TORONTO, Sept. 8, 2011 /CNW/ - Laurion Mineral Exploration Inc. (TSX-V: LME and OTCQX: LMEFF) ("Laurion") is pleased to announce that it has entered into an definitive
agreement (the "Agreement") with Prodigy Gold Inc. (TSX-V: PDG)("Prodigy Gold"), in which the Corporation has received the option to acquire up to a
100% interest in 21 claim units totalling 336 hectares. The Prodigy
Gold Walter-Elmhirst Property ("Walter-Elmhirst") is located in the Walter and Elmhirst Townships, 25 kilometres east
of the Town of Beardmore, Ontario, and is contiguous to the
Corporation's Sturgeon River property. The objective of this
transaction is to encompass the strike of southern parallel extensions
south of the Tehya, Ahki, Loki and A2 Vein trends that are potential
prospective horizons for precious metal rich VMS mineralization.
The proposed transaction is subject to regulatory approval by the TSX
The Corporation also announced today that it has completed a 3 hole
drill program totalling 427 metres over the recently acquired Elmhirst
property ("Elmhirst"), which transaction was announced in a press release on the 30 August
2011. The Elmhirst property consists of 4 mining leases totalling 64
hectares and abuts the eastern boundary of the Sturgeon River. This
drill program targeted 2 zones; a quartz vein and sphalerite zone. The
quartz vein is the northern extension of the Sturgeon River A2 Vein
which is emplaced along a shear zone located south of the contact
between intermediate volcanics/porphyry and tuffaceous rhyolites. Drill
hole LME11-011 completed in April 2011, targeted a strong VLF anomaly,
which the A2 zone was intersected 68 metres downhole (50 metres
vertically below surface) and consisted of a 9.2 metre thick zone of
highly silicified and altered intermediate volcanics at the contact
with diorite porphyry.
Laurion believes this horizon to be very prospective for precious metal
rich VMS mineralization, and the Corporation intends to carry out
follow-up drilling along the strike length of the anomaly, which
extends over 2,000 metres, and to drill the zone down dip.
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 70,000
Laurion shares upon execution of the agreement, the issuance of 430,000
Laurion shares and incurring an aggregate of $225,000 in exploration
expenditures over three years. The Walter-Elmhirst Project is subject
to a 3% net smelter return ("NSR") royalty in favour of Stephen M. Roach, Denis Laforest and Pierre
About Prodigy Gold Inc.
Prodigy Gold Incorporated is a Vancouver-based gold exploration and mine
development company listed on the Venture Exchange (TSX.V: PDG) with
assets in Eastern Canada. Prodigy's lead project is the advanced Magino
mine project in northern Ontario.
About Laurion Minerals 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,
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 financial
performance and condition, as well as management's objectives,
strategies, beliefs and intentions. Such statements include, but are
not limited to, statements concerning Laurion's acquisition of the
property from Prodigy Gold 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 events 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.
SOURCE Laurion Mineral Exploration Inc.
For further information:
Laurion Mineral Exploration Inc.
Cynthia Le Sueur-Aquin - President