a leading zinc junior in established canadian mining districts › ... › 2016 › 08 ›...

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 acquires portfolio of zinc rich VMS deposits in Eastern Canada

1927

2011

O U R H I S T O R Y

2014

2016

2004 To drive shareholder

value by discovering and

developing economic

zinc and copper 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

INSTITUTIONS 19.6%

INSIDERS & CLOSE ASSOCIATES

34%

RETAIL INVESTORS

46%

OWNERSHIP BREAKDOWN

SHARE PERFORMANCE

C O R P O R A T E O V E R V I E W

- Resource Capital Funds

- Europacific Gold Fund

- Plethoria Precious Metals Fund

- Fieldhouse Capital Management

Closing Price

(7/22/2016)

$0.37

52-Week Range

$0.23 - $0.54

Average Daily

Volume (3 - mo)

171,230

RECENT TRADING

Shares

Outstanding

61.0M

Options

Outstanding

4.4M($0.33 VWAP)

Warrants

Outstanding

6.3M($0.45 VWAP)

CAPITAL STRUCTURE

Market Cap

$22.5M

Debt

$0

Working Capital

$5.1MAs of 5/27/2016

ENTERPRISE VALUE

TSX-V: CNX I OTCQX: CLLXF

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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


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

Peter Schriber

A Co-Founder of PI Financial, Mr. Schriber is an independent financial consultant with an extensive history in merchant and commercial banking, specializing in corporate finance

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


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.

James PickellConsulting 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 Consulting 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 in Manitoba. 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.


TROUT MINE +22 MT

LALOR MINE +25 MT

777 MINE +21 MT

• Current supply / demand deficit expected to increase further based on reduced mine supply

• Consumption is expected to increase by +3 million tonnes over the next five years

• Zinc inventories have dropped by over 50% since 2013 and are nearing critically low levels

• Wood Mackenzie estimates a price of $1.60 is necessary to incentivize sufficient new production growth

z i n c m a r k e t o v e r v i e w

Base Case Zinc Supply

Base Case + Probable Projects Zinc Supply

Zinc Demand Forecast

Zinc Price

Zinc Price Forecast

Source: Wood Mackenzie

20,000 2.00

1.80

1.60

1.40

1.20

1.00

0.80

0.60

0.40

0.20

0.00

Tonnes 000’ US$/Ib

18,000

16,000

14,000

12,000

10,000

8,000

4,000

2,000

02010 2011 2012 2013 2014 2015 2016E 2017E 2018E 2019E 2020E 2021E 2022E

6,000


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

T S X - V : C N X | O T C Q X : C L L X F9 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

10 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 NT S X - V : C N X | O T C Q X : C L L X F

Strategic Properties Near Hudbay’s Flin Flon Operations

MINE DEPLETION

The Flin Flon processing facility has excess capacity and requires additional ore within four years

- 777 Mine to be exhausted by 2020

- Reed Lake Mine to be exhausted 2019

EXPLORATION FOCUS

Strategy to outsource exploration through junior partners; few juniors actively exploring in Manitoba

REED LAKE MINE

Hudbay acquired the small high grade VMS deposit in exchange for a 30% carried interest to the vendor. Reed Lake ore is hauled

more than 100 km to the Flin Flon processing facility

HUDBAY'S MANITOBA OPERATIONS


• Strategic property totalling 6,300 sq. ha. located 16km to HudBay’s Flin Flon processing facilities

• Fast-track potential, vertical shaft and underground workings permitted for mining activities

• Two emerging discoveries, both zones open for expansion along strike and at depth

• Previously controlled by majors, individual claim areas held by Placer Dome, Inmet, Newmont and HudBay

p i n e b ay p r o j e c t

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• Three known deposits including the Pine Bay deposit with a historic vertical shaft and significant underground workings

• Previously explored by Placer Dome, who had a mandate to identify a 30 Mt VMS deposit

• Covers one of the largest felsic volcanic packages in the belt, which are the primary host rocks for VMS deposits

• New discovery from drilling above a target that both Placer Dome and Inmet attempted to drill, but did not reach the target area

