Deep drilling tests War Baby property

A deep-hole drill program is under way on the War Baby property in downtown Flin Flon, Man.

Owner Consolidated Callinan Flin Flon Mines (VSE) is testing the premise that its strategically situated property covers the down-plunge extension of Hudson Bay Mining & Smelting’s Callinan mine at a vertical depth of 5,000-5,700 ft.

Drilling is being carried out with a directional wedge system, and was last reported to be at depth of 820 ft. The targeted depth will not be reached for several months hence.

HudBay, a wholly owned subsidiary of Luxembourg-based Minorco, started up the Callinan underground zinc-copper mine in 1990. Consolidated Callinan holds a 6.67% net profits interest (NPI) in the operation and receives a 25 cents-per-ton royalty, which, at present, generates $130,000 per year in payments. The NPI has yet to generate any revenue.

The Callinan mine is cranking out 600,000 tons per year, and, as of 1994, contained 3.9 million tons grading 3.45% zinc and 1.45% copper, as well as 0.069 oz. gold and 0.6 oz. silver per ton.

This past September, Consolidated Callinan acquired the War Baby property, along with four other properties in the Flin Flon region, from a long-time Manitoba prospector in return for 800,000 shares.

The War Baby adjoins the southeastern boundary of HudBay’s Callinan mine claims and comprises 1,500 by 1,500 ft., less an overlap by a Callinan mine claim on the southwestern portion.

HudBay is drilling on both sides of the War Baby property. One rig is 30 ft. from the northern boundary, while a second lies 1,000 ft. from the southern claim boundary. Results were unavailable at presstime.

Michael Muzylowski, president and chief executive officer of Consolidated Callinan, believes the War Baby straddles the projection of the Callinan mine down-plunge. He has worked extensively in the Flin Flon-Snow Lake area and bases his projection on regional knowledge.

He believes the deposits extend considerably down-plunge.

Consolidated Callinan’s activity is not restricted to Manitoba. Earlier this year, the company acquired 1,400 claims, at the grassroots stage, in Labrador and northwestern Newfoundland. They contain some known gossans and geochemical anomalies.

With $4.5 million in its treasury, the company has sufficient funds to explore its holdings. Line cutting and geophysical surveys were recently carried out on the Stack, Walter and Lynn claims in the Flin Flon area in preparation for drilling in the new year.

Consolidated Callinan has 11.2 million shares outstanding, or 13.5 million fully diluted.