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Fox River Mafic Belt

Summary

The Fox River mineral license consists of a large claim block North of the Fox River sill. The property is located on a structural extension of the Thompson Nickel Belt, host of dozens of high grade nickel mines. It is postulated that the Fox River belt contains folded ultramafic structures similar to those found in Thompson.

Callinan's interest in the area began in 2003. Since their initial acquisition, the area of ground that the company controls has increased steadily. The company currently controls 203,750 hectares of ground to the North and Northwest of the Fox River Sill. Challenges associated with the rugged, remote terrain and deep overburden have left the region under-explored, despite it's incredible potential.

Geophysical Advances

The development of the first helicopter borne time-domain electromagnetic survey system - Geotech's VTEM - has given Callinan's geological team a renewed look at this area. Previous geophysical technologies were unable to penetrate the thick overburden at Fox River. The VTEM system, however, is capable of the type of penetration needed to see beneath the deep overburden and isolate the many large conductive and magnetic zones in the region.

An airborne VTEM survey conducted in the winter of 2006 / 2007 isolated numerous large bodies of conductivity and magnetism which have been classified as potential base and precious metal bearing sulphide structures. Many of these anomalous areas measure several kilometers across.

The VTEM survey has guided Callinex's staking activities and given the company confidence in the enormous potential of Fox River.

Geochemical Confirmation

The anomalies isolated by the VTEM survey are large in both size and number. More than 100 separate targets with strong conductive signatures have been isolated on Callinan's Fox River ground. While the size and potential of these anomalies is enormous, their number represents a logistical challenge. Whereas previous explorers of the Fox River belt were challenged with too few targets, Callinan has been challenged with too many.

In order to categorize the VTEM anomalies and isolate them for drilling, Callinan is conducting an ongoing geochemical program using <Mobile Metal Ion technology. MMI surveys involve sampling the organic material beneath snow packs and testing for ionic metal values associated with sub-surface mineralization.

The MMI process has quickly become a highly sought after and respected exploration tool. Callinan's MMI sampling program conducted in 2007 produced anomalous results indicative of underlying geological formations containing nickel, copper, cobalt, platinum, palladium and gold in seven of the twelve test areas. Callinan's exploration program is designed to test areas where MMI has indicated sub surface metal values that coincide with VTEM based geophysical occurrences. Additionally, field teams will continue the MMI work begun in 2007 in an effort to prioritize and better understand the numerous drill targets at Fox River.