDB-005, has intersected 24.9m of Volcanogenic Massive Sulphide ("VMS") mineralization with base and precious metal values at the Sourdough area of the Pine Bay Project located near HudBay's operations in Flin Flon, Manitoba (see Figure 1). The hole was drilled below and to the north of the historic Sourdough VMS deposit in order to test a large borehole geophysical target (see News Release dated June 15, 2016). The drill hole intersected the edge of the target and a conductive zone of sulphide mineralization between 811.2 and 836.1 metres (see Figures 2 and 3).

The results from this drill hole enhance the likelihood that the borehole geophysical target is solely caused by conductive bands and stringers of massive sulphides that may be laterally associated with more significant base and precious metal values. Upon completion of SDB-005, two additional borehole electromagnetic surveys were conducted with various loop configurations to further refine and isolate nearby conductive responses. The survey indicated that the main target area, which was not intersected in SDB-005, is very conductive and has significant dimensions. This target area is located above drill hole SDB-005 and to the north where no drilling occurs within the immediate vicinity.

Callinex plans to complete a step-out drill hole during the next drilling program to test this large geophysical target within a prospective rhyolitic setting that hosts sulphide mineralization with base and precious metal values. Drilling conducted in the area since mid-2015 has indicated increasingly favorable geology to the north, towards this target area. In addition to the large target to the north, there also appears to be a local conductor above the hole and to the south, in the direction where Callinex recently confirmed the presence of a new mineralized VMS zone in drill holes SDB-001 and SDB-004 (See News Releases dated September 14, 2015 and June 15, 2016).

The significant zinc assay in the entire 24.9m sulphide zone was obtained from a 0.44m interval between 812.1 and 812.5 metres that carried 2.14% Zn, 0.397 g/t Au, 16.70 g/t Ag and 0.38% Pb along with trace copper values. The significant copper assay within the sulphide zone was obtained from a 0.23m interval between 816.9 and 817.1 metres that carried 0.46% Cu, 0.063 g/t Au, 0.33 g/t Ag along with traces of Zn and Pb. True widths are currently unknown.
Callinex has completed three drill holes as part of the summer drilling campaign and expects to receive analytical results from the second hole 284-3-93-DPN imminently, which will be disclosed once received.

Figure 1: Sourdough Deposit Area within Larger Pine Bay Project:

Figure 2: Plan Map of the Sourdough Deposit Area and Large Geophysical Target:

Figure 3: Longitudinal Section of the Sourdough Deposit and Large Geophysical Target:


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 Canada Inc in Vancouver, B.C. for analysis. Samples were crushed to 75% passing 2mm and pulverized to 85% passing 75 microns in order produce a 250g split. All copper, zinc and silver assays were determined by Aqua Regia digestion with a combination of ICP-MS and ICP-AES finish, with overlimits (>100 ppm Ag, >10,000 ppm Zn, and >10,000 ppm Cu) completed by fire assay with gravimetric finish (Ag) or Aqua Regia digestion with ICP-AES finish (copper and zinc). All samples were analyzed for gold by Fire Assay of a 30 gram charge by AAS, or if over 10.0 g/t were re-assayed and completed with a gravimetric finish. QA/QC included the insertion and continual monitoring of numerous standards and blanks into the sample stream at a frequency of 1 per 10 samples, and the collection of duplicate samples at random intervals within each batch at a frequency of 1 per 10 samples.

SGS Canada Inc carried out some or all of following methods to obtain the assay results for Callinex: G_LOG02 Pre-preparation processing, G_WGH79 Weighing and reporting, G_PRP89 Weigh, dry, crush, split, pulverize, G_SCRQC QC for crush and pulverize stages, G_CRU22 Crush >3kg, G_DRY11 Dry samples, GE_FAA313 @Au, FAS, AAS, 30g-5ml (Final mode), GE-IC14A Aqua Regia digestion/ICP-AES finish, GE_IMS14B Aqua Regia digestion/ICP-MS package, GE_IMS14 Aqua Regia digestion, GO_FAG303 30g, Fire assay, gravimetric finish (Au)(Final Mode), GO_FAG313 30g, Fire assay, gravimetric finish (Ag)(Final Mode), G0_ICP13B Ore Grade, Aqua Regia digest/ICP-AES. Ag >10ppm was analyzed by ICP and GO_XRF77B-pyrosulfate fusion

James Pickell, P.Geo,, a Qualified Person under National Instrument 43-101 and a consultant to Callinex, has reviewed and approved the technical information in this news release.


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