Teck Cominco funds exploration at JayJay

Vancouver A $9-million option agreement gives Teck Cominco (TEK-T) rights to earn up to a 65% interest in the Jayjay property held by Lysander Minerals (LYM-V) and Eastfield Resources (ETF-V). The copper-gold project is situated in the Quesnel Trough, a belt of prospective geology in north-central British Columbia.

Lysander and Eastfield believe the property has potential to host a large alkalic copper-gold system similar to those found elsewhere in the region. Previous exploration by the companies has focused on the Lorraine zone, while more recent programs have led to the discovery of several new zones and target areas.

The 29,000-hectare Jayjay property was assembled to cover a large, ring-shaped magnetic anomaly, as well as much of the prospective Duckling Creek syenite complex. Eastfield will operate this year’s $1.5-million exploration program under the direction of Teck Cominco.

Once the first-year program is complete, Teck Cominco can elect to spend a further $7.5 million before the end of 2010, at a rate of at least $1.5 million per year. This will give the company a 51% interest in the property, which can be boosted to 60% by funding a feasibility study. Once a positive production decision is made, Teck Cominco can earn a further 5% by arranging or providing financing.