BREAKING NEW GROUND CALLINAN

When surface drills were moved farther north to follow the trend of the deposit worked out from underground drilling, the first hole hit ore at about the 750-ft level. Subsequent drilling followed the deposit down plunge to the 2,200-ft level.

Today, proven reserves stand at 2.6 million tons grading 4.1% zinc, 1.51% copper, 0.055 oz gold and 0.66 oz silver per ton. There are also substantial probable and possible reserves as well.

Another drift, this one on the 2,210-ft level, is being driven toward the deposit and a third, on the 2,750-ft level, is planned. High-speed rail haulage will likely be established on the 2,750 level by the fourth quarter of 1989, says Alastair Walker, vice-president of exploration. Mining rates will be in the order of 2,000 tons per day. Callinan Fact Sheet Location: ……… Flin Flon, Man. Major owners: ……… Hudson Bay Mining & Smelting (51%), Manitoba Mineral Res. (49%), and Consolidated Callinan Flin Flon Mines (6 2/3% NPI). Operator: ……… Hudson Bay Reserves and category: ……… Proven reserves of 2.6 million tons grading 4.1% zinc, 1.51% copper, 0.055 oz gold and 0.66 oz silver per ton. Metal(s) to be produced: ……… Copper, zinc, gold, silver Discovery date: ……… 1984 Production decision: ……… 1987 Start-up date: ……… Last quarter, 1989 (commercial production) Budgeted capital costs: ……… N/A Actual capital costs: ……… N/A Cash operating costs: ……… N/A Means of access: ……… Drifts from Flin Flon mine Extent of horizontal workings: ……… Three main levels at 1,690 ft, 2,210 ft and 2,750 ft (main haulageway) Mining method: ……… Cut-and-fill Mining equipment: ……… Track haulage, trackless ore extraction Production rate: ……… 2,000 tons per day (peak rate) Milling: ……… Flin Flon mill (Hudson Bay circuit) Major contractors: ……… Development by Hudson Bay Current status: ……… Pre-production

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