A L e a d i n g Z i n c e x p l o r a t i o n a n d D e v e l o p m e n t c o m p a n y
TSX-V: CNX I OTC: CLLXF
TSX-V: CNX I OTC: CLLXF A L e a d i n g Z i n c e x p l o r a t i - - PowerPoint PPT Presentation
TSX-V: CNX I OTC: CLLXF A L e a d i n g Z i n c e x p l o r a t i o n a n d D e v e l o p m e n t c o m p a n y 2 F O R WAR D L O O K I N G I N F O R M A T I O N Calline x Co rpo rate P r e se ntat i o n This presentation contains
A L e a d i n g Z i n c e x p l o r a t i o n a n d D e v e l o p m e n t c o m p a n y
TSX-V: CNX I OTC: CLLXF
This presentation contains certain forward-looking information and statements. Such forward-looking information and statements are based on the current, estimates and projections of the Company or assumptions based on information currently available to the Company. Such forward- looking information and statements refmect current views with respect to future events and are subject to risks, uncertainties and assumptions. The Company cannot give assurance to the correctness of such information and statements. These forward-looking information and statements can generally be identifjed by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use terminology such as “targets”, “believes”, “expects”, “aims”, “assumes”, “intends”, “plans”, “seeks”, “will”, “may”, “anticipates”, “would”, “could”, “continues”, “estimate”, “milestone” or other words of similar meaning and similar expressions or the negatives thereof. By their nature, forward-looking information and statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to difger materially from any future results, performance or achievements that may be expressed or implied by the forward-looking information and statements in this presentation. Should one or more of these risks or uncertainties materialize, or should any underlying assumptions prove to be incorrect, the Company’s actual fjnancial condition or results of operations could difger materially from that or those described herein as anticipated, believed, estimated or expected. Any forward-looking information or statements in this presentation speak only as at the date of this presentation. Except under the applicable securities laws, the Company does not intend, and expressly disclaims any obligation or undertaking, to publicly update, correct or revise any of the information included in this presentation, including forward looking information and statements, whether to refmect changes in the Company’s expectations with regard thereto or as a result of new information, future events, changes in conditions or circumstances or otherwise on which any statement in this presentation is based. Given the aforementioned uncertainties, prospective investors are cautioned not to place undue reliance on any of these forward-looking statements. The technical content of this presentation has been reviewed and approved by JJ O’Donnell, P .Geo, a consultant to the Company, and a Qualifjed Person as defjned by National Instrument 43-101.
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Callinan Mines, founded by Jack Callinan in 1927, has had a major presence in the Flin Flon mining district in Manitoba, Canada 777 VMS Mine, discovered on Callinan claims, commences production and royalty payments begin Callinan Mines splits into two entities: Callinan Royalties and Callinex, which holds the exploration portfolio today Callinex renews exploration focus on zinc and copper-rich VMS deposits Callinex acquires a portfolio of zinc assets with zinc prices near fjve year lows Announces major expansion of the Nash Creek Deposit and maiden PEA
1927 2011
2014 2016 2018 2004
To discover and develop base and precious metal rich deposits within established Canadian mining districts
FOCUSED ON BASE METAL DISTRICTS 3
C alli ne x Co rpo rate P r e se ntatio n TSX-V: CNX I OTC: CLLXF
retail investors institutions insiders & close associates
capital structure enterprise value
Shares Outstanding
Options Outstanding*
($0.34 VWAP)
(Excludes 6.1M RSU’s with a 10 year vesting schedule)
Warrants Outstanding
($0.75 VWAP)
Market Cap
Debt
Cash
As of 12/31/2018
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Calline x Co rpo rate P r e se ntat i o n TSX-V: CNX I OTC: CLLXF
recent trading share performance
Closing Price
(05/28/2019)
52-Week Range
Average Daily Volume (1 - mo)
TSX-V: CNX I OTCQX: CLLXF
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Mar14 0.60 0.80 1.00 1.20
USD / lb Tons
1.40 1.60 1.80 900000 7000000 5000000 3000000 8000000 6000000 4000000 2000000 1000000 Jan16 Aug14 Jul16 Nov17 Feb15 Dec16 May18 Jul15 Jun17 Oct18
ZINC PRICES LME STOCK LEVELS
ACQUIRES ZINC PORTFOLIO
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ANNOUNCES MAIDEN PEA AT NASH CREEK
Max Porterfjeld
CEO, President and Director
Over ten years of experience in natural resources and fjnancial markets, previously with Brazil Resources Inc., Uranium Energy Corp. and US Global Investors. He is a graduate of Texas Tech University, with a bachelor’s degree in business administration.
