Callinan advances exploration on Thompson properties

July 26, 2004

The Company reports:

Recent nickel prices have been very favourable as the metal continues on a strong, bullish trend. In light of this, Callinan intends to advance exploration efforts on their recently acquired Pine and Phillips Lake claims in the Thompson Nickel Belt.

Both claims are known to contain ultramafic host rocks common to high grade nickel and PGM mineralization. The properties cover portions of the Manassan, Thompson and Pipe formations. The sulphide faces is folded and intruded by Ultramafics. Nearby hosts of similar character contain the Thompson and Birch Tree ore bodies. Mapping carried out by J.Macek et al. of the Manitoba geological survey and published in preliminary map 2001 I-1 indicates folded structures not previously known. The geophysical surveys carried out previously did not cover these structures in the proper direction. The program to be carried out by Callinan will include re-gridding portions of the property in the correct direction.

Based on drill results from the previous operator, and the results of a magnetic survey, Callinan’s geologists will design a drill program to test numerous shallow targets. Work will begin on the projects in August to re-establish the previous grid and map a drill program.

Drilling by the previous operator intersected nickel values at Pine Lake and Phillips Lake ranging in values from 0.43% nickel to 6.07% nickel. DDH PL-7 on the Phillips Lake property had values of 1.19% Ni over 14.3 m including 1.99% Ni over 3.72 m. None of the 15 holes were assayed for PGM values.

After these results were assessed, project geologists at the time recommended that two additional holes, designed to trace previous drill intercepts to depth and test for a massive sulphide keel section, be drilled. The holes were never completed.

Deeper drilling in conjunction with down hole electromagnetic surveys is being considered at this time.

The properties’ close proximity to mining infrastructure in the town of Thompson, Manitoba could make them very economically auspicious should they prove to host significant nickel mineralization.

(Source –assessment files, Manitoba Dept. of Mines.)

On Behalf of the Board ,


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