PINE BAY area

POTENTIAL FOR A LARGE VMS DEPOSIT


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

Acquired 100% ownership of Pine Bay and Flin Flon

Projects

2015


Point Leamington

Nash Creek

Superjack

15 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

• 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

Total Mineral Resources

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 16T 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 (%) Pb (%) Ag (g/t) Au (g/t) Cu (%)Nash 2.0 7,807,900 2.72 0.55 18.26 n/a n/aTotal 7,807,900 2.72 0.55 18.26 n/a n/a

Project Cut-off (Zn. Eq) Tonnes Zn (%) Pb (%) Ag (g/t) Au (g/t) Cu (%)Point Leamington 4.0 14,093,000 1.86 0.02 17.12 1.07 0.42Superjack 1.5 3,211,015 3.01 0.78 29.45 n/a 0.27

Nash 2.0 1,211,700 2.66 0.52 18.00 n/a n/a

Total 18,515,715 2.11 0.18 19.32 0.81 0.37

• Previous operators conducted exploration on these projects totaling well over $20 million in current terms

• Callinex acquired all of these projects for $1.1 million during a period of low zinc prices

• Plans to further de-risk and advance zinc portfolio while also identifying new acquisition opportunities

Portfolio of Zinc Assets

• Development-stage VMS project located in Newfoundland, Canada

• 14.1Mt Inferred mineral resource grading 6.2% Zn Eq. including 1.9% Zn, 1.1 g/t Au, 17.1 g/t Ag and 0.42% Cu*

• 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

17 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

Quebec

N

• Development-stage VMS project located in the world-class Bathurst Camp of New Brunswick, Canada

• Near-surface Indicated mineral resource of 7.8Mt grading 3.2% Zn Eq. including 2.7% Zn, 0.6% Pb and 18.3 g/t Ag plus an Inferred mineral resource of 1.2 Mt grading 3.2% Zn Eq including 2.7% Zn, 0.5% Pb and 18.0 g/t Ag*

• Located 90km from operating processing facility

• Deposit is open along strike to the south where increased grades have been encountered

• Preliminary testing has indicated amenability to Dense Media Separation, which is designed to increase the average grade of rock processed


n a s h c r e e k p r o j e c t

18T S X - V : C N X | O T C Q X : C L L X F


Road Power Rail Port

City

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

• Exploration-stage VMS project located in the world-class Bathurst Camp of New Brunswick, Canada

• 3.2Mt Inferred mineral resource grading 3.0% Zn, 0.8% Pb, 29.5 g/t Ag and 0.23% Cu*

• 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*

• Two zones (“A” and “C” zones) host higher-grade near-surface mineralization with untested targets along strike


s u p e r j a c k p r o j e c t

19 T S X - V : C N X | O T C Q X : C L L X F

Quebec

N


Road Power Rail Port

City

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

near term catalysts

MANITOBA EXPLORATION

• Summer drilling campaign expected to commence shortly (Q3 2016)

• Initial drill results and borehole data expected from targets at Pine Bay and Sourdough areas (Q3-Q4 2016)

• Winter drilling campaign anticipated to commence (Q1 2017)

• Results from winter drilling campaign expected (Q1-Q2 2017)

ZINC PORTFOLIO

• Updated 43-101 technical reports expected for Point Leamington and Superjack Projects (Q3 2016)

• Updated 43-101 resource estimate for the Nash Creek Project to include new data (Q3 2016)

• Pre-development work to commence starting with metallurgical testing at Point Leamington (Q3-Q4 2016)

• Complete and interpret two borehole surveys on the Superjack A Zone, to investigate high grade mineralization open at depth (Q3 2016)

• Ongoing M&A focused on zinc deposits within established mining jurisdictions (Q3 - Ongoing)


I N V E S T M E N T S U M M A R Y

PROJECT PORTFOLIOSTRONG TEAM TIGHT CAPITAL STRUCTURE

Strong portfolio of zinc-rich assets in Canadian mining jurisdictions

Near-term exploration upside with ongoing work programs

World-class technical team that has been involved in the last three major VMS discoveries in Manitoba

Well-funded with over $5M in working capital and a strong institutionalshareholder base

T S X - V : C N X | O T C Q X : C L L X F21 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: Davidson & Company LLP

a leading zinc junior in established canadian mining districts › ... › 2016 › 08 ›...

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