The Sturgeon River Property

The Sturgeon River Property is located in the Thunder Bay Mining Division in Irwin, Pifher, Walters, and Elmhirst Township, and is situated approximately 21 km northeast of the town of Beardmore, Ontario.
Access to the property is off of Highway 11 by proceeding north for 13.5km on Highway 801 located 22 km east of Beardmore.
The property is comprised of 35 contiguous mining claims leases totalling 656.8 Ha. The patented surface and mining rights and mining rights only claims are registered 100% to Laurion.

Exploration History

Since 1925, the Beardmore-Geraldton Camp has reportedly produced more than 4.12 million ounces of gold from a reported 19 producing mines

The Sturgeon River Property is host to the former producing Sturgeon River Mine, previously known as the Coniagas Mine, which produced 73,439 ounces of gold, and 15,922 ounces of silver between 1936 and 1942. The shaft was sunk to a depth of 2,108 ft with development on 14 levels, the lowest producing level being at 1,750 ft.

Underground development included 20,239 ft of drifting and 3,149 ft of crosscutting. The ore was hand sorted on surface to up-grade the mill feed, and the recovered grade was reported to be 0.506 oz Au/ton. The mine was closed due to wartime shortages of skilled labour and vital materials.

A 1942 ore reserve estimate yielded high grade reserves of 130,680 tons with an average grade of 0.306 oz Au/ton (James Wade Engineering report, 1983). This ore reserve calculation was based on tonnage blocked out by underground drifting and raising down to the 1750 ft level (530 m), and was calculated prior to mine shutdown during World War II.
This estimate does not conform to the current National Instrument 43-101 standards, and should not be relied upon.



In addition to the historical reserve estimate referred to above, a report by D.E. McBride (P.Eng) in 1986 estimated that significant additional lower grade ore existed in the mine workings and the report estimated that 400,000 tons of ore at 0.15 oz/ton (5.14 g/t) remained in the mine bottom at the 2100 ft level (640 m). The report also indicated that no exploration had ever been carried out on the down plunge of the main No.3 ore shoot, and that exploration down to the 3600 ft level (1100 m) was recommended.

Of significance is the strike of 650 ft (200 m) in length of the ore grade shoot within the No. 3 vein at surface, which began to increase at depth, and on the 1750 ft level (530 m), the ore shoot reached a strike length of 1530 ft (466 m). At around the 1500 ft level (460 m), two other veins were encountered that intersected the No.3 vein (No. 10 and the M veins). At the end of the mine life active mining of these veins were ensued. As well, a further high grade vein (No. 11) was reported on the 2100 ft level (640 m) cross cut.

The increased shoot strike length and the presence of multiple intersecting veins bodes well for potentially larger ore zones at depth. Sampling in 2010 by GeoVector of surface showings of the No. 3 vein returned 95 g/t and 51.6 g/t over a 30 cm vein width, confirming the historically reported high grade nature of this vein. This is consistent with the results of an 8 ton bulk sample taken in 1981 of the No. 3 vein that was subjected to photometric sorting (mechanical colour sorter) by Ore Sorters of Canada on behalf of Phoenix Gold Mines Inc. ("Phoenix"). The sorted quartz averaged 2.527 oz/ton gold (86.65 g/t).

In addition, two samples of the adjacent host rock over approximately 50 cm width returned values of 1.35 g/t and 1.16 g/t, indicating that the host rock may well carry significant grade. Mining carried out from 1936 to 1942 hand sorted the quartz vein material and discarded host rock, leaving a potential low grade gold stockpile. In 1984, to test this potential, L. Koskitalo (B.Sc) on behalf of Phoenix reported (the "1984 Report") on a 17.6 ton sample sent to Lakefield Research Centre. This was a representative sample from a 6000 cubic meter bulk sample removed from the waste pile by a front end loader. This sample graded 0.086 oz/t gold (2.95 g/t). Based on a transit stadia survey Phoenix estimated that the mine waste pile contained 132,000 tons. Grab sampling in the 2010 field program by GeoVector of the waste pile returned a range of 0.06 g/t to 10.2 g/t gold for an average grade of 2.83 g/t gold from eight random samples. These sample results support the grades indicated in the 1984 Report, and more importantly indicate that the host rock between the veins has the potential to carry significant gold grade.

Marge Vein

Approximately 700 m north of the Quebec Sturgeon Mine, a high grade vein (Marge or M-1) has been exposed by extensive trenching dating back to the mid 1930s. In 1984, Phoenix cleaned and channel sampled this vein over a strike length of 505 ft (154 m), and reported an average grade of 0.73 oz/ton (25.03 g/t) gold over an average width of 1.2 ft (0.36 m). In 2008, Laurion stripped and channel sampled a 47 m length of the Marge vein and collected 34 channel samples across the width of the vein, approximately 1.5 m apart, for the entire exposed area. These samples averaged 16.97 g/t gold over an average width of 0.47 m, confirming the historical grade for this vein. Of further importance, Laurion collected six samples of host rock next to the Marge vein which ranged up to 1.06 g/t gold and averaged 0.40 g/t gold, indicating the potential for the host rock between veins to carry gold grade. This is important as there are reports of at least ten other veins sub-parallel or obliquely crossing the Marge vein, creating the opportunity for wider zones of mineralization. Recent sampling of the Marge vein host rock (granodiorite) by GeoVector (two samples) averaged 0.26 g/t gold, supporting the historic reports of anomalous host rock.

