VANCOUVER- Callinan Mines and joint venture partner Bell Resources are pleased to report progress from the ongoing exploration program in Fox River, Manitoba.
In the winter of 2006 — 2007, Callinan Mines, as Operator, completed 7 diamond drill holes on the Fox River joint venture property. These holes were designed to intercept potential sulphide bodies, in a search for mafic style deposits, rich with base and precious metals. The targets were established by a 6,000 line kilometer VTEM survey. The survey successfully isolated numerous zones of strong conductivity and magnetism in an area of more than 400,000 acres.
The results of the drill program have confirmed the capabilities of the VTEM survey. Six of seven holes intercepted massive sulphides. The results from the first part of this drill program have re-enforced the joint venture’s conviction that geological structures similar to those of the nearby Thompson Nickel Belt are likely present in the Fox River area, and have been outlined by the VTEM survey.
Notable drill results include hole CFOX 8, which intersected 18 meters of 0.18% nickel and .012% cobalt in ultramafic rocks. Hole CFOX 9 indicated anomalous zinc and copper values, including — 12.3 meters of 0.54% zinc, 3 meters of 1.6% zinc and 0.11% copper, and 1.2 meters of 1.16% zinc and 0.10% copper. Holes CFOX3 — CFOX7 contained no significant metal values.
Callinan has recently completed mobile metal ion (MMI) geochemical sampling across numerous VTEM anomalies to test for possible surface expressions related to sub-surface mineral occurrences. Samples have been sent to SGS labs in Toronto for analysis, and results are forthcoming. These tests will help to prioritize the existing targets and allow the company to effectively execute the remainder of the drill program as soon as conditions are practical. The copper and zinc mineralization found in the winter drill holes, while not expected, is volcanic in nature and could be indicative of a nearby volcanogenic massive sulphide deposit. Such a structure would be evident in the airborne survey data, and the upcoming MMI geochemical survey will help determine if nearby VTEM targets are prospective for these metals.
The joint venture plans to conduct the next stage of drilling at Fox River in late summer or early fall of 2007 — as soon as ground conditions allow.
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 the contents of this release.
On behalf of the Board of Directors,