Teck and Western Copper advance San Nicolas project

With 17 holes completed to date, Teck (TEK-T) and joint-venture partner Western Copper Holdings (WTC-T) are working to determine the scope of the San Nicolas massive sulphide find in Mexico’s Zacatecas state by delineating the deposit on 100-metre centres using two diamond drill rigs.

San Nicolas is part of the El Salvador project held 55% by Teck and 45% by Western Copper. The discovery area occurs on claims optioned from Luismin, a Mexican mining company, which retains a back-in right to a 25% participating interest.

Results from the first seven holes indicated the pyrite-rich mound was capped by a higher-grade polymetallic zone varying in thickness from 15 to 30 metres in its centre, with an enriched zone of copper-silver mineralization toward the bottom. The western and southern ends of the deposit show indications of having been down-faulted, and probably side-faulted as well. A 500-by-500-metre induced polarization (IP) geophysical anomaly marks the discovery.

The partners recently released assay results from an additional four holes and gave visual thicknesses of massive sulphide drill intercepts for a further six holes.

Hole SAL-34 was collared on the western end of the deposit, 125 metres west of hole 33. It averaged 0.75% zinc, 2.49% copper, 0.02 gram gold and 9.5 grams silver per tonne over 56.9 metres, from 450.6 to 507.5 metres. The hole did not intersect the upper, higher-grade polymetallic massive sulphide zone encountered in hole 33; instead, it intersected stringer mineralization from 155.4 to 280.5 metres downhole.

Hole SAL-33 hit a previously reported 155.7-metre intercept of massive sulphides averaging 1.29% zinc, 1.76% copper, 0.2 gram gold and 16.38 grams silver, at a depth of 160.5 metres. The upper 18.5 metres averaged 7.48% zinc, 3.03% copper, 0.41 gram gold and 31 grams silver. Assays are pending for a 20-metre-long massive sulphide intercept encountered further downhole, at a depth of 460.7 metres.

Hole SAL-35 was collared in the core area of the anomaly, 100 metres east of hole 29 and 100 metres south of hole 32. It intersected 192 metres averaging 1.78% zinc, 1.12% copper, 0.45 gram gold and 29.57 grams silver, starting at a depth of 223 metres. The top 46 metres of the intercept averaged 5.7% zinc, 0.43% copper, 1.63 grams gold and 96.92 grams silver, which compares well with the higher-grade polymetallic zone encountered in holes 29 (19.5 metres averaging 5.27% zinc, 0.27% copper, 2.37 grams gold and 165.3 grams silver) and 32 (38.8 metres averaging 5.6% zinc, 0.3% copper, 1.52 grams gold and 68 grams silver).

Hole 35 also intersected a 13.6-metre interval averaging 3.33% zinc, 3.11% copper, 0.16 gram gold and 21.46 grams silver further downhole, at a depth of 434.8 metres.

Hole SAL-36, collared 100 metres south of hole 24 on the southern end of the anomaly, returned: 16.6 metres averaging 3.22% zinc, 0.48% copper, 1.59 grams gold and 76 grams silver from a depth of 284.9 to 301.5 metres; 20.5 metres averaging 0.71% zinc, 0.82% copper, 0.02 gram gold and 2.7 grams silver at a depth between 358 and 378.5 metres; and 69.5 metres averaging 0.05% zinc, 0.99% copper, 0.01 gram gold and 0.7 gram silver, starting at 405 metres.

The values in hole 36 compare with that of hole 24, which intersected a previously reported 59.1 metres averaging 0.36% zinc, 1.66% copper and 9.1 grams silver, starting at a depth of 399.2 metres.

Hole SAL-37 was collared in the core area, 100 metres west of hole 29 and 100 metres south of hole 31. It intersected 76 metres averaging 5.9% zinc, 1.29% copper, 0.76 gram gold and 71.8 grams silver, at a depth of 151.5 metres. The upper 19.5 metres of the intersection returned the highest grades to date, namely, 18.06% zinc, 2.73% copper, 1.72 grams gold and 211.9 grams silver. This compares favorably with the upper polymetallic zone in hole 31 (29.8 metres averaging 15.88% zinc, 2.06% copper, 1.26 grams gold and 73.5 grams silver).

A lower zone in hole 37 averaged 0.19% zinc, 1.05% copper, 0.03 gram gold and 6.52 grams silver over 37.7 metres, at a depth of 457.7 metres.

While the drilling has confirmed massive sulphide mineralization over an area of 500 metres by 500 metres, the zone appears to be thinning toward the northeast. To date, only one hole, SAL-38, has recorded no intercept. It was collared 100 metres east of hole 32.

Assay results are pending for five other holes. To the west, Hole SAL-40 stepped out 100 metres west of hole 37 and 100 metres southwest of hole 33.

It returned a 39.5-metre section of massive sulphides, starting from a depth of 471 metres.

In the northwest portion of the deposit, hole SAL-41, a stepout 100 metres west of hole 30 and 100 metres north of hole 31, intersected a 122.6-metre-thick interval of massive sulphides, beginning at a depth of 232.2 metres. Stepping out a further 100 metres to the west, hole SAL-42 hit 200.2 metres of massive sulphides, starting at a depth of 224.7 metres.

To the northeast, hole SAL-39 stepped out 100 metres east of hole 30 and hit a 4.2-metre interval at a 246-metre depth. At last report, hole SAL-43, which was in progress, intersected 174.5 metres of massive sulphides, starting at a depth of 211.8 metres. The hole is a 200-metre stepout east of hole 35. Drilling is continuing.

Teck expects to have a solid understanding of the deposit, including metallurgy and reserves, by the time of the company’s annual meeting in April.

Teck holds the right to acquire an additional 10% interest in the project if it chooses to arrange production financing, and can buy a further 5% from Western Copper, based on net present value, upon completion of a feasibility study.