TCK: NYSE / TCK.B: TSX
Chairman: Norman Keevil
President and CEO: Don Lindsay
Vice President, Exploration: Alex Christopher
Teck Resources Ltd. continued robust zinc exploration in Alaska and British Columbia, while dialing back expenditures at many of its copper exploration and development projects during 2014. The discovery and delineation of high-grade deposits near its Red Dog Mine in Northwest Alaska continues to be a primary focus of Teck’s zinc exploration. Going into 2014, Red Dog had 45.4 million metric tons of ore in reserve averaging 15.8 percent (6.05 million metric tons) zinc, 4.1 percent (1.86 million metric tons) lead and 72.6 grams per metric ton (106 million ounces) silver. Qanaiyaq and Paalaaq are potential sources of near term higher-grade ore to supplement the reserves currently being mined from the adjacent Aqqaluk pit. Qanaiyaq, a near-surface deposit that lies to the south of the mined out Red Dog main deposit, has an indicated resource of 8.3 million tons with an average grade of 25.7 percent zinc, 6.9 percent lead and 3.99 ounces per ton silver. Teck has not released a resource for Paalaaq, a deeper deposit immediately north of Aqqaluk. In addition to exploring lands immediately surrounding the mine, Teck continues exploration in the larger Red Dog District. Anarraaq-Aktigiruq, situated roughly eight miles (13 kilometers) northwest of the current operations, is among the high-quality targets Teck is pursuing. Teck discovered Anarraaq in 1999, subsequently establishing an inferred resource of about 19 million tons grading 15.8 percent zinc, 4.8 percent lead, and 2.1 oz/t silver.
For around two decades, Teck and joint venture partner Korea Zinc Co. have been investigating zinc prospects in both the Yukon Territory’s Selwyn Basin and the Kechika Trough of northern B.C. In 2013, the zinc seeking partners cut a deal with Canada Zinc Metals Corp. to explore the Pie, Yuen and Cirque East properties in the Kechika Trough. Under the agreement, Teck and Korea Zinc could earn up to a 70 percent interest in the properties by investing C$8.5 million in them by 2019. With a 2014 budget that will top the C$500,00 first-year minimum, the joint venture partners plan to complete targeted geological mapping, selective rock and soil sampling on high priority targets, core re-logging and sampling from historical Pie and Yuen drill core, and potentially geophysical surveys. The Pie, Cirque East and Yuen properties lie adjacent to Teck and Korea Zinc’s Cirque project. Mineable reserves at Cirque are reported to total 22.1 million metric tons grading 9.4 percent (4.6 billion pounds) zinc, 2.8 percent (1.4 billion) lead and 60 g/t (42.6 million oz) silver. Teck re-established the camp at Cirque and drilled deep targets at the property during 2013.
Teck pulled in the reins on exploration at the large porphyry copper-gold projects it is involved with in northwestern B.C. and Alaska. At GJ, situated about 30 kilometers (20 miles) west of Red Chris, Teck completed a minimal program of data compilation and drill core re-logging. Though nominal, the program is expected to push the company’s total investment in the property over the C$12 million needed to earn an initial 51 percent interest from partner, NGEx Resources Inc, a stake that can be raised to 75 percent by spending C$44 million by the end of 2020. Similarly, Teck did not have drills turning at two other joint venture projects – Galore Creek (Teck-Novagold) or Schaft Creek (Teck- Copper Fox Metals). Early in 2014 Teck elected to take up an option on Kiska Metals Corp.’s Kliyul gold-copper project located 67 kilometers (42 miles) southeast of the shuttered Kemess Mine in north-central British Columbia. Teck can earn a 51 percent interest in the property by spending C$5.5 million on exploration at the property by Jan. 31, 2018.
Though industrial minerals are Teck’s mainstay, the diversified miner is investigating gold prospects in the Yukon Territory and Alaska. Wolf – a series of four claim blocks that stretch some 55 kilometers (35 miles) east from the White River in southwestern Yukon – is one such gold prospect the company is exploring. During 2013 Teck completed soil sampling, prospecting and mapping and drilled eight holes for 1,500 meters on these claims. In Alaska, Teck has an exploration alliance with Millrock Resources Inc. on Estelle, a gold-dominant project about 170 kilometers (105 miles) northwest of Anchorage. Teck opted to table exploration at Estelle in 2014.
Cash and short-term deposits: C$2.1 billion (June 30, 2014)
Working capital: C$3.1 billion (June 30, 2014)
Market capitalization: C$13.2 billion (Sept. 30, 2014)
3300 – Bentall 5, 550 Burrard St.
Vancouver, B.C. Canada, V6C 0B3
Tel: 604-699-4000
Fax: 604-699-4750
www.teck.com
