Teck subsidiary options Northair ground

The Mexican subsidiary of Teck (TSE) will earn a 51% interest in the Lachatao property of International Northair Mines (VSE).

Situated in Oaxaca state, the property covers most of a major, historical gold district.

Nearly 200 mine workings and small prospects have been identified on the property.

Northair carried out sampling on the northern half of the property, identifying several stockwork and disseminated bulk-tonnage gold targets.

The overwhelming number of targets, combined with the size of the property, prompted Northair to seek a joint venture with a major mining company.

To earn its interest, Teck must pay US$275,000, as well as spend US$750,000 on the property over two years.

The major can boost its interest to 70% by paying an additional US$100,000, spending an additional US$1 million and arranging project financing.

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