TORONTO, Dec. 30, 2019 /CNW/ - Laurion Mineral
Exploration Inc. (TSX.V: LME and OTCPINK: LMEFF) ("LAURION" or the
"Corporation") is pleased to announce that it has entered
into an option agreement (the "Agreement") with Jubilee Gold
Exploration Ltd. ("Jubilee"), pursuant to which the
Corporation has received an option (the "Option") to acquire
up to a 100% undivided working interest in certain mining leases
located in the Irwin Township of Thunder
Bay, Ontario (the "Brenbar Project"), subject to the
terms described below.
Brenbar Project
The Brenbar Project is contiguous with, and is situated to
the west of, the Corporation's flagship Ishkoday Project
("Ishkoday") located 28 km NE of the town of Beardmore. The Brenbar
Project encompasses 255 hectares or 2.55 km2 and is
host to the Brenbar Mine. Road access is favorable through Ishkoday
via the gravel highway #801. The historical and geological
information of the Brenbar Project was taken from Kodiak
Exploration Limited (2009) ("Kodiak") and Prodigy Gold
Incorporated (2011) ("Prodigy").
Mining at the Brenbar Project took place sporadically between
1941 and 1949 with 135 tonnes taken averaging approximately 20 g/t
gold. Underground development was confined to a 64 m deep shaft, and drifts at the 31 m and 61 m
levels. Numerous quartz veins up to 1
m wide were exposed. These quartz veins contain pyrite,
galena, sphalerite, chalcopyrite and native gold.
Extensive stripping and channel sampling programs were
undertaken between 2008 and 2010 by Kodiak. Kodiak also completed a
12-hole diamond drilling program totalling 1,850m (DDH BB09-1 to 12); in addition to
completing an airborne VTM survey and a reconnaissance geological
mapping/sampling program of known gold showings. A total of 521
grab samples were collected with 120 samples (23%) assaying in
excess of 0.50 g/t gold. Twelve samples returned greater than 15.0
g/t gold. These samples in predominantly quartz veins and stringers
ranged from 16.20 g/t gold (sample G28407) to 112.00 g/t gold
(sample G29750). Several new gold showings were uncovered
consisting of highly-deformed quartz-carbonate veins (with one
locally >5m wide) within intensely
foliated iron carbonate, sericite and pyrite alteration
envelopes.
Diamond drilling tested quartz veins over a >500m long target zone consisting of multiple
quartz, iron carbonate and pyrite-chalcopyrite-sphalerite veins.
The most significant individual assay results from Kodiak's 2009
diamond drilling were intersected in drill hole BB09-01
(442430E/5510377N; azimuth 005⁰; dip -65⁰; length 194m): 1.50m
grading 7.68 g/t gold (from 147.70m
to 148.90m) and 7.30m grading 2.10 g/t gold (from 181.50m to 188.80m), including 1.7
m grading 7.84 g/t gold (from 183.80m to 185.50m)
and 0.50m yielding 23.50 g/t gold
(from 184.40m to 184.90m). Drill holes were generally
directed perpendicular to the mapped dips of veins and foliations
therefore reported drill hole intercepts approximate lengths
represent close to true thickness of veins.
In 2010, Prodigy completed an additional 15 diamond drill holes
totalling 4,037.5 m (BB0-13 to 27).
Much of the rock types described are "mafic tuffs" and gabbros.
They are both strongly sheared at the contacts and containing
centimeter to meter wide quartz veins, veinlets and stringer
stockworks. The common alterations include sericite, hematite,
chlorite and iron carbonate. Tourmaline is common throughout as
disseminations in the host rocks and in veins. Disseminated pyrite
mineralization is also present throughout with higher pyrite
content associated with increased quartz veining and shearing.
