Aurion Resources Ltd. (TSX VENTURE:AU) has reported that it has finalized a Definitive Agreement with Gammon Gold Inc giving Gammon the option to earn up to a 70% interest in Aurion's 100% owned 20,827 - hectare La Bandera gold project in Durango, Mexico.
Aurion is also pleased to report it has completed acquisition of a small but critical claim known as "Aguaje" in the La Bandera project that is now part of the option definitive agreement.
Joint Venture Agreement
Under the terms of the agreement, Gammon can a earn an initial 51% interest by completing $5 million in exploration expenditures over 36 months, including a firm commitment to spend a minimum $1 million in the first 12 months. Gammon can earn an additional 19% by completing a minimum $7 million in additional expenditures or by completing a positive feasibility study within 5 years of earning 51% and forming a Joint Venture with Aurion. Gammon will be the operator of the project.
In addition, Gammon will make a $250,000 private placement in Aurion, purchasing share units priced at a 30% premium to the 30-day moving average of Aurion's share price as of the date of signing the Definitive Agreement, subject to regulatory approval. Each unit comes with a ½ warrant priced at a 50% premium to the 30-day moving average of Aurion's share price, as of the date of signing the Definitive Agreement. The respective prices of the units and warrants are $0.70 and $0.81.
La Bandera is host to a more than 20 km long, epithermal vein system which hosts widespread gold in quartz veins, breccias and stockworks within a 150 to 300 m wide silicic and argillic alteration zone. The property has seen only cursory exploration in the past with 7 drillholes completed in the southern portion of the property by previous workers.
La Bandera occupies the central portion of a more than 50 km long epithermal gold-silver system. Immediately to the south and contiguous with the La Bandera property occurs Orex Minerals Inc. Coneto property which hosts 40 known mineralized epithermal quartz veins. Orex recently entered into a joint venture with Fresnillo PLC, a prominent Mexican mining company, that has committed to spend $2 million exploring Coneto this year (Orex Press Release dated February 10, 2011).
"This is a significant milestone for us," stated Mike Basha, President and CEO of Aurion. "We acquired La Bandera just over one year ago and advanced it through grass roots exploration efforts to a stage where we felt we could attract a prominent joint venture partner. Moreover, we are very pleased that a company of Gammon's stature, with the proven ability to build and operate mines in Mexico on similar type mineral systems, is willing to partner with us and undertake an aggressive exploration program on the La Bandera Project. Having Gammon and Fresnillo exploring along the same trend also creates a new, exciting exploration play."
Aurion recently acquired a 100% interest in a 115 hectare claim from a third party for $105,000 cash payable over 12 months. Combined with a contiguous previously acquired claim, these acquisitions (the Aguaje Del Pino ("Aguaje") claims), give Aurion complete control over the previously reported northwest trending >2300 m long by >300 m wide "Patarado" gold in soil and rock anomaly with individual soil samples assaying up to 2.06 g/t Au and individual quartz veinlets assaying up to 73.7 g/t Au. The Aguaje claim block also contains a previously unreported north-south trending, 300 m long by 50 m wide zone of sheeted to stockwork quartz veins with assays of grab samples by previous workers up to 9.4 g/t Au.
The "Ramona" zone is an east-west trending >250 m long by 100 m wide quartz stockwork vein system 1.5 km west of and striking into the Patarado anomaly on the Aguaje claim block. Recent trench chip-channel sampling by Aurion geologists returned assays of 2.5 g/t Au over 9 m and 3.3 g/t Au over 5 m. Outcrop grab samples by previous workers returned assays up to 35.1 g/t Au.
"We have now consolidated our land position in the previously undrilled northern portion of the La Bandera property," stated Mike Basha, President and CEO of Aurion, "We expect this to be one focus for the Gammon joint venture and we have high expectations for this target area."
ALS Chemex, an internationally recognized, ISO9000 certified commercial laboratory, performed the analytical testing at their facilities in Vancouver, BC. Samples were transported to a trucking company in Durango, Mexico by Aurion personnel. The trucking company under contract to ALS Chemex transported the samples to the ALS Chemex prep. facility in Zacatecas, Mexico. Samples were analyzed for gold by 30 gm fire assay with an ICP finish. Multielement analyses were by ICP. A quality assurance/quality control program is in place from sample collection through to laboratory analysis including insertion of certified standards and blanks by Aurion.
Source: Aurion Resources Ltd.