|By Marketwired .||
|May 26, 2014 11:35 AM EDT||
ST. JOHN'S, NEWFOUNDLAND AND LABRADOR -- (Marketwired) -- 05/26/14 -- Aurion Resources Ltd. ("Aurion") (TSX VENTURE:AU) is pleased to report that it has executed the Definitive Purchase Agreement with Dragon Mining Limited ("Dragon Mining") (ASX:DRA), to acquire a 100% interest in the Kutuvuoma and Silasselka exploration projects in Northern Finland.
In consideration, Dragon Mining will receive 6,000,000 Common Shares in Aurion and Aurion will expend EUR 1,000,000 on the Projects within 3 years. The Payment Schedule from the original Letter of Intent, as announced March 5, 2014, has been re-negotiated such that there is no firm work commitment in the first two years, other than maintaining the tenements in good standing, and the subsequent share issuances will be timed with the granting of final title to the various tenements comprising the projects, as further detailed below. Additionally, Aurion has the option to expend the entire work commitment on only one project if it so decides.
Kutuvuoma Gold Project
The Kutuvuoma project area is located 35 km SE of the 4.8 million ounces Kittila Gold Mine owned by Agnico Eagle Mines Ltd. ("Agnico Eagle"). Kutuvuoma is a high-grade, shear zone hosted gold deposit that was discovered in the early 1990's by Outokumpu Oy. They conducted geochemical till sampling, ground magnetic and EM geophysical surveys and completed a total of 29 reverse circulation (1,112 metres) and 18 diamond (2,313 metres) drillholes over approximately 150 metre horizontal strike length and maximum of 150 metre vertical depth. Dragon acquired the property from Outokumpu in 2003 as part of a large property and data package and aside from compilation and reconnaissance mapping conducted no other exploration activities.
Drilling results reported in historic exploration reports include high grade gold intercepts such as:
-- 9.7 g/t Au over 5.1 m incl 20.2 g/t Au over 2.0 m -- 7.2 g/t Au over 19.4 m incl 26.7 g/t Au over 1.0 m -- 8.5 g/t Au over 8.6 m incl 31.3 g/t Au over 1.0 m -- 6.9 g/t Au over 5.6 m incl 20.0 g/t Au over 1.5 m -- 6.6 g/t Au over 6.1 m incl 16.5 g/t Au over 2.1 m -- 96.5 g/t Au over 1.2 m and 53.1 g/t Au over 1.2 m
The core has not been systematically sampled and the mineralised zones remain open along strike and at depth. A small portion of the deposit was test-mined during 1998-1999 by open cut method and has not been subject to exploration activities since. Numerous geochemical exploration targets remain untested throughout the property as well.
The Kutuvuoma property covers circa 6 km strike length over a prospective geological sequence with mineralized structures and has been only partially explored with geochemical and geophysical surveys extending strike distance of circa 1.5 km. The previous work has identified a number of gold anomalies that remain untested. The Kutuvuoma property tenements cover 6026 ha (hectares) comprising a 41 ha mining lease, 1648 ha in claims applications and 4337 ha in claim reservations, within a 32,500 hectare area of interest.
The Silasselka project area is located 38 km NW of Agnico Eagle's 4.8 million ounce Kittila Gold Mine. The Silasselka project area was previously explored during the 1960's by Finnish entity Otanmaki Oy. They predominantly focussed on the vanadium potential outlining four vanadium-iron-titanium deposits, Pyhajarvi, Pesosjarvi, Koivusilasselka and Kuusilaanivaara. Historical reports indicate that a total of 55 diamond core drill holes were completed in the project area. Dragon Mining acquired the property in 2010.
Vanadium-iron-titanium mineralisation is associated with massive magnetite-ilmenite veins or ilmenite-magnetite disseminated zones in mafic igneous rocks, along a 15 kilometre long anomalous magnetic zone that strikes north-south and dips towards the east at moderate to steep angles. The dimensions of the main mineralised zones identified to date range from 100 to 400 metres in length, 5 to 10 metres in width and at least 100 to 200 metres with depth. Parallel mineralised zones exist locally. The extensions of the identified vanadium-iron-titanium mineralised zones have not been drill tested.
Some of the better drill intercepts from historical reports include:
Width (m) Fe % TiO2 % V % 4.4 48.3 11.6 0.74 4.1 44.5 10.8 0.65 4.6 51.8 13.4 0.65
While the deposits of Fe-Ti-V mineralisation are significant and still under-explored, Aurion's primary interest in Silasselka is in the gold and PGE potential. The geological setting has the potential to host magmatic nickel-copper-PGE and shear zone hosted gold mineralisation. The volcanic-sedimentary sequence, which includes intermediate and mafic volcanics and banded iron formations, located east of the Fe-Ti-V mineralisation is highly prospective for shear zone hosted gold mineralization. The Silasselka Project area covers the potential northern strike extension of the Hanhimaa shear zone. The Hanhimaa Shear Zone hosts several gold occurrences which have reported drill intersections of 4.5 g/t Au over 11.7 m and 5.9 g/t Au over 7.5 m (Dragon Mining website). The Hanhimaa shear zone lies west of and parallel to the Kiistala shear zone which hosts the Agnico Eagle Kittila Gold Mine.
Aside from compilation and reconnaissance mapping by Dragon Mining no exploration activities have been performed on the property since the 1960's.
