Aurion Resources Ltd. ("Aurion") (TSX VENTURE:AU) is pleased to report it has completed the purchase of the Kaaresselkä and Kiekerömaa gold projects from Tertiary Minerals plc, following the transfer of the Exploration Licences from Tertiary to Aurion by the mining division of the Finnish Safety and Chemical Agency (Tukes) and exchange approval by the TSX-V. The projects were purchased for a £100,000 consideration to be paid by Aurion in the form £15,000 in cash and £85,000 in Aurion shares and subject to certain royalties further described below. Based on a 5-day Volume Weighted Average Price (VWAP), a total of 83,072 shares were issued.
Located approximately 4 km south-southwest of Risti, the 315 ha Kaaresselkä project comprises multiple shear zone hosted gold zones that are up to 16 m wide and 650 m long, adjacent to the Sirkka Shear Zone, a major regional deformation zone, that is host to more than 45 gold prospects. 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 paid £15,000 in cash and issued 83,072 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.
Tertiary Minerals plc is an AIM traded company building a strategic position in the fluorspar sector. The Kaaresselkä and Kiekerömaa gold projects were considered non-core assets by Tertiary.
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.