VANCOUVER, Oct. 12 /PRNewswire/ - Field crews have completed
the 2010 exploration program at Callinan Mines wholly owned Coles
Creek property near Houston,
BC. A total of 20 diamond drill holes were completed to test
structures identified by geophysics and by previous drilling.
Activity was centered on a newly discovered volcano-sedimentary
structure exhibiting well mineralized intersections of sphalerite,
galena, pyrite, native gold and silver, and a high incidence of
tellurides. Core from the program is being split and logged on site
and sent to Acme Labs of Vancouver,
BC for assay. Previously reported diamond drill hole COLE 28
intersected a 21.25 meter section grading 3.368 g/mt gold, 15.33
g/mt silver, 2.04% zinc and 0.15% lead in the volcanoclastic
sedimentary breccia material that hosts the relevant
mineralization. Callinan's exploration team is optimistic as they
await assays from the holes drilled to further test this
well-mineralized structure. The structure has been intersected over
a length of 900 meters in drill holes spaced up to 150 meters
apart, at depths as shallow as 18 meters and, in some cases, as
deep as 400 meters. Mineralization occurs consistently as finely
disseminated sulphides in a sedimentary deposit of volcanic origin.
The presence of consistent, finely disseminated mineralization, and
the size of the intersections, is an encouraging event in the
ongoing development of this resource.
Callinan expanded the Coles Creek property in 2010 by entering
into an option to acquire the Troitsa Property adjacent to the
western edge of the Coles Creek claim block. The Troitsa property
consists of 17 mineral claims totaling 4746 hectares which covers
the Troitsa Lake, Main, and Cirque showings. The centre of the
property lies approximately 18km south-west of the Huckleberry Mine
and 120 km south-east of the community of Terrace, BC. According reports filed with the
BC department of mines, previous non NI 43-101 compliant
exploration returned results on the Main showing of 1.02% Cu over a
true width of 21.3m including 1.49% Cu over 12.2m. Sampling at the
Cirque showing averaged 0.21% Cu over 42.7m including 0.33% Cu over
16.8m. None of these intervals were analyzed for gold. These
results are historical in nature, dating from 1967 when the
showings were first discovered. Molybdenum was noted in numerous
showings on the property, including the Main showing, but was not
reported in historical assays. Fieldwork in 2010 confirmed the
existence of chalcopyrite and molybdenite on surface in a
porphyritic host rock over a 100 meter strike length. Channel
samples were taken and have been sent to Acme Analytical
Laboratories for analysis.
The terms of the option agreement allow the
company to purchase of a 100% interest in the Troitsa Extension by
paying a total of $320,000 and
issuing a total of 400,000 of its common shares to the optionors,
and incurring work expenditures totaling $800,000 over a period of four years. Upon the
Company exercising the option, it shall pay the optionors a 3% net
smelter return royalty, 50% of which is purchasable by the Company
for $2,000,000. Upon completion of a
bankable feasibility study on the Troitsa Extension, the Company
shall issue a further 200,000 of its shares to the optionors and
pay an advance royalty of $50,000 per
year, which is deductible from any royalty subsequently payable to
the optionors. The agreement is subject to regulatory approval.
On Behalf of the Board of Directors,
"Mike Muzylowski"
Mike Muzylowski
All of Callinan'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.
Copyright . 12 PR Newswire