Laurion Mineral Exploration Inc.

Laurion Mineral Exploration Inc.

December 16, 2010 09:00 ET

Laurion Completes 2010 Drill Program at Bell Mountain, Engages Telesto Nevada to Prepare NI 43-101 Resource Estimate

TORONTO, ONTARIO--(Marketwire - Dec. 16, 2010) - Laurion Mineral Exploration Inc. (TSX VENTURE:LME)(OTCQX:LMEFF) ("Laurion") completed an extensive drill program at the Company's 100% owned Bell Mountain property in Churchill County, Nevada and has engaged Telesto Nevada, Inc. to develop a National Instrument 43-101 compliant technical report for the property contemplating a conventional low cost open pit mining method with heap leach processing configuration. 

The 2010 drill program included 56 holes and 14,240 feet of reverse circulation drilling. Below are the highlights of the 2010 drill program.

• BMG-01   45 feet of 1.0 g/t gold and 30.16 g/t silver,
    including 25 feet of 1.48 g/t gold and 39.38 g/t silver;
• BMG-02   50 feet of 0.75 g/t gold and 14.83 g/t silver,
    including 20 feet of 1.08 g/t gold and 18.35 g/t silver;
• BMG-03   85 feetof 0.42 g/t gold and 10.67 g/t silver, including 0.78 g/t gold and 13.65 g/t silver;
• BMG-18   10 feet of 1.40 g/t gold and 14.4 g/t silver;
• BMG-12   35 feet of 0.76 g/t gold and 14.5 g/t silver;
• BMG-22   50 feet of 2.39 g/t gold and 23.9 g/t silver;
• BMG-28   100 feet of 0.62 g/t gold and 12.1 g/t silver, including 15 feet of2.61 g/t gold and 37.8 g/t silver;
• BMG-38   25 feet of 3.37 g/t gold and 28.6 g/t silver;
• BMG-31   80 feet of 0.62 g/t gold and 12.5 g/t silver.

Laurion's 2010 drill program at Bell Mountain commenced with and was based on an extensive review of existing data and the geology in underground and surface exposures of mineralization. The program was designed to confirm and expand a resource estimate completed in 1991 by N. A. Degerstrom (the "Degerstrom Report"). Degerstrom completed a detailed feasibility study on the Bell Mountain project and permits for development were granted for the design and construction of three viable open pits and heap leaching and processing facilities which were supported by extensive metallurgical testing. Falling metals prices caused Degerstrom to shelve the project (gold price $361.06/oz -1991, $334.80/oz – 1992 (Year end gold prices –

The Degerstrom report, which was based on 34,682 feet of drilling, concluded that the deposit contained 2.1 million tonnes grading 1.33 g/t gold and 37.6 g/t silver. Although the Degerstrom Report was completed by credible professionals, it was written prior to the enactment of NI 43-101 statute, thus a "Qualified Person" must complete sufficient additional work to reclassify this historical estimate as a current mineral resource and the historical estimate should therefore not be relied upon.

Of the 14,240 feet of drilling in 2010, 79% was in the Varga area, which also contained the bulk of the Degerstrom resource. The 2010 program clearly demonstrates that gold and silver mineralization extends to depths of at least 30 to 100 feet below the known resource, a few hundred feet to the East and at least 700 feet to the West. Gold and silver grades in these expansion areas are lower than the grades outlined in the Degerstrom report, which can be attributed to a lower cut-off grade in the 2010 drill program stemming from current precious metal prices at levels more than 3.5 times those of 1991. Significantly, lower cut-off grades would allow for a dramatic expansion of the size of the open pit envisioned by Degerstrom in 1991. 

The Spurr deposit is separated from the Varga deposit by a 500 foot zone of poorly mineralized rock. In 2010, Laurion drilled 3,020 feet across 12 drill holes at the Spurr deposit. As with the Varga deposit, the current higher precious metal prices should allow for open pit mining at the Spurr deposit at greater depths. Of the twelve drill holes at the Spurr deposit, one was a repeat of a prior drill hole and 11 holes were drilled to extend mineralization further down the 45 degree dipping complex vein structure. This drilling confirmed that the mineralization persists down dip and that the Spurr zone is terminated laterally by faulting at both ends. 

About Telesto Nevada Inc.

Laurion is pleased to announce that it has selected Telesto Nevada, Inc. ("Telesto") to develop a National Instrument 43-101 compliant technical report for its 100% owned Bell Mountain property. Telesto, based in Reno, Nevada, is a full service civil engineering firm offering a variety of professional services to the land development and mining industries. The Telesto report will be based on a combination of historical drill results and drill results from the Company's 2010, 56-hole, 14,240 foot reverse circulation drill program. This data will be used to generate a digital geologic and assay model of the Spurr and Varga deposits and to calculate an estimated resource. 

Telesto expects to complete the resource estimate and technical report in the first quarter of 2011. 

Qualified Persons

The technical information contained in this news release has been verified by Mr. Dana C. Durgin (MSc, P.Geo), Laurion's Exploration Manager, and Mr. Douglas R. Wood (MSc, P.Geo), are the Qualified Persons responsible for the scientific and technical work (as defined under National Instrument 43-101) discussed in this press release, and have reviewed this press release.

About Laurion Minerals Exploration Inc.

The Corporation's focus is to make the transition from explorer to near-term producer and envisages the realization of shareholder value and wealth through monetization of its discoveries and assets. Laurion's exploration horizons are focused primarily on gold with a secondary interest in base metals and PGEs with key interests in prospective mining properties located in Ontario and Churchill County, Nevada USA.

The Corporation has an option to acquire a 100% interest in the Bell Mountain Gold Project with Globex Mining Enterprises Inc. (TSX:GMX)(FRANKFURT:G1M) ("Globex") of Rouyn-Noranda, Quebec.

Laurion is well-funded to complete the next phases of drilling and exploration work on the Bell Mountain and Sturgeon River Gold Projects and to successfully advance these projects, moving the Corporation closer to being a near-term producer.

This news release includes certain forward-looking statements concerning the future performance of Laurion's business, operations and financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Such statements include, but are not limited to, statements concerning the expected timing of assay results. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at Actual events or results may differ materially from those projected in the forward-looking statements and Laurion cautions against placing undue reliance thereon. Laurion and its management assume no obligation to revise or update these forward looking statements.

Neither 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

  • Laurion Mineral Exploration Inc.
    Cynthia Le Sueur-Aquin
    1-705-788-9187 (FAX)