TORONTO, ON / ACCESSWIRE / May 27, 2014 / Laurion Mineral Exploration Inc. (TSX.V: LME; OTCQX: LMEFF) ("Laurion") is pleased to provide shareholders with the following update of its current activities. The Corporation is most pleased with drill results obtained to date on its Ishkoday discovery property located 220km north east of Thunder Bay, and is maintaining its “one property, one focus” business plan in order to maximize shareholder value. The key priority at the top of the Corporation’s agenda is reflected in its ability to continue monetizing its assets and discoveries. In 2012, Laurion disposed of the Bell Mountain Project located in Nevada to Lincoln Mining for $2.35 million in cash. To date, Laurion has received a total of $1,539,414 inclusive of interest. Two remaining cash payments totalling $832,900 inclusive of interest are scheduled for payment prior to June 21, 2014.
Exploration Planning and Outlook on the Ishkoday Discovery Property.
DIAMOND DRILLING - In February and March 2014, the Corporation completed 924m of diamond drilling in 6 holes (See Press Releases dated March 19 and May 14, 2014). All of the diamond drill holes were collared to intersect geology associated within the base metal Loki/A-Zone mineralization reported in Laurion drilling carried out in 2012, while two of the six holes were strategically planned with the specific objective of defining the initial step of a phase-one drill program.
MINERALIZED ZONE INCREASED - As a result of these drill holes, the Corporation determined the depth extent of the mineralized zone increased from 75m to 165m almost doubling the dip length, with the estimated thickness of the alteration zone increasing from approximately 20m to 40m. Deeper intersections in the mineralized A-Zone were somewhat richer in copper, with higher associated silver values. These factors may indicate a transition to closer proximity to mineralizing source with depth. Drilling also determined that there were multiple narrow lenses of higher-grade mineralization within a broader mineralized alteration halo.
MINERALIZATION MODEL - Laurion's goal is to develop the gold-rich massive sulphide environment at Ishkoday. To aid this, Laurion is developing a "fingerprint" or model of the mineralization by comparing it to other known deposits. Based on the current drilling information, the model is stacked gold-rich massive sulphide lenses hosting base metals trends within a large mineralized halo.
EXPLORATION PLANNING - Over the next 6 months, Laurion's objective is to complete a program composed of high resolution aerial photography, retaining expertise with volcanogenic and structural VMS perspective for guidance on regional targeting concepts and recommendations for effective exploration techniques and definition of priority target zones, and a geophysics program covering 10km of IPower 3D ground geophysical surveys.
PHASE-ONE DRILL PROGRAM - An exploration drill program composed of 6,500m of diamond drilling will focus on testing the depth extent of the three gold-rich base metal trends, 3,000m each in strike length, in a 1km wide corridor, targeting the core of the VMS style mineralization and possible associated feeder structures.
Annual and Special Meeting of Shareholders
The Laurion Annual and Special Meeting of Shareholders will be held on June 6, 2014 at the offices of Baker McKenzie LLP in Toronto. Management of the Corporation will be requesting shareholder approval for, amongst other things, a Special Resolution to approve a consolidation of the common shares of the Corporation in order to make the Corporation’s shares more attractive to investors, since it may provide the Corporation with increased flexibility to seek additional financing opportunities.
While management believes that the Corporation’s cash position in the interim is strong, the Corporation will need to complete a private placement to continue developing the gold-rich base metal environment on the Ishkoday Discovery Property. There is no guarantee that the Corporation will be successful in completing a Private Placement. In order to provide the Corporation with the greatest chance of attracting new financing, the Directors would like shareholder approval to consolidate the Company's common shares up to a 7:1 basis at the Directors' discretion. The Directors are seeking shareholder approval to the share consolidation at this time in order to save the cost of holding a separate special shareholders' meeting in the future.
Laurion will not be changing its name or its trading symbol in conjunction with the proposed Consolidation.
The resource sector has been subject to continued softening of commodity prices and a dramatic sell-off in equity markets, which has created a capital desert in the junior end of the capital market at levels not experienced in the resource sector the last 10 years. Advanced juniors and mid-tier producers have been caught in the middle, exposed to a fragile balancing act between investors’ thirst for yield and low tolerance of risk. There is some hope in the form of private capital investors who favor the juniors with more advanced projects. In that respect, Laurion is practically unique in its continuing ability to monetize non-core assets to enable exploration focus on its primary Ishkoday discovery property, delaying and minimizing the need for equity injections.
Positive drill results on the Ishkoday Property have identified a gold and base metal environment hosted in three base metal trends, 3,000m each in strike length, within a 1km wide corridor. The Corporation believes that its management of the short-term needs of shareholders, coupled with its long-term strategic planning for the development of a three-phase drilling program on the Ishkoday Property, and the creation of a defined business plan of growth through asset monetization and discovery, are value drivers. Having said this, the Corporation is of the firm opinion that a share consolidation will only proceed on a strategic basis.
The technical information contained in this news release has been verified by Joe Campbell, P.Geo., consulting geologist with GeoVector Management Inc. Mr. Campbell is the project manager for Laurion's Ishkoday project and is a Qualified Person as defined in "National Instrument 43-101, Standards of Disclosure for Mineral Properties."
About Laurion Mineral Exploration Inc.
Laurion’s Ishkoday discovery project is contained within a 100% owned 4,442ha property package, located 220km northeast of Thunder Bay with easy access off the Trans-Canada Highway.
Laurion is focussed on unlocking the value of the Ishkoday gold and base metal environment hosted within three base metal trends, 3,000m each in strike length, in a 1 km wide corridor. Laurion is expanding on a legacy of gold production from the Ishkoday shaft which is hosted in a significant gold environment.
Laurion’s balanced and diversified management team is results driven and has achieved a decade of growth through asset monetization. Laurion’s management objective is to advance the Ishkoday project from discovery to value creation to exit strategy.
FOR FURTHER INFORMATION, CONTACT:
Laurion Mineral Exploration Inc.Cynthia Le Sueur-Aquin - PresidentTel: 1-705-788-9186 Fax: 1-705-788-9187 Website: http://www.laurion.ca/
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.
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.
Source: Laurion Mineral Exploration Inc.