Fresnillo Starts Drilling at 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") have received notification from Fresnillo PLC ("Fresnillo"), that it has commenced an initial diamond drill program at Northair's wholly owned La India gold property, located in the State of Durango, Mexico. The drill program, the first conducted on the property, will initially be comprised of a minimum of five diamond drill holes totaling approximately 650 metres in length.
The La India Project is situated along the eastern edges of the Sierra Madre Occidental province, with low sulfidation gold mineralization occurring associated with rhyolite domes and volcanics. The property is located approximately 140 km north of the state capital city of Durango with excellent local access and infrastructure. The principal target within La India is the breccia zone originally defined by Northair when it acquired the property. Fresnillo has since completed a surface geological mapping and sampling program which has defined an irregular surface area of mineralization having an exposed strike length of approximately 400 metres with widths ranging up to 60 metres. Fresnillo's stated objective for the drill program is to define a mineralized body with a grade exceeding 1 g/t gold that could be mined by open pit methods. Fresnillo has also stated that they believe there is potential for higher grade zones in the breccia ranging from 4 to 12 metres in width, with an average grade of 6.0 g/t gold.
Fresnillo, or a subsidiary of Fresnillo, can 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. Northair is extremely pleased to be working with Fresnillo who operate some of the largest and richest precious metal mines in Mexico.
The La India Project was identified as an attractive acquisition target by Northair exploration staff as part of the Company's ongoing Mexican generative exploration program in 2006. The generative program continues at a reduced pace with the Company presently evaluating other projects for acquisition.
Northair also maintains the El Reventon silver-lead-zinc project in the state of Durango, and the Sierra Rosario silver-gold project (in a joint venture with Sparton Resources Inc.) in Sinoloa. Both properties cover attractive mineral occurrences and the Company is soliciting interest from possible joint venture partners in order to advance the projects.
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Jim Robinson, the Company's Vice President of Exploration, a Qualified Person under NI 43-101.
ON BEHALF OF THE BOARD,
INTERNATIONAL NORTHAIR MINES LTD.
"Fred G. Hewett"
Fred G. Hewett, P.Eng.
President & CEO
For further information please contact Fred Hewett or Chris Curran
at 604-687-7545 or 1-888-338-2200
Website: www.northair.com/international/ Email: email@example.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
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 the Company's AIF Report and filings for a more detailed discussion of factors that may impact expected results.