ST. JOHN'S, NEWFOUNDLAND--(Marketwire - Oct. 24, 2011) - Aurion Resources Ltd. ("Aurion") (TSX VENTURE:AU) is pleased to report that it has signed a Definitive Option Agreement with Asher Resources Corp ("Asher") giving Asher the option to earn up to a 100% interest, subject to certain royalties, in Aurion's 100% owned 1154 hectare ("ha") Lavington Gold property ("property") located near Vernon, British Columbia.
Option Agreement
Pursuant to the Option Agreement, Asher can earn up to a 100% interest in the Lavington property, by paying $165,000 cash and issuing 262,500 shares (including paying $25,000 on signing and $15,000 and issuing 62,500 shares upon exchange approval) over 3 years and incurring a minimum of $200,000 in exploration expenditures on the Property by the second anniversary of Exchange Approval. Aurion and the underlying owner of the Property (an arm's-length party) have each retained two percent (2%) net smelter return royalties, half of which may be purchased by Asher paying $1,000,000 to each of Aurion and the underlying owner ($2,000,000 in total) within the time allowed.
Asher is also required to maintain the property in good standing and assume the payment obligations to the underlying property owner during the currency of the agreement.
Asher intends to use the property as it's Qualifying Transaction as per TSX Venture Exchange Policy 2.4 for Capital Pool Companies. This agreement is subject to exchange approval.
Lavington Property
The Lavington property comprises four mineral claims covering 1156 ha located approximately 10 km east of Vernon, in southern BC. The property can be accessed via paved highway and all-weather secondary gravel roads. The primary target on the property is an alteration zone over 1500 m long and up to 400 m wide comprising intensely altered quartz-pyrite-sericite schist. A major Au (+ As, Sb, Ag, W, Zn, Pb) soil anomaly, which exceeds 2 km in length, correlates strongly with this unit. The Lavington property exhibits many of the characteristics of a transitional porphyry-epithermal Au-Ag (+Cu, As, Sb) system. The Spanish Mountain deposit may be considered an analogue to the Lavington prospect.
Drilling by BP in the late 1980's showed elevated gold values within the sericite schist, including 0.31 g/t Au over 125 m in one drill hole (incl. 0.5 g/t Au over 34 metres). This interval included 2.0 m which assayed 2.5 g/t Au, 3.8 g/t Ag and 0.15% Cu. BP completed 8 drillholes but no detailed geological mapping or geophysics was conducted at the time. The property was subsequently acquired by the underlying property vendors, Cazador Resources (Adam Travis) who optioned it to Aurion in fall 2009.
Work by Aurion in fall 2009, including a 15.6 km IP geophysical survey and the collection of 193 b-horizon soils, outlined a moderate chargeability and low resistivity anomaly, a Au-in-soil geochemical anomaly with soil values up to 440 ppb Au, both coincident with the alteration zone.
About Aurion
Aurion is focused on early stage precious metals exploration in Mexico, Nevada, and BC. Its strategy is to advance its projects to a stage that will attract potential joint venture partners. Aurion continues to advance its existing projects to joint venture stage and evaluate other gold-silver projects for acquisition.
Mike Basha, P.Eng., P.Geo., President and CEO of Aurion, is the Qualified Person as defined by National Instrument 43-101, and is responsible for the preparation of this release.
All dollars are in US 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 Aurion's current beliefs or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to Aurion. The material factors and assumptions include: regulatory approvals being obtained for the issuances of the Aurion Shares referenced herein, no changes to existing Exchange Policies, exploration programs for Aurion remaining the same as forecast. Risk Factors that could cause actual results or outcomes to differ materially from the results expressed or implied by forward-looking information include, among other things: risks related to exploration activities, general economic and business conditions and changes in the regulatory regulation. Aurion cautions the reader that the above list of risk factors is not exhaustive. 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
For further information on Aurion Resources please visit our website at www.aurionresources.com
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:
Mike Basha
(709) 699-8300