Laurion to Acquire 100% of Nevada Gold Project with Goal of Near‐Term Production
For Immediate Release
Laurion to Acquire 100% of Nevada Gold Project with Goal of Near‐Term Production
TORONTO – June 29, 2010 – Laurion Mineral Exploration Inc. (TSXV: LME) (“Laurion”) is pleased to announce that it has entered into an exploration and option agreement (the “Agreement”) among Globex Mining Enterprises Inc. (TSXV:GMX, (G1M‐Frankfurt)) (“Globex") of Rouyn‐Noranda, Quebec and Globex Nevada Inc., (a wholly owned subsidiary of Globex) in which Laurion’s wholly owned subsidiary, Laurion Mineral Exploration USA LLC (“Laurion Subsidiary”) has received the option to acquire a 100% interest in the Bell Mountain Gold Project located in Churchill County, Nevada subject to the terms described below.
Highlights of Bell Mountain
- The Bell Mountain Gold Project (the “Property”) is contained entirely within the Fairview Peak caldera; its inter‐caldera setting is a very favored environment for gold deposits in the region.
- Gold mineralization within the Property occurs as electrum (Au, Ag) and Acanthite (Ag S).
- The mineralization forms an epithermal, low‐sulfidation, volcanic‐hosted, caldera‐related deposit located in the prolific Walker Lane structural province of Nevada, which is the host to many major gold producing districts such as the Comstock, Round Mountain, Paradise Peak, Bullfrog, Tonopah, Goldfield, Rawhide and several others.
- Previously permitted for production in 1992 by N.A. Degerstrom Inc. (“Degerstrom”).
- A study of abundant drilling data and underground workings from the Property suggests that the resource calculated by Degerstrom in 1991, is open to significant expansion and could be increased considerably, both laterally and at greater depth. The deposit is drill tested to a maximum depth of 75m with an average depth of 45m and is open along strike.
- Additional attractive targets have been identified on the Property with little exploration outside the known resource.
Bell Mountain Project
The Property is a near‐term gold/silver production property located in the southeastern part of Churchill County in west‐central Nevada (USA). The Property is located approximately 82 road kilometers southeast of Fallon and 102 air kilometers southeast of Reno, Nevada. The Property includes the original 26 Globex claims covering an area of approximately 217 ha and 119 recently staked lode mining claims, increasing the land package to 995 ha.
1 | P a g e
The Property was originally developed and permitted in 1992 by Degerstrom and consists of three defined bodies of gold/silver mineralization named the Spurr, Varga, and Sphinx. Degerstrom reported a gold/silver resource on the Property (the “Degerstrom Report”) which was estimated at 2.1 million tonnes grading 1.33 grams/tonne gold and 37.55 grams/tonne silver. Falling metals prices made the development of the Property uneconomic at that time and the project was shelved. Although the Degerstrom Report was completed by credible professionals, it was written prior to the enactment of NI 43‐101 statute, thus a ”Qualified Person” must complete sufficient additional work to reclassify this historical estimate as a current mineral resource and the historical estimate should therefore not be relied upon.
Prior to entering into the Agreement, Laurion, with the assistance of local a group of very experienced mining and geologic professionals (the “BM Group”) in the State of Nevada, completed extensive due diligence of all available documentation pertaining to the Property. Now that the Agreement has been signed, Laurion, through its Laurion U.S. Subsidiary, plans to begin a drilling program to develop the resource both laterally and deeper. The BM Group will also be retained to complete the necessary work to verify and expand the resource to provide a current resource estimate prior to making a production decision.
Terms of the Definitive Agreement
Pursuant to the terms of the Agreement, Laurion has an option to earn an undivided 100% interest in the Property by making cash and share payments and incurring exploration expenditures (collectively, the “expenditure commitments”) over a 60 month period from the proposed closing date (the "Closing Date") as follows:
(a) On the Closing Date, Laurion would be required to make a cash payment of $10,000 and issue 1,700,000 common shares of Laurion to Globex;
(b) On or before the first anniversary of the Closing Date, Laurion shall be required to make a cash payment of $15,000, issue, 1,000,000 of its common shares to Globex and incur $250,000 in exploration expenditures on the Property;
(c) On or before the second anniversary of the Closing Date, Laurion shall be required to make a cash payment of $15,000, issue 1,000,000 of its common shares to Globex and incur $250,000 in additional exploration expenditures on the Property;
(d) On or before the third anniversary of the Closing Date, Laurion shall be required to have incurred an additional $500,000 in exploration expenditures on the Property; and
(e) On or before the fifth anniversary of the Closing Date, Laurion shall be required to incur an additional $2,000,000 exploration expenditures on the Property.
On closing of the above transaction, a water well license with water capacity of 200 gallons per minute will be transferred to Laurion to be used for the development of the Property. On completion of the above expenditure commitments, the title of the Property will be transferred to Laurion Subsidiary.
2 | P a g e
The Property is subject to two royalties which will take effect upon commencement of commercial production. The first royalty is held by Degerstrom which retains a 2% net smelter return royalty which can be acquired for US$167,000. In addition, pursuant to the Agreement, Globex will maintain a sliding‐scale Gross Metal Royalty (“GMR”) on all mineral production (gold, silver, etc.) benchmarked upon the price of gold (1% GMR at a gold price under US$500/troy oz, 2% GMR at a gold price between US$500 and US$1200/troy oz and 3% GMR at a gold price over US$1200/troy oz).
Laurion may terminate the Agreement at any time.
The technical information contained in this news release has been verified by Dana Durgin (MSc, P.Geo), who is a Qualified Person as defined in "National Instrument 43‐101, Standards of Disclosure for Mineral Properties."
About Laurion Mineral Exploration Inc.
Laurion is an exploration company with key interests in prospective mining properties located in Ontario and Nevada USA. Laurion’s primary exploration focus is the identification of gold deposits; its exploration horizon also encompasses base metals and PGM’s.
FOR FURTHER INFORMATION, CONTACT:
Laurion Mineral Exploration Inc.
Cynthia Le Sueur‐Aquin ‐ President Tel: 1‐705‐788‐9186 Fax: 1‐705‐788‐9187 Website: www.laurion.ca
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. 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. Laurion and its management assume no obligation to revise or update these forward‐looking statements.
HBdocs ‐ 8562092v2
3 | P a g e