Could This Company's Recent Precious Metal Discovery Help This Mining Giant And Mining Town?

Callinex Mines is adopting new technology in its operations

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

For a long time, communities have been up in arms with companies and authorities over activities that pollute their environment and disrupt their social fabric and livelihoods.

But mining, when done ethically and according to law, can be a win-win affair for companies and the communities they operate in. It can be a source of employment, a contributor to the economy, and an enabler to rapid development, making investments in roads, rail, power, and water infrastructure.

Callinex Mines Inc. CLLXF could be doing just that in Flin Flon, a mining city located in the Canadian provinces of Manitoba and Saskatchewan — with the majority of the town located in Manitoba.

Nestled at the east end of mining city Flin Flon is Rainbow Discovery, a project the company believes holds the key to transforming its business and the community it operates in. Apart from Flin Flon, Callinex is advancing its portfolio of copper, zinc, gold, and silver-rich deposits located in the Bathurst and Buchan's mining districts of Canada.

Helping A Mining Giant?

At the heart of Flin Flon is the Hudbay processing plant — owned by Hudbay Minerals Inc. HBM, a diversified Canadian mining company primarily producing copper concentrate and zinc metal.

The mining giant has dominated the district for more than 90 years.  It employs nearly 800 people and is known for its impressive capacity of 6,000 tons per day.

But this giant’s 777 mine could be closed because of a lack of new discoveries. The plant is now underutilized because of the special nature of the ore deposits — polymetallic volcanogenic massive sulfides  (VMS) — around Flin Flon poses special challenges to it.

However, news of the recent VMS discovery at the Callinex Rainbow project with new deep mining technologies that can survey to a depth of 800 meters could breathe new life into the Hudbay processing facilities, which will be idle when 777 shuts down.

New Technology

The new technology being used by Callinex to make discoveries in the area could revamp activities in Flin Flon and has generated some excitement among investors who are hoping the Callinex’s Rainbow Deposit may be one of the largest VMS finds in the region.

Callinex has raised CA$8.8 million (about $6.9 million) at CA$4.20 ($3.32) in an oversubscribed capital increase.

With the company hinting that more than 50% of the discoveries resulted in production, such a revelation could save Hudbay's operations, especially when its reclamation liabilities have recently been increased to $320 million from $140 million.

With inflation the highest it’s been since 1982, experts have projected that current copper, lithium, and platinum supplies are inadequate to satisfy future needs — with a 30% to 40% gap versus demand.

Additionally, the overall demand for silver was expected to grow by 15% to 1.29 billion ounces, its highest level in six years.

This post contains sponsored advertising content and is issued on behalf of Callinex Mines Inc. This content is for informational purposes only and is not intended to be investing advice.