TOMBOKO, KOUROUSSA, BADAMAKO PROJECTS

Guinea, West Africa

 

The Tomboko Permit totals more than 75 square kilometres and is located immediately west of, and is surrounded by Anglo-Ashanti’s SAG multi-million ounce gold mine and related land holdings. Extensive bedrock (rock geochemical sampling), soil, termite mound and pit sampling (over 10,000 samples) plus detailed geological mapping delineated three targets for immediate follow up drilling, Tom-1, Tom-2 and Tom-3.

Termite mound sampling resulted in high gold values of 7.1 g/t, 3.5 g/t, 2.7 g/t 2.3 g/t, 2.2 g/t, 1.8 g/t, 1.7 g/t, 1.6 g/t, 1.5 g/t, 1.4 g/t, 1.2 g/t and 1.1 g/t. Geochemical soil anomalies were delineated over several kilometres on all three targets that were over 100 ppb gold and some with greater than 600 ppb gold. Rock geochemical bedrock sampling, consisting of 65 samples, on the Tom-1 Zone-North prospect returned high grade gold values of 84.6 g/t, 35.8 g/t, 13.9 g/t, 5.8 g/t, 4.7 g/t and 2.5 g/t. The objective of the rock geochemical sampling was to test various rock types that are associated with the NW-trending termite gold anomalies. Over 9,779 termite mound samples and 212 bedrock samples were collected and analysed for gold.

The gold mineralization on the Tom-1 and Tom-2 targets appears to be hosted in highly altered, sheared, brecciated sandstone and volcanic rocks of the early Paleoproterozoic age Siguiri Basin. The SAG Mine is also hosted in the same age rocks. The TOM 3 Prospect is hosted in quartz porphyry intrusive rocks. The mode of occurrence of the gold mineralization is similar to the Koulékoun deposit owned by Avocet Mining, located 120 kilometres to the south; a resource of indicated 31.5 mtonnes at 1.38g/t Au (1.4 million ounces) and inferred 22.8 mtonnes of 1.22g/t Au (892,200 ounces), (re: http://www.avocetmining.com/guinea).

The next step is initial drilling of the Tom-1 North zone to be undertaken in H1 2017.

TGR has a 100% interest in the permit.

[link to technical report, mapping report?]??

Rock sample types and assay results (Tom-1 North):

 

Figure showing TOM-1 North rock sample results on soil geochemistry results.

 

 

Figure shows the location of TOM-3 prospect in the Tomboko Project.

 

Figure shows the soil sample results in the area of the TOM-3 prospect.

Images show the various rocks mapped in the intrusive contact zone at the TOM-3 prospect.

The Diguifara Permit totals more than 75 square kilometres and is located immediately north-northeast of AngloGold Ashanti’s SAG multi-million ounce gold mine.  The permit was explored in 2007 – 2008 by Wega Mining following a geochemical termite, pit and trench sampling campaign which revealed a strongly mineralized anomalous zone.  Recent work mainly consisted of detailed geological and structural mapping and geochemical termite sampling surveys which defined two, DIG1 and DIG2, anomalies that cover nearly 70% of the Diguifara Permit and can be traced for over 10km. The results of 4,860 termite mound samples lead to an extensive pit sampling and rock sampling program.  The best rock sample values of 736 ppb, 608 ppb and 5,960 ppb gold were obtained in siltites with quartz stringers.   The pits also returned anomalous gold values in chip samples including 263ppb over 3.2m, 331ppb over 1.4m and 210ppb over 1.4m; these values occur on the DIG1 anomaly. Mapped tectonic structures are similar to those identified in the Tomboko area and those associated with the SAG deposit just a few kilometers south.

TGR has a 100% interest in the permit.

Badamako Permit

The Badamako Permit is comprised of over 100 square kilometres of exploration licenses which are approximately 55 kilometres northeast of the Tomboko Permit. Badamako occurs on the West Mali Gold Trend hosting several million ounces of gold in a series of deposits (Kalana mine, Yanfolila Project/Komana Mine, Kobada deposit and Niaouleni deposit).

Avnel Gold Mining Ltd. is developing the Kalana Mine and contains reserve of 21.7 million tonnes at 2.8 grams gold per tonne (“g/t Au”) with 2 million ounces and measured and indicated resource of 23.7 million tonnes grading 4.1 g/t Au with 3 million ounces. (Re: www.avnelgold.com/investor/mineral-reserves-resources/).  Hummingbird Resources acquired the fully permitted Yanfolila Project from Goldfields in July 2014 hosting 7.039 million tonnes grading 3.14 grams gold per tonne for 757,000 oz. of contained gold in the probable reserve category and 18.8 million tonnes averaging 2.54 grams gold for 1.54 million oz. contained gold in the indicated and inferred category (Re: hummingbirdresources.co.uk/development/mali/).

