Graphite Stocks | Noram Ventures Announces Entry into Option Agreement

2012 Graphite Headlines


Noram Ventures Announces Entry into Option Agreement

Vancouver, BC - June 11, 2012 - Noram Ventures Inc. has entered into an option agreement dated June 8, 2012, with Bruce Doyle to acquire a 100-per-cent option on certain mining claims located near Crawford Bay, B.C., in the Slocan mining district. The agreement remains subject to approval from the TSX Venture Exchange.

The terms of the agreement provide that in order for Noram to exercise the option, it must make cash payments in the total amount of $100,000 and issue a total of one million 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-per-cent net smelter return (NSR) royalty, specific and limited to metals and graphite and excluding limestone/dolomite and barite, less allowable deductions, as well as a mineral return royalty on limestone/dolomite and barite in the amount of 75 cents per tonne. The NSR royalty is subject to a buyback right of the company to purchase up to two-thirds of the NSR royalty from the optionor at a cost of $1-million per one-third of the NSR royalty.

The property is located 50 killmetres northeast of Nelson, B.C., 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 15 kilometres to the north, and was producing lead/zinc/silver ore until 1975. The Crawford Bay property is located in similar geological strata as Bluebell, and therefore has seen exploration since the early 1900s. Documented exploration dates to the 1970s and 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.


During the course of this previous exploration, several electromagnetic anomalies were identified and found to be graphite bearing. Graphite is a strong conductor; therefore existing EM data from historical EM surveys are valuable data for interpreting possible graphite-bearing horizons. One such EM anomaly extends over a strike length of 2,000 metres and has an interpreted width of 250 to 300 metres. 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, PEng, stated in his property evaluation report prepared for Noram and 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 continued: "The Kokanee graphite property (at Crawford Bay) offers the potential of hosting an economic graphite deposit. Associated EM anomaly indicates a potential 2,000-metre strike length and a 250- to 300-metre width. Depth is unknown; however, limited (historic) drilling (four holes) indicates potential depths of at least 100 metres. Average grade of seven samples collected across the full width indicate 1.75 per cent graphite. The western half of the target indicates an average grade of 2.3 per cent graphite."

Noram has filed a notice of work and will commence a first-phase, six-hole diamond drilling program totalling 1,500 metres once permits are issued, subject to receipt of exchange approval for the option agreement.

John R. Kerr, PEng, is the qualified person who has read and approved the technical comments expressed in this release.

We seek Safe Harbor.

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