Aurogin Resources Ltd.

Aurogin Resources Ltd.

January 09, 2007 07:00 ET

Aurogin Sells First Gold From El Sastre Project

Provides Mine Operations Update

TORONTO, ONTARIO--(CCNMatthews - Jan. 9, 2007) - Aurogin Resources Ltd. ("Aurogin" or the "Company") (TSX VENTURE:AUQ) is pleased to report that it had sold its first gold from the Company's 50%-owned El Sastre Main Zone gold mine in Guatemala prior to December 31, 2006, thereby fulfilling the final requirement if its earn-in agreement on the zone. Some of the gross proceeds of approximately US$500,000 from the sale of 807.623 ounces at a realized price of US$619.20 per ounce are being used by the Company and its joint-venture partners to fund the expansion of continuous mining operations as per the 2007 mine plan, as well as for further exploration on the project. Additional gold production is underway. These gold sales are part of the initial recovery of gold from leaching that began in October 2006. The Company has not hedged any of its anticipated gold production.

The Company has developed the El Sastre Main Zone as an open pit (truck and shovel) heap leach operation using carbon columns for gold recovery. Leaching of the second lift of ore (approximately 18,000 tonnes), is now underway, and waste stripping to access ore for subsequent leaching is in progress. The leach pad is also being expanded to enable continuous leaching in the future. The Company's plans call for mining 300,000 tonnes of indicated resources grading 2.5 to 4.0 grams/tonne gold ("g/t Au"), to produce at a rate of 20,000 to 30,000 ounces of gold per annum in 2007 based on metallurgical recovery of 80%. Mr. Darren Koningen is the Qualified Person under NI 43-101 for the Project.

The infill diamond drilling program at the El Sastre Main Zone, initiated in the fourth quarter of calendar 2006, has been successfully completed. The program was designed to facilitate the completion of detailed mine production plans for 2007. The Company intends to conduct further exploration drilling elsewhere on its El Sastre Project this year, aiming to expand further its overall gold resource.

Aurogin Resources Ltd. is a junior gold producer focused on the acquisition and development of profitable gold deposits in the Americas. In 2006, Aurogin completed the construction and commissioning of the El Sastre Main Zone Mine. The El Sastre Main Zone is only one part of the overall El Sastre Project, an expanding resource that includes at least four mineralized zones. In addition to the ongoing mining program, the Company, which is debt free, anticipates funding its 2007 exploration program out of free cash flow generated from the El Sastre Main Zone gold mine.

Issued: 62,744,721 common shares


Contact Information