Aurion Resources Ltd. ("Aurion") (TSX VENTURE:AU) is pleased to report it has purchased the Kaaresselkä and Kiekerömaa gold projects from Tertiary Minerals plc, an AIM traded company building a strategic position in the fluorspar sector. The projects were purchased for an initial £100,000 initial consideration to be paid by Aurion in the form £15,000 in cash and £85,000 in Aurion shares subject to certain royalties further described below. Tertiary considers these projects to be non-core assets within its portfolio.
Located approximately 22 km east-southeast from Kutuvuoma, the 315 ha Kaaresselkä project comprises multiple shear zone hosted gold zones that are up to 16 m wide and 650 m long. Multiple high grade drill intercepts including 11.0 g/t Au over 4.9 m, 13.5 g/t Au over 2.75 m, and 45.0 g/t Au over 2.0 m have been reported. Mineralization there was initially discovered by the geological survey of Finland (GTK) who subsequently did extensive geochemical and geophysical surveying, trenching and diamond drilling. Tertiary acquired the project by staking in 2003 and subsequently completed limited geochemical and geophysical surveys followed by drilling. No exploration has been conducted since 2004. All mineralized zones remain open along strike and down dip.
Located approximately 7 km south-southwest from Kutuvuoma, the 840 ha Kiekerömaa project hosts gold mineralization over a strike length of 300 m. The prospect was discovered by the state mining company Outukumpu Oy in the late 1990s while exploring for base metals. Tertiary acquired the prospect in 2003 by staking and completed a small drill program in 2011. Historic drill intercepts from limited drilling by Otukumpu and Tertiary include 5.8 g/t Au over 5.0 m, 7.4 g/t Au over 2.0 m and 3.6 g/t Au over 4.6 m. The mineralization remains open in all directions.
Aurion will pay £15,000 in cash and issue £85,000 in Aurion shares to Tertiary for 100% interest in both projects subject to certain royalties including a Pre-Production Royalty of US$1.00 to $3.00/ounce gold following the definition of a NI 43-101 (or equivalent) Code compliant Inferred, Indicated and/or Measured Mineral Resource Estimate respectively, on either project. Tertiary will retain a 2% Net Smelter Returns Royalty (NSR) on all future gold production from either property of which Aurion can purchase 50% of the NSR from Tertiary for USD$1,000,000 at any time prior to commencement of commercial production on either project. The sale is conditional upon successful transfer of the Exploration Licences for each project from Tertiary to Aurion, to be handled by the mining division of the Finnish Safety and Chemical Agency (Tukes) and Canadian Regulatory approval.
Mike Basha, P.Eng., P.Geo., Aurion's President and CEO, is a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects and has approved the technical disclosure and verified the technical information in this news release.