Northair Significantly Increases Land Position at La Cigarra Silver Project, Mexico
October 03 2012 - 6:00AM
Marketwired Canada
International Northair Mines Ltd. (TSX VENTURE:INM) (the "Company" or
"Northair") is very pleased to announce the acquisition of a significant package
of mineral concessions totaling nearly 32,000 hectares contiguous to the
Company's La Cigarra silver project located in the state of Chihuahua, Mexico.
The land package was acquired through an option agreement, staking and purchase
to cover permissive ground that surrounds the Company's original La Cigarra
concessions. Drilling at La Cigarra by the Company has outlined a potentially
surface minable mineralized system with an open ended strike length in excess of
three (3) kilometres. An initial resource estimate utilizing the results from
111 core holes and 11 reverse circulation holes covering 2,400 metres of this
system is presently being calculated.
Work to date by Northair indicates significant geological potential exists over
multiple areas on these newly acquired concessions and priority target areas
have already been identified. Surface sampling on the new concession 500 metres
south of the La Carolinas Zone, has returned values up to 233 g/t silver and the
Company has commenced an aggressive exploration program to advance the new
acquisitions to the drill ready stage.
Northair will host a conference call and live audio webcast on Wednesday October
3 at 8.00 am Pacific Time (11.00 am Eastern Time) to outline the significance of
this land acquisition. Conference call and live audio webcast details are
located at the end of this release and on the Northair website:
www.internationalnorthair.com.
"The consolidation of this large land package is an important step for the
Company and one of the most exciting developments at La Cigarra since the
release of initial drill results," said Fred Hewett, President & CEO of
Northair. "This new land position not only covers the down dip projection of
known silver mineralization but also the extensions of the mineral system on
strike to the north and south beyond the Company's previous land holdings. As
supported by a number of historic mine working on trend to the south of the Las
Carolinas Zone, the strike length of the La Cigarra system doubles from three
(3) to six (6) kilometres in length. To the best of the Company's knowledge, the
newly acquired southern half of the mineral system has seen no drilling. There
is also significant mineralized potential on the remainder of this large land
package as evidenced by clusters of old workings in several locations as well as
well mineralized grab samples obtained from preliminary prospecting."
Geology and Exploration Potential of the Acquired Properties:
The majority of the new ground is underlain by the same package of sedimentary
and associated intrusive rocks that hosts silver mineralization at the main La
Cigarra occurrence. Numerous old workings, again with similarities to the
original three (3) La Cigarra showings, occur throughout the property and
provide excellent exploration targets.
As noted, significant exploration potential exists immediately to the south of
the Las Carolinas Zone, where preliminary prospecting and rock sampling has
traced silver bearing quartz veining and stockwork for approximately three (3)
kilometres along what is believed to be the southern continuation of the La
Cigarra mineralized system. Two historic mining areas, Las Venadas and La
Soledad are situated 500 and 1,200 metres, respectively south of the original
Las Carolinas Zone. Initial rock chip sampling in the vicinity of Las Venadas
have returned important silver values over an area of approximately 230 metres
by 90 metres. Nineteen (19) of thirty three (33) of these samples exceed 20 g/t
silver as follows:
-----------------------------------
Sample Sample Width Silver
Number (metres) (g/t)
-----------------------------------
42118 2.7 51.1
-----------------------------------
42117 2.5 233.0
-----------------------------------
42116 2.5 23.2
-----------------------------------
42115 1.2 42.9
-----------------------------------
42114 1.1 34.2
-----------------------------------
42113 1.0 51.8
-----------------------------------
42112 1.0 39.5
-----------------------------------
42111 1.2 82.3
-----------------------------------
42103 2.0 44.7
-----------------------------------
42101 2.0 25.9
-----------------------------------
42097 2.2 64.0
-----------------------------------
42082 1.8 33.0
-----------------------------------
42081 1.0 82.0
-----------------------------------
42080 2.0 21.7
-----------------------------------
42079 2.8 41.2
-----------------------------------
42078 1.0 74.1
-----------------------------------
42077 2.2 81.7
-----------------------------------
42076 2.3 54.8
-----------------------------------
42072 1.5 46.3
-----------------------------------
The remaining fourteen (14) samples returned values ranging from 1.1 g/t silver
to 17.5 g/t silver.
