Kinross - Silaskaira
AURION-KINROSS JOINT VENTURE (JV)
The Silaskaira Project area covers a 12 km long interpreted northern strike extension of the Hanhimaa Shear Zone. The Hanhimaa Shear Zone lies west of and parallel to the Kiistala shear zone which is host to Agnico Eagle’s Kittila Gold Mine (proven and probable reserves of 3,794,000 oz Au). The Hanhimaa Shear Zone hosts several gold occurrences with reported drill intersections of 4.5 g/t Au over 11.7 m and 5.9 g/t Au over 7.5 m (as per Dragon Mining Inc. website) as well as S2 Resources’ Aarnivalkea prospect (6.8 m @ 11.8 g/t Au, 20.4 m @ 4.0 g/t Au, per S2 Resources website).
The Silaskaira property is underlain by metavolcanic and metasedimentary rocks that are intruded by substantial volumes of younger monzonite, granodiorite and gabbro bodies. The geological setting has the potential to host orogenic gold occurrences.
On November 8, 2021, the Company signed a binding Letter Agreement with Kinross Gold Corporation, (“Kinross”), granting Kinross the right to earn up to an undivided 70% interest in an approximately 54.35 km2 project area, which is adjacent to the Silasselkä Vanadium project (Strategic Resources Inc. - Aurion holds a ~18.3% equity interest in Strategic), and approximately 28 km northwest of Agnico-Eagle’s Kittilä Mine.
Under the terms of the agreement Kinross can earn a 70% undivided interest in the Silaskaira Property by incurring a minimum of USD$5,000,000 in exploration expenditures on the property and paying Aurion CAD$100,000 on, or before, the fifth anniversary of the agreement. Kinross has agreed to incur a minimum of USD$1,000,000 in exploration expenditures on, or before, 24 months from the date of the agreement and will act as the operator.
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.