A L e a d i n g Z i n c J u n i o r i n E s t a b l i s h e d C a n a d i a n M i n i n g D i s t r i c t s
TSX-V: CNX I OTCQX: CLLXF
TSX-V: CNX I OTCQX: CLLXF A L e a d i n g Z i n c J u n i o r i - - PowerPoint PPT Presentation
TSX-V: CNX I OTCQX: CLLXF A L e a d i n g Z i n c J u n i o r i n E s t a b l i s h e d C a n a d i a n M i n i n g D i s t r i c t s F O R W A R D L O O K I N G I N F O R M A T I O N This presentation contains certain forward-looking
A L e a d i n g Z i n c J u n i o r i n E s t a b l i s h e d C a n a d i a n M i n i n g D i s t r i c t s
TSX-V: CNX I OTCQX: 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 James Pickell, P .Geo, a consultant to the Company, and a Qualifjed Person as defjned by National Instrument 43-101.
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C A L L I N E X I N V E S TO R P R E S E N TAT I O N T S X - V: C N X | O T C Q X : C L L X F
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 VMS deposits Callinex announces new zinc and gold VMS discovery
1927 2011
2014 2016 2004
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C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
SHARE PERFORMANCE
Closing Price
(10/25/2016)
$0.53
52-Week Range
$0.22 - $0.69
Average Daily Volume (3 - mo)
273,263
RECENT TRADING
Shares Outstanding
77.5M
Options Outstanding
6.2M
($0.35 VWAP)
Warrants Outstanding
4.0M
($0.75 VWAP)
CAPITAL STRUCTURE
Market Cap
$41.0M
Debt
$0
Cash
$10.0M
As of 12/28/2016
ENTERPRISE VALUE
TSX-V: CNX I OTCQX: CLLXF
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C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
INSTITUTIONS 31% INSIDERS & CLOSE ASSOCIATES
29%
RETAIL INVESTORS 40%
OWNERSHIP BREAKDOWN
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C A L L I N E X I N V E S T O R P R E S E N TAT I O N T S X - V: C N X | O T C Q X : C L L X F
Mike Muzylowski
Chairman
Max Porterfjeld
CEO, President and Director
Jordan Butler
Corporate development
Rebecca Moriarty
Chief financial officer
A renowned geologist and member of the Canadian Mining Hall of Fame with over 50 years
the discovery and development
production Over ten years of experience in natural resources and fjnancial markets, previously with Brazil Resources Inc., Uranium Energy
Over six years of experience in the resource sector specializing in identifying and evaluating mineral
Analyst with Americas Bullion Royalty Corp. and Till Capital A Chartered Accountant with over 14 years of experience related to the mining industry, previously with PwC providing corporate fjnance, strategic planning and regulatory compliance services
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C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
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C A L L I N E X I N V E S TO R P R E S E N TAT I O N T S X - V: C N X | O T C Q X : C L L X F
DIRECTORS ADVISORY BOARD
Keith Minty
An experienced mining engineer currently serving as the Senior VP
Auryn Resources Inc., previously the Chief Operating Offjcer of Thani Emirates Resource Holdings Ltd.
Carlo Civelli, Chairman
Since founding Clarion Finanz AG in 1980, Mr. Civelli has been instrumental in funding early stage investments, nearly a dozen of which have developed into billion dollar market cap companies
Michael Louie
A Principal in D+H Group LLP with 25 years of accounting experience, specifjcally working on behalf of First Nations organizations and specializing within the Canadian mining sector
Jason Dunning
Over 20 years experience in base and precious metal exploration, currently serving as the Manager of Nystar’s Mining Group, one of the world’s largest zinc producers, and previously a Project Geologist with Hudbay focused on the Flin Flon area
Nico Civelli
An independent fjnancial advisor specializing in natural resources, and the VP of Finance for Pacifjc LNG which recently sold to Oil Search Ltd. for USD $900 million
Steve Swatton
Over 28 years of experience in both technical and senior managerial experience, previously the Global Head of Business Development for BHP Billiton’s Exploration Division
Jayant Bhandari
A Senior Analyst of Anarcho Capital, distinguished speaker and published author, Mr. Bhandari advises institutional investors about opportunities in the natural resources sector on a global scale
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C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
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C A L L I N E X I N V E S T O R P R E S E N TAT I O N T S X - V: C N X | O T C Q X : C L L X F
Canadian Mining Hall of Fame Inductee and PDAC Developer of the Year award PDAC Bill Dennis Prospector of the Year award
Mike Muzylowski
Chairman of the Board
Involved in the discovery of 12 VMS mines in the Flin Flon district of Manitoba, Canada. His discoveries include the Trout Lake mine, which operated from 1982-2012. Mr. Muzylowski received the 1988 PDAC Developer of the Year award and is a 2011 inductee into the Canadian Mining Hall of Fame.
