Acquisition Date

2022 / May / 02

Terms

1.5% NSR

Operator

Callinex Mines Inc.

The Point Leamington project is located approximately 37 km from the city of Grand- Falls-Windsor in Newfoundland, Canada, and 20 km from the provincial power grid. It is a volcanogenic massive sulphide (VMS) deposit that has been the focus of exploration since it was first discovered in the 1970s.

The Point Leamington mining lease consists of 262 ha in an area that hosts Kuroko-type VMS mineralization in Cambro-Ordovician age rocks, which are similar to the past producing Buchans and Duck Pond Mines that are close in proximity.

An August 2021 Mineral Resource Estimate for Point Leamington indicates a pit-constrained Indicated Resources of 5.0 Mt grading 1.4% zinc, 0.5% copper, 0.9 g/t gold and 12.2 g/t silver, plus Inferred Resources of 13.7 Mt grading 1.7% zinc, 0.4% copper, 0.8 g/t gold and 14.0 g/t silver (NSR cut-off C$25/t). The property also has non pit-constrained Inferred Resources of 1.7 Mt grading 2.7% zinc, 0.35% copper, 1.2 g/t gold and 25.5 g/t silver (NSR cut-off C$75/t).

The Point Leamington project has the potential to host additional deposits with additional drilling at depth.

Agreement terms are subject to the closing of the Transactions as defined in the Company's press release dated May 2, 2022.

See press release for more details.

Point Leamington