Teck explores Barry gold property

Senior producer Teck (TEK-T) will explore the Barry gold property in northwestern Quebec.

The property consists of 111 contiguous claims in three blocks and is held under option by juniors Murgor Resources (MUG-T) and Freewest Resources Canada (FWR-T). Two of the blocks are shared equally by the two companies, with the third being wholly owned by Murgor.

Teck can acquire a 51% interest in the property by spending $4.5 million over four years. A large portion of these funds will be used to buy $2.5 million of Murgor shares in five staged payments. Murgor retains the right to remove bulk samples of about 150,000 tons during the option period.

Upon completion of the deal, all subsequent work will be carried out as a joint venture, with Teck acting as operator.

To date, stripping, trenching and diamond drilling on the property have outlined five anomalous gold zones in altered mafic volcanics.