Jim Pickell
chief Geologist
Over 40 years of VMS exploration experience globally. Notable discoveries include the Callinan North, Konuto Lake and 777
the Year Award for his role in the discovery of the 777 Mine.
Alan Vowles
chief Geophysicist
Over 35 years of VMS exploration experience within the North America and an integral member of the HudBay team that discovered the Lalor deposit within the Flin Flon district of Manitoba, Canada.
the Year Award for his role in the discovery of the Lalor 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.
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C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
TROUT MINE +22 MT LALOR MINE +25 MT 777 MINE +21 MT
magma mass of sulphide deposits sedimentation seawater seepage sea floor heat Ag Au Cu Zn
HIGH GRADE
Polymetallic deposits containing zinc, copper, lead, gold and silver
FORMATION
Deposits
where mineral rich, superheated water is brought to the surface by volcanic activity
DISTRICT SCALE
Most VMS deposits occur in clusters that defjne major mining districts, such as Flin Flon and Bathurst
PREVALENCE
350 deposits and major VMS occurrences in Canada; Flin Flon and Bathurst Camps are the top two jurisdictions in the nation1
Source: 1 Mineral Deposits of Canada, Volcanogenic Massive Sulphide Deposits
C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
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SUCCESS RATE
Over 50% of deposits have been advanced to production, totaling 32 mines which have led to 86 consecutive years of mining
INFRASTRUCTURE
Over $1.6 billion invested towards mine development with road, rail, power and water infrastructure to facilitate quick development of new discoveries
TIMELINES AND CAPEX
Typically less than six years from discovery to development with reduced capital expenditures
Flin Flon (100 Mt) Snow Lake (60 Mt)
Clusters of VMS deposits make up the Flin Flon/Snow Lake mining districts in the Flin Flon Greenstone Belt
CLUSTER EFFECT
Recent discoveries have typically been larger in size and deeper than previously discovered
DEPTH OF MINES
Initial Production
Average Depth Deposit Size
20+ 16 12 8 4
1916 1930 1948 1955 1955 1982 1990 2004 2013 2014
Average Depth (m) Deposit Size (Million Tonnes)
1975 1969
777 Trout Lake Lalor Reed North Star Flin Flon Cuprus Mandy Don Jon Centennial Callinan Pine Bay
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C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
from the 777 Mine, which has less than four years of mine life
depth with current mining operations down to a vertical depth of ~1,500m with $51/t OPEX
Zn, 1.88 g/t and 27.22 g/t Ag) over 8 meters
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C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
N
Flin Flon Project Flin Flon Pine Bay Project 777 Mine Processing Facility
LEGEND
Deposit Historic Mine Pine Bay Shaft Emerging Callinex Discovery Callinex Claims Callinex Mining Lease HudBay Claims Road Power Rail
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C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
Pine Bay East Discovery 2014 2016 Historic data compilation on land package Extensive ground geophysical program and confjrmation drilling Technical team is strengthened Sourdough Bay Discovery
New Zinc and Gold Rich Discovery at Pine Bay
2015
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C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
located 16 km to Flin Flon, MB
right to conduct mining activities
historic shaft and underground workings
N
Pine Bay Project
N
KILOMETERS
Deposit Mine Mine Shaft Emerging Callinex Discovery Callinex Claims Callinex Mining Lease HudBay Claims Road Power Rail
LEGEND
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C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
where they had a mandate to discover a 30 Mt VMS deposit
within the belt, the primary host rock for VMS deposits
up to 700m wide has been overturned and is facing to the west, adjacent to three VMS horizons
zones including the 1.1 Mt Pine Bay Cu deposit
POTENTIAL FOR A LARGE VMS DEPOSIT
N
+ + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +
NDeposit Historic Mine Mine Shaft Emerging Callinex Discovery Callinex Claims Callinex Mining Lease HudBay Claims Alteration Zone
N
+ + + + + + + + + Baker Patton Felsic Complex Road Power
LEGEND
C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
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grading 13.1% 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
silver results from 625 holes drilled from over 80 years of exploration at the project
the VMS system is long-lived and the intersection occurs at the edge
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
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C A L L I N E X c o r p o r a t e P R E S E N T A T I O N New Discovery – 10.3m of 13.1 Zn Eq.
