Laurion Enters into Option Agreement to Acquire the Brenbar Project
LAURION ENTERS INTO OPTION AGREEMENT TO ACQUIRE THE BRENBAR PROJECT
TORONTO, ONTARIO - (December 30, 2019) – 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 km 2 and is host to the Brenbar Mine.
Road access is favorable through Ishkoday vi a 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-carbo nate 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
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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 perpend icular 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
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Pursuant and subject to the terms of the Ag reement, 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) th e 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
r e q u i r e d t o m a k e a d d i t i o n a l c a s h p a y m e n t s 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 Ag reement 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, 20 10 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.,
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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.
FOR FURTHER INFORMATION, CONTACT:
LAURION Mineral Exploration Inc.
Cynthia Le Sueur-Aquin – President and CEO
Tel: 1-705-788-9186
Fax: 1-705-805-9256
Website: http://www.LAURION .ca
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 stat ements, 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 th e Brenbar Project from Jubilee, as described
above, and the Royalties. The forward-looking statements involve risks and uncertainties. Actual
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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 forwar d-looking statements. Subject to applicable law,
the Corporation disclaims any obligation to update these forward-looking statements.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGU LATION 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.