VANCOUVER, July 21 /PRNewswire-FirstCall/ - Callinan Mines has received a payment of
$2,856,446 from Hudbay Minerals Inc.
This payment represents the remaining balance of payments due to
Callinan for fiscal 2009 under the 777 / Callinan Mine Net Profits
Interest and Royalty agreement. Interim quarterly payments were
made throughout 2009, representing an estimated 75% of 6 2/3% of
the net profits from the 777 Mine in Flin
Flon, Manitoba, plus $0.25 per
ton of ore mined. This payment represents the balance of the 25%
withheld over the four financial quarters ended December 31, 2009, adjusted to reflect Hudbay's
final calculation of the net profits interest. Callinan's legal
action against Hudbay in the Manitoba Court of Queens Bench, designed to
gain transparency concerning the calculations of past entitlements
under the Net Profits Interest agreements, as well as transparency
concerning the calculation of these payments going forward is
ongoing.
Callinan Mines is pleased to
announce that drilling has begun at their wholly owned Coles Creek
property south of Houston, BC. The
summer program has been designed to test for mineralization in a
structure previously identified as a volcanic breccia containing
silver, zinc and lead. Diamond drill hole COLE-18, drilled as part
of the 2008 drilling program, returned 234 m of mineralization,
including 4.7m of 200 g/t silver and 1.09% zinc. Coincident
chargeablity and resistivity anomalies have been identified in the
same structure, and will be tested as part of this summer's drill
program. Initial prospecting has located surface mineralization
that is also coincident with this IP anomaly.
The drilling program will continue until the end of the season
on the 13,090 Ha property. The volcanic debris flow known to host
mineralization and the targets within will be the primary focus of
the drill program. Additional 3D induced polarization and
prospecting programs will also be conducted.
Drilling has also been planned for Callinan's Herblet Lake
property near Snow Lake, Manitoba.
This program is designed to test below surface copper and zinc
showings that occur on a structure that hosts the Osborne Lake and
Anderson Lake Mines.
Drilling on the Gossan - Gurney Gold claims near Cranberry Portage, MB has been postponed until
the forest fires in the area have been extinguished, and the ban on
access has been lifted.
On behalf of the board of directors,
Mike Muzylowski
Mike Muzylowski
All of Callinan's Exploration Programs are overseen by
Pat Deveaux, a qualified person as
defined by National Instrument 43-101 who has reviewed and approved
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.