Teck takes over Minco’s White Silver Mtn.

The exercise by Teck (TEK-T) of 125,000 warrants of Minco Mining and Metals (MMM-T) will enable it to become operator of the White Silver Mountain base metal project in Gansu province, China.

Minco is working to define a new zone of mineralization below the Xiaotieshan base metal mine, currently operated by state-owned Baiyin Non-Ferrous Metals (BNMC).

Xiaotieshan boasts reserves of 10.7 million tonnes grading 1.1% copper, 3.3% lead and 5.1% zinc, plus 2.1 grams gold and 100 grams silver per tonne, and is producing at a rate of 750 tonnes per day.

Minco is earning an 80% interest in the non-producing areas of the 110-sq.-km White Silver Mountain project, and has acted as operator until now. BNMC holds the remaining interest. To earn its interest, Minco must spend US$4.8 million on exploration over six years. Teck can earn 70% of Minco’s interest by assuming the cost of subsequent work following the first phase of drilling. That would leave Minco with a 24% interest carried to production. Minco has completed its first phase of underground drilling and says that mineralization continues for at least 200 metres along strike and 300 metres below current mining levels.

A second-stage, 8,000-metre drill program planned by Teck is designed to test two 300-by-300 metre areas located to the east and west of previous intersections. Excavation of the drift 200 metres to the east is complete, and drifting towards the west will begin soon.

As it drills underground, Teck also will explore the 110-sq.-km property. Surface exploration will consist of detailed mapping, and geochemical and geophysical surveys in areas with potential to host volcanogenic massive sulphide deposits.

Cominco (CLT-T) can exercise a back-in right at any time before the prefeasibility stage by paying Teck and Minco one-and-a-half times total project costs. Should Cominco exercise that right, Cominco will own 20%, Minco 19%, Teck 41% and Baiyin, 20%.