METERS 250
N
PBM-008 284-3-93-DPN
Lake Athapapuskow
Drill Hole Copper Mineralization Zinc Mineralization Alteration Zone Road Power Callinex Claims Callinex Mineral Lease Hudbay Claims Mine Shaft
LEGEND Pine Bay VMS Horizon Cabin VMS Horizon Baker Patton VMS Horizon
10.3m of 13.1% zinc equivalent including 4.2m of 20.8% zinc equivalent 3.3m of 3.2% copper
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C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
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C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
Pine Bay VMS Horizon Cabin VMS Horizon Baker Patton VMS Horizon Magnetic Low Isoshells
Looking down and northeast
alteration path along the Cabin Horizon that extends at depth
C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
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KILOMETERS 2
N
deposit
beneath the Sourdough deposit
200m step-out hole clipped the edge
the target and intersected 25m of sulphide mineralization
target
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C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
SOURDOUGH DEPOSIT CENTENNIAL MINE
LEGEND
Mine Deposit Sourdough Fault Power Callinex Claims Hudbay Claims Road
NN
C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
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Point Leamington Nash Creek Superjack
deposits located in established Canadian mining jurisdictions
essential mining infrastructure
deposits containing sizeable zinc, gold and silver resources
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C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
Quebec
world-class Bathurst Camp of New Brunswick, Canada
3.6% Zn Eq. containing 712 million pounds of Zn
Zn Eq. containing 88 million pounds of Zn Eq.
seaport and a smelter
within the resource estimate
Dense Media Separation, which is designed to increase the average grade of rock processed
*See News Release dated September 12, 2016
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SUPERJACK NASH CREEK Caribou Mine Brunswick Mine #12 Brunswick Mine #6 Heath Steele Mine Bathurst
90 KM
N C A L L I N E X c o r p o r a t e P R E S E N T A T I O N LEGEND
Processing Facility Lead Smelter Mine Road Power Rail Port City
world-class Bathurst Camp of New Brunswick, Canada
grading 4.6% Zn Eq. containing 328 million pounds of Zn Eq.
#12 Mine, recently one of the largest underground zinc mines in the world
deepest hole drilled (NP11-39) intersected 2.6m of 15.0% Zn, 1.4% Pb, 32.5 g/t Ag and 0.27% Cu*
*See News Release dated May 18, 2016
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SUPERJACK NASH CREEK Caribou Mine Brunswick Mine #12 Brunswick Mine #6 Heath Steele Mine Bathurst
50 KM
C A L L I N E X c o r p o r a t e P R E S E N T A T I O N LEGEND
Processing Facility Lead Smelter Mine Road Power Rail Port City
Newfoundland, Canada
containing 1.9 billion pounds of Zn Eq. (including 484,000 oz Au at 1.1 g/t Au)
vertical depth of 350m
contained within current Mining Lease
assays including 4.67m of 15.1% Zn, 4.4 g/t Au, 57.9 g/t Ag and 0.36% down-plunge from resource*
*See News Release dated May 16, 2016
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C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
T S X - V: C N X | O T C Q X : C L L X F
Duck Pond Buchans
PROJECT Bishop’s Falls Grand Falls Windsor Badger South Brook
LEGEND
Processing Facility
Mine Road Power Trail Port City
N
C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
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Inferred Mineral Resources* Indicated Mineral Resources*
*See news releases dated May 16 and 18, 2016 for additional details
Project Cut-off (Zn Eq) Tonnes Zn Eq. (%) Zn (%) Pb (%) Ag (g/t) Au (g/t) Cu (%)
Nash Creek 2.0 9,033,000 3.58 2.79 0.57 18.16 n/a n/a Total 9,033,000 3.58 2.79 0.57 18.16 n/a n/a
Project Cut-off (Zn. Eq) Tonnes Zn Eq. Zn (%) Pb (%) Ag (g/t) Au (g/t) Cu (%)
Point Leamington 4.0 14,093,000 6.15 1.88 0.02 17.12 1.07 0.42 Superjack 1.5 3,211,015 4.63 3.01 0.78 29.45 n/a 0.27 Nash Creek 2.0 1,113,000 3.58 2.83 0.57 15.51 n/a n/a Total 18,417,015 5.73 2.13 0.19 19.17 0.82 0.37
in the Indicated category and 2.3 billion pounds of Zn Eq. in the Inferred category.
PROJECT PORTFOLIO STRONG TEAM TIGHT CAPITAL STRUCTURE
New high-grade Zn-Au-Ag-Cu VMS discovery near Flin Flon, MB Technical team involved in three of the four largest VMS discoveries within the prolifjc Flin Flon Greenstone Belt Strong portfolio of zinc-rich assets in Canadian mining jurisdictions Funded for upcoming drilling programs with ~$5M in working capital
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C A L L I N E X c o r p o r a t e P R E S E N T A T I O N
T S X - V: C N X | OT C Q X : 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