Noram Ventures – Graphite Exploration and Development in B.C.

Overview

Noram Ventures (TSXV:NRM) is an exploration company utilizing a Project Generator business model with a mandate to: (1) create shareholder value through the discovery of mineral deposits; (2) focus exploration activity on highly prospective, under-explored opportunities in pro-mining jurisdictions; (3) maintain ownership control of projects during the high-value creation, discovery phase; and (4) seek and secure well-financed partners to accelerate resource definition and development.

The objective of the project generator model is to increase the odds of exploration success by having equity stakes in multiple projects, while limiting the need for equity financing and minimizing shareholder dilution.

Noram’s current exploration focus is on two flake-graphite projects located in the Central Kootenay Region of Southeastern British Columbia.

Investment Highlights

  • Excellent share structure with very low float
  • Projects demonstrate excellent potential for discovery and large scale resource development
  • Projects are located in pro-mining region close to power, water, highway and rail access, a skilled work force and community services
  • Natural graphite declared a critical raw material with global demand estimated to increase 45 per cent in the next 5 years

Key Projects

Kokanee Flake-Graphite Project

The Kokanee property hosts widespread, large-flake graphite targets, and covers an area of 1,659 hectares and is located 50 kilometres northeast of Nelson on the eastern side of Kootenay Lake. Noram has an option to earn a 100 per cent interest in the Kokanee Property. Infrastructure for a quarry mining operation is readily accessible near the area of the property’s main zone and CP Rail service is located 45 kilometres south. The property has undergone extensive exploration work dating back to the 1900s with documented exploration dates to the 1970s, all previous focused on the base metal potential of the property.

Core logging indicates flake graphite in all drill holes

In November 2012, Noram reported the completion of the fall drilling program at Kokanee flake. Drilling was conducted in a portion of the main zone, which is covered by an electromagnetic anomaly and measures up to 2,000 metres in strike length, 250 to 300 metres in width and at least 100m in depth. Sampling in the same area confirmed the presence of wide-spread, large-flake graphite with assays ranging from 1.75 per cent to 7 per cent graphite. 1,335 metres of core drilling was completed over six holes. Drill core splitting and sampling has been completed and analytical results will be announced as they are received.

Nakusp Flake-Graphite Project

The Naksup property contains large-flake graphite targets in widespread, surface outcroppings. Noram has an option to earn a 100 per cent interest in the Nakusp Property, which covers an area of 14,435 hectares and is located less than 15 kilometres southwest of the town of Nakusp. Logging roads criss-cross the property and a secondary road connects the property to the major highway. The Nakusp-Arrow Lakes region has a rich history of mining that dates back to the 1860s. The property is a new discovery that consists of three contiguous claim groups, the Black Fly, Mosquito and Fisher, which host large flake graphite in the form of widespread surface graphite outcroppings. No record of historical exploration work exists for the property.

SkyTEM Survey indentified EM anomalies over a large area (click to zoom)

In October 2012, Noram completed an Airborne EM Survey using the SkyTEM geophysical time-domain electromagnetic system. The Survey included 640 kilometres of north-south trending flight lines spaced at 200 metre intervals. In conjunction with the Survey, Noram contracted in3D Geoscience Inc. to provide an independent geophysical review of the preliminary SkyTEM survey data. Geological mapping and surface sampling have visually confirmed the conductive EM responses and trends throughout the Survey area are associated with graphite mineralization. Analytical results from the surface sampling will be released as available. Sample results, geologic mapping and geophysical data will be integrated to prepare for the 2013 exploration campaign on the Property.

Silver Hill Molybdenum-Galena Property

Noram has an option to earn a 100% interest in the Silver Hill Property, which covers 2,784 hectares and is located in the Revelstoke Mining Division, 45 kilometres (km) southeast of the city of Revelstoke. The principal mineralization of interest is a quartz-flooded stratabound horizon or possibly a quartz-barite exhalite containing pyrite, galena and molybdenite in the west-central zone. The Max Molybdenum Deposit is currently permitted for production, and is located 17km to the southeast.

In 2011, the company completed an exploration program that included a 3D IP and magnetic survey, a geochemical survey, reconnaissance sampling and prospecting. The results of this program indicate that further work is required and a notice of work has been submitted to the B.C. Department of Mines for a diamond-drilling permit.

Infrastructure including power, water, a skilled work force and community services are all locally available. Logging roads intersect the property and an all-weather secondary road connects to the main highway.

click to zoom

Summary

Noram Ventures’ objective is to capitalize on the growing supply/demand concerns in the natural graphite market with the specific goal of creating shareholder value through the discovery and development of readily-accessible, natural flake graphite resources on Canada’s west coast.

The US State Department, British Geological Survey and the European Commission have all declared natural graphite to be a critical raw material. Global steel production remains the largest driver of natural graphite consumption (up to 70 per cent), but new layers of demand are being created from emerging markets such as lithium-ion batteries, fuel cells, pebble-bed nuclear reactors, and the billions being spent to research the new material graphene and its potential applications in semiconductors, solar cells, LEDs, etc.

Global natural graphite production is currently 1.1 million tons annually and estimates have demand increasing 45 per cent to 1.6 million tons in 5 years, while only 200,000 tons in new mine supply is forecast to come on stream over the same period. China accounted for up to 80% of the world’s natural graphite production in 2011, and is also the largest graphite consumer. Global supply concerns abound that as China’s domestic demand for graphite grows export restrictions could be imposed that lead to supply disruptions. Major international buyers are now looking to become self sufficient in natural graphite to alleviate dependence on Chinese supply, long term.

Management

Dave Rees – President & CEO, Director
Mr. Rees has more than 35 years’ of mining exploration and business experience.

Ken Phillippe – CFO, Director
Mr. Phillippe is a chartered accountant with over 25 years’ of pubco operating experience.

Chris Dyakowski, P. Geo – Director
Mr. Dyakowski is an exploration geologist with over 30 years’ experience.

Tom Christy – Director
Mr. Christy has been the owner and operator of financial services businesses for more than 30 years.

Marc Sandercombe – Director
Mr. Sandercombe has more than 30 years’ investment industry experience as an advisor and consultant.

John Kerr, P.Eng. – Consulting Geologist & Qualified Person
Mr. Kerr is a professional engineer with over 35 years’ of international exploration experience.