TORONTO, June 14, 2012 /CNW/ - Laurion Mineral Exploration Inc. (TSX-V: LME) and (OTCQX: LMEFF) ("Laurion" or the "Corporation").
Current global market conditions have had an increasing impact on intrinsic value and survivability in the junior exploration and development sector. The mining industry bottoming in early 2009 was the motivator in shifting Corporations' strategic focus to morph from exploration to nearer term production and cash flow generation, with the positive acquisition of the Bell Mountain project in Nevada.
Since 2010, the Corporation's Ontario project, the Sturgeon River has continued to deliver excellent news with gold and base metal discoveries through comprehensive field and sampling programs, positive drilling results and strategic acquisitions resulting in the delineation of a kilometre wide corridor hosting multiple precious metal rich VMS ("Volcanic Massive Sulphide") horizons with a combined strike length of 6,000 metres.
Cynthia Le Sueur-Aquin, President of Laurion reported that, "The Sturgeon River property is an exciting project that continues to surprise and generate good news. We are optimistic that our field work and drilling programs on the Sturgeon River property being executed this summer, will uncover additional discoveries with growth potential in the area of our VMS target.
Our Bell Mountain property in Nevada may have the potential to be an economical operation in the near future. Present market conditions and the drive to preserve cash have impacted the Corporation's capacity to develop the Bell Mountain project under an appropriate time line, indicative by new sector lows further impacting an unjustifiably low share price, thus making future raising of exploration and development funds extremely difficult and dilutive. The tough economic realities and general negative reaction of investors to any news emanating from the exploration and development sector are forcing companies to mark time on their projects and eliminate the risk of possible good news generation, which has been evidenced by investors recouping past losses off the backs of exciting news, thus placing downward pressure on share prices and undermining potential shareholder value and investments."
Since acquisition of the Bell Mountain property in 2010, Laurion has completed a NI 43-101 Technical Report, a 56 hole drill program, metallurgical testwork, baseline studies for the Environmental Assessment ("EA") permit and the initial pit cone analysis which is the first stage of the Preliminary Economic Report ("PEA").
The Corporation raised aggregate gross proceeds of $464,224 in a flow-through private placement in December 2011, and through diligent field and exploration work on the Sturgeon River project, has outlined two main target types which include: (i) high grade lode gold style quartz veins within larger highly altered shear zones; and extensive precious metal polymetallic VMS deposits associated with felsic and intermediate fragmental volcanics.
The Sturgeon River Mine quartz vein system is associated with very strong northeast trending structures, which are host to massive to semi-massive sulphides which occur on multiple horizons within a kilometre wide corridor. In the last year, Laurion identified this kilometre wide corridor as having the potential to host a precious metal rich VMS deposit. Approximately 245 diamond drill holes totalling 35,159 metres has been completed on the Sturgeon River Property to date, with most of these drill holes testing down dip of surface mineralization of 3 precious metal rich VMS trends, intersecting the zones to a depth of approximately 100m below surface. Laurion has developed a Target Deposit of 4.0 to 6.0 million tonnes of 1.5 to 3.0 g/t gold, 20 to 30 g/t silver, 2.5 to 3.5% zinc and 0.25 to 0.50% copper, which suggests a combined strike length of 6,000 metres for the 3 zones of sulphides.
Note: The potential quantity and grade of the Target Deposit is conceptual in nature, there has been insufficient exploration to define a mineral resource, and it is uncertain as to whether further exploration will result in discovery of a mineral resource.
The summer exploration program consists of field checking of historical trenching and drill collars to enable accurate placement of the locations of the 1988, 1990, and 1992 drill holes carried out on the "A"-Zone on the Loki trend. Based on this positional work, the current drill program is the first phase of a number of drill programs which will comprise of twinning, infill and extensional exploration drilling, with the goal of bringing the Loki trend to a NI 43-101 compliant resource estimate. It is expected that this drill program and the associated field work and data collection may take approximately 6 to 8 months to complete.
The above work will be followed with grid drilling along the Tehya-Ahki trend with sufficient drill spacing to allow this area to advance to NI 43-101 resource estimation. It is expected that this work on the Tehya-Ahki trend will take 12-18 months to complete.
The success and continuation of the above exploration and development programs is contingent on the Corporation's ability to raise adequate funding with consideration to dilution given current market conditions.
About Laurion Mineral Exploration Inc.
The Corporation's focus is to make the transition from explorer to 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, with key interests in prospective mining properties located in Ontario, Canada and Nevada, USA.
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."
Neither the TSX Venture Exchange (the "TSX-V") nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this news 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. 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. 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.
For further information:
Laurion Mineral Exploration Inc.
Cynthia Le Sueur-Aquin - President