The most significant individual and interval assay results from
Prodigy's 2010 diamond drilling are summarized in the following
table:
BRENBAR PROJECT
2010 DIAMOND DRILL HOLES RESULTS (PRODIGY)
|
DDH
#
|
UTM
CORRDINATES
|
AZIMUTH
/ DIP
(⁰)
|
LENGTH
(m)
|
GOLD
ASSAY
INTERVAL
RESULTS
(g/t /
m)
|
GOLD
ASSAY
RESULTS
(g/t /
m)
|
CORE
LENGTH
FROM – TO
(m)
|
EASTING
|
NORTHING
|
BB10-13
|
441973
|
5510520
|
330 / -50
|
306
|
|
5.36 /
0.70
|
280.2 –
280.9
|
BB10-19
|
442804
|
5510962
|
150 / -50
|
182
|
|
20.90 /
1.00
|
2.70 –
3.70
|
69.10 /
0.30
|
104.30 –
104.60
|
BB10-20
|
442711
|
5510918
|
150 / -50
|
293
|
|
4.07 /
0.30
|
227.00 –
227.30
|
BB10-22
|
442711
|
5510844
|
150 / -50
|
227
|
|
10.20 /
0.40
|
139.60 –
140.00
|
4.54 /
0.60
|
216.10 –
216.70
|
BB10-23
|
442516
|
5510918
|
150 / -50
|
189
|
|
3.28 /
0.70
|
150.00 -
150.70
|
BB10-27
|
442416
|
5510783
|
150 / -50
|
410
|
0.72 /
2.60
|
1.02 /
0.60
|
247.00 –
247.60
|
0.75 /
1.00
|
247.60 –
248.60
|
0.52 /
1.00
|
248.60 -
249.60
|
|
0.92 /
0.70
|
252.60 -
253.30
|
1.70 /
1.80
|
0.46 /
1.00
|
275.40 -
276.40
|
3.26 /
0.80
|
276.40 -
277.20
|
|
2.02 /
0.30
|
278.20 -
278.50
|
0.78 /
1.40
|
0.46 /
0.50
|
282.20 -
282.70
|
0.60 /
0.60
|
282.70 -
283.30
|
1.68 /
0.30
|
283.30 -
283.60
|
Notes: angle core
holes were generally directed perpendicular to the mapped dips of
veins and foliations therefore reported drill hole intercepts
approximate true thickness of the vein.
|
Higher gold grades are all linked to quartz veins. Zones of
altered host rocks with or without quartz veining, stringers or
stockworks appear anomalous in gold somewhat different than
Ishkoday, such as in BB10-27 yielding three separate assay
intervals of 2.60m grading 0.72 g/t
gold (from 247.00m to 249.60m), 1.80m of
1.70 g/t gold (from 275.40m to
277.20m), and 1.40m grading 0.78 g/t gold (from 282.70m to 283.60m)
in mostly altered mafic rocks containing 1 to 10% pyrite.
LAURION believes the Brenbar Project mineralization is a direct
extension of Ishkoday, adding another 1+km to the already known 5
km long system.
Terms of the Option Agreement
Pursuant and subject to the terms of the Agreement, the
Corporation will make a cash payment of $50,000 and issue 300,000 common shares of
LAURION ("Common Shares") to Jubilee, in order to
acquire: (i) the Option to earn up to a 100% undivided working
interest in the Brenbar Project; and (ii) the sole, exclusive,
irrevocable and immediate right to enter upon and to conduct mining
operations in and on all parts of the Brenbar Project (the
"Right to Operate") during a period of five years from the
closing of the Agreement (the "Closing Date").
In order to maintain the Right to Operate and exercise the
Option, the Corporation is required to make additional cash
payments totaling $115,000, issue an
aggregate of 460,000 additional Common Shares and incur an
additional aggregate of $300,000 in
exploration expenditures over a three-year period from the date of
execution of the Agreement (the "Effective Date"). The
Corporation may, in its sole discretion, elect to accelerate the
timing of the requisite payments, issuances of Common Shares and
incurring of exploration expenditures described above to thereby
effect an early exercise of the Option.
In the event that the Corporation becomes the holder of a 100%
undivided working interest in the Brenbar Project, then such
property will be subject to a 3.0% net smelter royalty (a
"NSR") on gold production (the "Gold Royalty")
and a 1.5% NSR on base metal production (the "Base Metal
Royalty", and collectively with the Gold Royalty, the
"Royalties"). In such circumstances, the Corporation shall
have the option to purchase, at any time, 1.0% of the Royalties by
paying an additional amount of $1.0
million.
