TORONTO, Feb. 5 /CNW/ - Laurion Mineral Exploration Inc. (TSXV: LME) ("Laurion") and Stroud Resources Ltd. (TSXV: SDR) ("Stroud") are pleased to announce that they have executed a Letter of Intent ("LOI") for Laurion to receive an option to acquire up to 60% of the mineral rights of Stroud's undivided 100% legal interest in the Leckie Lake Gold Property (the "Property"), located 3 kilometres north of Temagami, Ontario.
The LOI contemplates that a definitive option agreement (the "Option Agreement") incorporating the LOI terms shall be completed and executed within 39 days of the date of execution of the LOI subject to Laurion completing due diligence to its satisfaction and both parties obtaining all necessary corporate and regulatory approvals, including the approval of the TSX Venture Exchange.
The LOI states that Laurion can acquire a 50% legal and beneficial interest in the mineral rights of the Property by making cash and share payments and incurring exploration expenditures totaling $2,850,000 (collectively, the "Initial Expenditures") over a 36 month period from the proposed closing date (the "Closing Date"). On the Closing Date, and included within the Initial Expenditures, Laurion would be required to make a cash payment of $25,000 and issue $50,000 worth of Laurion common shares.
The LOI further states that if Laurion obtains a 50% interest in the Property by completing the Initial Expenditures as contemplated above, Laurion shall have the option to increase its legal and beneficial interest in the Property from 50% to 60% upon Laurion making an additional payment of $1,000,000 within 9 months of the Closing Date.
The LOI further contemplates that Laurion will complete a NI 43-101 Technical Report on the Property within 180 days of the Closing Date and will be the Operator of the Property during the Option earn-in period and that if Laurion exercises its option to acquire a 50% legal interest in the Property pursuant to the Option Agreement, exploration of the Property will proceed by way of a joint venture between Laurion and Stroud.
Leckie Lake Gold Property
The Property is located in the Township of Strathy approximately 3 kilometres north of the town of Temagami, Ontario. Access to the Property is by Highway 11.
The Property consists of 12 contiguous claims, which cover an area of approximately 192 hectares.
The No. 1 zone on the Property is a steeply dipping fracture system that has been intensely altered by carbonates and quartz-rich fluids. Minor amounts of zinc, silver and copper are also present. Gold mineralization in the No. 1 zone is open along strike and at depth. A two-compartment shaft was sunk to 525 feet on the No. 1 zone and levels were established at 100 feet, 200 feet, 300 feet, 400 feet and 500 feet below surface.
The No. 2 zone on the Property is much less explored and is located west of the No. 1 zone. This zone joins with the No. 1 zone at depth and is also intensely altered. The No. 1 zone has been traced down to a depth of 750 feet. In addition, prospecting has uncovered seven additional gold showings.
The Property has been essentially dormant since 1996, when Stroud and Lacana Mining Corporation (which subsequently became Homestake Canada Inc. and is now a subsidiary of Barrick Gold Corporation), in a joint venture, carried out work including prospecting, geophysics and 63,483 feet of drilling on the Property between 1985 and 1996.
The Property is underlain by Archean mafic volcanics. The major structural feature is an east-northeast trending syncline. The Property is located on its northern limb. Gold mineralization discovered to date is within shear zones striking N30degreesW, subnormal to the regional strike. Alteration within the shear zones is essentially a broad zone of carbonatization surrounding silicification that hosts the quartz veins, sulphides (sphalerite, chalcopyrite, pyrite, and arsenopyrite) and gold mineralization.
George Coburn P.Geo., President and CEO of Stroud, is a Qualified Person within the meaning of National Instrument 43-101 and has reviewed the scientific and technical information concerning the Property contained in this news release.
About Stroud Resources Ltd.
Stroud is a junior resource company involved in the acquisition, exploration and development of mineral properties. Stroud holds a 3.75% interest in six natural gas and gas condensate wells and has two gold properties in Ontario Canada. Stroud is focusing its exploration activities on the Santo Domingo epithermal silver-gold project in Jalisco, Mexico.
About Laurion Mineral Exploration Inc.
Laurion is an exploration specialist company with key interests in highly prospective mining properties located in Ontario. Laurion's primary exploration focus is the identification of gold deposits; its exploration horizon also encompasses base metals and PGEs.
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 and Stroud's business, operations and financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. 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 and Stroud caution against placing undue reliance thereon. Neither Laurion, Stroud nor their respective management assume any obligation to revise or update these forward-looking statements.
SOURCE Laurion Mineral Exploration Inc.
For further information: For further information: Laurion Mineral Exploration Inc., Cynthia Le Sueur-Aquin - President, Tel: (705) 788-9186, Fax: (705) 788-9187, Website: www.laurion.ca; Stroud Resources Ltd., Mr. George Coburn, President and CEO, Tel: (416) 362-4126, E-mail: email@example.com, Website: www.stroudresourcesltd.com