Nortec lands deal in Ecuador Gold ProjectsNortec Ventures to JV with Doubloon on two projects
2005-03-22 15:46 ET - News Release
Mr. Mohan Vulimiri reports
NORTEC ACQUIRES AN OPTION TO FORM JOINT VENTURES WITH DOUBLOON ON THE GANARIN AND CONDORCOCHA EPITHERMAL PROJECTS, SOUTHERN ECUADOR
Nortec Ventures Corp. has signed agreements with Doubloon Exploration Inc. to acquire an option to form joint ventures on the Ganarin and Condorcocha epithermal projects, located in southern Ecuador. All dollar figures are in U.S. currency.
Ganarin project
The Ganarin project consists of the Ganarin and Ganarin II mineral concessions, located near the town of Santa Isabel. Ganarin is a low-sulphidation gold-silver epithermal prospect with gold and silver values occurring in multistage banded chalcedony-quartz veins, veinlets and breccia zones. The mineralization is emplaced in Eocene volcanic rocks of andesitic to dacitic composition. Precious metal values as reported by previous companies approach bonanza grades in places.
Mineralization with associated hydrothermal alteration at Ganarin is exposed over an area of at least 1.5 kilometres (north-south) by 800 metres (east-west) and up to 300 metres vertically. Samples of vein material extracted by artisan miners assayed 8.5 to 145 grams per tonne gold and 9.8 to 49.7 grams per tonne silver. These values are consistent with low-sulphidation epithermal bonanza deposit model but the economic potential of Ganarin has not been adequately tested despite exploration by several mining companies over the last 20 years. Newmont, Prominex, Jersey Goldfields and Grantham Resources carried out geological mapping, geochemical stream sediment and soil sampling, and minor diamond drilling on the property. Several abandoned mine workings and arastra mills on Ganarin concessions suggest that the veins were worked on during pre-Spanish colonial times.
Doubloon Exploration Inc. has commissioned an engineering report conforming to the National Instrument 43-101 guidelines. Mohan R. Vulimiri, MSc, PGeo, president and director of Nortec, has recently visited the property, examined the mineral occurrences and evaluated the available previous exploration reports. Mr. Vulimiri is a qualified person in accordance with National Instrument 43-101 guidelines.
Nortec will have an exclusive option to earn 49-per-cent undivided interest in the Ganarin project by making the following payments and incurring the following expenditures:
Cash Share
payments Expenditures issue
TSX Venture
Exchange
approval $250,000 100,000
First
anniversary
date $250,000 200,000
Second
anniversary
date $250,000 200,000
Third
anniversary
date $500,000 250,000
Fourth
anniversary
date $500,000 250,000
---------- --------
Total $1,525,000 1,000,000
Provided the above conditions are satisfied Nortec has the option to increase its interest to 51 per cent by incurring additional expenditures of $1-million.
Condorcocha project
The Condorcocha project consists of the following properties:
1. Daligshi;
2. Shagli I, II and III;
3. Condorcocha; and
4. Paredones del Inca I and II.
All properties are located in Azuay province, southern Ecuador. Two prospects, Daligshi and Paredones del Inca, are primarily grassroots properties with extensive hydrothermal alteration zones.
Paredones del Inca adjoins the recently discovered Quimsacocha gold prospect being developed by Iamgold. The Shagli and Condorcocha prospects appear to be high-sulphidation epithermal prospects with extensive artisan workings. The Shagli III concession has highly anomalous stream sediment gold anomalies. Mr. Vulimiri has visited and examined all the Condorcocha properties, except the Paredones del Inca concession.
Nortec will have an exclusive option to earn 70-per-cent undivided interest in the Ganarin project by making the following payments and incurring the following expenditures.
Cash Share
payments Expenditures issue
TSX Venture
Exchange
approval $25,000 50,000
First
anniversary
date $100,000 100,000
Second
anniversary
date $400,000 150,000
Third
anniversary
date $500,000 200,000
Fourth
anniversary
date $500,000 500,000
---------- --------
Total $1,500,000 1,000,000
Any excess expenditures in any year by Nortec will be carried forward and applied to future expenditure obligations.
If Nortec acquires a 70-per-cent interest in and to the property, Nortec may elect within 60 days, by notice in writing to Doubloon, to retain its then 70-per-cent interest and will thereafter finance exploration leading to a prefeasibility study on the property. On completion of such prefeasibility study Nortec will issue a further 750,000 shares in the capital stock of Nortec to Doubloon. If Nortec has not completed a prefeasibility study on any property prior to the sixth anniversary date, then notwithstanding any other provision, Nortec's interest in the property will be reduced to a 10-per-cent NPI which may be acquired for $5.00 per ounce of measured and indicated resources, as calculated by a third party prior to the eighth anniversary.
Nortec is contemplating financing to finance the exploration programs on the Ganarin and Condorcocha projects. The management of Nortec looks forward to carrying out systematic exploration programs in Ecuador and in developing a fruitful relationship with Doubloon.
We seek Safe Harbor.