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Nortec Ventures to acquire Seinajoki gold, tin, tungsten, niobium, lithium etc.
Sep 23, 2009 09:18PM
2009-09-23 08:28 ET - News Release
Mr. Mohan Vulimiri reports
NORTEC (TSX VENTURE:NVT) TO ACQUIRE SEINAJOKI GOLD PROJECT, FINLAND
Nortec Ventures Corp. has signed a memorandum of understanding (MOU) to acquire a 100-per-cent interest in the Seinajoki gold project, located near the town of Seinajoki, southwestern Finland. The company signed an MOU with Akkerman Exploration BV for the right to earn an undivided 100-per-cent interest in the property. Akkerman holds 100-per-cent legal right to title and interest in 12 claim reservations (10,000 hectares) duly registered with the Ministry of Employment and Economy, government of Finland.
The 10,000-hectare area covers a very large part of a gold district, known as the Pohjanmaa gold-antimony belt, dominated by metasedimentary rocks of Precambrian age. This belt is known as part of the Bothnian basin and is situated on the northern margin of a Paleo-proterozoic microplate. These metasedimentary rocks are intercalated with metavolcanic rocks and have locally been transformed to migmatites, quartz-mica schists and/or intruded by calc-alkaline s-type two-mica granites and pegmatites.
Local prospectors discovered gold and antimony mineralization by locating mineralized boulders assaying as high as 500 grams per tonne (g/t) gold and another boulder with 70 kilograms of native antimony and stibnite. Preliminary follow-up work by Geological Survey of Finland (GTK) located several targets, including Kalliosalo, Sikakangas, Tulisilma, Tervasmaki, Marttalaniemi and Ylijoki. The follow-up work mainly consisted of till-geochemical surveys, trenching and shallow diamond drilling. The shallow diamond drilling mostly concentrated on areas with outcrops and some of the best intersections from drilling returned:
One metre grading 53 g/t gold and one metre at 28.3 g/t gold.
The exploration concessions area covers the strike and trend extensions of the target zones located by GTK as well as till-geochemistry anomalous gold values. The concession areas also include Marttalaniemi and Ylijoki target zones where significant gold mineralization was discovered by GTK. Some of the boulders sampled at Marttalaniemi by a local prospector returned values as high as 117 g/t gold. One of the shallow holes drilled by GTK (28 metres) at Marrtalaniemi returned:
82.2 g/t gold across 0.6 metre.
The area hosts several styles of mineralization:
Native gold in dacitic to rhyodacitic metavolcanic rocks and graphitic schists, associated with native antimony, minor arsenopyrite and pyrrhotite;
Disseminated antimony mineralization in metasediments;
Native gold in quartz-tourmaline veins in metavolcanic rocks;
Quartz-antimony veins in metavolcanic rocks and pegmatites;
Tin, tungsten, lithium, tantalum, beryl and niobium mineralization in pegmatites.
Initial work programs on the concession areas will include a) verification and evaluation of all data concerning previous exploration including diamond drilling carried out by GTK, b) fieldwork to define areas for staking of claims and c) identify targets for drilling.
The Precambrian Bothnian basin metasediments and the associated calc-alkaline s-type plutonic rocks host the well-known Skellefte gold district in Sweden. Over 12.5 million ounces were identified in the Skellefte district. The Pohjanmaa belt appears to be the southeastern extension of Skellefte into Finland as per geological research publications from Sweden, Finland and the United States.
The Bothnian basin also has geological, petrological and mineralogical similarities to the Alaska-Yukon's Tintina gold belt which hosts among others the well-known Fort Knox gold mine, the Pogo gold mine and the recently discovered Underworld Resources' Golden Saddle zone.
The company is very pleased to have entered into an agreement with Akkerman as this large concession area has very good potential for the discovery of significant gold mineralization.
The MOU gives Nortec the exclusive right to a) verify and evaluate the data and information made available by Akkerman; b) evaluate any other relevant data and information concerning previous exploration conducted by third parties on the reservations; and c) collect additional data in the field through initial reconnaissance and exploration work on the reservations. Nortec will pay Akkerman 10,000 euros and 400,000 Nortec shares within 15 days from the signing of the MOU and subject to approval of the TSX Venture Exchange. Nortec will enter into an option agreement when Akkerman receives confirmation of exploration claims staked in the exploration concessions area.
In addition Nortec will pay Akkerman the following amounts:
The date of signature of the option agreement: 20,000 euros in cash and 600,000 Nortec shares;
The first anniversary of the option agreement: 30,000 euros in cash and 900,000 Nortec shares;
The second anniversary of the option agreement: 50,000 euros in cash and one million Nortec shares.
After financing and incurring the initial exploration expenditures of one million euros before the third anniversary of the signing date of the MOU and having made the agreed annual payments to Akkerman, Nortec will hold an undivided 100-per-cent interest in the property. Following the earn-in completion date, Akkerman will retain a 2-per-cent net smelter royalty (NSR) on any and all future production from the property. Nortec will have the right to buy back 1-per-cent NSR for one million euros.
Mohan R. Vulimiri, MSc, PGeo, president, chief executive officer and director of Nortec; Ian F. Laurent, Msc (EconGeol), MAIG, RPGeo, executive vice-president of Nortec, and Jan H. Akkerman, managing director of AEbv, are the persons responsible for initiating and guiding the work programs on the project. Mr. Vulimiri is the qualified person responsible for the contents of this press release.