Killian Ruby
Chief financial officer
A Chartered Professional Accountant and was formerly an Assurance Partner at Wolrige Mahon LLP (now Baker Tilly Canada), and prior to that a Senior Manager with KPMG, working predominantly with public companies.
James Pickell
Consulting geologist
Over 40 years
VMS exploration experience globally. Notable discoveries include the Callinan North, Konuto Lake and 777 ore bodies within the Flin Flon district of Manitoba, Canada. Mr. Pickell is a recipient
Year Award for his role in the discovery of the 777 Mine.
JJ O’Donnell
Consulting geologist
Over 25 years of VMS exploration experience within Canada while holding senior positions with Callinex, HudBay,Selwyn Chihong Mining and Granges. Mr. O’Donnell has been instrumental in the exploration and development of the world-class Howard’s Pass Zinc Project located in the Yukon, Canada.
Mike Muzylowski
consulting geologist & Advisor
Involved in the discovery of 12 VMS mines in the Flin Flon district of Manitoba,
Lake mine, which operated from 1982-
Alan Vowles
consulting geophysicist
Over 35 years
VMS exploration experience within the North America and an integral member of the HudBay team that discovered the Lalor deposit in
the PDAC Bill Dennis Prospector of the Year Award for his role in the discovery of the Lalor Mine.
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deposits located in established Canadian mining jurisdictions
and essential mining infrastructure
deposits containing sizeable zinc, gold and silver resources
Buchans District Bathurst District Flin Flon District
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Quebec
N
Bathurst
Caribou Mine & Mill Brunswick Mine #12 Brunswick Mine #6 Heath Steele Mine
SUPERJACK HEADWAY NASH CREEK
20 km
LEGEND
Processing Facility Lead Smelter Power Station Power Rail Station Rail Deep Water Port Mine Road City
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Modifjed from Goodfellow, 2003 Clusters of deposits make up the Bathurst Mining District
CLUSTER EFFECT VMS DEPOSITS PRODUCTION HISTORY
One of the largest volcanic-hosted sulphide belts in the world with more than 130Mt of ore produced, commonly Zn-Pb-Cu-Ag-Au
GEOLOGICAL ENDOWMENT
Over 45 volcanic-hosted massive sulphide deposits including the 230Mt Brunswick No. 12, 70 Mt Caribou Mine and 69 Mt Heath Steel Mine
MINING INFRASTRUCTURE
Great access to power, water, roads and processing facilities in a major mining district
30 20 10 5 3 1 0.1 1 10 100 1000 Pb + Zn (wt. %) Million Tonnes Caribou BMS #12 Superjack Nash Creek
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Quebec
tpd open pit mining operation with a dense media separation (“DMS”) plant and 1,950 tpd conventional fmotation mill
pounds of Zn Eq. contained within 13.6Mt grading 3.2% Zn Eq. and an Inferred resource containing 407 million pounds of Zn Eq. contained within 5.9Mt grading 3.1% Zn Eq.
transmission lines 1 km from deposit; seaport, smelter, railway and power plant <25 km by road
the Nash Creek deposit that extends for +2 km and is open along strike in both directions
SUPERJACK NASH CREEK Caribou Mine Brunswick Mine #12 Brunswick Mine #6 Heath Steele Mine Bathurst
25 KM
N
20 km
LEGEND
Processing Facility Lead Smelter Power Station Power Rail Station Rail Deep Water Port Mine Road City
HEADWAY
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BASE CASE SCENARIO
14.4 Mt @ 3.7%
MINED MINERALIZATION (DILUTED ZN EQ.)
$80.13
NET SMELTER RETURN ($/T OF DMS FEED)
$168M
PRE-PRODUCTION CAPEX
$230M / $128M
PRE-TAX/AFTER-TAX NPV (8%)
~96M Pounds
AVERAGE ANNUAL PRODUCTION (ZN EQ.)
$30.94
TOTAL OPERATING COST ($/T OF DMS FEED)
2.8 Years
AFTER-TAX PAYBACK
34% / 25%
PRE-TAX/AFTER-TAX IRR
adjacent to traditional “Bathurst” area
growth with additional drilling
with no known previous drilling
VERSATILE: POTENTIAL TO INCREASE SCALE OR FOCUS ON A SMALLER, HIGHER MARGIN TOLL MINING OPERATION
(1) See news release dated May 14, 2018. Base case parameters assume a metal prices of US$1.25/lb Zn, $1.10/lb Pb and $17/oz, and an exchange rate (US$ to C$) of 0.77. All currencies are reported in Canadian dollars unless
mineral resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that PEA results will be realized.
