Nortec Minerals Corp. is pleased to announce that it has entered into an earn-in joint venture agreement with Avalon Minerals of Milton, QLD, Australia, for Nortec’s Tammela Lithium Project, located in Southern Finland.
Avalon will pay Nortec EUR 20,000 and issue 1,000,000 Avalon shares upon the signing of the Heads of Agreement. Avalon, through its subsidiary Scandian Metals, will fund exploration on the Tammela Project in two stages to earn an 80% interest. Stage 1 comprises of an expenditure of EUR 500,000 over a 24 month time period to earn a 51% Interest. If Scandian elects to undertake Stage 2, then it will pay Nortec EUR 200,000 in either cash, shares or a combination of two, will commit to an additional expenditure of EUR 1,000,000 over two years to earn another 29%.
Standard dilution clauses will apply once the joint venture agreement is completed. The interest will convert to a 1.5% net smelter royalty if a party’s interest falls below 10%. Finder’s fees in compliance with the TSX Venture rules and regulations will be paid to an arm’s length party for facilitating this transaction.
Tammela Minerals Oy, the wholly owned subsidiary of Nortec, controls 100% interest in the Somero 1 to 12 and Tammela 1 to 3 claims comprising the Tammela Project. The property hosts the Kietyonmaki Lithium prospect and the Riukka and Satulinmaki gold zones. Avalon has also submitted applications for two Exploration Reservations over an area of 117 km2 around the Somero and Tammela claims. These reservations form part of the Joint Venture with Avalon.
The Geological Survey of Finland carried out extensive work comprising of geological mapping, prospecting, and auger and diamond drilling in the 1970’s and 1980’s. GTK identified swarms of Lithium bearing pegmatite dykes. Significant mineralisation is delineated within the Kietyonmaki Main Dyke, a large spodumene-rich pegmatite dyke that can be traced for over 400m with an average width of 12 metres. The GTK drilled 17 holes to test the lithium potential of the KMD along 120 metres of strike. The average drill intersection was 18m wide down to 75 metres below natural surface and continues to be open at depth.
A re-logging and re-sampling programme carried out by Nortec in 2010 on the drill core stored at the GTK core storage facility in Loppi, southern Finland confirmed GTK’s results documented in 1985. Select intervals of the drill core were taken from drill hole R310 that was drilled on the Kietyonmaki prospect.
Samples were submitted to ALS Chemex in Outokumpu for 48 element ICP-MS finish. Ore grade results for lithium were analysed using a 4-acid digest method and an AAS finish.
The GTK calculated a drill weighted-average intercept lithium grade of 1% for an inferred resource of 400,000 tonnes. The readers and potential investors are warned that these estimates are not compliant with the industry standard National Instrument 43-101 guidelines.