Kinross - Launi East

AURION-KINROSS JOINT VENTURE (JV)

The Launi East Property covers an area approximately 4,300 hectares that has not been explored prior to Aurion. The exploration license for the Launi East area was granted in December 2018.

The major regional shear structure, the Sirkka Shear Zone or its splay, is interpreted to traverse across the property. The arcuate stratigraphy on the Launi East property includes a folded and faulted package of siliceous sandstones intercalated with wackes and siltstones, mafic to intermediate volcanic and intrusive sequences and late granitoid intrusions.

Prospecting and mapping have resulted in the discovery of multiple gold-bearing zones, including among others, the Christmas Deformation Zone, Midsommer, Bonanza, Father’s Day, Mother’s Day, Stubley and Hinge Zone prospects, in a 5.5 by 1.0 km area parallel to and within 1 km to the west of the Sirkka Shear Zone. Widespread fuchsite, tourmaline, sericite and iron-carbonate bedrock alteration along with abundant quartz veining is observed within silicified sandstone or intermediate volcanics. Visible gold is observed in quartz veins and mineralized host rocks. Mineralized zones at Launi East appear to show lateral continuity along strike across the property, and individual zones can be traced for up to 300 m. All prospects are at an early stage of evaluation, and the majority of the Launi East area, particularly areas dominated by mafic and ultramafic rocks, have not yet been explored due to lack of surface exposure.

Approximately 2,300 samples have been collected from boulders, sub-crops and outcrops assaying up to 709 g/t Au with an average grade of 4.20 g/t Au. Other exploration activities have included trenching, geophysical surveys, till sampling and diamond core drilling.

A total of 58 holes for 8,445.6 m primarily utilizing a small capacity “scout” drill rig have been drilled with most holes located in a 1.0 by 1.5 km area in the northern portion of the property. The main drill targets have been the Hinge Zone, Christmas Deformation Zone, Midsommer and Bonanza. The majority of the drill holes have intersected zones of gold mineralization and identified several envelopes of near-surface gold mineralization.

Multiple gold bearing veins have been intersected in a >300 m wide by >1.0 km long corridor at the Christmas Deformation Zone. At the Hinge Zone, where drilling targeted blind geophysical anomalies, high-grade near-surface gold was intersected in a fault zone returning assays up to 30.70 g/t Au and 8.65 g/t Au and in a magnetic volcanogenic sediment unit returning an intercept of 3.05 g/t Au over 5.30 m. The Hinge Zone target has a strike length of over 1 km.

Channel sampling highlights from Launi East:

• 27.01 g/t Au over 1.77 m (LNT1904, Christmas Deformation Zone)
• 14.76 g/t Au over 2.95 m (LNT1904, Christmas Deformation Zone)
• 10.81 g/t Au over 3.11 m (LNT1904, Christmas Deformation Zone)
• 39.50 g/t Au over 0.56 m (BZT1901, Bonanza)
• 29.00 g/t Au over 0.44 m (BZT1901, Bonanza)
• 19.50 g/t Au over 0.77 m (BZT1901, Bonanza)

Drilling highlights from Launi East:

• 63.90 g/t Au over 0.37 m from 260.83 m (LN20014 Christmas Deformation zone)
• 5.50 g/t Au over 0.40 m from 78.50 m (LN20008 Christmas Deformation zone)
• 3.05 g/t Au over 5.30 m from 106.50 m (LN20050 Hinge Zone)
• 8.65 g/t Au over 0.55 m from 28.40 m (LN20042 Hinge Zone)

THE AGREEMENT

Under the terms of the agreement, Kinross can earn a 70% undivided interest in the Launi East Property by incurring a minimum of USD$10,000,000 in exploration expenditures on or before the seventh anniversary of the agreement dated August 21st, 2023. Subject to receiving all necessary permits for a drilling program, Kinross has agreed, as a firm obligation, to incur a minimum of USD$2,000,000 in exploration expenditures on, or before the second anniversary of the agreement. 

Should Aurion’s interest in the joint venture be diluted down to 10% or less, Aurion’s interest will be converted to a 2% Net Smelter Return (NSR) Royalty on the property. Kinross may purchase one-half of the royalty to reduce the royalty to 1% of net smelter returns for USD$2,000,000.