VANCOUVER, B.C. – Callinan Mines Limited today announced extremely encouraging assays for gold, silver, molybdenum, copper, lead and zinc following a geological sampling program on its Coles Creek Project claims some 80 km southwest of Houston, B.C.
Callinan President Mike Muzylowski said, “the Coles Creek Project sampling program has delineated and further defined two separate significant zones of anomalous mineralization.” The first of these, the main exploration target, included samples that returned gold values ranging from 3.05 g/t to 0.24 g/t, copper between 2.62% and 0.25%, and molybdenum at 0.03%. A total of 123 grab samples were taken as part of the exploration program.
The second area sampled, one km to the west, is a previously unknown mineralized zone comprised of highly altered pyroclastic volcanics, associated with a quartz diorite intrusion. Grab samples taken from exposed outcrops, over a 100-metre width, provided the following range of assays: Copper: 0.305% to 0.115%; Gold: 0.12 g/t to 0.04 g/t; Silver: 1181 g/t to 33 g/t; Lead: 9.33% to 0.21%; Zinc: 3.01% to 0.4%, and Molybdenum: 0.403% to 0.051%.
The geological formation of the Callinan claims, which total 1,210 hectares, is similar to that of producing mines in the area. These include the Huckleberry Mine, some 17 km to the north, which last year produced 62.9 million lbs. of copper and 426,000 lbs. of molybdenum. The Equity Silver Mine, 70 km northeast of the Coles Creek Project, returned 71.36 million oz. of silver and 528,000 oz. of gold during its 13 years of production between 1981-94.
Acme Laboratories of Vancouver conducted the Coles Creek Project assays, and the sampling program was under the supervision of P.J. Deveaux, P. Geol., of Vancouver, a Qualified Person as defined in NI 43-101.
Mr. Deveaux noted in his report that an Induced Polarization Survey conducted by previous operators in 1971 defined the main exploration target, whose 150-metre width and 700-metre length is open and continues to the west. The Callinan samples were taken over a 150-metre length in an intensely leached alteration rim surrounding a circular porphyritic granodiorite.
As Callinan President Mike Muzylowski, who has played a key role in the discovery of some 15 producing mines, observed: “The fact that we obtained these kinds of results, in an area so intensely leached, is very encouraging.”
Mr. Muzylowski additionally noted that Callinan now will formulate an exploration program consisting of line cutting, geophysical and geochemical surveys and diamond drilling. The program will be undertaken as quickly as possible during the 2006 spring/summer exploration season.
Please see www.callinan.com for the exploration report it its entirety.
On Behalf of the Board ,
CALLINAN MINES LTD.
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