The Kaukua Project received its name from an earlier study that was previously conducted in the area by the Geological Survey of Finland (GTK). The Kaukua Project is located 18 km South of the town of Posio and 35 km West of Kuusamo city, a regional centre in Northeastern Finland. The nearest major city is Oulu, which is about 200 km away to the SW, and the town of Rovaniemi is located about 150 km WNW of the claim areas. All three centres have airports with daily scheduled flights to Helsinki. The nearest major rail station is located in Taivalkoski, 35 km South of the Kaukua Property. The project has excellent infrastructure facilities for power( High Voltage Power Lines 110 kV - 4.5 km away) and is accessible by paved regional highways which are kept open all year round.

 

On July 26, 2007 Nortec signed a Memorandum of Understanding (MOU) with Akkerman Exploration B.V. ("AEbv") to earn an undivided 70% interest in the Kaukua Property by funding and incurring the Initial Exploration Expenditures of €600,000 (Six Hundred Thousand Euros) over an Earn-In period of 3 years. In addition, Nortec will pay €30,000 (Thirty Thousand Euros) ("Downpayment") on confirmation of the ownership of the claims from the Ministry of Trade and Industry, Finland, to AEbv. The Finnish Ministry confirmed that AEbv is the only organization that applied for claims in the area. AEbv and Nortec also received permission to commence exploration work from the various landowners in the claims area. (Please refer to the Oct. 2, 2007 and Nov. 14, 2007 News Releases.)

 

The minimum exploration expenditures ("Initial Exploration Expenditures") for the first 12 months after signature of the MOU amount to €150,000 (One Hundred and Fifty Thousand Euros). In addition, to incurring the above Initial Exploration Expenditures, Nortec will pay AEbv the following amounts during the Earn-In Period in cash or shares in Nortec Ventures Corp.:

 

At the end of the first year:       €60,000
At the end of the second year:  €100,000

 

Nortec will also have an option to earn a further 10%, for a total of 80% by incurring €2,500,000 ( Two Million Five Hundred Thousand Euros) in Exploration Expenditures or the completion of a Bankable Feasibility Study. Upon the formation of the Joint Venture, if either party does not contribute its proportional share of the required exploration and/or development funds in the same ratio as its Participation Interest, the respective party's Participating Interest will be diluted according to the ratios of financial contributions to the Joint Venture. If any Participant's Participating Interest falls below 10% (ten percent), the Participating Interest of the respective Participant will automatically be converted to a 2% (two percent) Net Smelter Royalty.          

 

As of September 04, 2008 (See News Release) Nortec has earned its 70% interest in the Kaukua Property

Kaukua claims overlie the central part of the Kaukua block. The Geological Survey of  Finland (GTK) carried out detailed field work consisting of geological mapping, geophysical surveys and limited shallow diamond core drilling (6 core holes) in 1999 and 2004. The claims cover marginal series cumulates in the North and layered series cumulates in the Central and Southern parts. The general setting of the Kaukua block is that of  Archean gneisses, albite-quartz rocks with marginal and layered series cumulates. Kaukua represents the Northern most tectonic block of the Koillismaa Layered Mafic Complex. The project area offers exploration potential for magmatic PGE, Gold, Nickel and Copper mineralization along the basal contact of the Kaukua block. The Kaukua prospect is and was considered by GTK geologists (Geological Survey of Finland) to represent the most prospective parts of the Koillismaa Complex, based on relatively high grades and thickness of the magmatic sulphide mineralization. At Kaukua sulphides are particularly rich in Platinum Group Minerals and Gold and as well Nickel and Copper. PGE mineralization at Kaukua is intimately associated with significant Nickel and Copper values and is predominantly hosted in pyroxenite and gabbronorite phases of the Kaukua block of  the Koillismaa Intrusive Complex. GTK recognized two types of PGE mineralization at Kaukua; Reefal-type similar to the Bushveld Complex - Merensky Reef, South Africa and the Stillwater Complex, Montana and the Marginal Series type at the contact of the ultramafic sequence with the Archean basement. Reefal-type mineralization occurs higher up in the ultramafic sequence.This has yet to be drill tested and evaluated on the Kaukua Property.  Recent Nortec drilling identified a narrow sulphide stringer (8 cm wide) which was intersected in the pyroxenite, near the bottom contact. Hole Kau07-002  returned 12200 ppb (12 gms/tonne) Palladium and 5260 ppb (5.2 gms/tonne) Platinum, 0.4% Copper and 3.2% Nickel.  Another narrow sulphide stringer (9 cm wide) was intersected in the mineralized zone in Drill Hole Kau07-007 which returned 15.4 gms/tonne Palladium, 2.8 gms/tonne Platinum, 1.2% Copper and 2.3% Nickel. GTK (Geological Survey of Finland) intersected 0.91 metres (91cm) of high grade mineralization in drill hole R405 with values of 2.9 gms/tonne Palladium, 0.9 gms/tonne Platinum, 0.58% Copper and 0.73% Nickel. The Nickel values in the stringers are much higher than the Copper values, when compared to the rest of the values of the mineralized zone where the Copper values are higher than Nickel. This suggests the mineralization in the stringers is not re-mobilized, but is part of another phase (separate and distinct system) of the original magmatic mineralization, and could be present in the vicinity of the drilling. 

The first phase drill program totalled 1,024.7 metres of diamond core drilling which consisted of  7 holes (Kau 07-001 to Kau 07-007). All holes were drilled having approximately 100 metres spacing between them and stepped out approximately 100 metres from each previously drilled GTK (Geological Survey of Finland) holes (R387, R404 and R405). Holes Kau 07-001 to Kau 07-004 cover an area of approximately 400 metres in strike length and 200 metres down dip. Early indications are suggesting that the zone is amenable for exploitation by open-pit methods. At this early stage, the Kaukua Project is showing that of being open to the West and Down Dip. Second phase diamond core drilling consisted of 7  holes (Kau08-008 to Kau08-014) totalling 1,163 metres. The off-set and deeper down-dip holes have been completed as of 22 April 2008. Hole Kau08-013 has shown to be the best intercept to date, (From 141.48m - To 172.5m)31.02 metres grading 2.30 g/t PGE + Gold including 5.50 metres grading 6.26g/t PGE + Gold. All 14 drill holes to date make up an area of 600 metres long strike length by 250 metres down dip. The average thickness of the mineralization intersected to date from the 14 holes is approximately 30 metres. 3-D I.P. Ground Based Geophysical Survey Completed August 2008. Third Phase Deeper Down-Dip Holes 8,000 - 10,000 metre drill program is in progress.