Astur Gold Corporation
TSX VENTURE : AST
FRANKFURT : CDC

October 03, 2011 11:53 ET

Astur Gold Submits Salave Project Application

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 3, 2011) - Astur Gold Corp. (TSX VENTURE:AST)(FRANKFURT:CDC) ("Astur Gold" or the "Company") has submitted the Exploitation Project Application (the "Application") to the General Directorate of Mines of the Principality of Asturias as a statutory requirement for the development of its Salave Gold Project in northern Spain. The Application contains a comprehensive review of the technical aspects of the project, including the planning and design of the mine, processing, waste and tailings facilities, as well as a full review of financial feasibility, hydrogeological, geotechnical, archeological, health and safety studies done to date. The Application marks the commencement of the process to obtain full technical project permitting.

In preparing the Application, Astur Gold has proceeded with engineering studies for an underground mine combined with a pressure oxidation and CIL processing plant. This Application was prepared by the Company's technical team in Oviedo with the help of Asturias based partners: Golder Associates Global Ibérica (mine design and geotechnical studies), University of Oviedo (hydrogeological modeling), Vaciero (legal aspects), and Msarqueo (archeological and cultural studies). Most contractors were from Asturias and that priority will be given to local Asturian companies and employees in the future.

Astur Gold will continue in the permitting process through the preparation of detailed engineering for the mine, processing plant, power lines, waste and tailings facilities. The results of these studies will be submitted in due course, as per regulatory requirements. The Company also plans to initiate a Bankable Feasibility Study before year end.

Astur Gold had previously submitted the Initial Document for an Environmental Impact Study (see July 7, 2011 Press Release) and has started field work necessary for the EIS under the supervision of Congeo. This process runs concurrently with the technical Exploitation Project Application and both are components of the permitting process.

The complete Environmental Impact Study is scheduled to be submitted in the first quarter of 2012 along with necessary reclamation and waste management documentation.

Cary Pinkowski, CEO & Director commented, "I would like to thank our employees, consultants, and contractors who prepared this mine application. We are very proud that the work was completed in Asturias and will continue to ensure that the project benefits the region."

ABOUT ASTUR GOLD

Astur Gold (TSX VENTURE:AST)(FRANKFURT:CDC) is developing its 100% owned Salave Gold Project in Asturias (northern Spain) comprising 3,198 hectares. Salave is one of the largest undeveloped gold deposits in Western Europe with a NI 43-101 compliant mineral resource estimate by Scott Wilson RPA containing 1,683,000oz of gold in the Measured & Indicated category (2,155,000 tonnes grading 3.88 g/t Au Measured and 15,790,000 tonnes grading 2.79 g/t Au Indicated) with an additional 338,000 oz of gold in the Inferred category (3,770,000 tonnes grading 2.8 g/t Au). Drilling to date totals 64,377m in 430 holes (235 diamond drill holes) and previous metallurgical tests indicate gold recoveries in the order of 90% are possible.

The Company is focused on bringing Salave into production as soon as possible. An underground mining plan using pressure oxidation processing (POX) has an estimated pre-tax NPV5% of US$391 Million, IRR of 46%, and capital expenditure payback of 2.2 years using $1,100/oz gold price (Preliminary Economic Assessment by Golder Associates, February 12, 2011). Sensitivity analysis demonstrates the following outcomes to changes in gold price:

Au Price
(US$/oz)
Pre-tax
NPV
5%(US$M)
IRR
(%)
$1,000 $300 38%
$1,100 $391 46%
$1,250 $529 57%
$1,400 $667 68%
$1,500 $759 75%

Astur Gold is advancing Salave towards production and growing the partnership with the people of Asturias in developing economic prosperity for the region. The region boasts excellent infrastructure and industrial skilled labour due to a long history of mining that will help support future mine development.

ON BEHALF OF THE BOARD

Cary Pinkowski, Chief Executive Officer and Director

Mineral resources that are not mineral reserves do not have demonstrated economic viability. This document contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectation implied by these forward looking statements.

Neither 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.

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