Coles Creek Drill Program Uncovers Large Mineralized System

News provided by

Callinan Mines Ltd.

Jan 11, 2011, 05:40 ET

VANCOUVER, Jan. 11 /PRNewswire/ - Callinan Mines has received final assays from the drilling conducted this past summer season at their wholly owned Coles Creek property in Northern BC near Smithers. The program consisted of 7,069 metres of diamond drilling, focused on a mineralized volcanic zone approximately 1.5 square kilometers in area. Analysis of drill logs in context of assay results suggest a system of strata-bound epithermal silver-zinc-lead-gold mineralization hosted in a volcanic sediment package, created by a collapsed caldera exceeding 3 kilometers in circumference. Mineralization within this sedimentary basin has proven to be pervasive over large widths (greater than 200 meters). These results indicate the potential for a large, complex, multi-element mineralized structure. President Mike Muzylowski stated that "Further drilling is warranted to test for higher grade in this extensive caldera."

Highlights of assays are below:

Hole   From (m)   To (m)   Length (m)   Au gm/t   Ag gm/t   Zn %   Pb %
                             
Cole28*   268.75   288.60   21.25   3.368   15.33   2.04   0.15
Cole28*   181.40   194.00   12.6   0.146   68.87   2.00   1.22
                             
Cole31   371.00   374.00   3.00   1.12   9.39   0.03   0.02
Cole31   414.60   422.50   7.90   0.43   4.00   0.07   0.03
incl.   422.00   422.50   0.50   3.34   12.43   0.52   0.26
Cole31   443.60   459.10   15.50   0.44   2.90   0.04   0.01
                             
Cole32   52.00   128.70   76.70   0.04   12.56   0.27   0.10
incl.   52.00   62.00   10.00   0.13   9.80   1.13   0.45
incl.   123.70   124.30   0.60   1.06   104.00   6.79   2.67
Cole32   185.00   188.30   3.30   0.02   3.12   2.11   0.14
                             
Cole35   37.75   77.20   39.45   0.13   8.17   0.90   0.33
incl.   37.75   39.20   1.45   0.44   26.00   3.07   0.85
                             
Cole37   28.50   72.80   44.30   0.12   10.21   1.21   0.35
incl.   55.00   72.80   17.80   0.15   12.44   1.68   0.47
                             
Cole38   119.50   135.10   15.60   0.23   15.03   2.28   0.19
incl   128.90   131.80   2.90   0.55   30.14   3.29   0.35
Cole38   163.90   165.90   2.00   0.12   13.00   2.38   0.47
Cole38   200.30   201.20   0.90   0.00   23.00   2.07   0.25
                             
Cole39   260.00   272.00   12.00   0.04   5.50   0.83   0.09
Cole39   335.00   341.00   6.00   2.05   19.50   1.60   0.60
                             
Cole40   25.00   329.00   304.00   0.05   2.42   0.52   0.02
                             
Cole41   32.00   107.00   75.00   0.02   7.64   0.30   0.16
Cole41   440.00   465.30   25.30   0.03   5.22   0.73   0.13
incl   441.00   444.00   3.00   0.10   19.60   2.63   0.45
                             
Cole42   69.20   70.50   1.30   0.13   58.00   0.83   0.25
Cole42   143.00   152.00   9.00   0.02   3.33   1.03   0.01
Cole42   273.60   281.00   7.40   1.35   88.54   0.04   0.10
                             
Cole47   146.00   206.00   60.00   0.02   3.02   0.57   0.11
Cole47   287.00   347.00   60.00   0.07   2.50   1.21   0.09
*Previously reported, Aug 25, 2010.

Callinan Mines maintained a QA/QC program at all stages of exploration. Sample recovery was calculated, measured and observed at a company facility on site at Coles Creek before being cut at the same facility. Samples were sawn in half, one half being kept for storage and the other half placed in pre-labeled plastic bags, tagged with the sample number and recorded in the log. Samples were then shipped to Acme Analytical Laboratories in Vancouver, BC, where they were crushed, split, pulverized and sieved into approximately 30 g samples at 200 mesh. Samples were then assayed by Aqua Regia digestion ICP-MS analysis, and by fire assay fusion method for silver and gold. The lab employs internal quality control by assaying pulp duplicates and inserting quality control standards of predetermined values and a blank sample.

On Behalf of the Board of Directors,

Mike Muzylowski

Mike Muzylowski

The Coles Creek Program is 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) 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 work programs and the timing and amount of expenditures. Callinan does not assume the obligation to update any forward-looking statement.

SOURCE Callinan Mines Ltd.

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