News
November 26, 2007
Peñoles Joins Northair On The 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") announces that it has signed a Letter of Intent with Exploraciones Mineras Parreña, S.A. de C.V., a subsidiary of Minas 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 pleased to join forces with Peñoles who, as one of the world's largest silver producers, operates some of the largest and richest precious metal mines in Mexico.
Peñoles can earn a 60% interest in the project by maintaining the obligations to the owners of the privately held internal La India concession, making cash payments to Northair of US$210,000, purchasing Northair shares from treasury valued at US$210,000 (at a 20% premium to market value) and by completing exploration expenditures of US$1,750,000 over a four year period.
The first year payment/share purchase of US$39,000 and exploration expenditures of $150,000 are a firm Peñoles commitment, with all subsequent expenditures optional.
Peñoles can increase their interest in the project to 75% by preparing a Pre-Feasibility Study, and can increase its interest to 80% by financing Northair to production with a 90:10 preferential payback to Peñoles from production. If Northair elects not to participate, Northair will retain a 1% NSR interest. The final agreement is subject to board and regulatory approval.
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 in the Sierra San Francisco, approximately 30 kilometres east of the small city of Santiago Papasquiaro and 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 86 Northair samples taken within the exposed mineralized area returned an average grade of 0.965 g/t gold. Included within these samples were two lines of continuous sampling over limited outcrop. These lines were essentially perpendicular to each other and were comprised of five metre continuous chips. Line 1 returned 32 metres @ 2.31 g/t gold and line 2 returned 48 metres @ 1.08 g/t gold. Reconnaissance exploration has indicated that the zone is traceable through intermittent outcrops for several hundred additional meters in strike length.
The La India Project was identified as an attractive acquisition target by Northair exploration staff early in June of 2006, as part of the Company's generative exploration program. The Company is extremely pleased to have Peñoles as a partner and looks forward with anticipation to the commencement of exploration.
The contents of this Press Release have been reviewed and approved by Mr. Jim Robinson, Vice President of the Company who is a Qualified Person as defined by NI 43-101. The Company 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, P.Eng.
President & CEO
FOR MORE INFORMATION CONTACT THE COMPANY AT 1-604-687-7545 or Toll Free 1-888-338-2200
Website: www.northair.com/international/ Email: [email protected]
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.
Peñoles can earn a 60% interest in the project by maintaining the obligations to the owners of the privately held internal La India concession, making cash payments to Northair of US$210,000, purchasing Northair shares from treasury valued at US$210,000 (at a 20% premium to market value) and by completing exploration expenditures of US$1,750,000 over a four year period.
The first year payment/share purchase of US$39,000 and exploration expenditures of $150,000 are a firm Peñoles commitment, with all subsequent expenditures optional.
Peñoles can increase their interest in the project to 75% by preparing a Pre-Feasibility Study, and can increase its interest to 80% by financing Northair to production with a 90:10 preferential payback to Peñoles from production. If Northair elects not to participate, Northair will retain a 1% NSR interest. The final agreement is subject to board and regulatory approval.
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 in the Sierra San Francisco, approximately 30 kilometres east of the small city of Santiago Papasquiaro and 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 86 Northair samples taken within the exposed mineralized area returned an average grade of 0.965 g/t gold. Included within these samples were two lines of continuous sampling over limited outcrop. These lines were essentially perpendicular to each other and were comprised of five metre continuous chips. Line 1 returned 32 metres @ 2.31 g/t gold and line 2 returned 48 metres @ 1.08 g/t gold. Reconnaissance exploration has indicated that the zone is traceable through intermittent outcrops for several hundred additional meters in strike length.
The La India Project was identified as an attractive acquisition target by Northair exploration staff early in June of 2006, as part of the Company's generative exploration program. The Company is extremely pleased to have Peñoles as a partner and looks forward with anticipation to the commencement of exploration.
The contents of this Press Release have been reviewed and approved by Mr. Jim Robinson, Vice President of the Company who is a Qualified Person as defined by NI 43-101. The Company 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, P.Eng.
President & CEO
Website: www.northair.com/international/ Email: [email protected]
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.