Elsewhere on the property, other areas with multiple historic workings have
reportedly yielded gold and silver values and have potential to develop into
substantial exploration targets. Significant among these targets include the
Cienega de San Cristobol area in the extreme northeast part of the property.
Here multiple mine workings occur along a four (4) kilometre west northwest
trend in Tertiary sediments; the Los Cuates area, fifteen (15) kilometres to the
west where prospects occur in Cretaceous siltstones; and the Cerro Gordo area,
eleven (11) kilometres south of Cienega de San Cristobol where mine prospects
are hosted within a granodiorite intrusive.
Click on the following link to view a map of the newly acquired ground:
http://www.internationalnorthair.com/i/maps/2012-10-03_La_Cigarra_Property_Parral_1.jpg
Concessions to be Acquired by Option Agreement:
Pursuant to an option agreement dated April 5, 2012 among DFX Exploration Ltd.,
Grupo Promotor Minero, S.A. de C.V. (together with DFX Exploration Ltd., the
"DFX Parties"), Northair and Grupo Northair de Mexico, S.A. de C.V. (together
with Northair, the "Northair Parties"), the Northair parties have been granted
the exclusive right and option to acquire a 70% interest in certain concessions
immediately adjacent to the La Cigarra concessions (the "70:30 Area") and a 50%
interest in certain other concessions adjacent to the 70:30 Area (the "50:50
Area"). The combined area of the 70:30 Area and the 50:50 Area is approximately
22,300 hectares.
In order for the Northair Parties to exercise the option and acquire a 70%
interest in the 70:30 Area and a 50% interest in the 50:50 Area, the Northair
Parties must (i) pay the DFX Parties an aggregate of $525,000 in cash; (ii)
issue to the DFX Parties from treasury an aggregate of 1,500,000 common shares
in the capital of Northair; and (iii) incur an aggregate of $2,000,000 in
exploration costs on the property by September 25, 2016.
Upon the Northair Parties having exercised the option, the Northair Parties and
the DFX Parties will be deemed to have formed one joint venture with respect to
the 70:30 Area and another joint venture with respect to the 50:50 Area. The
Northair Parties will be responsible for all exploration costs on the 70:30 Area
until completion of a feasibility study and thereafter the parties will fund all
costs in proportion to their interests in the joint venture. In respect of the
50:50 Area, upon exercise of the option, the parties will fund all costs in
proportion to their interests in the joint venture. Northair will be the
operator in respect of the properties and have a casting vote.
If, during the term of the option, a National Instrument 43-101 compliant
mineral resource is calculated with respect to both the existing La Cigarra
concessions and the 70:30 Area, which shows that more than 50% of the aggregate
number of ounces of silver estimated in the calculation are located on the 70:30
Area, then Northair is required to make a cash payment to DFX in the amount of
$5,000,000.
In addition, Northair is required to subscribe for up to 1,000,000 common shares
of DFX Exploration Ltd. at a price of $0.25, which as of the date hereof, would
give Northair an approximate 10% ownership of DFX Exploration Ltd.
The 70:30 Area and the 50:50 Area are subject to a 1% net smelter royalty
("NSR") payable to Oro Gold de Mexico. The DFX Parties will be responsible for
payment of the NSR in respect of the 70:30 Area. Each party to the 50:50 Area
joint venture will pay the NSR in proportion to their respective interest in the
joint venture.
Click on the following link to view a map highlighting the boundaries of the
70:30 Area:
http://www.internationalnorthair.com/i/maps/2012-10-03_La_Cigarra_70_30_Area.jpg
Click on the following link to view a map highlighting the boundaries of the
50:50 Area:
http://www.internationalnorthair.com/i/maps/2012-10-03_La_Cigarra_50_50_Area.jpg
Concession Acquired by Purchase:
The Company acquired 100% of one (1) concession totaling 34.4 hectares from a
private individual at a cost of US$35,000. This concession is contiguous to the
northernmost zone (La Borracha) of the original La Cigarra concessions and is
considered by the Company to cover the projection of the mineralized trend
extending in a northerly direction.
