Callinex Discovers Silver, Zinc and Lead at the Nash Creek Project in the Bathurst Mining District, New Brunswick

Highlights:

• Drill hole NC19-306 intersected 19m of 36.53 g/t Ag, 0.52% Pb and 0.38% Zn at a starting depth of 34.0m including 3m of 130 g/t Ag, 0.98% Pb and 0.16% Zn;
• This new silver zone was discovered 9.6 kms along strike from Nash Creek deposit - the only hole to test the mineralized trend; and
• Drill holes NC19-309, NC19-310 and NC19-311 intersected near surface zinc and lead mineralization over a 1.1km trend across the Central Zone area.

VANCOUVER, BC, June 4, 2020 /CNW/ - Callinex Mines Inc. (the "Company" or "Callinex") (TSXV: CNX) (OTC: CLLXF) is pleased to announce results from eight of 18 drill holes completed during the 2019/2020 drilling campaign (the "Campaign") at its 100% owned Nash Creek Project (the "Project") located within the Bathurst Mining District of New Brunswick (See Figure 1 and Figure 2). The Campaign totalled 3,347m of drilling to test 18 targets at the Nash Creek Project and an additional 733m of drilling to test two targets at the Superjack Project.

The drilling campaign was highlighted by the discovery of a new silver zone 9.6 kms along strike from the Nash Creek deposit. Drill hole NC19-306 intersected 19m of 36.53 g/t Ag, 0.52% Pb and 0.38% Zn at a starting depth of 34.0m including 3m of 130 g/t Ag, 0.98% Pb and 0.16% Zn (See Figure 2 and Table 1). Additionally, drill holes NC19-309, NC19-310 and NC19-311 intersected near surface zinc and lead mineralization across a 1.1 km trend in the Central Zone area (See News Release dated December 13, 2018).

Max Porterfield, President and CEO, stated, "We are excited by the initial results from the recently completed drilling campaign in New Brunswick. The near surface silver discovery highlights the prospectivity of the Nash Creek Project and requires immediate follow-up to drill test the extent of the mineralization." Mr. Porterfield continued, "The Central Zone area warrants further drilling due to the results from three widely spaced holes over a 1.1km trend. Each of these drill holes intersected zinc and lead mineralization within 100m of surface and above the cut-off grade outlined in the Preliminary Economic Assessment (PEA) published in 2018."

Drill hole NC19-306 tested an Induced Polarization ("IP") resistivity low anomaly in the southern portion of the Project and collared into a mineralized rhyolite flow/breccia (See Figure 3). The silver zone discovered in NC19-306 occurs with pyrite, galena and sphalerite sulphides that are found in fractures and within the matrix of the brecciated sections. Lithologies intersected below the mineralized zone were made up of felsic to mafic volcanic rocks commonly recognized in the Hayes and Hickey mineralized zones that make up the Nash Creek deposit, located 9.6 kms to the north and immediately east of the same associated fault. Of particular interest, is a resistivity and magnetic low trend which extends from the Nash Creek deposit southerly for 11 kms and further highlights the location of the controlling fault zone. The Company recognizes the gap in 2018 IP survey and 2009 airborne Versatile Time Domain Electromagnetic ("VTEM") mag data (4.7 kms) may be needed surveyed to further correlate the strong resistivity low trend from the north to the resistivity low tested by NC19-306 (See Figure 3 and Figure 4).

Three drill holes, NC19-309, NC19-310 and NC19-311, all intersected zinc and lead mineralization east of the Nash Creek deposit associated with an IP chargeability and resistivity anomaly described as the Central Zone (See Figure 5 and Table 1). These three widely spaced drill holes, which span 1.1 km, intersected geology and alteration that mimics a mineralized sequence that makes up the Nash Creek deposit, which is located 1.3km to the west. Results from these three holes, along with the extent of the chargeability and resistivity anomalies, suggests the Central Zone may host a significant mineralized lense(s) and follow-up drilling to further delineate this zone is required. Based on these results, a subsequent review of the 2009 airborne VTEM survey has highlighted a linear conductive anomaly (channel 15) along trend 4 km to the south of the Central Zone that warrants follow-up work (See Figure 6).

Additionally, the Company drill tested a number of targets in the southern portion of the Project, which intersected favourable geology of felsic and mafic volcanic sequences with associated sediments. Of interest is drill hole NC19-307 which intersected chloritic altered felsic volcanics with anomalous copper values that have not previously been encountered to date (See Figure 3 and Table 1). Callinex will re-evaluate this area to determine whether further work is required.

Drilling Campaign Overview

The drilling campaign was designed to test regional exploration targets at the Nash Creek Project, which produced a PEA on Callinex's New Brunswick assets in 2018 (See News Release dated May 14, 2018). The drill targets tested were generated from an IP survey completed in 2018 (See News Release dated October 1, 2018) and a 2009 airborne VTEM survey at the Nash Creek Project.

The Nash Creek Deposit consists of three shallow near-horizontal sulphide-rich lenses, which have been defined over 2.1km of strike and are hosted in an altered felsic-mafic volcanic sequence. The Company's exploration success, to date, has utilized a 2011 IP survey completed over the three Nash Creek mineralized lenses. Recognizing the regional felsic-mafic sequence, which hosts the three deposits and extends an additional 20km south, Callinex undertook an extensive IP survey in 2018 to cover the area of interest. From this survey, Callinex prioritized the target areas using the Nash Creek deposit's IP signature of higher chargeability coincident with lower resistivity.

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

Figure 1: Bathurst Regional Overview

Figure 2: Nash Creek Project 2019-2020 Drilling with Regional Geology

Figure 3: Nash Creek Project 2019-2020 Drilling with IP Resistivity Slice at 150m Below Surface

Figure 4: Nash Creek Project 2019-2020 Drilling with Airborne Magnetic Survey

Figure 5: Nash Creek Project 2019-2020 Central Zone Drilling with IP Chargeability-Resistivity Isoshells

Figure 6: Nash Creek Project 2019-2020 Drilling with Airborne VTEM Survey

Table 1: Drill Results from the Nash Creek Project

Note: True widths of intersections will be determined with further drilling. Drill holes NC19-304, NC19-305 and NC19-308 did not intersect significant base or precious metal mineralization. Results of the remaining 12 holes (NC19-312 to NC20-321, SJ20-94 and SJ20-95) are still pending.

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 Canada Inc in Garson, Ontario for prepping and then on to SGS's 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 split. 35 elements including lead, 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 Pb) completed by fire assay with gravimetric finish (Ag) or Aqua Regia digestion with ICP-AES finish (lead and zinc). If gold was analyzed a 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, blanks, and duplicates.

About Callinex Mines Inc.

Callinex Mines Inc. (TSXV: CNX) (OTC: CLLXF) is advancing its portfolio of zinc rich deposits located in established Canadian mining jurisdictions. The portfolio is highlighted by its Nash Creek and Superjack deposits in the Bathurst Mining District of New Brunswick. A 2018 PEA 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). The projects have significant exploration upside over a district-scale land package that encompasses several high-grade mineral occurrences along a 20km trend. Click here to view a video overview of the Nash Creek Project.

Callinex has a project portfolio that also includes projects within the Flin Flon Mining District of Manitoba that are located 25km to an operating processing facility that requires additional ore.

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.

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SOURCE Callinex Mines Inc.