Aurion Options Finnish Projects to B2Gold and Reports High Grade Results at Kutuvuoma and Ahvenjarvi
Aurion Resources Ltd. (“Aurion”) (TSX VENTURE: “AU”) is pleased to report that it has signed a binding letter agreement with B2Gold Corp. (TSX: BTO, NYSE MKT: BTG, NSX: B2G); (“B2Gold”) granting B2Gold the right to earn up to an undivided 75% interest of an approximately 25,000 ha project area that includes the Kutuvuoma and Ahvenjarvi projects.
Under the terms of the agreement B2Gold must complete $5 million in exploration expenditures, pay Aurion $50,000 cash and issue 550,000 B2Gold shares over 4 years to earn a 51% interest. B2Gold can earn an additional 19% interest by spending a further $10 million over 2 years. B2Gold can earn an additional 5% interest for a total of 75% interest by completing a bankable feasibility study.
The first year commitment of $750,000 in exploration expenditures including 2000 m of drilling and payment of $50,000 cash and 50,000 B2Gold shares is guaranteed. Aurion will be the operator until drilling commences. A field program is anticipated to begin in early September. The deal is subject to B2Gold completing its due diligence and Aurion obtaining all necessary regulatory approvals. A formal definitive agreement is to follow. A finder’s fee is payable to Phoenix Advisors by Aurion with respect to this transaction, and is subject to acceptance by the TSX Venture Exchange.
“This is a great deal for Aurion and its shareholders, especially in the current depressed commodities market”, commented Mike Basha, President and CEO. “A company of B2Gold’s calibre as a partner is a solid endorsement of Aurion’s Finnish exploration initiative. We look forward to nurturing this relationship”.
Two new trenches were excavated, in June 2015. The first (4NA) 370 m west of the Kutuvuoma main zone and immediately west of Trench 4 (excavated in 2014) returned a length weighted average assay of 7.4 g/t Au over 9.6 m. Individual samples assayed from 1.8 g/t to 26.9 g/t Au as presented in the table below. The samples were collected as continuous chip-channel samples across the strike of the mineralized zone using hammer and chisel. The mineralization remains open in all directions. The length of Trench 4 was restricted by thick overburden but ended in mineralization which returned 5.3 g/t Au over 4 m. The new trench 4NA was completed with a larger excavator than the one used in 2014 and was better able to expose the mineralization.
|Sample Number||Au (g/t)||From (m)||To (m)||Width (m)|
|Length weighted average of 7.4 g/t Au over 9.6 m|
The mineralization consists of 10-20% sulphide mineralization within silicified and altered, meta-sedimentary and meta-volcanic rocks.
Additionally, a narrow 2 cm wide extensional quartz vein with abundant visible gold cross-cuts the east-west trending main mineralized zone in a north-south direction. A selective grab sample of this vein assayed 96.9 g/t Au.
The Kutuvuoma mineralized corridor trends east-west. The recent observations from trenches indicate that gold mineralized structures may exist at various orientations and may be a result of multiple mineralizing events.
A second trench was excavated approximately 720 m east of the Kutuvuoma main zone and 50 m east of Trench 8 (excavated in 2014) assayed 3.1 g/t Au over 5.6 m. The new trench assayed 1.4 g/t Au over 4.5 m. The samples were collected as continuous chip samples across the mineralized zone using hammer and chisel. The system remains open to the east.
The Kutuvuoma deposit is a high-grade, shear zone hosted gold deposit that was discovered in the mid-1990’s by the Finnish state entity Outokumpu Oy, while exploring for base metals. Outokumpu drilled 47 shallow core and reverse circulation drillholes totalling 3425 m, testing Kutuvuoma within a very small area (approximately 175 m horizontally and 175 m vertically). No other drilling or trenching was conducted since the mid-1990’s. Numerous high grade drill intercepts including 7.2 g/t Au over 19.4 m from 60 m downhole, 13.2 g/t Au over 5.0 m from 88 m downhole and 12.6 g/t Au over 7.0 m from 26 m downhole were recorded from the historical drilling. True width of the mineralization is estimated to be approximately 70-80% of drill intercepts. The mineralization is associated with sulphidic quartz vein arrays and silicified and brecciated meta-sediments and meta-volcanics and remains open in all directions. Free gold is common in the quartz veins. The limited trenching in June 2015 and Aug-Sept 2014 has demonstrated the Kutuvuoma system is over 1100 m long and remains open along strike.
At Aurion’s wholly owned Ahvenjarvi property, limited prospecting in June 2015 has identified new gold mineralization north and south of the Quinlan Zone (see Aurion press release dated Jan 15, 2015). A total of 24 widely spaced selective rock chip samples collected from outcrop, sub-outcrop and angular boulders assayed from nil to 15.4 g/t Au with 17 assaying > 0.1 g/t and 7 assaying > 1.0 g/t Au up to 15.4 g/t Au. The Quinlan Zone was discovered in late 2014, where a total of 62 widely spaced rock samples collected from outcrop and sub-outcrop over a distance of 500 m in a north-south direction, assayed from nil to 28.3 g/t Au. Of the 62 samples, 17 assayed >1 g/t Au, 8 assayed > 5 g/t Au and 3 assayed >15 g/t Au.
The mineralization consists of a stockwork of millimeter to meter scale quartz-tourmaline-pyrite veins hosted by sandstone and conglomerate within a wide zone of strong silica and potassic (sericite and k-feldspar) alteration and brecciation with abundant iron oxide (magnetite and specular hematite) mineralization. According to current indications, the poorly exposed Quinlan mineralized zone now has estimated dimensions of 2300 m by 500 m and remains open in all directions.
The land package from Kutuvuoma to Ahvenjarvi comprises approximately 25,000 ha of land tenements covering 30 km of strike length over prospective geological sequences and regional structures associated with gold mineralization. Only limited exploration has been conducted historically along this trend.
“Management is very encouraged by these news results”, commented Mike Basha, President and CEO. “The limited amount of work we have conducted on the projects since assembling the land position in mid-2014 demonstrates the underexplored potential and the generative opportunities within the Central Lapland Greenstone Belt. The high gold grades and significant strike length of the targets present possibilities for developing tonnage and ounces quickly”.
Samples were delivered to Labtium Oy’s facility in Sodankyla, Finland. The Ahvenjarvi samples were analysed for gold using procedures 704P (Detection Limit – 0.01 gold; Upper Limit – 100.00 g/t gold) – 25g fire assay with AAS finish. The Kutvuoma samples were analysed for gold using procedures 705P (Detection Limit – 0.005 gold; Upper Limit – 100.00 g/t gold) – 50g fire assay with AAS finish. Multi-element analysis was completed using procedure 511. This procedure detected 31 elements by aqua regia acid digestion, HCl leach followed by ICP-OES and ICP-MS analysis. Labtium is a Finnish, accredited, certified laboratory group. They are monitored by an internal QAQC program and include the inclusion of blank material, duplicates and certified reference material.
For more information on these projects please visit our website at www.aurionresources.com.
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.
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,
President & CEO
For further information on Aurion Resources please contact: Mike Basha at (709) 699-8300 or (709) 722-2141 or firstname.lastname@example.org; For further information on these projects 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.