A6 & A4 Veins

Approximately 1.5 kilometers northeast of the Quebec Sturgeon Mine, a series of veins have been exposed over a strike length of approximately 75 m. The 1984 Report stated that the veins were wider than other veins on the property indicating the A6 vein as 0.24 oz/ton (8.23 g/t) gold over an average width of 2.5 ft (0.76 m) with an exposed strike length of 134 ft (41 m), and the A-4 vein as 0.18 oz/ton (6.17 g/t) gold over an average width of 3.2 ft (0.98 m). Written reports indicated significant copper and zinc mineralization in the A-6 vein. Recent field work by GeoVector showed that the A-6 vein did indeed have visible coarse grained chalcopyrite and sphalerite, and three grab samples averaged 4.08 g/t gold, 8.6 g/t silver, 0.37% copper and 4.69% zinc, thus confirming the historical reports. This vein occurs in an intermediate to felsic volcanic package, and points to the potential remobilized base metals from a proximal volcanogenic massive sulphide (VMS) style deposit.

Zinc Zone

Historical reports indicate that a base metal occurrence is situated in volcanics approximately 1 kilometer northeast of the QSM. Caracle Creek International Corp ("CCIC") took a sample of this zone on behalf of Laurion in 2008 and reported an assay of 18.55% zinc, 0.90% copper, 62.11 g/t silver and 0.21 g/t Au. GeoVector recently re-sampled this zone and discovered two parallel lenses of massive to semi-massive sulphides of 0.50 m (lens 1) and 1.0 m (lens 2) widths separated by 2.0 m of sheared and brecciated volcanics with disseminated sulphides. These lenses displayed similar mineralization and averaged 6.13% zinc, 1.40% copper, 45.6 g/t silver and 0.63 g/t Au. The zones of massive sulphide are possibly VMS related. Approximately 30m southwest and possibly on strike with the massive sulphide zone, a quartz vein was sampled by GeoVector that returned 57.2 g/t gold and 21.1 g/t silver.

A historical massive sulphide showing with anomalous base metal values is also situated in the north east corner of the property. Grab and chip samples have historically returned values ranging from 2 to 17% Zn, 0.05 to 0.65% Cu, 0.05 to 0.75% oz/ton Ag, and trace to 0.06 oz/ton Au (Seeber, 1983).

Other Zones

Historical reports indicate that over 60 named quartz veins across the Sturgeon Property have the potential for high grade gold values. In several cases these veins form sets of relatively closely spaced sub-parallel vein packages. Drilling by Placer Dome in 1988 targeted several of these veins and returned several anomalous intersections including 0.53 oz/ton (18.17 g/t) gold over 2 ft (0.61 m) on the 85A-2 vein. Of interest to Laurion are areas of more extensive sampling showing wider lower grade mineralized zones, including 13.3 ft (4.05m) of 0.034 oz/ton (1.15 g/t) gold in the A-3 area. These zones of mineralization were associated with quartz flooding and shearing in rhyolitic porphyries and at the contact of rhyolites with felsic intrusives. This mineralizing style may be indicative of a larger lower grade deposit type on the property.


Property Geology

The property is underlain by Archean felsic to intermediate volcanics that are intruded by porphyritic granodioritic and dioritic intrusives. The volcanics consist of NE striking and SE dipping rhyollitic units overlying steeply dipping rhyodacities to dacites. Contacts between the flows are gradational. A large foliated granodiorite is located to north, and separated by a major shear zone from the volcanics.

The property is cut by major NE-striking ductile shear zones which are best developed in the eastern part of the claim block. Rocks within this shear zone are carbonatized and contain auriferous quartz veins and stringers. Fine disseminated pyrite is also associated with these shear zones and quartz veins. Minor diabase, felsic to intermediate dykes, and quartz veins cross cut the volcanics. Local dacite porphyry dykes also occur within the main shear zone and tend to be sheared, fractured, and host gold bearing quartz veins. The veins are locally offset by NNE trending faults and cut by ESE to SE striking faults (Laudrum, 1988).





Mineralization

Two main types of mineralization occur on the Sturgeon River Property and are the main exploration targets: 1) shear-hosted lode gold, and 2) volcanogenic massive sulphide mineralization.

The Sturgeon River Property has potential to host several deposit types. These include Archean shear zone hosted lode gold, and volcanogenic massive sulphides (Cu-Zn-Pb-Au-Ag).
Archean shear zone hosted lode gold is the main focus on the property. Silver was also a byproduct of the Sturgeon River gold mine. Significant potential exists to expand on known gold-bearing quartz veins on the property.
Potential for volcanogenic massive sulphide base metals potential exists at or near the felsic intermediate volcanic interface.

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