Noram Ventures Inc.
TSX VENTURE : NRM

June 11, 2012 08:30 ET

Noram Ventures Announces Entry Into Option Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 11, 2012) - Noram Ventures Inc. (TSX VENTURE:NRM) ("Noram" or the "Company") is pleased to announce that it has entered into an option agreement dated June 8, 2012 (the "Agreement"), with Bruce Doyle (the "Optionor"), to acquire a 100% option (the "Option") in certain mining claims located near Crawford Bay, British Columbia in the Slocan Mining District (the "Claims"). The Agreement remains subject to approval from the TSX Venture Exchange (the "Exchange").

The terms of the Agreement provide that in order for Noram to exercise the Option, it must make cash payments in the aggregate amount of $100,000 and issue a total of 1,000,000 common shares to the Optionor, all over a two year period. Noram must also carry out a $200,000 work program on the Claims prior to the second anniversary of the Agreement.

Following exercise of the Option, the Optionor will retain a 3% net smelter returns royalty (the "NSR Royalty") specific and limited to metals and graphite and excluding limestone/dolomite and barite less allowable deductions as well as a mineral returns royalty (the "Mineral Royalty") on limestone/dolomite and barite in the amount of $0.75 per tonne. The NSR Royalty is subject to a buy-back right of the Company to purchase up to two-thirds (2/3) of the NSR Royalty from the Optionor at a cost of $1,000,000 per one-third (1/3) of the NSR Royalty.

The property is located 50km northeast of Nelson, BC at Crawford Bay on Kootenay Lake and consists of 16 contiguous claims (81 units) covering an area of 1,730 hectares (4,275 acres).

History of Work: Lead, zinc and silver were recognized in the district dating back to the late 1800s. The Bluebell Mine is located 15km to the north and was producing Pb/Zn/Ag ore until 1975. The Crawford Bay property is located in similar geological strata as the Bluebell and therefore has seen exploration since the early 1900s. Documented exploration dates to the 1970s, consists of airborne and ground geophysics, geochemistry geological mapping, and diamond drilling. Recent explorers included Cominco, Kokanee Exploration, High Ridge Resources, and Klondike Gold, all focusing on the base metal potential.

Graphite: During the course of this previous exploration several electromagnetic (EM) anomalies were identified and found to be Graphite bearing. Graphite is a strong conductor; therefore existing EM date from historical EM surveys is valuable data for interpreting possible Graphite bearing horizons. One such EM anomaly extends over a strike length of 2000 meters and has an interpreted width of 250-300 meters. Rock outcrop exposure along road-cuts across the width of this anomaly indicates abundant crystalline large flake graphite disseminated throughout a quartz/mica schist/gneiss.

John R. Kerr. P. Eng. states in his property evaluation report prepared for Noram dated June 6, 2012: "During the course of drilling, since 1977, crystalline graphite has been identified in drill core within rocks of the Index Formation. It was not until the recent economic demand (late 2011) for crystalline (flake) graphite, was this property considered a potential source of 'flake' graphite." He continues, "The Kokanee Graphite Property (at Crawford Bay) offers the potential of hosting an economic graphite deposit. Associated EM anomaly indicates a potential 2000 meter strike length and a 250-300 meter width. Depth is unknown, however limited (historic) drilling (4 holes) indicates potential depths of at least 100 meters. Average grade of seven samples collected across the full width indicate 1.75% graphite. The western half of the target indicates an average grade of 2.3% graphite."

Noram has filed a notice of work and will commence a first phase six-hole diamond drilling program totaling 1500 meters once permits are issued, subject to receipt of Exchange approval for the Option Agreement.

John R. Kerr, P. Eng. is the Qualified Person who has read and approved the technical comments expressed in this release.

ON BEHALF OF THE BOARD:

David W. Rees, President & Director

This news release may contain forward-looking statements which include, but are not limited to, comments that involve future events and conditions such as Exchange approval of the Agreement and the Company's ability to exercise the Option, which are subject to various risks and uncertainties. Except for statements of historical facts, comments that address resource potential, upcoming work programs, geological interpretations, receipt and security of mineral property titles, availability of funds, and others are forward-looking. Forward-looking statements are not guarantees of future performance and actual results may vary materially from those statements. Availability of financing, and general business conditions are all factors that could cause actual results to vary materially from forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Noram Ventures Inc.
    David W. Rees
    President and Director
    (604) 290-5696
    dwrees@telus.net