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Year 1 Year 5 Year 2 Year 6 Year 9 Year 3 Year 7 Year 10 Year 4 Year 8 Year 11
3.68 % Zn 2.27 % Zn 2.75 % Zn 2.83 % Zn 2.67 % Zn 2.76 % Zn 3.08 % Zn 2.78 % Zn 2.49 % Zn 3.08 % Zn 6.38 % Zn
$80.0
$M OPERATING CASH FLOW
$40.0 $70.0 $30.0 $60.0 $20.0 $50.0 $10.0
Opportunity to increase IRR and NPV with additional exploration that could allow for higher grade material after year one of the mine plan
OPERATING CASH FLOW AND ZINC GRADES
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N
3.5% Zn, 2.5% Pb and 1,500 g/t Ag 5.5% Cu and 3.4% Cu 9.1% Zn and 2.1% Pb 8.1% Zn and 10.9% Pb
5 km LEGEND
CNX Claim 2018 IP Survey Metal Occurrences Provincial Highway 11 Major Transmission Line Railway
Deep Water Port Power Station Brunswick Smelter
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1 km LEGEND
Drill Holes IP Chargeability (15-25 mv) IP Resistivity (50-65 ohms) Mineral Resources Provincial Highway 11 Major Transmission Line
N 25 km to Smelter, Deep Sea Port & Railway
1.2 KM TO HWY
Callinex’s initial 2017 exploration campaign that led to a major expansion of the Nash Creek Deposit
intersected base metal mineralization
Creek Deposit
subject to any signifjcant exploration, which led to the delineation of the Nash Creek Deposit
16.5 km northwest-southeast trend with line widths up to 4.7 km
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target area that spans approximately 1,900m by 400m
targets intersected various amounts of sulphide mineralization with potential to host zinc and lead mineralization
an upcoming drilling program
compares favorably to the IP signature of the Nash Creek Deposit
1 km LEGEND
Drill Hole IP Chargeability (7-25 mv) IP Resistivity (50-65 ohms) Mineral Resources Provincial Highway 11 Major Transmission Line
N
1 . 2 K M T O H W Y
25 km to Smelter, Deep Sea Port & Railway
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LEGEND
CNX Claim 2018 IP Survey Mineral Occurrences Provincial Highway 11 Major Transmission Line Railway
N 5 km
Deep Water Port Power Station Brunswick Smelter 3.5% Zn, 2.5% Pb and 1,500 g/t Ag 9.1% Zn and 2.1% Pb 8.1% Zn and 10.9% Pb 5.5% Cu and 3.4% Cu
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several directions
an increase in indicated Zn Eq. pounds by 74% and Inferred Zn Eq, pounds increased by 385%*
however, Nash Creek is the only known VMS deposit in the area
grade mineral occurrences up to 19% Pb+Zn at surface with very limited historic drilling
land package
*See News Release dated April 16, 2018
2018 MINERAL RESOURCE ESTIMATE
N
DRILLING BY YEAR
Pre-Callinex 2017 Callinex
500 METRES
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the 2018 PEA
4.6% Zn Eq. containing 328 million pounds of Zn Eq.
#12 Mine, recently
the largest underground zinc mines in the world
horizons which hosts on average 15-20Mt geologic deposit
discovery that is wide open for expansion
Quebec
SUPERJACK NASH CREEK Caribou Mine Brunswick Mine #12 Brunswick Mine #6 Heath Steele Mine Bathurst
25 KM
N
20 km
LEGEND
Processing Facility Lead Smelter Power Station Power Rail Station Rail Deep Water Port Mine Road City
HEADWAY
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electromagnetic survey identifjed targets for follow-up drilling
3D View Looking Southwest of the Superjack A, B, C and D Zones
LEGEND Drill Hole Deposit Geophysical Plate 2.7m of 6.2% Zn Eq. 1.9m of 8.0% Zn Eq. 2.9m of 5.6% Zn Eq.
‘D’ Zone ‘A’ Zone ‘C’ Zone ‘B’ Zone
BPEM plates associated with the ‘D’ Zone BPEM plates associated with the ‘B’ Zone
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adjacent to the world-class Brunswick No 12 Mine, where production totaled 137 million tons grading 8.74% Zn, 3.44% Pb, 0.37% Cu, and 102 g/t Ag from 1964-2013
and Pabineau deposits located along the prolifjc ‘Brunswick Horizon
to be 950m long, 160m deep and up to 15m thick
surface induced polarization survey and drilling in the future.
