Teck will not proceed on Fleck’s platinum bet

In a move that has left Fleck Resources in the words of President Jo hn McGoran”not in the best position,” Teck Corp. has not picked up its option on the former’s 100%-owned platinum group metals (PGM) deposit in Marathon, Ont.

John May, president of Teck Exploration tells The Northern Miner that as “the current smelter schedules we had access to for evaluation didn’t allow us sufficient return,” Teck decided against proceeding with the project. The return contracts were “too tough,” says Mr May.

Under the terms of the original letter of intent signed this past September (N.M., Sept 29/86), Teck had agreed to complete a preliminary assessment of the economic viability, including a reserve study of the property by Oct 31, followed by a preliminary pit design by Nov 15.

Upon completion of the above and providing that in Teck’s opinion, the results were favorable, Teck would then complete its own formal feasibility study on the property before Sept 30, 1987. Within six months of this, provided the property was economic, Teck could then make a commitment to place the property into production, thus earning a 100% interest in the property, subject to a 50% net profits interest to Fleck.

Teck will not be proceeding to the feasibility stage.

Fleck says that Teck has no further right, title or interest in the property.

Mr McGoran tells The Northern Miner that Teck will provide a report on its findings over the course of the next few weeks. In the meantime, Fleck says it is “currently in discussions” with “other substantial parties” in joint venturing the property, though these parties have not been named.

He adds that Fleck has accelerated its plans with a local consultant to do an evaluation on the deposit regarding tonnage and grade. The company hopes to have its own data in about one month’s time, he adds.

At present, Fleck estimates the mineral inventory at the Marathon deposit to be between 19 to 47 million tons, depending on depth, says Mr McGoran, and grading 0.07 oz per ton platinum/palladium and 0.45% copper.

Fleck has spent about $1 million on the property so far, not including the $500,000 spent in acquiring the property. Mr McGoran estimates that it would cost in the order of $100 million to develop the mine.

If Teck had elected to proceed to feasibility it would have transferred a 535-acre mineral lease, adjoining the Marathon property, from Teck- controlled Bamoos Minerals to Fleck. Mr May says Teck will now deal with Fleck on commercial terms on that lease.

Shares of Vancouver-listed Fleck have suffered on the news that Teck is no longer interested in the Marathon property. A drop of 75 cents during the week ended Nov 21 saw the shares close at $3 — a far cry from the the $4.30 level at which the company was trading just after its agreement with Teck was announced in the fall. The company’s 52-week high and low are $5.25 and $2.30, respectively.

The company has also been working to achieve a Toronto listing in the new year. (N.M., Oct 13/86).

Meanwhile Teck has not abandoned the search for platinum. The company is involved in the preliminary reconnaissance stage on a platinum bet located on the east coast of Greenland with Calgary- based Platinova, says Mr May.