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

Laurion Mineral Exploration Inc.

April 06, 2011 10:48 ET

Laurion Reports Initial NI43-101 Mineral Resource Estimate of 9,761,000 Tonnes Hosting Measured & Indicated Resource of 165,018 Oz Gold and 5,533,907 Oz Silver (265,635 Oz AuEQ) at Bell Mountain

TORONTO, ONTARIO--(Marketwire - April 6, 2011) - Laurion Mineral Exploration Inc. (TSX VENTURE:LME)(OTCQX:LMEFF) ("Laurion") is pleased to announce the completion of an initial NI43-101 Mineral Resource Estimate for its 100% owned Bell Mountain Project located in Churchill County, Nevada. The mineral resource estimate was prepared by Telesto Nevada, Inc. of Reno, Nevada in accordance with Canadian National Instrument 43-101 requirements. The resource is based on 54,692 feet (16,671 m) of reverse circulation ("RC") drilling completed on the Varga, Spurr and Sphinx zones.

Resource Estimate Highlights:

  • Measured and Indicated resource of 9,761,000 tonnes of material 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

  • Inferred resource 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

Table 1 – Global Bell Mountain Resource Estimate
 
Metric   Tonnage
('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
Measured   5,952   0.531   3,158,063   101,534 16.62   98,913,080   3,180,127   159,355
Indicated   3,810   0.518   1,974,575   63,484 19.22   73,210,796   2,353,780   106,280
Total Measured and Indicated   9,761   0.526   5,132,638   165,018 17.63   172,123,876   5,533,907   265,635
                               
Inferred   2,046   0.449   919,108   29,550 13.26   27,135,036   872,411   45,412
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 (calculations assume metallurgical recoveries and net smelter returns to be 100%)

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 reverse circulation ("RC") and core drilling.

Cynthia Le Sueur–Aquin, Laurion's President and CEO commented, "This initial resource estimate is a significant milestone in creating value for the Corporation. We are extremely encouraged with the results of the initial resource estimate which resulted in an increase of 49% from the historic resource of 2.1 million tonnes of 1.33 g/t gold and 37.55 g/t silver as a result of the 56 hole RC drill program completed in November 2010 on the Spurr and Varga zones. Laurion's primary goal is to successfully advance the project to production in the short to medium term, contemplating a conventional low cost open pit mining method with heap leach processing configuration. Environmental Assessment and Pre-Feasibility study work has commenced. In addition, strong potential exists for further resource addition on the Spurr-Varga fault which remains open at depth and laterally. The Spurr-Varga fault extends for 1.8km on surface. The Sphinx zone remains open at depth and laterally and can be traced on surface for 900 meters. Laurion will look to further expand the resource and potentially drill test a number of high priority regional targets."

Next Steps for the Bell Mountain Project:

  1. To complete environmental permitting requirements to include development of baseline needs and mine plan of operations.

  2. To complete a Preliminary Feasibility study for Bell Mountain.

  3. To concurrently review Laurion's target zone geology focusing on extending known mineralization and testing peripheral targets within the 2,900 acres package at Bell Mountain.

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 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)
    or
    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