VANCOUVER – Callinan Mines Ltd. (CAA-TSX.V) has entered into an option agreement with Candorado Operating Company Ltd. (CDO-TSX.V). The agreement affords Callinan the ability to acquire a 60% working interest in the Rayfield River copper property near 70 Mile house, BC.
Exploration on the Rayfield River property by previous operators encountered consistent chalcopyrite and bornite copper mineralization in shallow targets with grades increasing to depth.
Robert Shives, a notable expert in radiometric surveys and consultant to the Joint Venture, noted in a preliminary report that the intersections from previous drilling “clearly demonstrate the existence of a major alkaline porphyry (copper/gold) system.” He adds that, “this system (may contain) better grades deeper down.”
Airborne radiometric surveys conducted by the Geological Survey of Canada in conjunction with Candorado have isolated several areas that exhibit the properties of potassic alteration associated with known copper/gold mines in the area. The targets also bear a striking similarity to the radiometric signature at Imperial Metals’ Mt. Polly mine.
Initial exploration activities will consist of deep holes both in areas of previously intersected shallow mineralization, as well as in previously un-drilled airborne targets. A total of 4,000 metres of drilling has been planned to test these anomalies. The Company is excited to be participating in the project, and is looking forward to increased activity in the Quesnel Trough.
The option agreement entitles Callinan to earn a 60% interest in the property by spending $600,000 on exploration within 1 year. Callinan has agreed to pay $50,000 in cash and issue a total of 100,000 shares to Candorado as part of the agreement. The Rayfield River property is subject to a 2% NSR, with the operator having the option to purchase 100% of the royalty interest for the sum of $1,000,000. The option agreement is subject to the approval of the TSX Venture Exchange.
The Project is being overseen by Bill Gilmour, P.Geo, a qualified person as defined by National Instrument 43 – 101 who has reviewed and approved the contents of this release.
The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of this news announcement.
On Behalf of the Board of Directors,