Laurion Acquires 100% Interest in Beaurox Property with Potential Target Deposit

TORONTO, Nov. 22, 2011 /CNW/ - Laurion Mineral Exploration Inc. (TSX-V:LME) (OTCQX:LMEFF) ("Laurion" or the "Corporation") is pleased to announce that it has entered into a definitive agreement (the "Agreement") with Beaurox Mines Limited ("Beaurox"), in which the Corporation has received the option to acquire up to a 100% interest in 30 mining leases covering an area of 447.35 hectares. The Beaurox property is contiguous to the Corporation's north eastern boundary, and is located in the south western quarter of Elmhirst Township. The Corporations' Sturgeon River Property is located 25 kilometres east of the Town of Beardmore, Ontario.

Highlights of the Beaurox Property

Laurion is currently compiling the extensive diamond drilling data base on the Beaurox property and combining it with information currently compiled on its Sturgeon River and Jubilee properties. Based on preliminary analysis of the historical drilling, combined with Laurion's recent drill results on its Sturgeon River and Jubilee properties, Laurion has established the potential for possible economic deposits across the three properties. Aggressive exploration plans are now being developed to explore for these deposits and to guide this exploration. Laurion has developed a Target Deposit based on the available drilling information which suggests a combined strike length of 6,000 metres for the 3 zones. Assuming a minimum vertical depth of 250 metres on these zones at an average true width of 2.5 meters, and that the trends are 30-50% mineralized, the Target Deposit size is:

Target Deposit Potential - Sturgeon River to Beaurox Trends                                

         
Potential Tonnage  Gold Grade Silver Grade Zinc Grade Copper Grade
Range Range Range Range Range
(tonnes) (gpt) (gpt) % %
 4.0 to 6.0 million   1.5 to 3.0  20 to 30  2.5 to 3.5  0.25 to 0.50

 

Note: The reader should be cautioned that the potential quantities and grades reflected above are conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.

The Beaurox Property has undergone multiple exploration drilling campaigns (1952, 1966, 1967, 1971, 1973, 1982, 1987, 1988, 1990 and 1992), which have all resulted in the discovery of significant polymetallic (Gold-Zinc-Silver-Copper) horizons with highlights of drill hole intersections that include:

Target Campaign Hole ID Interval (m) Au (g/t) Ag (g/t) Cu % Zn%
               
A-Zone 1971 C-19 1.55 14.75 21.9 0.14 4.50
  1982 K-64 2.70 5.4 20.0 0.50 6.80
  1987 87-11 3.05 - 35.0 - 28.25
  1988 88-03B 1.23 11.32 32.6 0.50 5.74
  1990 90-39 2.40 4.0 17.6 0.10 3.50
  1992 92-58 4.00 5.1 24.8 0.40 3.90
               
D-Zone 1988 88-28 2.10 - 7.5 0.23 6.51
  1988 88-33 2.77 1.03 13.72 0.33 4.61
               
Garvey 1971 C-9 0.70 265.2 116.2 - -
               
River 1967 M-6 3.05 - - 4.10 -

Cynthia Le Sueur-Aquin, President of Laurion Mineral Exploration Inc. stated, "We are particularly excited about this key acquisition. There are strong indications we are located in a very favourable geological setting to realize the occurrence of strata-bound massive gold-zinc-copper-silver environment. The base metal mineralized horizon is very persistent over a great distance. Available sampling and drilling results indicate excellent potential. The "A" Zone on the Beaurox property is the possible extension of the A-2 zone, and the "D" Zone appears to be on strike with the Tehya Zone, thus indicating that the potential strike length of these zones may extend up to 2.7 km of this prospective horizon of precious metal rich VMS mineralization."

