a leading zinc junior in established canadian mining districts · jayant bhandari a senior analyst...
TRANSCRIPT
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 reflect 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 identified 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 differ 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 financial condition or results of operations could differ 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 reflect 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 Qualified
Person as defined by National Instrument 43-101.
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
3C A L L I N E X I N V E S T O R P R E S E N TAT I O NT 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
O U R H I S T O R Y
2014
2016
2004 To drive shareholder
value by discovering and
developing economic
base and precious metal
rich VMS deposits
O U R M I S S I O N
3 T S X - V : C N X | O T C Q X : C L L X F 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
C O R P O R A T E O V E R V I E W
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
$10.0MAs of 12/28/2016
ENTERPRISE VALUE
TSX-V: CNX I OTCQX: CLLXF
4T S X - V : C N X | O T C Q X : C L L X F 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
- Resource Capital Funds- Sprott Group- Europacific Gold Fund- Plethora Precious Metals Fund - Fieldhouse Capital Management
5 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 PorterfieldCEO, 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 of experience which has included the discovery and development of 16 mineral deposits through to production
Over ten years of experience in natural resources and financial markets, previously with Brazil Resources Inc., Uranium Energy Corp. and US Global Investors
Over six years of experience in the resource sector specializing in identifying and evaluating mineral properties. Previously, Financial 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 finance, strategic planning and regulatory compliance services
M A N A G E M E N T T E A M
5 T S X - V : C N X | O T C Q X : C L L X F 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
6C A L L I N E X I N V E S T O R P R E S E N TAT I O NT S X - V : C N X | O T C Q X : C L L X F
d i r e c t o r s A n d a d v i s o r y b o a r d
D I R E C T O R S A D V I S O R Y B O A R D
Keith Minty
An experienced mining engineer currently serving as the Senior VP of Business Development at Stope Capital Advisors and a Director of Auryn Resources Inc., previously the Chief Operating Officer 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, specifically 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 financial advisor specializing in natural resources, and the VP of Finance for Pacific 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
6T S X - V : C N X | O T C Q X : C L L X F 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
7 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
T e c h n i c a l T e a m
Canadian Mining Hall of Fame Inductee and PDAC Developer of the Year award PDAC Bill Dennis Prospector of the Year award
Mike MuzylowskiChairman 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 Pickellchief Geologist
Over 40 years of 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 of the PDAC Bill Dennis Prospector of 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. Mr. Vowles is a recipient of the PDAC Bill Dennis Prospector of the Year Award for his role in the discovery of the Lalor Mine.
JJ O’DonnellConsulting 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.
7 T S X - V : C N X | O T C Q X : C L L X F 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 �oor
heat
Ag
Au
Cu
Zn
HIGH GRADE
Polymetallic deposits containing zinc, copper, lead, gold and silver
FORMATION
Deposits occur where mineral rich, superheated water is brought to the surface by volcanic activity
DISTRICT SCALE
Most VMS deposits occur in clusters that define 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
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 8
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 MINING DISTRICT
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
-1500
-1200
-900
-600
-300
0
20+
16
12
8
4
01916 1930 1948 1955 1955 1982 1990 2004 2013 2014
Ave
rag
e D
ep
th (
m)
De
po
sit S
ize
(M
illio
n To
nn
es)
19751969
777Trout Lake Lalor
ReedNorth Star
Flin Flon
Cuprus
MandyDon Jon
Centennial
Callinan
Pine Bay
9 T S X - V : C N X | O T C Q X : C L L X F 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
• Operates a 6,000 TPD Mill in Flin Flon, MB, primarily sourcing ore from the 777 Mine, which has less than four years of mine life
• 777 discovery hole was discovered at 1,278 meters down-hole depth with current mining operations down to a vertical depth of ~1,500m with $51/t OPEX
• Reserves average 6.3 Mt grading 11% Zn Eq. (1.6% Cu, 4.8% Zn, 1.88 g/t and 27.22 g/t Ag) over 8 meters
• The +20 Mt 777 deposit has yielded nearly $2 billion in net profit
HudBay’s Flin Flon Operations
10T S X - V : C N X | O T C Q X : C L L X F 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
KILOMETERS
0 2
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
Strategic Properties Near Hudbay’s Flin Flon Operations
11 T S X - V : C N X | O T C Q X : C L L X F 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
Exploration Milestones
Pine Bay East Discovery
2014 2016
Historic data compilation on land package
Extensive ground geophysical program and
confirmation drilling
Technical team is strengthened
Sourdough Bay Discovery
New Zinc and Gold Rich Discovery at
Pine Bay
2015
12T S X - V : C N X | O T C Q X : C L L X F 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
• Strategic property totaling 6,300 sq. ha located 16 km to Flin Flon, MB
• Advanced permitting status that includes the right to conduct mining activities
• Power, water and road access at site to service historic shaft and underground workings
• Property covers 10 km long trend consisting of at least four stacked VMS horizons
p i n e b ay p r o j e c tN
Pine Bay Project
N
KILOMETERS
Deposit Mine
Mine Shaft
Emerging Callinex Discovery
Callinex Claims Callinex Mining Lease HudBay Claims Road Power Rail
LEGEND
13 T S X - V : C N X | O T C Q X : C L L X F 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
• Explored by Placer Dome during the 1990s, where they had a mandate to discover a 30 Mt VMS deposit
• Covers one of the largest felsic rock packages within the belt, the primary host rock for VMS deposits
• Large alteration zone spanning 1,100m long and up to 700m wide has been overturned and is facing to the west, adjacent to three VMS horizons
• Three stacked horizons host five mineralized zones including the 1.1 Mt Pine Bay Cu deposit
PINE BAY area
POTENTIAL FOR A LARGE VMS DEPOSIT
N + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +
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KILOMETERS
0 2
N
Deposit
Historic Mine
Mine Shaft
Emerging Callinex Discovery
Callinex Claims
Callinex Mining Lease
HudBay Claims
Alteration Zone
KILOMETERS
0 2
N
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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 14T S X - V : C N X | O T C Q X : C L L X F
• Callinex has discovered 10.3m 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
• The most significant gold and silver results from 625 holes drilled from over 80 years of exploration at the project
• Nature of mineralization indicates the VMS system is long-lived and the intersection occurs at the edge of the system
Proof of Concept with New Discovery
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 0.35Including 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 0.73Including 999.80 1002.50 2.70 26.35 16.37 2.57 79.21 0.86 0.98
