VANCOUVER – 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,
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.