The property tenements cover 26,435 ha comprising 1501 ha in claims applications and 24,934 in claim reservations within a 57,350 hectare area of interest.
Pursuant to the agreement, Dragon Mining will receive 6,000,000 Aurion Common Shares and Aurion will expend EUR1,000,000 on the Projects over three years to earn a 100 per cent interest in the two projects, as per the payment schedule outlined in Table 1 and subject to regulatory approvals.
Table 1 - Payment Schedule
----------------------------------------------------- 1 2 3 4, 5 ---------------------------------------------------------------------------- Expenditures (EUR) 1,000,000 ---------------------------------------------------------------------------- Common Shares 2,000,000 1,000,000 1,000,000 2,000,000 ---------------------------------------------------------------------------- (1) Signing, subject to fulfilment of the conditions precedent of: - Aurion receiving all approvals required by the TSX Venture; and - Turvallisuus ja kemikaalivirasto ("Tukes") accepting the bond proposal of Dragon Mining for the Kutuvuoma Mining Licence without material change. (2) Upon the Kutuvuoma Claim Applications 4-21 becoming valid; (3) Upon the Silasselka Claim Applications1-19 becoming valid; and (4) The third anniversary of the Kutuvuoma Claims 4-21 and the Silasselka Claims 1-19 becoming valid. (5) It is anticipated that most claims applications will be processed by Tukes over the next 2-6 months.
The initial tranche of 2,000,000 Consideration Shares to be received by Dragon Mining will be escrowed for 18 months from the date of issuance of the shares. Any other Consideration Shares received by Dragon Mining within 18 months from signing shall also be escrowed for the remaining portion of the 18 month time period.
In addition Dragon Mining will retain a 3% Net Smelter Royalty ("NSR") on any deposit mined by Aurion or any associated third party within the Projects and the defined Areas of Interest. Aurion or its nominee may purchase the full 3% NSR at any time on or before the sixth anniversary of the signing of the Agreement with a one off payment of EUR 4,000,000 in cash or 1% of the NSR any time after the tenth anniversary of the signing of the agreement with a one off payment of EUR 4,000,000 in cash on the basis that Dragon Mining has not sold the NSR to a third party. Dragon Mining is at liberty to sell the NSR to a third party at any time after the sixth anniversary of the signing of the Agreement.
Aurion will also make bonus payments to Dragon Mining of EUR 2,000,000 in cash or equivalent in Aurion Common Shares (share price based on a five day volume weighted average price ("VWAP") immediately before the agreed settlement date) at Aurion's discretion for the defining of one million ounces of gold equivalent material within the Projects and the defined Area of Interests that is categorised as Measured and Indicated in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ("JORC Code") or National Instrument 43-101 Standards for Disclosure for Mineral Projects ("NI43-101"). Further bonus payments of EUR 1,000,000 in cash or equivalent in Aurion Common Shares at Aurion's discretion for the defining of every additional one million ounces of gold equivalent material within the Projects and the defined Area of Interests that is categorised as Measured and Indicated in accordance with the JORC Code or NI43-101.
Aurion will be able to utilize the services of Dragon Mining's staff in Finland on an as-needed basis, in accordance with a separate Service Agreement. This will provide Aurion with access to a skilled resource base during start-up, while defraying some of Dragon Mining's Finnish costs.
With a treasury of approximately $1.5 million and a low burn rate Aurion can comfortably fund the acquisition. The initial strategy will be to compile all available data and begin developing targets for follow-up in the next few months. Aurion will also seek to finance these projects through JV partnerships.
The Kutuvuoma and Silasselka projects are situated in the Central Lappland 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 Eagle Mines Ltd's Kitttila Gold Mine (Reserves as of Dec 31 2012, 4.8 Million ounces grading 4.5 g/t Au), First Quantum Minerals Ltd's Kevitsa Ni-Cu_PGM mine (reserves as of Dec 31 2012 of greater than 400 Mt 0.3% Ni, 0.4% Cu and 0.54 g/t combined Au-Pt-Pd) 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, greater than 100 million tonne (Anglo 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.
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,
Mike Basha, President & CEO
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.
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Nov. 27, 2015 06:00 PM EST Reads: 412
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
Nov. 27, 2015 04:00 PM EST Reads: 172
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving t...
Nov. 27, 2015 02:00 PM EST Reads: 410
As organizations shift towards IT-as-a-service models, the need for managing & protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection & E-Discovery of your data - whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise.
Nov. 27, 2015 01:00 PM EST Reads: 171
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
Nov. 27, 2015 01:00 PM EST Reads: 154
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Nov. 27, 2015 12:00 PM EST Reads: 464
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
Nov. 27, 2015 12:00 PM EST Reads: 542
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
Nov. 27, 2015 11:45 AM EST Reads: 537
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Nov. 27, 2015 11:00 AM EST Reads: 313
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
Nov. 27, 2015 10:45 AM EST Reads: 383
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
Nov. 27, 2015 10:45 AM EST Reads: 397
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Nov. 27, 2015 10:00 AM EST Reads: 306
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Nov. 27, 2015 10:00 AM EST Reads: 491
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Nov. 27, 2015 09:45 AM EST Reads: 220
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
Nov. 27, 2015 09:15 AM EST Reads: 291