Over the course of this current recession, Ontario has seen its economic fortunes slip with higher unemployment and now the introduction of a new and unpopular harmonized sales tax. The good news is that, besides the current economic problems, the northern portion of the province’s vast, still untapped gold reserves could provide fuel for an economic resurgence.
So it was significant in mid-May when Toronto-based Laurion Mineral Exploration Inc. (TSX-Venture:LME) announced more concrete steps toward commencing its 2010 exploration program, on the deceptively-named Quebec Sturgeon Property. The area, which consists of 35 patented mineral claims is located in the historic Geraldton-Beardmore Gold Camp area of Ontario.
LME commissioned consultant GeoVector Management Inc. to compile all the historical exploration results with respect to Quebec Sturgeon Property, including a 3D modeling of the No.3 ore shoot at Quebec Sturgeon, digital input of known drill holes and compilation of channel sampling, soil sampling and ground geophysics.
History suggests potential for up to 12,000 oz of gold in 132,000 tons of waste rock. In addition, a drill program to define the down plunge extent of Quebec Sturgeon Mine below the 1,750 ft (530 m) level.
Historical reports suggest a target deposit of a 400,000-ton resource at 0.15 oz/ton (5.14 g/t) down to the 2,000 ft (610m) level.
LME is an exploration company with key interests in prospective mining properties located in Ontario. The company’s primary exploration focus is the identification of gold deposits; its exploration horizon also encompasses base metals and PGEs.
Through joint venture partnerships with significant players with capital, the company’s business model allows this junior exploration company to focus its resources on project identification and acquisition, thus permitting LME to have many irons in the fire.
Among those irons: the Enid-Massey Property, located in Enid, Massey, Cote and Fortune Townships, in the Porcupine Mining Division, about 40 kilometres west of Timmins. LME holds a 100% interest in a total of 589 mining claim units (55 mining claims) covering 9,542 acres; as well, the nickel- and copper-rich Fox Mountain Project, located 40 km west of Cameron Falls and straddles the Townships of Little Sturge and Leckie Lakes, and consists of a 1730.5-hectare (17.3-sq-km.) claim block.
The company’s stock price remains in the middle of a fairly narrow 52-week trading range that peaked last October around a dime, having plumbed to a depth of 1.5 cents late last June.
The news of the company’s readiness to embark on what looks to be a lucrative Quebec Sturgeon development program caused volume to shoot through the three-million-share mark on May 13, trading around five cents a share.
With gold prices continuing their climb to new highs almost daily, having yet another player in the gold space could prove exciting for small-cap investors looking for a bargain, and with news that could vault it out of its current stock price rut.
