Teck steps into Ring of Fire with Canterra option

Teck Resources (TSX: TECK.A and TECK.B; NYSE: TCK) has made its first step into Ontario’s Ring of Fire. The Vancouver-based major has entered into an option agreement with Canterra Minerals (TSXV: CRM; US-OTC: CRMCF) on its 30-sq.-km property in the region.

Teck will pay a total of $275,000 cash over the next two years, and Canterra will retain a 1.5% net smelter royalty. The NSR can be reduced to 0.5% if Teck makes a further $2 million payment to Canterra.

Canterra acquired its Ring of Fire property through staking just last year. It is located 40 km from the Eagle’s Nest nickel-platinum group metals deposit, owned by Australian miner Wyloo.

Canterra calls this area of the James Bay Lowlands ‘largely unexplored’ due to limited bedrock exposure. The property is known to host several strong VTEM anomalies identified as high-priority drill targets.

The property covers several geophysical targets within bedrock units, that based upon their geophysical attributes, are inferred to be similar to host rocks to the Eagle’s Nest deposit, including mafic to ultramafic intrusive rocks prospective for magmatic nickel sulphide deposits.