Laurion Mineral Exploration Inc. (TSX.V: LME,OTCPINK: LMEFF) has made a move to expand its holdings around its “flagship” Ishkoday Project through an option agreement with Jubilee Gold Exploration Ltd to acquire up to a 100% undivided working interest in the Brenbar Project in Thunder Bay, Ontario.
The Brenbar Project is contiguous with, and is situated to the west of the Ishkoday Project located 28 km NE of the town of Beardmore. The Brenbar Project encompasses 255 hectares or 2.55 sq. km and is host to the Brenbar Mine.
Laurion believes the Brenbar Project mineralisation is a direct extension of Ishkoday, adding another one plus km to the already known five km long system.
Historical mining at Brenbar took place sporadically between 1941 and 1949 with 135 tonnes taken averaging approximately 20 g/t gold.
Extensive stripping and channel sampling programmes were undertaken between 2008 and 2010, along with a 12-hole diamond drilling programme totalling 1,850m and an airborne VTM survey and a reconnaissance geological mapping/sampling program of known gold showings. A total of 521 grab samples were collected with 120 samples (23%) assaying in excess of 0.50 g/t gold. Twelve samples returned greater than 15.0 g/t gold
The most significant individual assay results from a 2009 diamond drilling was 1.50m grading 7.68 g/t gold (from 147.70m to 148.90m) and 7.30m grading 2.10 g/t gold (from 181.50m to 188.80m), including 1.7 m grading 7.84 g/t gold (from 183.80m to 185.50m) and 0.50m yielding 23.50 g/t gold (from 184.40m to 184.90m).
Terms of the Option Agreement
Pursuant and subject to the terms of the Agreement, the Corporation will make a cash payment of C$50,000 and issue 300,000 Laurion common shares to Jubilee, in order to acquire: (i) the Option to earn up to a 100% undivided working interest in the Brenbar Project; and (ii) the sole, exclusive, irrevocable and immediate right to enter upon and to conduct mining operations in and on all parts of the Brenbar Project during a period of five years from the closing of the Agreement.
In order to maintain the Right to Operate and exercise the Option, the Corporation is required to make additional cash payments totaling C$115,000, issue an aggregate of 460,000 additional Common Shares and incur an additional aggregate of C$300,000 in exploration expenditures over a three-year period from the date of execution of the Agreement.
In the event that the Corporation becomes the holder of a 100% undivided working interest in the Brenbar Project, then such property will be subject to a 3.0% net smelter on gold production and a 1.5% NSR on base metal production. Laurion will have the option to purchase, at any time, 1.0% of the Royalties by paying an additional amount of C$1.0 million.