Terms of the Agreement

Pursuant to the terms of the Agreement, the Corporation has an Option to earn in an undivided 100% interest, subject to the issuance of an aggregate of 4,500,000 common shares in the capital of Laurion ("Common Shares") at a deemed price of $0.05 per Common Share.  90% of the 4,500,000 Common Shares to be issued by Laurion shall be held pursuant to an escrow agreement and released in accordance with a structured schedule over a period of 36 months. The Beaurox Property is subject to a 3% net smelter return ("NSR") royalty (the "Royalty") in favour of Beaurox (0.5%), David Malouf (2%) and Orient Resources Inc. (0.5%).  At any time, Laurion may purchase 1.5% of the Royalty for $1,500,000 or 1% of the Royalty for $1,000,000. The proposed transaction is subject to regulatory approval by the TSX Venture Exchange.

Beaurox Property

The Beaurox property contains eight named surface showings, most with at least one or two drill holes through the mineralized zones. These showings appear to line up into three sub-parallel horizons trending northeast along the regional geological strike. From northwest to southeast they include the River Zone (River Showing and River Showing SW Extension), the "D" trend (Area D, Garvey Zone, Miron Vein, and extending to the southwest onto Laurion's Sturgeon River property as the Tehya Zone) and the "A" trend (Area A, Area B, and extending southwest into the McLeod-Kennedy Zone on Laurion's Jubilee property, and into the A-2 Vein on Laurion's Sturgeon River property). It is estimated that the strike lengths of the "D" trend and the "A" trend on the Beaurox Property are approximately 1.5km, and combined with Laurion's other property holdings along the trends, that the potential strike lengths of the combined "D-Zone to Tehya" and "A Zone to A-2 vein" may each extend to over 2.7km.

Approximately 197 diamond drill holes totalling 20,836 metres have been completed on the Beaurox Property with most of these holes testing below surface exposures of mineralization and intersecting the zones less than 100 metres below surface. Drilling on the "A" Zone has been the most extensive with the deepest intersection of the mineralized zone at a depth of approximately 130 metres below surface. The majority of the drilling is on the "A" Zone, and it remains open along strike and down dip.

The Beardmore-Geraldton Gold Camp ("BGGC") has a production history of over 4.1 million ounces of gold, mined predominantly from high grade quartz vein systems. Laurion's Sturgeon River property holdings are composed of gold-silver bearing quartz veins hosted in ENE-WSW trending mineralized shear zones associated with volcanogenic sulphides within felsic to intermediate volcanics. These zones contain significant amounts of base metal sulphides, mainly sphalerite and chalcopyrite. Over the last two years, Laurion with their project manager GeoVector Management, have shifted their focus to these largely unexplored sequences of mineralized sericite and quartz rich shear zones, discovering a number of new gold and polymetallic zones along substantial strike lengths.

The technical information contained in this news release has been verified by Joe Campbell, P. Geo., consulting geologist with GeoVector Management Inc. Mr. Campbell is the project manager for Laurion's Sturgeon River project and is a Qualified Person as defined in "National Instrument 43-101, Standards of Disclosure for Mineral Properties."

About Laurion Mineral Exploration Inc.

The Corporation's focus is to make the transition from explorer to near‐term producer and envisages the realization of shareholder value and wealth through monetization of its discoveries and assets. Laurion's exploration horizons are focused primarily on gold with a secondary interest in base metals and PGEs with key interests in prospective mining properties located in Ontario and Churchill County, Nevada USA.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release includes certain forward-looking statements concerning the future performance of Laurion's business, operations and condition, as well as management's objectives, strategies, beliefs and intentions. Such statements include, but are not limited to, statements concerning the Sturgeon River and Beaurox Property as described above. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future even and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and Laurion cautions against placing undue reliance thereon. Laurion and its management assume no obligation to revise or update these forward looking statements except as required by law.


SOURCE Laurion Mineral Exploration Inc.

For further information:

Laurion Mineral Exploration Inc.
Cynthia Le Sueur‐Aquin - President
Tel: 1-888-212-4070
Tel: 1-705-788-9186
Fax: 1-705-788-9187
Website: www.laurion.ca

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Laurion Mineral Exploration Inc.

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