Jun 27 2014
Aurion Resources Ltd. ("Aurion") reports that it has filed on SEDAR a technical report prepared in compliance with National Instrument 43-101 ("NI-43-101") Standards of Disclosure for Mineral Projects entitled "Technical Report on the Central Lapland Project" and related to its purchase of the Kutuvuoma and Silasselkä exploration projects in Northern Finland (see Press Release dated May 26, 2014).
The independent technical report has an effective date of May 26th, 2014 and was prepared for Aurion by Mercator Geological Services Limited (Mercator) of Dartmouth, Nova Scotia.
Mercator concluded that both the Kutuvuoma and Silasselkä exploration properties acquired by Aurion have very good untested exploration potential with respect to orogenic gold deposits related to the metallogenically important Sirkka Line structural corridor and adjacent, north-trending mineralized shear zone trends. It was also concluded that good opportunities are present to define extensions to the included, high-grade drilling-defined Kutuvuoma gold deposit that was previously discovered and explored by Outokumpu OY in the 1990's.
The Silasselkä property hosts four iron-titanium-vanadium deposits of magmatic association that were discovered and explored by Otanmaki OY in the 1960's and also covers an interpreted strike extension to the gold-mineralized Hanhimaa Shear Zone (HSZ). The HSZ hosts four new, drilling-defined gold prospects on the adjacent property to the south of Silasselka. This property is held by Dragon Mining Limited (Dragon) and is currently being explored under agreement with Agnico Eagle Mines Ltd. (Agnico) (Dragon website). The HSZ is parallel to the Kiistala Shear Zone that hosts Agnico's multi-million ounce Kittilä Mine, approximately 10 km to the east. Mercator concluded that assessment of the Silasselkä property's iron-titanium-vanadium potential and possible nickel-copper-PGE potential should be pursued, but on a secondary basis relative to assessment of its prominent orogenic gold potential.
The exploration approach recommended for the two properties consists of two phases, with Phase 1 directed toward assembling all available exploration datasets through a desktop digital compilation project followed by a targeting exercise and sufficient field work to define areas for Phase 2 follow-up. Further three dimensional modeling of the existing Kutuvuoma gold deposit is also included in Phase 1. The recommended Phase 2 program consists of further detailed anomaly follow-up leading to initial drill testing of several target areas as well as completion of a limited deposit extension drilling program at Kutuvuoma. Estimated budgets of $350,000 and $1,300,000 have been recommended by Mercator, respectively, for Phase 1 and Phase 2 programs.
Background
The Kutuvuoma and Silasselkä projects are situated in the Central Lapland Greenstone Belt (CLGB) of Northern Finland and are accessible by road. The CLGB is a highly prospective, underexplored Proterozoic greenstone belt that hosts many gold, base metal, magmatic Ni-Cu-PGE prospects and deposits, including Agnico's Kitttilä Gold Mine (Reserves as of Dec 31 2012, 4.8 Million ounces grading 4.5 g/t Au per Agnico 2012 annual report)), First Quantum Minerals Ltd.'s Kevitsa Ni-Cu_PGM mine (Reserves as of Dec 31 2012 of >400 Mt 0.3% Ni, 0.4% Cu and 0.54 g/t combined Au-Pt-Pd per First Quantum Ltd. 2012 annual report) and the recently discovered Sakatti Ni-Cu-PGE deposit owned by Anglo American Plc (1-2 % Ni, 1-2% Cu, 0.5-1.0 g/t PGE, >100 million tonne (Anglo American Plc FEM Mining Conference presentation Nov 3 ,2011).
Finland was ranked number two in the Fraser Institute's top mining destination survey in 2013 and is one of the most underexplored stable jurisdictions in the world. It is important to note that Finland only opened its border to foreign mining investment in the mid-1990s.
Michael Cullen, P. Geo., Chief Geologist at Mercator Geological Services Limited, is an independent Qualified Person as defined under NI-43-101 and has reviewed technical information pertaining to the Technical Report that appears in this press release.
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.