In a release out towards the end of trading yesterday, Nortec Minerals (TSX-V: NVT and OTC: NMNZF) posted some very thick gold intercepts from their Marttalanniemi prospect (part of the Seinajoki Gold Project in western Finland) including intercepts of 87.4 metres @ 0.90 g/t Gold from 0.6 metres (Hole MTL10-007) — 99.0 metres @ 0.50 g/t Gold from 12.0 metres (Hole MTL10-001) — 68.5 metres @ 0.58 g/t Gold from 1.5 metres (Hole MTL10-004). These are truly some exceptional drill results and look to be overlooked by the market so far (results like this in Mexico, Nevada or the Yukon would likely send underlying shares skyrocketing). Company geo Mohan Vulimiri is quoted in the release: “These results show that several sub parallel higher grade shoots associated with mica schists and mica gneisses are present within the TKM Shear Zone which could average out in to wide intersections. This type of mineralization is present and well documented in the Klondike Schist in the Tintina Belt, Yukon. I am confident that with more systematic drilling, potential large gold zones will be defined. The Riukka and Satulinmaki zones in the recently announced Tammela project area also show bonanza gold grades amongst lower grade mineralized zones within similar geological environments.”
This is the third wave of good news from the Nortec camp over the past 45 days – they recently released NI 43-101 mineral estimate numbers from their LK property (also in Finland) as well as the fact that they recently announced their 100% owned Tammela project (Finland), which already hosts a very respectable lithium deposit has potential for a good sized gold discovery as well.
The LK NI 43-101 was just posted to SEDAR last week and a quick review of that report outlines total in-situ values (indicated and inferred categories) totaling roughly: 98,000 oz gold; 152,500 oz platinum; 438,500 oz palladium, 68,000 tonnes copper and 44,000 tonnes nickel, resulting in a total in-ground metal value of $2.25 billion (at $1,400 gold, $1,700 platinum, $750 palladium, $4 copper and $10 nickel). Applying 85% recovery on the precious metals and 90% on the copper and 45% on the nickel (our estimates for illustration purposes only) yields total metal value of around $1.56 billion and using a very rough short cut method of valuing in-ground assets at 3 to 5% – this could add as much as $78.2 million to Nortec’s current market value for this project alone – which is only $32.5 million at this time) and the upside exploration potential could yield 2 to 3 times this current resource as the deposit remains open along strike and to depth along with additional exploration targets that remain to be drill tested.
So in other words, while the market is looking the other way, Nortec Minerals is quickly establishing a portfolio of what look to be material gold properties in Finland, which just happens to be one of the top mining regions in the world. With much on the go in Finland, it’s been easy to overlook the Company’s efforts to reestablish their presence in Ecuador – a region that the Company has made significant progress over the last six months by virtue of spearheading a new “working relationship” paradigm for foreign mining companies to operate in a way that is more equitable to all parties involved. If Nortec is successful in bringing to light significant new opportunities from their efforts in Ecuador, we could be in for another round of meaningful news from this underappreciated junior miner.
eResearch recently updated research on the Company with a $0.30 target which came out before the Marttalanniemi news release, so we can only expect that there will be a future report forthcoming that will incorporate these results and we see good days ahead for Nortec sharesholders as they continue to expand on these recent foundation building events.
Here is link to that report: http://nortecminerals.com/files/eresearch-update-report.pdf
and a link to Nortec’s most recent Corporate Presentation: http://nortecminerals.com/files/nmcorp-presentation-mar2011.pdf