Fresnillo Plans Drilling at Northair's La India Project, Mexico
International Northair Mines Ltd. Provides Corporate Update
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 is planning to conduct an initial diamond drill program at Northair's wholly owned La India Project gold property, located in the State of Durango, Mexico. The drill program, the first conducted on the property, will include an initial minimum of three diamond drill holes totaling approximately 650 metres in length.
Fresnillo, the world's largest primary silver producer and a major unit within the Penoles Group of companies, has provided a report to Northair which describes their activities on the project during the last six months, with programs including geological mapping and rock chip sampling. To date over 2,000 samples have been taken by Fresnillo within the project area.
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 principal target within the La India Project is the breccia zone originally defined by Northair in 2006. Fresnillo's geological mapping has defined an irregular surface area of mineralization having an exposed strike length of approximately 400 metres with widths ranging up to 60 metres. Assay results previously reported from Northair's sampling of the breccia returned an average grade of 0.965 g/t gold, including 32 metres of 2.31 g/t gold. From the maps provided by Fresnillo, Northair calculates that Fresnillo has taken 158 rock chip samples within the breccia zone reporting an average grade of 0.630 g/t gold. Highlights from some of Fresnillo's sampling within the breccia are provided in the following tables:
Fresnillo's stated objective for the 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 in their report 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 generative exploration program. It is located approximately 140 km north of the state capital city of Durango with excellent local access and infrastructure. Northair's other projects in Mexico include the El Reventon Project in Durango and the Sierra Rosario Project in Sinaloa.
El Reventon covers a disseminated silver-lead-zinc occurrence that requires further drilling to define a resource. To date, 23 drill holes have been completed by Northair, highlighted by Hole RC-08-13 containing an intercept of 120.4 metres of 100.9 g/t silver. The Company is presently reviewing its options for the property, which could include further drilling or obtaining a joint venture partner.
Sierra Rosario, a joint venture with Sparton Resources Inc., is situated in an active exploration area adjacent to West Timmins' Montana De Oro Project. Northair's JV property covers numerous mineral occurrences with the most obvious drill targets situated at the San Rafael Zone. Surface sampling of the zone has returned 34.8 metres of 192 g/t silver with 0.22 g/t gold and the zone is drill ready.
During the last fiscal quarter, Northair has taken positive steps to reduce its future cash flow commitments by reducing corporate overhead and exploration costs in response to weakness in global financial markets. Although the Company's Mexican generative program has been scaled back, the search for significant acquisitions will continue, as Northair believes that in this time of reduced competitor exploration activity, opportunities exist that may not have been previously as easily attainable.
The Company also announces that Reginald Stranks has retired as a Director after over 22 years of service. Northair thanks Mr. Stranks for his many years of dedication and wishes him well in his retirement. In addition, Richard Godfrey has resigned as CFO of the Company to devote his full efforts to Capstone Mining Corp., which recently completed a business combination with Sherwood Copper Corp. As a result of Mr. Godfrey's departure, the Company is very pleased to have Mr. Bernie Zacharias, C.A. assume the duties of Chief Financial Officer effective February 1, 2009. Mr. Zacharias has a proven track record of providing financial services to resource companies, and Northair welcomes him to their team.
Subject to regulatory approval and upon availability under the Company's Stock Option Plan, the Company has granted 485,000 stock options at $0.15 to officers, employees and directors. All of the options are exercisable over a period 5 years.
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 director and 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: firstname.lastname@example.org
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press 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.