Aurion Resources Ltd.

June 15, 2010 09:00 ET

Aurion Acquires High Grade Gold Property

MOUNT PEARL, NEWFOUNDLAND--(Marketwire - June 15, 2010) - Aurion Resources Ltd. ("Aurion") (TSX VENTURE:AU) reports that it has signed a binding letter of intent ("LOI") with a private company, Cazador Resources Ltd. ("Cazador"), whereby Aurion has the option to acquire a 100% interest in the Blackhorn gold property in South-central British Columbia.

The Blackhorn property hosts several bonanza grade, sulphide-rich, quartz-carbonate veins in bedrock, and numerous gold mineralized boulder trains, with float samples assaying up to 226 grams per tonne gold (g/t Au) occurring within several distinct trends over an 8 km long by 6 km wide area. These various prospects are hosted by a sequence of meta-sedimentary and meta volcanic rocks which are intruded by a younger suite of intrusive rocks. Mineralization is associated with, and often localized along thrust faults cutting these sequences. 

The Blackhorn property comprises 17 mineral claims covering 5645 hectares, within the eastern margin of the Coast Mountains located approximately 40 km south of Tatla Lake and 180 km west of Williams Lake. 

The property lies within a 200 km long by 40 km wide belt that is host to numerous gold deposits including the Bralorne gold mine where, from 1930-1971, 7.3 million tonnes grading 17.7 g/t Au from veins averaging 0.8 to 1.2 m width were mined to a depth of 1800 m below surface, producing 4.2 million ounces of gold.


The following summaries are excerpted from "Technical Report on Exploration Activities on the Blackhorn Gold Property", Leopold Lindinger, P.Geo., Unpublished 43-101 Report; March, 2010.

Blackhorn Vein: The main gold prospect on the property, this vein can be traced over a distance of 70 m including 17 m on surface and 52 m underground via an old adit driven in the 1930's. Re-sampling of the vein exposures in the adit by Cazador in 2009 returned 117.0 g/t Au over 0.4 m, 41.5 g/t Au over 0.5 m and 12.8 g/t Au over 0.9 m. The only known drilling of the vein was completed in 1939 where it was reported that the vein was intersected over a distance of 90 m and remains open in all directions. No systematic follow-up of the vein has been conducted since.

B3 Valley: Approximately 1.6 km southeast of the Blackhorn adit, in "B3" Valley mineralized boulders up to 1 m by 2 m diameter are distributed over a 1.3 km long by 0.8 km wide area. 46 samples collected in the valley returned assays of nil to 29.0 g/t Au, and averaging 5.2 g/t Au. These have yet to be sourced.

3 Ounce Valley: A further 750 m southeast of B3 at "3 Ounce" Valley where an historic sample assayed approximately 3 ounces gold, three boulder samples assayed 11.0, 22.0 and 52.0 g/t Au. Again these have yet to be sourced.

Lori Prospect: Occurring another 1500 m southeast of 3 Ounce Valley 16 bedrock and boulder samples of quartz-carbonate veins over an area of 200 m by 100 m within a quartz-monzonite intrusive assayed between nil and 5.7 g/t Au. 

Louisville prospect: Located 2.4 km south of B3 Valley 57 samples of boulder and talus fines assayed from nil to 226 g/t Au. These have yet to be sourced.

"The many high grade, locally bonanza grade gold assays from numerous samples collected in several occurrences distributed over a wide area indicate significant discovery potential on the Blackhorn property", commented Mike Basha, President and CEO of Aurion. "Moreover, most of the property has not been systematically explored using modern exploration methods".

Deal Terms

Pursuant to the LOI, the consideration payable by Aurion for the purchase option are by making staged cash payments totalling $200,000 and issuing a total of 700,000 common shares in Aurion ("Aurion Shares") ((subject to TSX Venture Exchange (the "Exchange") approval)) over four years including $30,000 and 50,000 shares on signing. The schedule of payments are as follows:

  Cash Aurion Shares
On Signing $ 30,000 50,000
1 st Anniversary $ 30,000 50,000
2 nd Anniversary $ 30,000 100,000
3 rd Anniversary $ 40,000 200,000
4 th Anniversary $ 70,000 300,000
Totals $ 200,000 700,000

Cazador shall retain a 3% NSR on the Blackhorn Property, with Aurion having an irrevocable option to purchase (buy down) 2% of the Net Smelter Royalty for $2,000,000.

Proposed Exploration Program Strategy

This summer Aurion will implement an exploration program comprised of detailed prospecting, systematic stream sediment sampling; geological and structural mapping to identify the source the high grade boulders and define new exploration targets. 

About Aurion

Aurion is focused on early stage precious metals exploration in Canada and Mexico. It currently has approximately 18,654,030 shares issued and outstanding and has $1.9 million cash. 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 acquisition in Mexico and globally.

Mike Basha, P.Eng., P.Geo., President and CEO of Aurion, a Qualified Person as defined by National Instrument 43-101, is responsible for the preparation of this release. Leopold Lindinger, P.Geo., also a Qualified Person, has reviewed the release for technical accuracy.

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 the Companies' current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. 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