Nortec to drill EcuadorNortec to raise $450,000; follow-up exploration work
2005-10-26 19:16 ET - News Release
Mr. Mohan Vulimiri reports
NORTEC ANNOUNCES PRIVATE PLACEMENT OF $450,000 FOR WORKING CAPITAL AND EXPLORATION PROGRAM ON THE GANARIN PROJECT, SOUTHERN ECUADOR
Nortec Ventures Corp. is arranging a non-brokered private placement consisting of up to three million units, priced at 15 cents per unit, to net the treasury gross proceeds of up to $450,000. Each unit shall consist of one common share and one non-transferable common share-purchase warrant in the capital stock of the company. Each warrant will be exercisable for one common share of the company at an exercise price of 22.5 cents per share for a period of two years from the date of issuance. The proceeds of the private placement will be used for working capital.
The company also announces the grant of 150,000 incentive stock options to purchase common shares at a price of 15 cents per share, for a period of five years, to consultants of the company, pursuant to the company's stock option plan dated Aug. 17, 2004.
Follow-up exploration work consisting of trench channel sampling of the high-grade areas reported in Stockwatch on Sept. 14, 2005, and geochemical soil sample anomalies on the Rio Minas, Chamana, Red 3 and Loma la Cruz zones is being initiated. This work program is designed for better target definition in preparation for diamond core drilling. Details with regard to previous sampling on the property can be referred to in the company's prior press releases.
Geochemical soil sampling on grids at 25-metre line spacing was completed in an area between the Chamana zone and the Rio Minas zone. This program was designed to delineate any parallel structures and hidden mineralized shoots similar to the high-grade Rio Minas zone. Geological mapping at a scale of 1:1,000 is also being carried out. Results will be released as they become available.
The Rio Minas zone occurs at an elevation of 1,340 metres, approximately 330 metres below Chamana, 220 metres below Loma La Cruz and at the same elevation as the Red 3. These results suggest that Loma La Cruz and Chamana have significant potential at depth. Furthermore, results from the Loma La Cruz, Chamana and Red 3 areas also show extensive parallel geochemical soil anomalies and coincident subparallel outcrops of quartz-chalcedony breccia veins and veinlets with very significant gold and silver values.
The company's management is looking forward to the drill program on this very significant property. The modes of occurrence of the mineralization suggest that the Ganarin gold-silver property could potentially host several gold-silver shoots with bonanza grades and appear to be very similar to the Comstock and Midas camps in Nevada and the epithermal camps, such as the Kupol district, of Eastern Siberia, Russia.
The Ganarin property is subject to option and joint venture agreements with Doubloon Exploration Corp. whereby Nortec has the option to acquire 51-per-cent interest in the Ganarin property located in Azuay province, Ecuador. The Ganarin property is situated in the prolific Ganarin mineral belt. Iamgold Corp.'s Quimsacocha gold deposit occurs in the same belt approximately 40 kilometres northeast of the Ganarin property. Channel Resources' El Mojo gold property also occurs in the same area.
Mohan R. Vulimiri, MSc, PGeo, president and director of Nortec, is the person responsible for initiating and guiding the work programs on the Ganarin property. Mr. Vulimiri is a qualified person in accordance with National Instrument 43-101 guidelines.
For further details and locations of the various zones on the Ganarin property and information on Nortec Ventures Corp., please visit the company's website.
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