Laurion Mineral Exploration Inc.
TSX VENTURE : LME
OTCQX : LMEFF

Laurion Mineral Exploration Inc.

May 04, 2011 09:00 ET

Laurion Files the NI 43-101 Technical Report for Its 100% Owned Bell Mountain Project

TORONTO, ONTARIO--(Marketwire - May 4, 2011) - Laurion Mineral Exploration Inc. (TSX VENTURE:LME)(OTCQX:LMEFF)("Laurion") advised that the Technical Report supporting the recently released initial Mineral Resource Estimate completed on its Bell Mountain Project located in Churchill County, Nevada (Press Release April 6, 2011), has been filed with SEDAR.

The report details an initial Measured and Indicated Mineral Resource estimate at Bell Mountain's Varga, Spurr and Sphinx Zones of 9,761,000 tonnes at an average grade of 0.526 g/t gold and 17.63 g/t silver hosting 165,018 ounces gold and 5,533,907 ounces silver and and initial Inferred Mineral Resource estimate of 2,046,000 tonnes of material at an average grade of 0.449 g/t gold and 13.26 g/t silver hosting 29,550 ounces gold and 872,411 ounces silver. This Mineral Resource Estimate assumed a gold price of $1,149.89 per ounce and a silver price of $20.92 per ounce. Preliminary estimates for operating costs were $11.43 per ton (mining, processing and G&A) and for recoveries were 80% for gold and 51% for silver.

The NI 43-101 Mineral Resource estimate was completed by Telesto Nevada Inc. ("Telesto"). It incorporates data obtained from 54,692 feet (16,671 meters) of 244 reverse circulation ("RC") drill holes completed on the Varga, Spurr and Sphinx zones.

Highlights of the Bell Mountain Property:

  • The estimated equivalent ounces of gold contained in the Measured and Indicated Mineral Resource is 265,635 ounces, and estimated Inferred Mineral Resource is 45,412 ounces. The resource estimate is comprised of mineralization found on the Varga, Spurr and Sphinx zones.
  • The mineralized zones remain open to depth and laterally.
  • The gold-silver mineralized structurally controlled Spurr-Varga fault can be traced for more than 1.8 kilometers (6,000 feet) on surface. On the fault, approximately 1.5 kilometers on strike to the east of the Varga zone, a further mineralized zone, the East Ridge CC zone, has excellent potential for resource addition. The zone had a total of 481 meters in 13 RC drill holes spaced over a strike length of approximately 300 meters, completed in 2003 by NDT ventures, which confirmed mineralization. The Mike Zone, located between the Varga the East Ridge CC Zone, displays similar widths and characteristics, and appears open to adding to the Bell Mountain Resources by further drill programs.
  • The Sphinx Vein system can be traced for more than 900 metres along strike by prospect pits, vein quartz float and trenching and is available to resource expansion in further drill programs.
  • A Preliminary Feasibility study contemplating a conventional open pit heap leach configuration and assessment for potential production is in progress.
  • Environmental permitting requirements to include development of baseline needs and mine plan of operations is in progress.

Table 1 – Global Bell Mountain Resource Estimate

MetricTonnage
('000 Tonnes)
Average
Gold
Grade (g/Tonne)
Gold
(grams)
Gold
(ozs)
Average Silver
Grade (g/Tonne)
Silver (grams)Silver
(ozs)
Total Equivalent Ounces Of Gold
Measured5,9520.5313,158,063101,53416.6298,913,0803,180,127159,355
Indicated3,8100.5181,974,57563,48419.2273,210,7962,353,780106,280
Total Measured and Indicated9,7610.5265,132,638165,01817.63172,123,8765,533,907265,635
Inferred2,0460.449919,10829,55013.2627,135,036872,41145,412
Notes:
1. Rounding of tons as required by Form 43-101F1 reporting guidelines (Item 19) results in apparent differences between tons, grade and contained ounces in the mineral resource.
2. Mineral Resources are estimated at a pit discard cutoff Grade at 0.192 g/t AuEq.
3. The assumed parameters used for Bell Mountain used establishing a cut-off grade is identified as follows:
Gold Price - $1,149.89/oz (US) - 60% 3-year previous average/40% 2-year forward (Dec. 31, 2010)
Silver Price - $20.92/oz US - 60% 3-year previous average/40% 2-year forward (Dec. 31, 2010)
Recovery - Gold 80%, Silver 51%
Total Operating Costs - $11.43/ton (mining, processing and G&A)
Gold Equivalent Ratio - 55 to 1

Parameters used to estimate the in-situ resource are based on information supplied by Bell Mountain Group. Assumptions were made for items like strip ratio, mining costs, processing costs and recovery percentages. These assumptions were based on published and previously calculated rates for other mining operations having similar parameters, and on testwork performed on Bell Mountain samples. The operation parameters assume open pit mining and cyanide heap leaching. A conceptual open pit mining method was used for the purpose of delineating the mineralization with a reasonable prospect of economic extraction. Tonnage estimates were based on a 2.6 grams/cubic centimeter density factor. Inverse distance square method was used to interpolate grade in the resource model (geostatistical methods of calculating resources) using the database based on the RC and core drilling.

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, Canada and 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) (G1M-Frankfurt)) ("Globex") of Rouyn-Noranda, Quebec.

Laurion envisages the realization of shareholder value and wealth through monetization of its discoveries and assets.

QUALIFIED PERSON

This news release has been reviewed and approved by Jonathan M. Brown, Telesto Nevada, Inc. and Dana Durgin, Laurion's Bell Mountain consulting geologist ("Bell Mountain Group") who are Qualified Persons as defined by NI 43-101, with the ability and authority to verify the authenticity and validity of the data comprising this resource estimate.

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 approval of Laurion's application to trade its common shares over the facilities of the OTCQX and the commencement of such trading. 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 www.sedar.com. 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
    President
    1-888-212-4070 or 1-705-788-9186
    1-705-788-9187 (FAX)

    Laurion Mineral Exploration Inc.
    Karen Doxsee
    Vice President, Corporate Communications
    1-888-212-4070 or 1-705-788-9186
    1-705-788-9187 (FAX)
    www.laurion.ca