VANCOUVER — Callinan Mines Limited (TSX.V:CAA) is pleased to report that it has received permits to conduct drilling on its Fox River property near Gillam, Manitoba. Drill testing will begin early in 2010. As previously reported, sub-surface nickel sulphides have been indicated to be present at Fox River by mobile metal ion survey. The advanced geochemical survey was conducted to prioritize geophysical anomalies isolated by VTEM survey in this frontier nickel exploration area.
The Company’s ambitious winter drilling program in Snow Lake, Manitoba has also begun, and is expected to continue into 2010. The first diamond drill hole at the Berry Creek property will test the down dip extension of mineralized host rock intersected in diamond drill hole BR-4. Further exploration is planned for other areas of the Berry Creek claim, as well as the Jean Lake and Watts River properties in Snow Lake.
A diamond drilling program on the Island Lake gold property in Northeastern Manitoba has also been planned for this winter season, and will begin once the permitting process has been completed.
Management has budgeted $3 million for the initial phase of this winter’s exploration program. Callinan currently has more than $12 million in working capital, and continues to receive quarterly income from its net profits interest in the 777 Mine.
The Company held its 2009 annual general meeting on December 11, 2009 and among the resolutions passed by shareholders at the meeting were the re-election of Callinan’s board of directors and ratification of continuance of the Company’s Shareholder Rights Plan, as amended dated November 25, 2009. Callinan’s board of directors adopted the Rights Plan, as amended, to ensure, to the extent possible, that all shareholders of the Company are treated equally and fairly in connection with any takeover bid or similar offer for all or a portion of the outstanding shares of the Company. The amended Shareholder Rights Plan Agreement has been accepted for filing by the TSX Venture Exchange. The Rights Plan, as amended, expires at the annual general meeting of shareholders of the Company to be held in 2012, unless terminated earlier or extended beyond 2012. A copy of the Shareholder Rights Plan Agreement, as amended, has been filed under Callinan’s profile on SEDAR.
All of Callinan’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.
President and CEO
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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. Callinan does not assume the obligation to update any forward-looking statement.