Teck and Western Copper hit more sulphides in Mexico

Drilling on the San Nicolas volcanogenic massive sulphide discovery in central Mexico has wound down for the Christmas holidays.

The project is part of the El Salvador joint venture situated in Zacatecas state, held 55% by Teck (TEK-T) and 45% by Western Copper Holdings (WTC-T).

Luismin, a Mexican gold mining junior, holds a back-in right to a 25% participating interest in the discovery.

Teck can acquire an additional 10% interest in the project by arranging production financing and can buy a further 5% from Western Copper based on the net present value of the project upon completion of a feasibility study.

Teck has completed five additional holes to follow up the

discovery hole, SAL-25, which intersected a 175.2-metre thick interval of massive sulphides averaging 1.5% zinc and 0.52% copper, plus 0.61 gram gold and 19.41 grams silver per tonne starting at a depth of 205.8 metres. The top 28.4 metres of the massive sulphide intersection averaged 5.53% zinc and 0.64% copper, plus 1.2 grams gold and 47.6 grams silver.

Stepping out 100 metres west of the discovery hole, hole SAL-31 intersected a 262.9-metre thick zone of massive sulphides starting at a depth of 165.9 metres down hole. Hole SAL-32 was drilled 100 metres east of the discovery hole and encountered 63 metres of massive sulphides starting at a depth of 247 metres.

A 100-metre stepout south of the discovery hole, hit multiple intervals of massive sulphides in hole SAL-29, including: a 167.5-metre thick zone starting at a depth of 180.5 metres down, a 20-metre thick interval starting at 360 metres down; and a 75.4-metre-thick zone starting at 422 metres down.

Stepping out a further 100 metres to the south, hole SAL-24 intersected 54.8 metres of massive sulphides starting at a depth of 403.5 metres. The massive-sulphide zone, however, was hit about 200 metres below its projected depth, suggesting a near-vertical fault between holes SAL-24 and SAL-29 has displaced the zone.

Hole SAL-30 was drilled 100 metres north of the discovery hole. A 69.5-metre-long interval of mostly semi-massive and stringer mineralization was intersected at 240.5 metres down-hole.

Assay results for these holes are expected in mid-January.

The massive sulphide zone is flat-lying and overlain by mafic volcanics consisting of tuffs and flows, with minor sedimentary units. Younger Tertiary-aged volcanics cover the mafic unit. The underlying footwall is composed of interlayered sediments and felsic volcanics.

The massive sulphide mineralization is predominantly pyrite, with lesser amounts of sphalerite and chalcopyrite.

Drilling is expected to resume in early January. Teck plans to drill off the San Nicolas deposit on 100-metre centres, a process that will likely take about 40 holes and six months to complete.