International Northair Mines Ltd. (TSXV: INM) (the "Company" or "Northair") is pleased to announce that it has executed an agreement with Sparton Resources Inc. (TSXV: SRI) ("Sparton") and American Consolidated Minerals Corp. (TSXV: AJC) ("American Consolidated") to facilitate the proposed acquisition by American Consolidated of Sparton's 50% interest in the Sierra Rosario Property located in the state of Sinaloa, Mexico (the "Acquisition").
Sparton currently holds a 51% interest in Sierra Rosario under a Joint Venture with Northair. In consideration for Northair waving its right of first refusal to match the American Consolidated offer, Sparton will transfer a 1% interest and operatorship in the Sierra Rosario Property to Northair concurrently with the completion of the first payment and share issuance from American Consolidated to Sparton under their agreement in respect of the Acquisition announced May 11, 2011.
The Sierra Rosario Property was staked by Northair in 2002 to cover the San Rafael gossan in the northern portion of the concession and a significant number of placer gold occurrences in numerous small drainages within the project area. Initial sampling of the San Rafael Zone by Northair returned an average value of 181 g/t silver and 0.32 g/t gold from 23 chip channel samples averaging 5 metres in length from quartz stockwork within a rhyolite porphyry; outlining a target with bulk minable potential. The property was explored by Sparton from 2004 to 2008 pursuant to an agreement under which Sparton earned its 51% interest. Sparton's exploration was focused on the southern part of the concession, but included construction of the first road access to the San Rafael Zone. Sampling completed in 2008 along the road cuts in San Rafael included an additional 321 samples using continuous channel sampling along 3 meter sample lengths. Two continuous channel samples in this area,34.8 meters and 27 meters long, averaged 192 g/t silver and 91.8 g/t silver, respectively -- reinforcing the bulk minable potential.
Several small historical underground mines, including La Descubriadora and Dulces Nombres were discovered to the east of San Rafael during this work program. Both host manto-skarn base and precious metal mineralization. At Dulces Nombres 35 underground chip samples from 1.5 to 3.0 metres in length averaged 0.71g/t gold, 263 g/t silver and 0.35% copper. At La Descubriadora 19 chip samples of similar size taken underground averaged 0.40 g/t gold and 83.7 g/t silver.
No drilling has ever been documented at San Rafael or these other areas.
Once American Consolidated has notified Sparton that it has completed its due diligence and will proceed with this Acquisition, Northair and American Consolidated will meet to design a joint exploration program for the 2011 season.
Northair is pleased to have a new partner on the Sierra Rosario Project and will work aggressively as the Operator to explore the property.
This news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed 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"
Fred G. Hewett, P.Eng.
President & CEO
For further information please contact Fred Hewett, President or Chris Curran, Investor Relations
at 604-687-7545 or 1-888-338-2200
Website: www.northair.com/international/ Email: [email protected] ____________________________________________________________________________
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 news 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 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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