Click on the following link to view a map highlighting the boundaries of the
purchased concession:
http://www.internationalnorthair.com/i/maps/2012-10-03_La_Cigarra_70_30_Detail.jpg
Concessions Staked by Northair:
A total of four (4) concessions covering 9,422.6 hectares have been staked by
Northair and are 100% owned by the Company. These concessions are contiguous to
the southern boundary of the optioned concession.
Click on the following link to view a map highlighting the boundaries of the
staked concessions:
http://www.internationalnorthair.com/i/maps/2012-10-03_La_Cigarra_100_Owned.jpg
Summary:
In total, the new concessions acquired through the option agreement, purchase
and staking increase the original size of the La Cigarra silver property by over
100 times from 306 hectares to 32,064 hectares and consolidates a large land
package over a prospective and largely under-explored area. The importance of
this acquisition cannot be understated as it allows room for the resource
presently being calculated on the original La Cigarra concessions to grow
significantly and provides numerous other high potential exploration targets. In
light of the significance of these acquisitions, it is likely that the timing of
the release of the initial resource will be delayed to early Q1 2013.
A major exploration program on the new concessions is warranted and is underway.
Conference Call and Webcast Information
Northair will host a conference call and live audio webcast to explain the
significance of the land acquisition announced today. Conference call and live
audio webcast details are below and on the Northair website,
www.internationalnorthair.com.
Date: Wednesday, October 3rd, 2012
Time: 8.00 am Pacific Time (11.00 am Eastern Time)
Dial-In Numbers:
-- North American toll-free number: 416-340-2217 / 866-696-5910
-- International toll number: 800-8989-6336
-- Passcode 6703450
Audio Webcast:
A live audio webcast can be accessed at: http://www.gowebcasting.com/3854
Playback Available for One Month Following the Call:
-- North American toll-free number: 905-694-9451 / 800-408-3053
-- International toll number: 800-3366-3052
-- Pass code: 6071482
Sampling and QA/QC
All technical information for the La Cigarra exploration program is obtained and
reported under a formal quality assurance and quality control (QA/QC) program.
Samples are taken under the direction of qualified geologists and stored in
sealed bags. Samples are delivered by the Company via courier to ALS Minerals
("ALS") in Chihuahua and Inspectorate America Corporation ("Inspectorate") in
Durango City. In both cases the samples are dried, crushed and pulverized with
the pulps being sent airfreight for analysis by ALS to Vancouver B.C. and by
Inspectorate to Vancouver B.C. or Reno, Nevada. Systematic assaying of standards
and blanks are performed for precision and accuracy. Analysis for silver, zinc,
lead,copper and related trace elements was done by ICP four acid digestion, with
gold analysis by 30 gram fire assay with an AA finish.
About the La Cigarra Silver Project
The La Cigarra Project is located in the state of Chihuahua along the eastern
fringes of the Sierra Madre Occidental in Mexico. Local topography is gentle
with good road access to the major city of Parral, located 26 kilometres to the
south east. The 32,064 hectare property position controls a significant silver
bearing system, with a resource calculation presently underway on a 2,400 metre
section of the system. It is anticipated the upcoming resource could be
increased with exploration on the newly expanded land position.
This news release has been prepared in accordance with Canadian regulatory
requirements set out in National Instrument 43-101 and approved by Fred Hewett
the Company's President and CEO, and a Qualified Person under NI 43-101.
ON BEHALF OF THE BOARD,
INTERNATIONAL NORTHAIR MINES LTD.
Fred G. Hewett, P.Eng., President & CEO
This news release may contain forward looking statements which are not
historical facts, such as ore reserve estimates, anticipated production or
results, sales, revenues, costs, or discussions of goals and exploration
results, and involves a number of risks and uncertainties that could cause
actual results to differ materially from those projected. These risks and
uncertainties include, but are not limited to, metal price volatility,
volatility of metals production, project development, ore reserve estimates,
future anticipated reserves and cost engineering estimate risks, geological
factors and exploration results. See Northair's filings for a more detailed
discussion of factors that may impact expected results.
This news release does not constitute an offer to sell or solicitation of an
offer to sell any securities in the United States. The securities have not been
and will not be registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons unless registered
under the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
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