The transactions contemplated by the Agreement remain subject to
all necessary corporate and regulatory approvals, including the
approval of the TSX Venture Exchange (the "TSX-V").
Historic QA-QC Analysis
LAURION has relied on technical information supplied by previous
vendors Kodiak (2009) and Prodigy (2011) in news releases and
technical reports referenced below. LAURION did not complete any
validation work on the reported historical work nor both companies
field work. There were no check assays on previously reported
results. LAURION intends on initiating an exploration program in
2020 to validate this information.
Kodiak reported their QA-QC protocols in a September 14, 2009 news release ("Kodiak Drills
High Grade Gold at West Geraldton
and Brenbar, Resumes Delineation Drilling at Hercules"). Prodigy
reported their QA-QC protocols in a technical report dated
June 13, 2011 ("Report on the Brenbar
Property, 2010 Diamond Drilling Program, Thunder Bay Mining
Division, Ontario, by J. Light and
J. Solomon, 39 pages with DDH's BB10-13 to 27").
Both vendors used standard industry QA-QC protocols with regards
to drill core retrieval; core logging; core sampling intervals
based on rock types, quartz veining and alteration; core splitting
with rock saws; sample bagging; and the addition of standards,
blanks and duplicates in the sample streams. Kodiak and Prodigy
used Activation Laboratories Ltd. ("Actlabs") for sample
preparation and analysis. Kodiak also used TSL Laboratories Inc.,
of Saskatoon (Saskatchewan). Samples were crushed to 70% -10
mesh and riffle split into 250gr sub-sample size using a Jones
Rifle splitter. Sub-samples were then pulverized to 95% -150 mesh
using a ring and puck pulveriser and homogenized prior to gold
analysis by Fire Assay/AAS using a 30gr charge.
Qualified Person
Mr. Jean Lafleur, P. Geo. (PGO,
OGQ). LAURION's VP Exploration is a Qualified Person as defined by
National Instrument 43-101, and has reviewed and approved the
technical content of this news release.
About Laurion Mineral Exploration Inc.
The Corporation is a junior mineral exploration and development
company listed on the TSX-V under the symbol LME and on the OTCPINK
under the symbol LMEFF. LAURION now has 176,710,617 outstanding
shares of which approximately 58% are owned and controlled by
Insiders who are eligible investors under the "Friends and Family"
categories.
LAURION's emphasis is on the development of its flagship
project, the 100% owned mid-stage 44 km2 Ishkoday
Project, and its gold-silver and gold-rich polymetallic
mineralization with a significant upside potential. The Ishkoday
Project has a project-wide database (2008 to 2018) that includes
283 diamond drill holes totaling 40,729
m, geological mapping, ground geophysics, and 14,992
individual samples with assays and geochemical analysis. The
mineralization on the Ishkoday Project is open at depth beyond the
current core-drilling limit of -200 m
from surface, based on the historical mining to a -685 m depth, as evidenced in the past producing
Sturgeon River Mine.
Connect with LAURION on
LinkedIn: http://ca.linkedin.com/pub/cynthia-le-sueur-aquin/17/30/4b
Follow us on Twitter: @LAURION_LME
Caution Regarding Forward-Looking Information
This press release contains forward-looking statements, which
reflect the Corporation's current expectations regarding future
events, including with respect to LAURION's business, operations
and condition, management's objectives, strategies, beliefs and
intentions, statements concerning LAURION's potential acquisition
of the Brenbar Project from Jubilee, as described above, and the
Royalties. The forward-looking statements involve risks and
uncertainties. Actual events could differ materially from those
projected herein including as a result of a change in the trading
price of the Common Shares. The Agreement is subject to the
approval of the TSX-V. Investors should consult the Corporation's
ongoing quarterly and annual filings, as well as any other
additional documentation comprising the Corporation's public
disclosure record, for additional information on risks and
uncertainties relating to these forward-looking statements. The
reader is cautioned not to rely on these forward-looking
statements. Subject to applicable law, the Corporation disclaims
any obligation to update these forward-looking statements.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
SOURCE Laurion Mineral Exploration Inc.