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Last updated on April 17, 2014 at 17:30 EDT

Callinan Drills 3.65 g/mt Gold over 13.56 metres at Gossan Hill

January 5, 2011

VANCOUVER, Jan. 5 /PRNewswire/ – Callinan Mines (TSX.V-CAA) is pleased to
provide 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 following table details the highlights of the six holes for which
assay results have been received.

Hole From (m) To (m) Width (m) Gold (g/mt) Silver(g/mt)
GOS-02 70.90 91.15 20.25 1.96 6.76
incl 74.76 75.70 0.94 10.70 23.18
  83.70 90.70 7.00 3.11 6.03
  87.45 90.70 3.25 4.33 4.20
           
GOS-03 54.88 71.10 16.22 3.04 18.47
incl 58.90 60.14 1.24 13.77 57.68
  58.90 70.33 11.43 3.56 16.00
           
GOS-04 40.73 44.94 4.21 2.06 6.30
           
GOS-05 79.70 82.32 2.62 1.67 8.69
GOS-05 96.65 110.30 13.65 3.65 10.05
incl 99.10 102.00 2.90 7.92 20.21
           
GOS-06 56.22 65.12 8.90 1.54 6.11
incl 61.25 65.12 3.87 2.24 14.05
           
GOS-07 59.60 65.52 5.92 1.62 2.61
incl 63.86 65.52 1.66 3.31 4.70
           

(i) True widths are approximately 60% of drill interval.
—————————————————————————

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.

On Behalf of the Board of Directors,

Mike Muzylowski

Mike Muzylowski

All of Callinan’s exploration programs are conducted under the direction
of J.J. O’Donnell, P.Geo, a qualified person as defined by national
instrument 43-101, who has reviewed and approved the contents of this
release.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory
Organization of Canada accepts responsibility for the adequacy or
accuracy of this release
.

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.

SOURCE Callinan Mines Ltd.


Source: newswire