04:07:36 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Nortec Minerals Corp
Symbol NVT
Shares Issued 140,140,639
Close 2014-07-24 C$ 0.025
Market Cap C$ 3,503,516
Recent Sedar Documents

Nortec to acquire Golden Zone property in Alaska

2014-07-31 13:22 ET - News Release

Mr. Mohan Vulimiri reports

FENNOR, A WHOLLY-OWNED SUBSIDIARY OF NORTEC, SIGNS TWO MEMORANDA OF UNDERSTANDING ON THE 100% ACQUISITION OF GOLDEN ZONE PROJECT, EAST-CENTRAL ALASKA

Fennor Minerals Corp., a wholly owned subsidiary of Nortec Minerals Corp., has signed two memorandums of understanding to acquire a 100-per-cent interest in the Golden Zone property in south-central Alaska.

The Golden Zone property is located 320 kilometres (200 miles) north of Anchorage. Located 16 kilometres west of the Parks Highway and the Alaska Railroad, it has excellent infrastructure and is accessible with a pioneer road. Both the highway and the railway connect the cities of Fairbanks and Anchorage. The property is also accessible by air with a 1,200-foot airstrip near the camp on the property. Another 3,000-foot airstrip on the north end of the property will be available with repair from storm damage. The property is entirely on State of Alaska-owned land and is composed of 227 State of Alaska mining claims totalling 7,894 hectares or 19,598 acres, as well as two leases, with one upland mining lease covering the historic Golden Zone mine site (totalling 1,181 hectares or 2,920 acres) and a second mill site lease for a staging area (covering 16 hectares or 40 acres).

The staging area lease is located 13 kilometres (eight miles) southeast of the property at Colorado Station on the Alaska Railroad.

One memorandum of understanding, with Chulitna Mining Company LLC, provides for Fennor to acquire Chulitna's interest in the property. The second, with Mines Trust Co., Hidefield Gold Ltd. and Hidefield Gold (Alaska) Inc., addresses the interests of the underlying landowners of the property. Together, the memorandums of understanding provide for Fennor's acquisition of 100-per-cent interest in the Golden Zone property, subject to cash option payments, shares and net smelter payments.

Deposits and prospects at Golden Zone include a well-documented pipe-like body of stockwork controlled breccia mineralization in the late Cretaceous quartz monzonitic intrusive rocks, skarn zones near the intrusive/Permian carbonate and calcareous argillite contacts, and vein-related and shear-related mineralization in both the intrusive and metasedimentary and metavolcanic rocks. Gold mineralization is associated with silver, arsenic, bismuth, antimony and copper values.

The Golden Zone breccia deposit contains a National Instrument 43-101-compliant resource (technical report, Golden Zone property, Alaska, Norwest Corp., Jan. 11, 2011):

  • Measured category -- 1,973,915 tonnes grading 3.41 grams per tonne gold, 16.62 grams per tonne silver and 0.11 per cent copper at one-gram-per-tonne-gold cut-off (196,399 ounces gold), and 2,645,138 tonnes grading 2.75 grams per tonne gold, 14.04 grams per tonne silver and 0.1 per cent copper at 0.5-gram-per-tonne-gold cut-off (212,225 ounces gold);
  • Indicated category -- 1,195,416 tonnes grading 2.37 grams per tonne gold, 16.25 grams per tonne silver and 0.09 per cent copper at one-gram-per-tonne-gold cut-off (82,763 ounces gold), and 3,687,962 tonnes grading 1.27 grams per tonne gold, 7.84 grams per tonne silver and 0.06 per cent copper at 0.5-gram-per-tonne-gold cut-off (137,070 ounces gold).

These resources were estimated in 2011 and do not include any subsequent drilling performed in 2011; therefore, they can be considered historical. An updated NI 43-101 technical report will be commissioned upon receipt of approval from regulatory authorities. The resources appear to be amenable for development by open-pit methods. Systematic prefeasibility and feasibility studies by qualified personnel and engineering companies are required to confirm this. The inferred category is not included in the estimated resources.

