Norcan exploring Venezuelan project

Upon completion of a proposed $2-million financing, Norcan Resources (VSE) should be in good financial shape to begin exploring the NCJ-La Trinidad project in Venezuela’s El Dorado district, in Bolivar state.

Norcan has spent $2.6 million on the project to date, identifying two types of mineralization. Targets include large-tonnage, low-grade gold mineralization associated with a dioritic intrusive, and higher-grade narrow zones associated with quartz veining.

Previous work on the NCJ concession included a small-scale underground mining operation and, later, an open-pit operation over the same area. Total production amounted to 15,000-20,000 oz. gold.

Norcan identified three principal gold-in-soil anomalies on the project outside the area of old workings. These include the Eastern, Northwest and Southwest zones. The company tested the Eastern zone with 3,100 metres of trenching and several auger holes. Three of the trenches encountered two sub-parallel zones of gold mineralization, returning grades of up to 37.5 grams gold per tonne over 4 metres in one trench.

Two of the other trenches encountered a wider, lower-grade zone which the company believes could be associated with the margin of a diorite intrusive. Gold values ranged from 0.62 grams over 19 metres up to 0.51 grams over 86 metres.

The next phase of work will include further trenching on the Eastern zone, as well as 5,000 metres of drilling. Trenching and auger drilling are also planned on the Northwest and Southwest gold anomalies, which have not yet been tested.

Norcan can acquire the NCJ ground by paying US$4 million (US$800,000 having been paid to date). It can

acquire the Trinidad concession by issuing 131,292 shares (which it has done) and paying US$2.1 million over three years (US$300,000 having been paid to date). The two concessions are contiguous, covering about 1,800 hectares.