Callinex Mines' Rainbow Deposit Heads to Permitting As New Exploration Targets Emerge

• Callinex Mines is developing high-grade copper and gold-rich VMS (Volcanogenic Massive Sulfide) discoveries in Manitoba, Canada, with their flagship Rainbow deposit coming within 90m of surface.
• The company has submitted an advanced exploration permit that would allow them to take a 10,000-ton bulk sample and potentially transition to full-scale production upon receiving an environmental license.
• Callinex has consolidated over 10,000 hectares of underexplored land with significant expansion potential, with CEO Max Porterfield highlighting they are the only junior with a 43-101 copper resource in Manitoba.
• The company is shifting focus to grow resources through exploration at shallow historic deposits like "Visionary" (Leo deposit) and "General" (Alberts deposit) areas, which could potentially yield larger resources than Rainbow.
• Porterfield believes the market for mining exploration is improving with rising commodity prices, and Callinex's tight structure, no debt, and new land package positions them well for growth in 2025 and beyond.

Callinex Mines is a Canadian junior mining company focused on exploring and developing high-grade copper and gold-rich Volcanogenic Massive Sulfide (VMS) deposits in the Flin Flon mining district of northern Manitoba. Led by President and CEO Max Porterfield, the company has established a significant resource base at its Pine Bay project and is now working to expand these resources while advancing toward potential production. With a market capitalization under CAD $20 million, Callinex has nearly 6 million tons of high-grade copper mineralization at its Rainbow and Pine Bay deposits, complemented by additional assets in New Brunswick and Newfoundland.

Current Resources & Infrastructure Advantages

Callinex's flagship Rainbow deposit represents one of the highest-grade copper resources in North America. The deposit comes within 90 meters of surface and has been drilled to a depth of 900 meters. The company has completed engineering work and baseline studies for both Rainbow and Pine Bay, and recently submitted an advanced exploration permit application.

"If you're buying Calinex today for less than a $20 million market cap Canadian, you're getting exposure to just shy of 6 million tons of some of the highest grade copper mineralization, not just North America but on a global basis with our Rainbow deposit in our Pine Bay camp." 

The majority of the Rainbow resource (3.44 million of the 4.7 million tons) is already in the indicated category, demonstrating the company's confidence in the deposit. The Pine Bay project benefits from nearby infrastructure, including access to hydroelectric power, which could accelerate development timelines and reduce capital costs.

Permitting Strategy & Development Path

Callinex has submitted an advanced exploration permit (AE) that would allow the company to develop a ramp to access the Rainbow deposit and extract a 10,000-ton bulk sample. This represents the first phase of permitting, with the company targeting approval potentially by the end of 2025. Upon receiving the AE permit, Callinex would be positioned to conduct additional environmental and engineering work to submit an environmental license application, which would enable full-scale production.

While discussing the permitting process, Porterfield noted:

"By getting this done early, aside from having the ability to ramp down and take the bulk sample, which is a critical phase at some point that needs to be done, we're also getting in front of the permitting stages now as opposed to later."

The company's approach offers flexibility, as the permitting path could allow Callinex to either proceed with the bulk sample for metallurgical testing or potentially bypass that stage and move directly to production, depending on project economics and market conditions.

Exploration Strategy & Resource Growth Potential

Callinex has consolidated over 10,000 hectares of land in what it calls the "Pine Bay camp," creating a district-scale opportunity similar to the established mining camps at Flin Flon and Snow Lake. The company's exploration model, which successfully led to the Rainbow discovery, is now being applied to newly acquired areas that have been under-explored for decades.

The primary focus for near-term exploration is on growing high-grade resources from historic deposits rather than infill drilling at Rainbow. Specifically, Callinex is targeting the "Visionary" area, which contains the historic Leo deposit, and the "General" area, which includes the Alberts deposit. Both areas have shown promising high-grade copper mineralization in historical drilling but have never been properly explored with modern techniques or put into a comprehensive 3D model.

Interview with President & CEO, Max Porterfield

Visionary & General Target Areas

The Visionary area features a strong chargeability anomaly spanning over 300 meters of strike length, identified through Induced Polarization (IP) surveys—the same geophysical tool that led to the Rainbow discovery. Historical drilling in this area intersected significant copper mineralization near surface, including 8.5 meters of 3% copper in one hole and 3 meters of over 5% copper with gold credits in another.

Most historical drilling at Visionary only reached depths of 200 meters, leaving significant potential for resource expansion at depth. Additionally, the area contains a high-grade gold zone that could enhance project economics, similar to the million-ounce gold production seen at the Lalor mine in the same geological district.

