Tropico stake optioned to Sumitomo

Fairfield Minerals (FFD-T) has inked a deal with Japan’s Sumitomo Metal Mining Co. and Vancouver-based junior Santoy Resources (SAN-V) to form a joint venture on the Tropico copper-platinum-palladium-gold project near Mazatlan, Mexico.

Under a 2000 option deal, Santoy recently acquired a 50% interest in the property. Fairfield expects Santoy to soon make expenditures, including property payments, to bring its interest in the property to 60%. Failing those expenditures being made within a month of signing the Sumitomo deal, Santoy will be required to issue shares, equal in value to the balance of required expenditures, to Fairfield.

Sumitomo can earn a 51% stake in Tropico by spending US$3 million on exploration over three years, including a commitment to spend US$600,000 by March 31, 2002. The company can boost its interest level to 70% by:

• funding a bankable feasibility study to completion;
• arrange 100% of project financing, including all equity for the junior partners;
• providing a project completion guarantee and
• proving finance and beginning construction within 18 months, if the project is deemed to be 50% debt financable.

If Sumitomo elects to proceeds, Fairfield would be carried into production for a net 12% interest.

A diamond drill program aimed at testing encouraging trench results in the Maricela area is planned fro October. Additional surface work, including trenching and follow-up drilling on other anomalous areas on the eastern portion of the project is also planned.

In May 2001, Santoy carried out a 1,500-metre trenching program on the Maricela area, one of eight anomalies on the property. The weighted average obtained from 793 metres of trenching in 12 trenches ran 0.54% copper, 0.22 gram platinum, 0.29 gram palladium and 0.18 gram gold per tonne. Mineralization is widespread and comprised of disseminated chalcopyrite and bornite present within pyroxenites, tremolite altered pyroxenites and mixed pyroxenites and gabbro zones.

In 1998, two reverse circulation holes in the area cut 36 metres of 0.24% copper and 0.07 gram gold from surface and 81 metres (from 36 metres below surface) of 0.14% copper and 0.06 gram gold. A second hole to the southwest failed to return significant mineralization.

Fairfield originally acquired the property in 1998, subject to a 2.25% NSR.