Posted in | Gold | Silver

Callinan Mines Intersects 7.92 G/MT Gold over 2.9 Metres at Gossan Hill Property

Callinan Mines (TSX.V-CAA) has provided an update on assays results received from its Gossan Hill Gold Property.

Six of the fourteen diamond drill holes completed to date have returned mineralized intersections bearing gold mineralization. Assay work is still being conducted on mineralized intersections from the 8 remaining holes of the 14 hole drill program. This early stage of the Gossan Hill program has defined a mineralized gold and silver horizon along 100 metres of strike, and to a vertical depth of 200 metres, based on 25 to 50 metre drill hole spacing. The gold mineralization at Gossan Hill is open in all directions. The company is encouraged by these strong results, and plans to continue drilling this month.

All holes to date have returned significant gold values with encouraging widths. Hole GOS-05 encountered a gold bearing quartz vein adjacent to a sheared intrusive / volcanic contact which returned 3.65 g/mt gold and 10.05 g/mt silver over 13.65 metres (including 7.92 g/mt gold and 20.21 g/mt silver over 2.9 metres) at a vertical depth of 90 metres from surface.

Mike Muzylowski, President and CEO of Callinan Mines, stated "We are excited about the initial results of the program. Our drilling program was designed to test of the continuity and characterization of gold mineralization at the Gossan showing with a series of tightly spaced drill-holes. These assays show that the gold bearing structure is wide enough to warrant further testing. We are very pleased with these results, and expect to continue extending the horizon with further drilling."

The program to date has consisted of 14 drill-holes totaling 2,004 metres.

Callinan can acquire a 100% interest in the 10,614 hectare Gossan Hill Property, subject to a 2% NSR under a 3 year option agreement with two different vendors.

Callinan Mines maintained a QA/QC program at all stages of exploration. Drill core recovery was calculated, measured and recorded at the Gossan Hill Property before being cut and sampled. Samples were split in half, one half of each sample being kept for storage and the other half placed in a pre-labeled plastic bag, tagged with the sample number and recorded in the log. Callinan QA/QC samples (blanks and standards) were inserted into the group of samples and shipped to Acme Analytical Laboratories in Vancouver, BC, where they were crushed, split, and pulverized to 250 g samples at 200 mesh. Pulp samples were then assayed by Aqua Regia digestion ICP-ES analysis (24 elements) and assayed for gold and silver by fire assay method. The lab employs internal quality control by assaying pulp duplicates and inserting quality control standards of predetermined values and a blank sample.

As drilling continues at Gossan Hill, Callinan will simultaneously conduct a 3,000 metre diamond drilling campaign at their Herblet Lake property, near Osborne Road in Snow Lake, Manitoba. The program will test targets along the same geological structure that hosts the formerly producing Osborne and Anderson Mines. Drill targets have been established by airborne geophysical surveys, and surface trenching. Surface operations this past summer uncovered numerous areas mineralized with sphalerite and chalcopyrite.

Source: Callinan Mines Ltd.

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