Various metallurgical tests carried out in 1994, 1996 and 1997 showed that total recoveries of 82 per cent to over 85 per cent of the gold and 27 per cent to over 42 per cent of the silver can be expected using a mill-flotation-cyanidation process at a grind size of minus 100 mesh. Approximately 80 per cent of the total copper should also be recoverable. The Golden Zone property hosts a number of other interesting gold showings, exposed in trenches and/or cut in drill holes. The Gas zone, located approximately 460 metres southwest of the Golden Zone breccia pipe, consists of a similar small intrusive body that is possibly connected to the Golden Zone porphyry at depth. Preliminary work at the Copper King/Long Creek area has returned positive gold and copper values, and warrants additional exploration to delineate the extent and grade of the mineralization (technical reports, Golden Zone property, Alaska, Norwest Corp., May 16, 2005, and Jan. 11, 2011). Detailed exploration will be carried out on these targets during the potential Golden Zone production stages of development.

The Golden Zone mineralization was originally discovered in 1906 through follow-up of small placer gold deposits. Since that time, it has seen extensive drilling, limited underground exploration and development and a brief interval of production. A reported total of approximately 17,300 tons of ore were mined in 1941 and 1942 and processed through an on-site flotation mill, producing 869 tons of sulphide concentrate (primarily arsenopyrite, chalcopyrite, pyrite and pyrrhotite), from which 1,581 ounces of gold, 8,617 ounces of silver, 21 tons of copper and 1.5 tons of lead were extracted by smelting in the Asarco smelter in Tacoma, Wash. The deposit and surrounding region have been well studied by both USGS (U.S. Geological Survey) personnel and State of Alaska geological personnel and is referenced in a number of publications.

Fennor will raise $1-million privately to update the NI 43-101 measured and indicated resources and to assist in making plans to initiate a prefeasibility study for development. These plans will include detailed metallurgical test work, access road studies and preliminary cost analysis for development.

The private placement of $1-million will consist of shares at 10 cents per share and will be distributed to shareholders in accordance with the rules and regulations of the Securities Act and TSX Venture Exchange policies. Nortec shareholders will also be given an opportunity to participate in the private placement. Fennor will subsequently apply for listing on the TSX-V once it meets the regulatory requirements of the TSX-V and the British Columbia Securities Commission.

Memorandum of understanding agreements

Fennor will pay Chulitna the following:

  1. A $50,000 signature payment upon approval of the Fennor-Chulitna memorandum of understanding by the TSX-V;
  2. $250,000 in cash and $250,000 in shares at any time until Dec. 31, 2014;
  3. Annual rental payments of $50,000 in cash and $50,000 in shares 2015, 2016, 2017, 2018 and 2019;
  4. Fennor will grant a 1.5-per-cent net smelter royalty to Chulitna with a 0.5-per-cent buyout for $1-million;
  5. Fennor will also make the advanced royalty payments of $50,000 in cash and $50,000 in shares commencing in the year 2020 till commencement of production.

Fennor will also pay cash and issue shares at a price of 10 cents per share to Mines Trust and Hidefield to acquire their 30-per-cent joint venture interest. The payments will consist of the following:

  • Within 30 days following the date of completion of the first-stage financing, Fennor will:
    1. Pay $20,000 in cash to Mines Trust and pay $30,000 in cash to Hidefield;
    2. Issue 2.4 million shares of voting stock of the owning entity at a value of 10 cents a share to Mines Trust and issue 3.6 million shares of voting stock of the owning entity at a value of 10 cents a share to Hidefield;
    3. Grant a net smelter returns royalty to Mines Trust of 1 per cent and to Hidefield of 1.5 per cent of production; Fennor may reduce the net smelter returns royalty to Mines Trust to 0.6 per cent by the payment of $400,000 and to Hidefield to 0.9 per cent by the payment of $600,000 at any time until July 1, 2017;
    4. Mines Trust and Hidefield will have the right to participate in future financings undertaken by Fennor.

The recent previous work on the Golden Zone property was primarily directed by Dr. David Hedderly-Smith, PhD, PG. Dr. Hedderly-Smith will continue to consult for the project and offer any assistance as needed. Mohan R. Vulimiri, MSc, PGeo, chief executive officer of Nortec Minerals, is a qualified person as defined by NI 43-101. Mr. Vulimiri has approved the corporate and technical content contained in this press release.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.