Laurion Mineral Exploration Inc. is pleased to announce the completion of an initial NI43-101 Mineral Resource Estimate for its 100% owned Bell Mountain Project located in Churchill County, Nevada. The mineral resource estimate was prepared by Telesto Nevada, Inc. of Reno, Nevada in accordance with Canadian National Instrument 43-101 requirements. The resource is based on 54,692 feet (16,671 m) of reverse circulation (“RC”) drilling completed on the Varga, Spurr and Sphinx zones.
Resource Estimate Highlights:
– Measured and Indicated resource of 9,761,000 tonnes of material at an
average grade of 0.526 g/t gold and 17.63 g/t silver, hosting 165,018
ounces gold and 5,533,907 ounces silver
– Inferred resource of 2,046,000 tonnes of material at an average grade of
0.449 g/t gold and 13.26 g/t silver hosting 29,550 ounces gold and
872,411 ounces silver
1. Rounding of tons as required by Form 43-101F1 reporting guidelines (Item
19) results in apparent differences between tons, grade and contained
ounces in the mineral resource.
2. Mineral Resources are estimated at a pit discard cutoff Grade at 0.192
3. The assumed parameters used for Bell Mountain used establishing a cut-
off grade is identified as follows:
– Gold Price – $1,149.89/oz (US) – 60% 3-year previous average/40% 2-
year forward (Dec. 31, 2010)
– Silver Price – $20.92/oz US – 60% 3-year previous average/40% 2-year
forward (Dec. 31, 2010)
– Recovery – Gold 80%, Silver 51%
– Total Operating Costs – $11.43/ton (mining, processing and G&A)
– Gold Equivalent Ratio – 55 to 1 (calculations assume metallurgical
recoveries and net smelter returns to be 100%)
Parameters used to estimate the in-situ resource are based on information supplied by Bell Mountain Group. Assumptions were made for items like strip ratio, mining costs, processing costs and recovery percentages. These assumptions were based on published and previously calculated rates for other mining operations having similar parameters, and on testwork performed on Bell Mountain samples. The operation parameters assume open pit mining and cyanide heap leaching. A conceptual open pit mining method was used for the purpose of delineating the mineralization with a reasonable prospect of economic extraction. Tonnage estimates were based on a 2.6 grams/cubic centimeter density factor. Inverse distance square method was used to interpolate grade in the resource model (geostatistical methods of calculating resources) using the database based on the reverse circulation (“RC”) and core drilling.
Cynthia Le Sueur-Aquin, Laurion’s President and CEO commented, “This initial resource estimate is a significant milestone in creating value for the Corporation. We are extremely encouraged with the results of the initial resource estimate which resulted in an increase of 49% from the historic resource of 2.1 million tonnes of 1.33 g/t gold and 37.55 g/t silver as a result of the 56 hole RC drill program completed in November 2010 on the Spurr and Varga zones. Laurion’s primary goal is to successfully advance the project to production in the short to medium term, contemplating a conventional low cost open pit mining method with heap leach processing configuration. Environmental Assessment and Pre-Feasibility study work has commenced. In addition, strong potential exists for further resource addition on the Spurr-Varga fault which remains open at depth and laterally. The Spurr-Varga fault extends for 1.8km on surface. The Sphinx zone remains open at depth and laterally and can be traced on surface for 900 meters. Laurion will look to further expand the resource and potentially drill test a number of high priority regional targets.”
Next Steps for the Bell Mountain Project:
1. To complete environmental permitting requirements to include development
of baseline needs and mine plan of operations.
2. To complete a Preliminary Feasibility study for Bell Mountain.
3. To concurrently review Laurion’s target zone geology focusing on
extending known mineralization and testing peripheral targets within the
2,900 acres package at Bell Mountain.