Drilling Planned by Fresnillo for International Northair's La India Project, Mexico
International Northair Mines Ltd. (TSXV:INM) and its wholly owned subsidiary Grupo Northair de Mexico, S.A. de C.V. ("Northair" or the "Company") is pleased to announce that it has signed binding agreements, subject to regulatory approval, with Fresnillo PLC ("Fresnillo"), a subsidiary of Industrias Peñoles, S.A. de C.V. ("Peñoles"), to form a joint venture on Northair's La India Project, located in the State of Durango, Mexico. Northair is very pleased to join forces with the Penoles Group who are aggressive mineral explorers and operate some of the largest and richest precious metal mines in Mexico.
Fresnillo has informed Northair that exploration on the project has commenced with surface geological mapping, sampling and definition of drill targets. An initial drill program is planned.
As originally announced as a Letter of Intent with a subsidiary of Peñoles on November 26, 2007, the agreements allow Fresnillo, or a subsidiary of Fresnillo, to earn a 60% equity participation in a Joint Venture company to be incorporated by the parties upon Fresnillo completing exploration expenditures on the La India Project of US$1,750,000, paying Northair US$210,000 and purchasing Northair shares from treasury valued at US$210,000 (at a 20% premium to market at the time of purchase) over a four year period.
Fresnillo can increase its equity participation in the Joint Venture company to 80% by preparing a scoping study on the resources found. If Northair elects not to participate in additional funding of the project, Northair will retain a 1% net smelter return royalty interest. The agreements contain a provision whereby, if Northair becomes aware of an entity acquiring more than 50% of the voting shares of Northair, Fresnillo is granted the option to either buy Northair's interest in the project, or offer to Northair Fresnillo's interest in the project, at a price to be determined by an independent duly qualified international appraiser. In the event that Fresnillo elects to offer its interest to Northair and Northair fails to complete the acquisition within 45 business days, Fresnillo shall have the option to sell its interest to a third party at an equal or higher price.
The La India Project contains low sulfidation gold mineralization in transitional rhyolite volcanic pyroclastics that have been intruded by numerous rhyolite stocks, dikes and sills. The project has excellent access and infrastructure and it is located approximately 140 kilometres north of the state capital city of Durango. Geological mapping completed by Northair has defined an irregular surface area of mineralization, with exposed widths ranging from 25 to 70 metres and a strike length of at least 200 metres. Assay results received from Northair samples taken within the exposed mineralized area returned an average grade of 0.965 g/t gold including 32 metres @ 2.31 g/t gold. Reconnaissance exploration has indicated that the zone is traceable through intermittent outcrops for several hundred additional meters in strike length and remains open.
The La India Project was identified as an attractive acquisition target by Northair exploration staff in 2006, as part of the Company's ongoing generative exploration program. As well as the La India Project, Northair remains active in Mexico with exploration of its El Reventon and Sierra Rosario properties, and continues to search for additional attractive projects.
The technical contents of this Press Release have been reviewed by Mr. Jim Robinson, Vice President of the Company who is a Qualified Person as defined by NI 43-101. Northair maintains a quality control program using best industry practices consistent with NI 43-101.
ON BEHALF OF THE BOARD,
INTERNATIONAL NORTHAIR MINES LTD.
"Fred G. Hewett"
Fred G. Hewett, P.Eng.
President & CEO
at 604-687-7545 or 1-888-338-2200
Website: www.northair.com/international/ Email: firstname.lastname@example.org