Teck sets exploration sights on Ecuador and B.C.

Teck (TSE) is stretching its exploration arm both north and south. The Vancouver-based major has entered an agreement with Ecstall Mining (VSE) to increase its property holdings in eastern British Columbia while, at the same time, proceeding to evaluate a placer gold project in Ecuador.

The agreement with Ecstall follows Teck’s recent discovery of a stratabound, zinc-lead zone within its Driftpile property (T.N.M., Oct. 18/93). The project, near Williston Lake, is in the same geological region that hosts the Stronsay (Cirque) massive sulphide deposit of Curragh Resources.

Ten holes from Teck’s recent 13-hole program intersected the zone while testing an area away from a previously identified resource. Two of the better intersections are 5.23 metres grading 20.67% zinc and 8.3% lead, and 12 metres of 10% zinc and 1% lead.

Teck intends to acquire an interest in Ecstall’s claims adjoining the Driftpile project to the east, as well as claims within its Driftpile claim block, south of the discovery zone.

Teck can earn a 55% interest in all of the Rift claims by spending $1 million on exploration and by making option payments of $100,000 over four years. The major would then have the option to increase its interest to 65% by incurring another $500,000 in exploration, and $50,000 in option payments in the fifth year.

Ecstall holds six other claim blocks in the northern Kechika Trough which hosts lead-zinc soil anomalies within the Gunsteel shale formation. The junior is seeking major company participation to drill-test these previously defined geochemical targets.

Ecstall also holds several claim blocks in the southern Kechika Trough, near Curragh’s Stronsay mine. These claims have been farmed out to Metall Mining, which plans to explore them further in 1994.

The increased activity in the region by these major and junior companies is giving rise to speculation that Teck or associated company Cominco (TSE) may be interested in acquiring Stronsay as a source of feed for Cominco’s smelter complex at Trail, B.C. Stronsay is on the block because of the recent bankruptcy of Curragh.

Meanwhile, Teck has won government approval to evaluate the Aguarico River placer gold project in Ecuador. (The agreement is subject to an environmental management plan being accepted.)

Nestled in the eastern foothills of the Andes, 600 metres above sea level, the project is accessible by boat, up river from a main highway. The capital city of Quito is 120 km to the west.

Teck can earn a 75% interest from an affiliate of Zappa Resources (VSE) by completing a feasibility report within 12 months and placing the property in production.

The major has commissioned a British Columbia shipyard to build a jet-boat to transport equipment to the site and plans to ship the boat to Ecuador shortly. The first phase of work is expected to begin in early January. The project is owned through Prominex, an Ecuadorian company which Zappa bought earlier this year. The price: 6.8 million shares, including 4.3 million escrow performance shares. The escrow shares can be released only upon completion of a feasibility report demonstrating a minimum value of $4.3 million for Zappa’s resource assets.

Zappa is also evaluating Prominex’s Ponce Enriquez project in southwestern Ecuador. Sampling of highly silicified volcanic rocks exposed in underground crosscuts returned an average grade of 19.9 grams gold per tonne from the first 73 vein samples taken.

The property is next to concessions owned by co-operatives of individual small miners which, last year, collectively produced about 80,000 oz. gold from more than 40 veins.

Zappa is also working on the Guadalupe concession, to the northwest. Its objective there is to extend a previously completed geochemical survey which coincides with gold-copper mineralization found in 1991. The company believes the quartz diorite porphyry has the potential to host several million tons at grades of 0.029 oz. gold, with associated copper values.

John Brock, a director of Zappa, said the company expects to be drilling on the concessions in the new year.