|Location:||Northern Labrador, Canada (50km west of Voisey's Bay Mine)|
|Area:||5,500 hectares (claims)|
|Interest:||51% Nortec Minerals Corp / 49% Vulcan Minerals|
|Status:||Helicopter-borne VTEM and TMI geophysical survey over the entire TL Property identifying strong correlation between VTEM conductors and magnetic lineaments. 18 diamond drill holes totalling 1,960m testing 3 Ni-Cu-Co zones of mineralisation from previous drilling and 5 blind geophysical targets. Best Intercept:14m @ 1.02% Ni, 0.51% Cu, 0.03% Co, 0.12% Cr, 0.35g/t PGE+Au. BEST DRILL EXPLORATION RESULTS OUTSIDE VOISEY'S BAY MINE.|
Subsequent to the year-end, the Company entered into a Letter Agreement with Vulcan Minerals Inc. (“Vulcan”) to sell its interest in the TL Property. The consideration of the sale of the Property is 1,000,000 fully paid and non-assessable common shares in the capital of Vulcan, subject to regulatory hold periods, with Vulcan having a first right of refusal to purchase the Consideration Shares from Nortec. Vulcan shall grant to Nortec a 1% net smelter royalty in the Property with buyback provision on a 0.5% of the Royalty for $1,000.000, with cumulative royalty of 0.5% or 1% to be capped at $3,000,000 depending on the buy-back provision.
As at year-end, the Company decided to write down the TL Property for the amount of $2,684,279 to reflect the consideration of 1,000,000 common shares valued at $55,000 as at year-end.
The TL Property is a Nickel-Copper-Cobalt discovery located 70 kilometres west of the coastal town of Nain in the Tasisuak Lake area of northern Labrador, Canada. CVRD's (formerly INCO) large nickel-copper-cobalt mine at Voisey's Bay is located about 50 kilometres to the southeast. The Property consists of 219 contiguous claims, contained in four Exploration Licenses, covering 5,475 hectares. In March 2003 Nortec optioned the TL Property from Vulcan Minerals of Saint John's, Newfoundland. Nortec can earn up to a 100% interest in the TL Property, at it's option, may earn a 51% interest by incurring exploration expenditures of $1.5 million by March 17, 2009.
Upon earning a 51% interest, should Vulcan Minerals elect not to participate in future exploration, Nortec, in stages, earn up to a 100% interest in the property by issuing an additional 400,000 common shares and incurring an additional $10,000,000 in cumulative exploration expenditures over a ten year period, and granting a 2.5% net smelter return to Vulcan Minerals.
Two very strong and distinct coincident UTEM and gravity anomalies were identified on the property. The "B" Anomaly is located on the western portion of the claims and the data for the anomaly suggest that it dips 30? to the east. Several ultramafic pyroxenite bodies outcrop to the west in places where the anomaly is projected to surface. Drill holes to the east of the anomaly by the previous operator intersected nickel bearing ultramafic dykes (up to 2.1% nickel), which could be small intrusions from a larger nickel bearing body related to this "B" Anomaly. The anomaly strikes 345° on surface for a distance of 1600 metres. The gravity anomaly values reach up to 0.31 milligals and, from modeling, the UTEM conductance values are greater than 2000 Siemens at depths from 75 to 130 metres. Extensive drilling is planned to test the easterly extension of this anomaly at depth.
Gravity and UTEM data for the "A" Anomaly, located in the northeast part of the property, also suggest that the source for the anomaly is from a large ultramafic intrusive body. One of the previous operator's drill holes intersected and bottomed in 80 metres of gabbro in the area of this anomaly. Two drill holes also intersected minor graphite near this anomaly. The anomaly trends north-south with a steep dip and was delineated for a distance of 1800 metres. Gravity anomaly values reach up to 0.28 milligals and the UTEM model conductance values are around 2000 Siemens from depths of 50 to 65 metres. Drilling is planned to examine the source for this anomaly.
Previous work on the property was conducted in 2001 by Falconbridge Ltd. and in 1995-1996 by Consolidated Magna Ventures Ltd. and Consolidated Viscount Resources Ltd. The earlier work consisted of geophysical surveys, mapping, prospecting and diamond drilling of 3,738 metres in 40 drill holes.
In the summer of 2005, fourteen diamond drill holes (Hole Numbers 41 to 54) were drilled totaling 2300 metres on 5 targets identified by geophysical methods and geology. The five targets tested by drilling are the Pond Zone, West Anomaly, B1 Anomaly, Goose Feather Anomaly and the All-About-It East Anomaly. The 2008 summer drill program totaled 1,960 metres. The drill programs at Tasisuak Lake in Labrador have encountered significant Nickel (Ni), Copper (Cu), Cobalt (Co) mineralization highlighted as follows: