VANCOUVER, May 13 /PRNewswire-FirstCall/ - Callinan Mines
Limited (the "Company") announces that it has entered into a
purchase agreement to acquire a 100% interest in a property known
as the Gossan Claims, and has entered into an option agreement to
earn a 100% interest in fourteen adjacent mineral claims, known as
the Rug Claims. Together, the claims comprise 3,679 hectares in The
Pas Mining Division of the Province of Manitoba.
The Gossan and Rug Claims encompass the property (the "Gurney
Property") which includes the formerly producing Gurney Gold Mine,
as well as the mineralized contact shear zone that hosts the former
producer. Reports from previous operators, accessed through records
at the Manitoba Department of Energy and Mines, show the Gurney
Gold Mine's two years of production, from 1937-1939, produced a
total of 25,164 ounces of gold and 71,953 ounces of silver from
90,500 tonnes of ore milled. These reports further show gold
bearing diamond drill intersections wider than 20 meters.
Highlights from the assessment files include diamond drill
intersections grading 0.25 ounces of gold per ton over 5 meters,
0.5 ounces of gold per tonne over 1.5 meters, and 0.118 ounces of
gold per tonne and 1.25 ounces of silver per tonne over 40.94
meters. The Company cautions that work done by previous operators
was conducted before the implementation of National Instrument
43-101. Quality control methods by the previous operator are
unknown, and the accuracy of the information cannot and should not
be relied upon.
The gold mineralization at the Gurney Property is hosted in a
sheared diorite/gabbro, and a sheared felspar porphyry structure
containing quartz carbonate stringers. The structure is known to
run for more than two kilometers. The property, located near
Flin Flon, Manitoba, is accessible
by an all weather road. A diamond drilling program will be
conducted on the Gurney Property this coming summer, and will
continue through the winter season if necessary.
The 3,013 hectare Rug Claims were optioned from the vendor,
Peter Dunlop, for total
consideration of $200,000 in cash,
the issuance of 200,000 shares of the Company, a work commitment on
the entire Gurney Property of $800,000, and a 2% net smelter returns royalty on
the entire Gurney Property, 50% of which is purchasable by the
Company for the payment of $1,000,000.
The Gossan claims are being purchased from William Kuran and Mark
Olson, for total consideration of $20,000 and the issuance of 150,000 shares of the
Company. Both agreements are subject to regulatory approval.
Exploration is continuing on the Company's Berry Creek claims in Snow Lake, Manitoba, where mineralization has
been intersected in felsic alteration similar to that which hosts
some of the area's numerous mines. Results from assays of the
winter's program will be published as soon as they become
available.
On Behalf of the Board of Directors,
"Mike Muzylowski"
Mike Muzylowski
All of the Company's exploration programs are conducted under
the direction of Pat Deveaux, P.Geo,
a qualified person as defined by National Instrument 43-101, who
has reviewed and approved the contents of this release.
Neither 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 private placements and
the timing and amount of expenditures. The Company does not assume
the obligation to update any forward-looking statement.
SOURCE Callinan Mines Ltd.