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 real 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 January, Noram reported very encouraging initial drill results (see table below) from the fall drilling program at Kokanee flake. All holes intersected significant graphite mineralization and preliminary results indicate the possibility of a continuous zone of mineralization over the full 1,200 meter (m) strike length drilled. Drill results further project a down-dip depth of 150 to 200m and the zone is open in both directions along the 2 kilometer (km) strike length. Analytical results for the balance of the fall drilling will be announced upon receipt.
Jumbo Flake-Graphite Project
The Jumbo property contains large-flake graphite targets in widespread, surface outcroppings. Noram has an option to earn a 100 percent interest in the property, which consists of three individual, contiguous claim blocks (the Black Fly, Mosquito, and Fisher) that are now grouped together to create one large 14,435 hectare property. The town of Nakusp, BC is located less than 15 kilometres to the north east. 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. No historical record of structured exploration work exists for the property.
SkyTEM Survey identified 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 Jumbo 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 remains both the largest producer and the largest consumer of natural graphite. According to the USGS, China produced 750,000 tons of the world’s natural graphite in 2012, down from 800,000 tons in 2011. The decrease in Chinese production in 2012 was due to government ordered closures of the majority of graphite mines it controls in Hunan province for environmental reasons and resource protection. 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, and Director
Mr. Rees has more than 35 years’ of mining exploration and business experience.
Ken Phillippe – CFO and 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.
