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Gossan Hill Results Show Greater Widths, Drilling to
Commence at Pine Bay
VANCOUVER - Callinan Mines (TSX.V-CAA, OTCBB-CCNMF) has received
complete assays from its recent drill program at Gossan
Hill in Northern Manitoba. All 32 holes completed as part of the program
returned gold and silver mineralization in encouraging widths and
concentrations.
The Company has also received assays of additional samples from previously
reported diamond drill hole GOS 28. With the new samples incorporated, the
zone now averages 4.60 grams of gold per tonne and
15.13 grams of silver per tonne over 23.81 meters
of core length. The intersection occurs between 267.99 meters and 291.80
meters.
Hole
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From
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To
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width (m)
|
Au g/t
|
Ag g/t
|
GOS028
|
267.99
|
291.8
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23.81
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4.60
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15.13
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incl.
|
287.5
|
291.8
|
4.3
|
13.26
|
54.46
|
GOS029
|
282.88
|
285.5
|
2.62
|
4.65
|
4.17
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and
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297.9
|
303.03
|
5.13
|
1.55
|
2.58
|
GOS030
|
309.5
|
325.41
|
15.91
|
4.21
|
12.69
|
incl.
|
321.57
|
325.41
|
3.84
|
7.43
|
28.52
|
GOS031
|
251.42
|
252.13
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0.71
|
1.03
|
3.00
|
GOS032
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365.77
|
367.03
|
1.26
|
1.15
|
0.97
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GOS032
|
375.7
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381.8
|
6.10
|
0.82
|
1.22
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incl.
|
375.7
|
377.12
|
1.42
|
1.35
|
3.83
|
True widths are
estimated to be 60% of core widths
Additional widths of lower grade gold and silver mineralization are present
on both sides of the main zone reported above.
The Gossan Hill property consists of 3,679 hectares
of mining claims near the town of Cranberry Portage, Manitoba. The claims are
the host of a historically producing mine, as well as the alteration zone
that hosts the mineralization. The winter drilling program at Gossan Hill consisted of 32 holes (one abandoned) for a
total of 5,997 metres, before the program was
suspended for spring breakup.
The Company plans to conduct a summer program at Gossan
Hill, consisting of of an extensive mapping and
sampling program designed to expand the company's understanding of the
gold-bearing structure, and search for similar structures along the alteration
zone. The summer program will also include continued diamond drilling to
further expand the zone of mineralization. Future plans also include a
laboratory bench test to determine the recovery rate of the gold and silver.
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 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 gram 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.
Pine Bay
The Company is also pleased to report that drilling permits have been
received for their Pine Bay property in Northern Manitoba near Flin Flon.
The Pine Bay property is the host of a known VMS deposit, estimated in 1973
by engineering firm Watts Griffiths and McOuat to
contain 607,978 tonnes grading 3.93% copper.
Readers are cautioned that estimates are historic in nature, do not comply
with national instrument 43-101 and should not be relied upon.
Since acquiring the property by way of option in July of 2009, Callinan has conducted both airborne and ground based
electromagnetic surveys over the known zone, isolating drill-ready targets
along strike and down plunge. Drill testing will begin immediately to
ascertain if the known mineralization is part of a deeper, more extensive
system. The company also plans to conduct in-hole geophysics to isolate
possible extensions and undiscovered mineralized lenses.
Proposed Spin Out
Callinan is currently proposing a re-organization
that will see its exploration properties, including the Gossan
Hill and Pine Bay properties, become part of a new exploration company by way
of plan of arrangement. Pending shareholder approval at a special meeting to
be held on June 7, 2011, Callinan's shareholders of
record on the effective date, which will follow shortly after the meeting
date, will receive shares of the new exploration company by way of
distribution.
On Behalf of the Board of Directors,
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 its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) 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 work programs and the timing and amount of expenditures. Callinan does not assume the obligation to update any
forward-looking statement.
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