Extensive termite mound sampling (8,930 samples) was analyzed for gold and detailed mapping was conducted on the Badamako Permit. Three zones, North, Central and South, all appearing to have northwest trends of up to 6 kilometres long and 3 kilometres wide, had anomalous gold values in the range of 100 ppb to 8,700 ppb. The South Zone returned very high gold values (8.7 g/t, 7.2 g/t, 6.9 g/t, 5.6 g/t, 3.5 g/t, 2.1 g/t, 2.0 g/t, 1.9 g/t, 1.7 g/t, 1.6 g/t and 1.5 g/t Au). Several alluvial gold mining sites are present along the river in the southern portion of the property. The geological and structural modes of occurrence of the Badamako gold mineralization are interpreted to be similar to AngloGold Ashanti’s SAG and Nord Gold’s Lero gold deposits.

The project is ready to drill. TGR has a 25% interest in the permit.

The Kouroussa Permit is located 80 kilometres west of the Tomboko Permit and 5 kilometres south of the Lero Gold mine, also called Lefa owned by Nord Gold NV. The Lefa Mine has measured and indicated resources of 87.5 million tonnes (3.9 million ounces) grading 1.38 g/t Au. (Re: Nord Gold website, www.nordgold.com).

Extensive termite mound sampling (2,239 samples) and detailed geological mapping with emphasis on structural controls were carried out in 2011, 2012 and 2013. In 2013 detailed infill termite mound and soil sampling delineated a 3,000m long and 500m wide northeast-trending geochemical gold anomaly ranging from 100ppb to 2000ppb gold, with high grade values of 2.0 g/t, 1.2 g/t, 1.1 g/t, 0.9 g/t, 0.8 g/t, 0.82 g/t, 0.79 g/t and 0.75 g/t gold in termite mounds. The anomaly appears to be associated with the northeast and northwest tensional structures in Paleoproterozoic sedimentary and volcanoclastic rocks of the Siguiri Basin.

The project is ready to drill. TGR has a 20% interest in the permit.

LOI Agreement

Nortec will have the option to earn an 80% participating interest in the Tomboko and Diguifara Permits and an 80% financial interest in the Kouroussa and Badamako Premits. Nortec will initiate due diligence for the TGR’s ownership of the claims and the work requirements to keep the claims in good standing.

Nortec will incur exploration expenditures to a staged earn-in interest to a joint venture with TGR as follows (all figures in US$):

Phase 1 – 25% earned interest (expenditures by July 1, 2017)
Drilling of 2,500 metres (RC)

including support costs and assays

$        300,000
Evaluation of data $         25,000
Technical Report $         75,000
Contingency $      100,000
Total $      500,000
25% Interest earned by Nortec upon completion of Phase 1
Phase 2 – 26% earned interest (expenditures by July 1, 2018)
Drilling of 2,500 metres

including support costs and assays

$      300,000
Evaluation of data including metallurgical test work $         50,000
Technical Report $         75,000
Contingency $         75,000
Total $      500,000
Total 51% interest earned upon completion of Phases 1 and 2
Phase 3+4 – 29% earned interest (expenditures by December, 2021)
Drilling of 10,000 to 15,000 metres

including support costs and assays

$   1,500,000
Evaluation of data $      100,000
Pre-feasibility and/or Feasiblity Technical Report $      200,000
Regional exploration and evaluation of other targets $      500,000
Contingency $      200,000
Total $   2,500,000
Total 80% interest earned upon completion of All Phases and formation of Joint Venture

The above work program will lead to an 80:20 Joint Venture with TGR.  A standard dilution clause applies to either party leading to a 2.5% Net Smelter Return Royalty in case either party does not contribute its share of the exploration and development expenditures resulting in dilution of a party to an interest of 10% or less.

In the event a third party acquires the project the proceeds will be divided according to the percentage interest earned.

TGR has a very highly qualified technical team with extensive experience in West Africa, they are:

  • Serigne Dieng – Chief Geologist, General Manager, PhD (Mineral Exploration, Queens University, Kingston, Ontario) worked for IAMGOLD Corp and Wega Mining S.A., in the countries of Guinea and Senegal.  He is a shareholder of TGR.
  • Pierre Lalande – B.Sc., P.Geo., Geologist, Chief Technical Advisor, identified several deposits and mines at an early stage in Mali, Burkina Faso and Guinea.  He worked for several major companies as Chief Geologist, Mali Operations, IAMGOLD Corp., Senior Geologist and Country Manager, Wega Mining SA.  He is presently a Director and Chief Technical Advisor, African Gold Group., a company listed on the TSX Venture Exchange. *AGG had a big change recently**
  • Denis Bray – B.Sc., P.Eng. Geologist, has many years’ experience working in West Africa, involved in the discovery of several gold deposits; Country Manager, Guinea and Mali, Wega Mining SA and Avocet Mining Corporation, Regional and Project Manager, IAMGold Corp., Consultant to Barrick Gold in Mali, and Project Manager and Senior Geologist, China, Majestic Gold Corporation.
  • Mohan R. Vulimiri, M.Sc., P.Geo, Director of Nortec and CEO of Nortec Minerals, is a Qualified Person as defined by NI 43-101.  Mr. Vulimiri has approved the corporate and technical content contained in this press release.  All the bedrock and termite mound samples were analysed by SGS Labs, an accredited laboratory in Bamako, Mali.  A blank was inserted every 20th sample for quality control.