Cabin VMS Horizon Baker Patton VMS HorizonPine Bay VMS Horizon
15 T S X - V : C N X | O T C Q X : C L L X F 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.
0
METERS
250
N
PBM-008284-3-93-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 equivalentincluding 4.2m of 20.8% zinc equivalent
3.3m of 3.2% copper
Plan Map of the Northern Pine Bay Area
16T S X - V : C N X | O T C Q X : C L L X F 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
17 T S X - V : C N X | O T C Q X : C L L X F 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
Gemcom 3D View of the Pine Bay Mine Horizon and 3D-Magnetic Lows
Pine BayVMS Horizon
Cabin VMS Horizon Baker Patton
VMS Horizon
Magnetic LowIsoshells
Looking down and northeast
• Magenetic lows indicate significant 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 18T S X - V : C N X | O T C Q X : C L L X F
Longitudinal Section of the Cabin VMS Horizon
KILOMETERS
0 2
N
• Hosts the historic Sourdough Cu-Zn-Au-Ag deposit
• Drilling in 2015 intersected a new blind zone beneath the Sourdough deposit
• Borehole surveys identified a highly conductive off-hole target
• A 200m step-out hole clipped the edge of the target and intersected 25m of sulphide mineralization
• Additional drilling planned to intersect the off-hole target
sourdough area
19 T S X - V : C N X | O T C Q X : C L L X F 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
KILOMETERS
0 2
N
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 20T S X - V : C N X | O T C Q X : C L L X F
Point Leamington
Nash Creek
Superjack
• Portfolio of advanced stage zinc rich VMS deposits located in established Canadian mining jurisdictions
• All mineral resources start at or near surface
• Deposits located near processing facilities and essential mining infrastructure
• Provides exposure to rising metal prices with deposits containing sizeable zinc, gold and silver resources
Portfolio of Zinc Assets
21 T S X - V : C N X | O T C Q X : C L L X F 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
N
• Development-stage VMS project located in the world-class Bathurst Camp of New Brunswick, Canada
• Near-surface Indicated resource of 9.0Mt grading 3.6% Zn Eq. containing 712 million pounds of Zn Eq. and an Inferred resource of 1.1Mt grading 3.6% Zn Eq. containing 88 million pounds of Zn Eq.
• Located within 90km of two processing facilities, a seaport and a smelter
• Only two of five mineralized zones contained within the resource estimate
• Preliminary testing has indicated amenability to Dense Media Separation, which is designed to increase the average grade of rock processed
*See News Release dated September 12, 2016
n a s h c r e e k p r o j e c t
22T S X - V : C N X | O T C Q X : C L L X F
SUPERJACK
NASH CREEK
Caribou Mine
Brunswick Mine #12
Brunswick Mine #6
Heath Steele Mine
Bathurst90 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
• Exploration-stage VMS project located in the world-class Bathurst Camp of New Brunswick, Canada
• Near-surface Inferred resource of 3.2Mt grading 4.6% Zn Eq. containing 328 million pounds of Zn Eq.
• Located 15km from the ‘supergiant’ Brunswick #12 Mine, recently one of the largest underground zinc mines in the world
• A Zone is wide-open at depth of 440m, the 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
s u p e r j a c k p r o j e c t
23 T S X - V : C N X | O T C Q X : C L L X F
Quebec
N
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
• Development-stage VMS project located in Newfoundland, Canada
• 14.1Mt Inferred resource grading 6.2% Zn Eq. containing 1.9 billion pounds of Zn Eq. (including 484,000 oz Au at 1.1 g/t Au)
• Resource starts at surface and extends to a vertical depth of 350m
• Advanced permitting stage with resource contained within current Mining Lease
• High-grade mineralization open at depth with 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
P o i n t l e a m i n g t o n p r o j e c t
24 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
PT. LEAMINGTON PROJECT
Bishop’s Falls
Grand Falls WindsorBadger
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 25T S X - V : C N X | O T C Q X : C L L X F
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/aTotal 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 0.42Superjack 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
Total mineral resources• Large inventory of zinc resources within established Canadian mining jurisdictions totaling 712 million pounds of Zn Eq.
in the Indicated category and 2.3 billion pounds of Zn Eq. in the Inferred category.
I N V E S T M E N T S U M M A R Y
PROJECT PORTFOLIOSTRONG 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 prolific Flin Flon Greenstone Belt
Strong portfolio of zinc-rich assets in Canadian mining jurisdictions
Funded for upcoming drilling programs with ~$5M in working capital
T S X - V : C N X | O T C Q X : C L L X F26 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
604.605.0885 [email protected] www.callinex.ca
Corporate Head Office 1555 - 555 West Hastings Street Vancouver, BC Canada V6B 4N4
President and CEO: Max Porterfield
Corporate Counsel: Northwest Law Group
Auditors: PwC