The General area to the north includes the Alberts deposit, which has been drilled along a 300-meter strike length down to 325 meters depth. Callinex believes there's potential to extend this known gold zone at depth and potentially discover a much larger deposit in the unexplored area adjacent to Alberts, which they've nicknamed the "giant General."

VMS Deposit Growth Potential

Callinex's strategy is informed by the historical pattern of VMS deposits in the Flin Flon district, where initial discoveries often grew substantially once mining began. The company highlights examples like the Flin Flon mine, which expanded from its initial surface outcrop to over 62 million tons, and the 777 mine, which was discovered at 800 meters depth but became one of the district's largest producers.

The Rainbow deposit remains open below the 900-meter level, suggesting potential for additional mineralization along plunge or for parallel lenses nearby. The company believes that its newly consolidated land package could host multiple "giant" VMS deposits, similar to other mining camps in the region.

Market Position & Financial Strategy

Callinex represents the only junior mining company with a 43-101 copper resource in Manitoba and the only copper resource within 30 kilometers of Flin Flon. This unique position, combined with rising copper and gold prices, positions the company favorably in the current market environment.

The company maintains a tight capital structure with no debt, allowing it to maximize shareholder value as it advances its projects. While the near-term focus is on resource growth through low-cost, shallow drilling, the permitting process continues in parallel. This two-pronged approach aims to both increase the resource base and advance the existing deposits toward production.

Looking Forward

Callinex's immediate plans include testing their geological interpretations at the Visionary and General areas with new drilling, followed by borehole electromagnetic surveys to further refine targets. The company believes that these areas could potentially yield resources larger than the already substantial Rainbow deposit, and at much shallower depths, which would dramatically improve project economics.

As permitting advances and resource growth continues, Callinex intends to update its 43-101 resource estimate and potentially incorporate the new discoveries into an economic study. With copper prices rising and renewed investor interest in critical minerals, the company appears well-positioned to capitalize on both the exploration upside and development potential of its assets in a proven mining jurisdiction.

The Investment Thesis for Callinex Mines

• High-Grade Resource Base: Nearly 6 million tons of high-grade copper mineralization at Rainbow and Pine Bay, with grades that rank among the highest globally.
• Near-Surface Advantage: Rainbow deposit starts just 90 meters below surface, potentially enabling lower-cost development compared to deeper deposits.
• Permitting Progress: Advanced exploration permit submitted, potentially setting the stage for bulk sampling or production by late 2025/2026.
• Infrastructure Benefits: Located in an established mining district with access to hydroelectric power, skilled workforce, and regional processing facilities.
• Significant Exploration Upside: Over 10,000 hectares of consolidated land with multiple shallow, high-grade targets at Visionary and General areas.
• VMS District-Scale Potential: Positioned in a geological setting analogous to major mining camps that have historically yielded multiple large deposits.
• Strong Management Track Record: Demonstrated ability to make discoveries (Rainbow) and advance them through resource definition.
• Tight Capital Structure: Low market capitalization (under CAD $20M) with no debt, minimizing dilution risk.
• Commodity Exposure: Primarily copper with gold, silver, and zinc credits during a period of strong copper market fundamentals.
• Only Junior with 43-101 Copper Resource: Unique position as the sole junior explorer with an established copper resource in Manitoba.

Macro Thematic Analysis

The copper market is experiencing a fundamental shift driven by the global energy transition and electrification trends. As countries worldwide commit to decarbonization goals, demand for copper—essential for electric vehicles, renewable energy infrastructure, and grid modernization—is projected to significantly outpace supply in the coming years. Industry analysts forecast a potential copper deficit of 4-10 million tonnes by 2030, creating a favorable pricing environment for developers of high-grade copper projects in stable jurisdictions.

Manitoba, with its established mining culture, skilled workforce, and supportive regulatory framework, represents an ideal location for near-term copper development. Callinex's high-grade resources in this jurisdiction position the company to potentially benefit from this macro trend. The shallow nature of their deposits could enable relatively quick development timelines compared to deeper, more capital-intensive projects elsewhere.

As Porterfield noted:

"Being in Canada, being in a safe jurisdiction, being in close proximity to this infrastructure and being in a position to be able to fast track that as our leaders within Canada look to explorers like Kalinex to transition and be the next producers puts us in an ideal place." 

This encapsulates the strategic advantage Callinex holds in the current copper market environment, where new sources of supply in stable jurisdictions are increasingly valued by investors and off-takers alike.