Nov 10 2010
Aurion Resources Ltd. (TSX VENTURE:AU) reports that it has acquired a new gold property, called Logan Pass, in Lincoln County, Nevada.
Aurion signed an agreement with a private company, Genesis Gold Corp. ("Genesis"), whereby Aurion has a 15 year lease with an option to purchase a 100% interest in 8 unpatented claims, subject to a 2% NSR. Aurion also staked an additional 340 claims covering prospective geology surrounding these claims.
The Logan Pass property hosts oxidized, Carlin-style, gold-bearing, bedding-replacement jasperoids within silty carbonates of the Pogonip Group. Surface chip/channel sampling of these jasperoids by BHP Minerals, in 1992-93, returned 2.8 g.t Au over 70 feet (21.3 meters) including 5.4 g/t Au over 20 feet (6.1 meters) and 7.3 g/t Au over 10 feet (3.05 meters). BHP subsequently drilled 13 widely spaced, reverse circulation drillholes testing the jasperoids and partly along the projected mineralized horizon. In total, 7 of the BHP drillholes encountered oxide gold mineralization (jasperoids and jasperoid breccias) over an area approximately 500 feet by 150 feet at depths less than 100 feet below surface. The best reported intersections include 2.3 g/t Au over 20 feet (6.1 meters), starting at 15 feet below surface and 1.5 g/t Au over 30 feet (9.15 meters) starting at 20 feet below surface. The mineralization is open in several directions but appears to be fault-offset (down-dropped) to the west.
The 1992-1993 BHP Minerals exploration work was supervised at that time by George Smith, Aurion's VP Exploration, and to the best of Aurion's knowledge there has been no other exploration work done or any other claims located on this prospect since. Gold prices in 1992-1993 were less than $350 per ounce. Genesis only recently located its claims there.
"We are very pleased to have acquired such a high quality exploration opportunity in one of the worlds most well-endowed and gold mining friendly jurisdictions in the world, commented Mike Basha, President and CEO of Aurion, "moreover, this adds another dimension to our company and complements our exploration efforts in Canada and Mexico".
Deal Terms
Pursuant to the agreement, the consideration payable by Aurion for the lease to purchase option are by making annual cash payments starting at US$25,000 (paid) increasing to a maximum US$125,000 beginning in year 6. The option to purchase can be executed at any time by making a one-time US$3 million cash payment less any payments already made. Genesis shall retain a 2% NSR on the Logan Pass Property.
Mike Basha, P.Eng., P.Geo., President and CEO of Aurion, a Qualified Person as defined by National Instrument 43-101, is responsible for the preparation of this release.
Source: Aurion Resources Ltd.