Aurion Resources Ltd.

December 18, 2009 13:48 ET

Aurion Provides Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 18, 2009) - Aurion Resources Ltd. ("Aurion" or the "Company") (TSX VENTURE:AU) is pleased to provide the following update on its corporate activities.

Aurion finalizes two option agreements to acquire a 100% interest in one of two projects in Mexico and one in British Columbia. Field exploration programs have been initiated on both.

La Bandera
Further to a press release dated September 16, 2009, the Company reports that it has signed a formal, definitive option agreement with a private company, La Cuesta International Ltd., whereby Aurion has the option to acquire a 100% interest in the La Bandera gold property in Durango, Mexico.

The 8,372 hectare La Bandera project is road accessible and is located approximately 50 km north of Durango City. The La Bandera property hosts a 40 to 120 metre wide, 15 km long epithermal gold-silver vein system which has seen limited previous exploration. Aurion initiated a field program in November comprising detailed mapping, prospecting and rock, soil and stream sediment sampling program to advance the project. Aurion is focusing on the northern half of the concession where previous workers did not. Initial results are expected to be released in the New Year.

Pursuant to the agreement, Aurion can earn an undivided 100% beneficial interest in the La Bandera Property from La Cuesta International S.A de C.V ("La Cuesta"), by making minimum option payments starting at US$5000 (or the equivalent of 2% of gross exploration expenditures during the same period; whichever is greater) in October 2009 and continuing bi-annually and increasing to US$20,000 in April 2013 and issuing 67,000 Aurion Shares over the same period. The earn-in can be completed by paying La Cuesta US$5 million at any time less any payments already made. A 1% NSR is retained until buyout. The initial US$25,000 payment due on signing has been made by Aurion and it covers the taxes required by Mexican tenure law to maintain the concession in good standing. The first year exploration work commitment that is required to be made by Aurion is US$50,000.

Further to a press release dated October 14, 2009, the Company reports that it has signed a formal, definitive option and earn-in agreement with a private company, Cazador Resources Ltd., whereby Aurion has the option to acquire a 100% interest in the Lavington gold property in southern British Columbia.

The Lavington property comprises four mineral claims covering 1156 hectares, is road accessible and located approximately 10 km east of Vernon. Aurion considers the property to be prospective for large, bulk tonnage gold deposits.

A program of line-cutting, soil geochemical sampling, and IP (Induced Polarization) geophysics which targeted a 200 to 400 metre wide by greater than 1500 metre long alteration zone within the property has been completed. The program was funded from treasury using "flow-through" funds raised in 2008. Results are being compiled and will be released in the New Year.

Pursuant to the agreement, Aurion can earn a 100% interest in the Lavington Property by completing CDN$100,000 in exploration expenditures, making staged cash payments totalling $100,000 and issuing a total of 100,000 common shares in Aurion ("Aurion Shares") (subject to TSX Venture Exchange (the "Exchange") approval) over four years to Cazador as follows: (i) $2000 and 10,000 Aurion Shares on signing; (ii) $8,000 and 15,000 Aurion Shares on October 12, 2010; (iii) $15,000 and 20,000 Aurion Shares on October 12, 2011; (iv) $25,000 and 25,000 Aurion Shares on October 12, 2012; and (v) $50,000 and 30,000 Aurion Shares on October 12, 2013. Aurion shall be entitled to terminate the Formal Agreement, at any time following the initial payment and share issuance and performance of the Obligations.

Cazador shall retain a 2% NSR on the Lavington Property, with Aurion having an irrevocable option to purchase (buy down) half of the Net Smelter Royalty (1%) for $1,000,000 at any time within 240 days of commercial production being achieved.

The Company reports it has terminated the Kami property option agreement and returned the property in good standing to the vendors.

About Aurion
Aurion is focused on early stage precious metals exploration in Canada and Mexico. It currently has 12,444,030 shares issued and outstanding and approximately $1,200,000 cash in its treasury. Its strategy is to advance its projects to a stage which will attract potential joint venture partners. Aurion continues to evaluate other gold-silver projects for potential acquisition in Mexico and globally.

Mike Basha, P.Eng., P.Geo., President and CEO of Aurion, is the Qualified Person as defined by National Instrument 43-101, and is responsible for the preparation of this release.

All dollars are in Canadian currency unless otherwise stated.

Forward-Looking Statement
Certain statements contained in this release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on Aurion's current beliefs or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to Aurion. The material factors and assumptions include: regulatory approvals being obtained for the issuances of the Aurion Shares referenced herein, no changes to existing Exchange Policies, exploration programs for Aurion remaining the same as forecast, Aurion having the necessary capital in order to complete its anticipated work program on the Lavington or La Bandera Properties and no significant decrease in the price of gold. Risk Factors that could cause actual results or outcomes to differ materially from the results expressed or implied by forward-looking information include, among other things: risks related to exploration activities, general economic and business conditions and changes in the regulatory regulation. Aurion cautions the reader that the above list of risk factors is not exhaustive. The forward-looking information contained in this release is made as of the date hereof and Aurion is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

On behalf of the Board,
Michael Basha, President & CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Aurion Resources Ltd.
    Mike Basha
    President & CEO
    (709) 699-8300
    Aurion Resources Ltd.
    Richard Graham
    (604) 488-8717