MEXICO AND CENTRAL AMERICA — Teck drill-tests Lachatao property

Reverse-circulation drilling is about to begin on the Lachatao gold property, a joint venture of the Mexican subsidiaries of International Northair Mines (INM-T) and Teck (TEK-T).

Situated some 35 miles northeast of the city of Oaxaca, the property covers most of a major gold district.

Northair holds the property under an option with a Mexican firm. The initial program outlined several bulk-tonnage and high-grade, vein-type gold targets.

Earlier this year, Teck and Northair entered into an agreement whereby the major can earn a 51% interest by providing cash payments of US$275,000 to Northair and spending US$750,000 on exploration over two years. Teck can increase its interest to 70% by paying US$100,000, spending an additional US$1 million on exploration, completing a feasibility study and arranging financing.

Teck recently completed its first phase of exploration, consisting of mapping, sampling and trenching, and results confirm that the property contains a mature epithermal system associated with Tertiary bimodal volcanism.

Teck has accelerated its work program, which is focused on the San Pedro-San Pablo system. Four initial trenches, completed along this system, returned 30 metres averaging 0.35 gram gold per tonne, 44 metres of 1.18 grams, 30 metres of 1.59 grams and 22 metres of 0.38 gram.

Along with the drilling, Teck plans to carry out more regional mapping and sampling, aerial photography and trenching of other targets.