ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwired - Dec. 13, 2016) - Aurion Resources Ltd. ("Aurion") (TSX VENTURE:AU) is pleased to report its partner B2Gold Corp. (TSX:BTO)(NYSE MKT:BTG)(NAMIBIAN:B2G); ("B2Gold") has completed an inaugural drill program intersecting high grade gold at the Kutuvuoma project in northern Finland.
Aurion is also pleased to report that B2Gold has advised that its 2017 JV exploration budget is US$2.6 million (CAN$3.5 million). The program will comprise extensive geochemical surveying, trenching and diamond drilling of multiple targets across the JV.
2016 Drill Program
The drill program comprised 5 HQ sized diamond drillholes with total meterage of 535 m. Two holes were drilled west of the Kutuvuoma deposit, one into the deposit and two east of the deposit over an aggregate distance of approximately 1 km. The program was designed to test for lateral continuity of the Kutuvuoma main mineralized zone east and west of the Kutuvuoma deposit. See attached map for drillhole locations.
The best hole of the program was drillhole KU16003 which was drilled into the known deposit. It intersected two mineralized zones, the first zone assayed 8.59 g/t Au over 2.15 m starting at 21.4 m downhole. The second zone assayed 11.37 g/t Au over 13.3 m starting at 71.85 m downhole. The upper zone intersection occurs in the structural hanging wall, and represents a promising zone to follow up. Previous hanging wall intercepts include 96.5 g/t Au over 1.2 m from Outokumpu ddh KUV-47, drilled in 1993. The second zone was a twin of Outokumpu ddh KUV-36 which assayed 7.2 g/t Au over 19.4 m, also drilled in 1993.
All holes intersected the main Kutuvuoma horizon and were variably mineralized. Hole KU16001 located approximately 370 m west of the Kutuvuoma deposit intersected a zone assaying 1.76 g/t Au over 8.85 m starting at 38.55 m downhole. Hole KU16004 was drilled 240 m west of the deposit and interested a 27.35 m wide zone of anomalous gold assaying 0.1 to 0.4 g/t Au with a best assay of 2.21 g/t Au over 1.2 m starting at 71.1 m downhole. Hole KU16002 was drilled approximately 100 m east of the deposit and intersected a mineralized zone at 42.55 m downhole which assayed 1.43 g/t Au over 5.05 m. Hole KU16005 was a 650 m step-out to the east of the deposit and intersected a 32.9 m wide zone of anomalous mineralization assaying 0.1-0.4 g/t Au including 2.4 g/t Au over 0.65 m starting at 60.75 m downhole and 10.1 g/t Au over 0.45 m starting at 65.35 m downhole. The deposit remains open at depth and along strike in both directions.
Mike Basha, President and CEO of Aurion commented: "This inaugural drill program, the first since the mid-1990's, is another milestone for Aurion in Finland. The five widely spaced drillholes over a > 1 km distance confirm our original expectations that a laterally continuous mineralized horizon existed at Kutuvuoma. We look forward to B2Gold continuing to advance and systematically explore the more than 5 km long trend in which the Kutuvuoma prospect occurs."
Table 1: Kutuvuoma 2016 drill results summary
Note: assay composites were calculated using uncut assays and are reported as drilled lengths. All drill intercepts are downhole widths, true widths appear to be approximately 80-85% of downhole widths but there has been insufficient drilling to date to sufficiently determine true widths.
The 2016 field program was fully funded by B2Gold under an agreement whereby B2Gold can earn up to an undivided 75% interest from Aurion in a project area of approximately 25,000 hectares by completing $15 million in exploration expenditures, a positive feasibility study and issuing 550,000 B2Gold shares (see Aurion news release of January 20, 2016 for details).
Other - Kutuvuoma Purchase Agreement
Aurion is also pleased to announce that it has met the obligations for purchase of 100% of the Kutuvuoma project including other tenements from Dragon Mining Oy by issuing 6.75 million Aurion shares and completing EUR1 million in exploration expenditures, subject to a 3% NSR, in accordance with the purchase agreement (for further details see Aurion press release dated May 27, 2014).
Quality Assurance and Quality Control
Quality assurance and quality control procedures include the systematic insertion of blanks, standards and duplicates into the core sample strings. The results of the control samples are evaluated on a regular basis with batches re-analysed and/or resubmitted as needed. All results stated in this announcement have passed B2Gold's quality assurance and quality control ("QA/QC") protocols. The primary laboratory for Kutuvuoma drilling is ALS Scandinavia where samples are analysed by metallic screen fire assay and/or fire assay with atomic absorption finish and/or gravimetric finish.
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.
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,
Mike Basha, President & CEO
For further information on these projects please visit our website at www.aurionresources.com.
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