ST. JOHN'S, NEWFOUNDLAND--(Marketwire - Jan. 9, 2012) - Aurion Resources Ltd. ("Aurion") (TSX VENTURE:AU) is pleased to announce the signing of a Letter of Intent ("LOI") with Golden Minerals Company ("GM") whereby Aurion will have the right to earn a 100% interest in the El Teyra and Rubi-Esmeralda gold projects in Mexico as further described below. The acquisition is subject to exchange approval.
El Teyra Property
The El Teyra property covers 2768 hectares in Zacatecas State located approximately 30 km west of Goldcorp's multi-million ounce Penasquito gold-silver polymetallic deposit. The property is underlain by meta-sedimentary and meta-volcanic rocks cut by a series of northeast-southwest trending shallowly dipping (<45 deg) faults along which high-grade mesothermal style quartz breccias, veins and vein stockworks occur. The property has also seen little previous exploration and no drilling has been documented. Numerous small artisanal workings occur on the property.
Mineralization comprising quartz-iron oxide veins, stockworks and breccia zones up to 700 m long occurs along shallowly dipping faults associated with broader areas of silicification. Systematic rock chip/channel sampling by GM over distances up to 700 m along strike yielded assays of nil to 56.6 g/t Au and 1355 g/t Ag. GM collected a total of 1120 samples of which 170 samples assayed greater than 0.1 g/t Au including 83 assaying greater than 1.0 g/t Au and 20 assaying greater than 10 g/t Au over widths of 0.5 to 2.0 m. The best individual assays include 56.6 g/t Au and 54 g/t Ag, 44.3 g/t Au and 100 g/t Ag and 39.7 g/t Au and 490 g/t Ag, all over 1.0 m.
El Teyra bears similarities to Penoles-Newmont's multi-million ounce La Herradura gold deposit in northern Sonora, Mexico. La Herradura is a structurally controlled mesothermal-style gold deposit with mineralization controlled by low-angle structures.
As per the LOI Aurion has the right to earn an undivided 100% interest in the project subject to a 2% NSR by issuing 600,000 shares in equal tranches over 4 years and maintaining the claims in good standing. A bonus payment of $1 million in cash or equivalent shares is due upon Aurion delineating a 43-101 compliant 1.25 million ounce gold resource. The NSR can be reduced by 1% by Aurion paying GM $1 million if the price of gold is greater than $900. Should Aurion option the property to a 3rd party GM will be entitled to 50% of any cash payments included in the deal.
Rubi-Esmeralda Property
The Rubi-Esmeralda project covers 4,030 hectares in Durango State, Mexico. The property occurs at the edge of a major basin and range, is underlain by Eocene volcanics and hosts a >4 km long northwest-southeast trending low-intermediate sulphidation epithermal quartz stockwork/breccia vein system. Limited previous exploration has been conducted, including 5 widely spaced shallow drillholes by Minera Hochschilde in 2004 and 4 other drillsites with unknown results.
The vein system comprises individual veins up to 3.5 m wide within a locally 10-50 m wide zone of alteration and stockwork veining. Surface samples collected along the vein by GM assayed from nil to 4.2 g/t Au and 71 g/t Ag. A best assay of 4.9 g/t Au and 48 g/t Ag over 0.6 m was reported by Hochschilde from one of five widely spaced shallow drillholes completed on the property in 2004. A grab sample collected by Aurion from an old pit/waste dump on a mostly covered small 3rd party held internal claim assayed 20.4 g/t Au and 201 g/t Ag, indicating the property may have mineral potential beyond just the main Rubi-Esmeralda vein system.
The Rubi-Esmeralda vein system strikes parallel to the vein system at Aurion's La Bandera gold project located approximately 8 km to the east-northeast. The geological setting and style of veining exhibiting classic low temperature epithermal textures indicating a shallow depth of formation bear many similarities to the La Bandera vein system.
As per the LOI Aurion has the right to earn an undivided 100% interest in the project subject to a 2% NSR by issuing 450,000 shares in equal tranches over 4 years and maintaining the claims in good standing. A bonus payment of $1 million in cash or equivalent shares is due upon Aurion delineating a 43-101 compliant 1.25 million ounce gold resource. The NSR can be reduced by 1% by Aurion paying GM $1 million if the price of gold is greater than $900. Should Aurion option the property to a 3rd party GM will be entitled to 50% of any cash payments included in the deal.
Aurion intends to compile and advance these projects with a view to securing 3rd party option/JV deals asap.
Other
Aurion is also pleased to announce that Francisco Vargas has joined Aurion as Exploration Manager, Mexico. Sr. Vargas is a geologist with 24 years experience in mineral exploration having worked extensively in Central America and Mexico, for companies including several years with Placer Dome. He was directly involved in the discovery of the Las Crucitas gold deposit in Costa Rica.
QA/QC
ALS Chemex, a certified commercial laboratory, performed the analytical testing at their facilities in Vancouver, BC. Gold analyses for rocks were by 30 gm fire assay with an ICP finish with trace elements by ICP.
About Aurion
Aurion is focused on early stage precious metals exploration in the Nevada, Mexico and BC. Its strategy is to generate or acquire early stage gold projects and systematically advance them to a stage which will attract potential joint venture partners.
Mike Basha, P.Eng., P.Geo., President and CEO of Aurion, a Qualified Person as defined by National Instrument 43-101, is responsible for the preparation of this release.
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 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
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
mbasha@aurionresources.com