Deposit Callinex Mineral Claim Osisko Mineral Claim 3rd Party Mineral Claim Road Power Rail
N
2 km
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N
Flin Flon Project Flin Flon Pine Bay Project 777 Mine Processing Facility
LEGEND
Deposit Historic Mine Pine Bay Shaft Callinex Claims Callinex Mining Lease HudBay Claims Paved Road Power Rail
kilometers
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where they had a mandate to discover a 30 Mt VMS deposit
packages within the belt, the primary host rock for VMS deposits
long and up to 700m wide has been
adjacent to three VMS horizons
stacked horizons host fjve mineralized zones including the Pine Bay Copper deposit
POTENTIAL FOR A LARGE VMS DEPOSIT
+ + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +
kilometers
NDeposit Historic Mine Mine Shaft Callinex Claims Callinex Mining Lease HudBay Claims Alteration Zone
N
+ + + + + + + + + Baker Patton Felsic Complex Road Power
LEGEND
N
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Hole From (m) To (m) Interval (m) Zn Eq (%) Zn (%) Au (g/t) Ag (g/t) Cu (%) Pb (%) 284-3-93-DPN 998.80 1010.26 11.46 12.23 5.61 1.65 56.38 0.68 0.35 Including 999.26 1009.59 10.33 13.06 6.00 1.78 60.39 0.71 0.35 Including 999.80 1004.00 4.20 20.77 11.82 2.43 73.77 0.70 0.73 Including 999.80 1002.50 2.70 26.35 16.37 2.57 79.21 0.86 0.98
Cabin VMS Horizon Baker Patton VMS Horizon Pine Bay VMS Horizon New Discovery – 10.3m of 13.1 Zn Eq.
Zn Eq. (6.0% Zn, 1.8 g/t Au, 60.4 g/t Ag, 0.7% Cu and 0.4% Pb) by extending a previous Placer Dome drill hole by 38m
gold and silver results from 625 holes drilled from over 80 years of exploration at the project
VMS system is long-lived and the intersection occurs at the edge of the system
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key stratigraphy at the Company’s Pine Bay Project located in the Flin Flon Mining District of Manitoba.
conductive pyrite that has the potential to host high-grade zinc, copper, gold and silver mineralization to a depth of 580m
multiple pyrite-rich massive sulphide intersections that are very poorly conductive and as a result traditional electromagnetics has been an ineffective vectoring tool in this geological environment
targets in 2019
Plans to complete an IP survey over key stratigraphy at the Company’s Pine Bay Project located in the Flin Flon Mining District of Manitoba. The goal of the survey is to model lowly conductive pyrite that has the potential to host high-grade zinc, copper, gold and silver mineralization to a depth of 580m Previous exploration discovered multiple pyrite-rich massive sulphide intersections that are very poorly conductive and as a result traditional electromagnetics has been an ineffective vectoring tool in this geological environment Potential to follow up on new drill targets in 2019
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Calline x Co rpo rate P r e se ntat i o n TSX-V: CNX I OTC: CLLXF
Inferred Mineral Resources* Indicated Mineral Resources* Project Cut-off (Zn Eq) Tonnes Zn Eq. (%) Zn (%) Pb (%) Ag (g/t) Au (g/t) Cu (%) Zn Eq. (M Lbs)
Nash Creek 1.5 13,592,000 3.21 2.68 0.58 17.8 n/a n/a 963 Total 13,592,000 3.21 2.68 0.58 17.8 n/a n/a 963
Project Cut-off (Zn. Eq) Tonnes Zn Eq. Zn (%) Pb (%) Ag (g/t) Au (g/t) Cu (%) Zn Eq. (M Lbs)
Point Leamington 4.0 14,093,000 6.15 1.88 0.02 17.1 1.1 0.42 1,910 Superjack 1.5 3,211,015 4.63 3.01 0.78 29.5 n/a 0.27 328 Nash Creek 1.5 5,929,000 3.11 2.68 0.47 13.9 n/a n/a 407 Total 23,233,015 5.20 2.23 0.24 17.99 0.7 0.29 2,645
pounds of Zn Eq. in the Indicated category and 2.7 billion pounds of Zn Eq. in the Inferred category.
Numbers may not add due to rounding. See News Releases dated November 9, 2016 and April 16 2018.
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PROJECT PORTFOLIO STRONG TEAM TIGHT CAPITAL STRUCTURE
2018 PEA outlines a strong economic return with a pre-tax IRR of a 34.1% and a pre-tax NPV8% of $230M District-scale land package spanning 150 km2 with several untested high-grade occurences Technical team involved in the discovery and development of several major base metal deposits in Canada
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Calline x Co rpo rate P r e se ntat i o n TSX-V: CNX I OTC: CLLXF
T S X - V: C N X | O T C : C L L X F
604.605.0885 info@callinex.ca www.callinex.ca Corporate Head Offjce 1555 - 555 West Hastings Street Vancouver, BC Canada V6B 4N4 President and CEO: Max Porterfjeld Corporate Counsel: Northwest Law Group Auditors: PwC