Callinan Drills 3.65 g/mt Gold over 13.56 metres at Gossan Hill

VANCOUVER, Jan. 5 /CNW/ - Callinan Mines (TSX.V-CAA) is pleased to provide an update on assays results received from its Gossan Hill Gold Property. Six of the fourteen diamond drill holes completed to date have returned mineralized intersections bearing gold mineralization. Assay work is still being conducted on mineralized intersections from the 8 remaining holes of the 14 hole drill program. This early stage of the Gossan Hill program has defined a mineralized gold and silver horizon along 100 metres of strike, and to a vertical depth of 200 metres, based on 25 to 50 metre drill hole spacing. The gold mineralization at Gossan Hill is open in all directions. The company is encouraged by these strong results, and plans to continue drilling this month.

All holes to date have returned significant gold values with encouraging widths. Hole GOS-05 encountered a gold bearing quartz vein adjacent to a sheared intrusive / volcanic contact which returned 3.65 g/mt gold and 10.05 g/mt silver over 13.65 metres (including 7.92 g/mt gold and 20.21 g/mt silver over 2.9 metres) at a vertical depth of 90 metres from surface.

Mike Muzylowski, President and CEO of Callinan Mines, stated "We are excited about the initial results of the program. Our drilling program was designed to test of the continuity and characterization of gold mineralization at the Gossan showing with a series of tightly spaced drill-holes. These assays show that the gold bearing structure is wide enough to warrant further testing. We are very pleased with these results, and expect to continue extending the horizon with further drilling."

The following table details the highlights of the six holes for which assay results have been received.

Hole From (m) To (m) Width (m) Gold (g/mt) Silver(g/mt)
GOS-02 70.90 91.15 20.25 1.96 6.76
incl 74.76 75.70 0.94 10.70 23.18
  83.70 90.70 7.00 3.11 6.03
  87.45 90.70 3.25 4.33 4.20
           
GOS-03 54.88 71.10 16.22 3.04 18.47
incl 58.90 60.14 1.24 13.77 57.68
  58.90 70.33 11.43 3.56 16.00
           
GOS-04 40.73 44.94 4.21 2.06 6.30
           
GOS-05 79.70 82.32 2.62 1.67 8.69
GOS-05 96.65 110.30 13.65 3.65 10.05
incl 99.10 102.00 2.90 7.92 20.21
           
GOS-06 56.22 65.12 8.90 1.54 6.11
incl 61.25 65.12 3.87 2.24 14.05
           
GOS-07 59.60 65.52 5.92 1.62 2.61
incl 63.86 65.52 1.66 3.31 4.70
           

(i) True widths are approximately 60% of drill interval.
---------------------------------------------------------------------------

The program to date has consisted of 14 drill-holes totaling 2,004 metres.

Callinan can acquire a 100% interest in the 10,614 hectare Gossan Hill Property, subject to a 2% NSR under a 3 year option agreement with two different vendors.

Callinan Mines maintained a QA/QC program at all stages of exploration. Drill core recovery was calculated, measured and recorded at the Gossan Hill Property before being cut and sampled. Samples were split in half, one half of each sample being kept for storage and the other half placed in a pre-labeled plastic bag, tagged with the sample number and recorded in the log. Callinan QA/QC samples (blanks and standards) were inserted into the group of samples and shipped to Acme Analytical Laboratories in Vancouver, BC, where they were crushed, split, and pulverized to 250 g samples at 200 mesh. Pulp samples were then assayed by Aqua Regia digestion ICP-ES analysis (24 elements) and assayed for gold and silver by fire assay method. The lab employs internal quality control by assaying pulp duplicates and inserting quality control standards of predetermined values and a blank sample.

As drilling continues at Gossan Hill, Callinan will simultaneously conduct a 3,000 metre diamond drilling campaign at their Herblet Lake property, near Osborne Road in Snow Lake, Manitoba. The program will test targets along the same geological structure that hosts the formerly producing Osborne and Anderson Mines. Drill targets have been established by airborne geophysical surveys, and surface trenching. Surface operations this past summer uncovered numerous areas mineralized with sphalerite and chalcopyrite.

On Behalf of the Board of Directors,

Mike Muzylowski

Mike Muzylowski

All of Callinan's exploration programs are conducted under the direction of J.J. O'Donnell, P.Geo, a qualified person as defined by national instrument 43-101, who has reviewed and approved the contents of this release.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the ability to complete contemplated private placements and the timing and amount of expenditures. Callinan does not assume the obligation to update any forward-looking statement.

SOURCE Callinan Mines Ltd.

For further information:

Braden Maccke, 736 Granville Street, Suite 1100, Vancouver, BC, V6Z 1G3, Telephone: (604) 605-0885, Toll-Free: 1-877-228-5210, Fax: (604) 605-0886, Email: info@callinan.com, Website: www.callinan.com

Organization Profile

Callinan Mines Ltd.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890