Callinex Issues Year-End Letter to Shareholders

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Jan 07, 2021, 08:30 ET

VANCOUVER, BC, Jan. 7, 2021 /PRNewswire/ - Callinex Mines Inc. ("Callinex") (TSXV: CNX) (OTC: CLLXF) is pleased to provide its year-end letter to shareholders from President and CEO, Max Porterfield:

Dear Shareholders,

The past year has brought a great deal of uncertainty and challenges to many of us and our team would like to extend our sincere gratitude and appreciation for your continued support. Though behind us now, 2020 was filled with an abundance of discoveries across our exploration portfolio that I believe will drive long term value for our shareholders as we expand upon them in the year ahead.

In the Bathurst Mining District of New Brunswick, the drilling campaign to test regional exploration targets at the Nash Creek Project was a resounding success with the discovery of silver, near-surface, in two widely spaced holes located 6.8km apart along the main controlling fault. Our team continued to advance the two silver discoveries by increasing the land package at Nash Creek, reprocessed historic airborne geophysical survey data that highlighted a number of high priority targets and completed a regional soil sampling campaign that encompasses both silver discoveries. These discoveries have the potential to enhance the economics from the maiden Preliminary Economic Assessment ("PEA") that was published in 2018.

The Company's return to the Pine Bay Project in the Flin Flon Mining District with a refined exploration strategy culminated with the high-grade Rainbow Discovery made up of copper, gold, silver and zinc. The discovery comes at a critical time for the town of Flin Flon, MB with the impending shutdown of the 777 mine and no new discovery to fill its void. The Rainbow Discovery is ideally located within a mineral lease, adjacent to a high-voltage power line and direct road access to processing facilities in Flin Flon. Since the initial discovery hole in August, our team has focused on delineating the Rainbow Discovery which is emerging as a much more shallow discovery (based on recently modeled borehole electromagnetic data) than the 777 and Lalor mines, which are currently producing in the province. Due to the high-grades intersected in the two zones to date, we believe that the Rainbow Discovery has the potential to extend the rich mining history of Flin Flon.

As we shift into a new year, the focus for our team will be to continue to expand upon the discoveries the Company has made in New Brunswick and Manitoba. At the Nash Creek Project, plans are underway to initiate a drilling campaign based on results from the soon to be announced soil sampling program which was designed to delineate the silver mineralization along the main controlling fault. However, the highest priority for the Company will be continuing to expand the Rainbow Discovery in Manitoba. Exploration at Pine Bay will continue to expand the mineralization to surface as well as test high priority targets along the productive horizon that hosts the Rainbow Discovery. Additionally, the Company has been working towards providing an updated resource for the Pt. Leamington deposit located in the Buchans Mining District. The Pt. Leamington Project hosts a significant near surface gold, copper and zinc deposit that's a valuable asset to the Company.

This year will be exciting as we continue to create shareholder value by advancing the discoveries across the portfolio during the midst of a secular bull market for base and precious metals.

Sincerely,

"Max Porterfield"

President & CEO

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

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 the proposed drill program 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.

SOURCE Callinex Mines Inc.