MINING IN MEXICO — Teck plans Mexican drill programs

Active in Mexico the past two years, Vancouver-based Teck (TSE) recently set up a wholly owned subsidiary, Minera Teck, S.A. de C.V., through which it will channel exploration funding and own properties in the country.

Teck says currently it has eight projects in Mexico, and at least five drilling programs are planned for the next six months. The company’s focus is on three deposit types: porphyry copper (and gold) deposits, bulk-tonnage gold deposits and carbonate-hosted polymetallic (zinc-lead-silver-gold) deposits.

Under evaluation are properties throughout northern and central Mexico. The company is considering joint venture possibilities with established Mexican mining companies and the funding of junior Canadian exploration companies active in Mexico.

The porphyry copper projects have been directed by Teck’s U.S.-based geologists, with the use of Mexican consultants. The gold and carbonate-hosted polymetallic projects have been conducted mainly through a contract arrangement with International Mineral Development and Exploration and its Mexican subsidiary Mineral Cascabel.

“With the recent changes in the Mexican mining law and tax structure, it’s clear that Mexico is encouraging foreign investment in the mining sector and realizes the value of growth in this industry to the overall economy of Mexico,” said Bill Meyer, president of subsidiary Teck Exploration. “This is in contrast to recent policy shifts in Canada and the U.S., which, in effect, discourage new mine investment and as a result, exploration.” Managing the company’s exploration program in Mexico is Joe Ruetz, vice-president of subsidiary Teck Resources, which is based in Reno, Nev. Ruetz feels the opportunities for significant new discoveries in Mexico will come from detailed re-evaluation of known districts and occurrences. “Modern sophisticated geophysical and geochemical techniques have not been widely applied and drilling in many districts has been limited. Our program is district-based and drill-intensive,” Ruetz said.