Augen Gold Corp.
TSX VENTURE : GLD

Augen Gold Corp.

May 11, 2011 11:59 ET

Augen Gold Continues to Intersect High-Grade Gold Mineralization Along the North Shore Trend With 10.60 g/t Au Over 10.50 Metres

TORONTO, ONTARIO--(Marketwire - May 11, 2011) - Augen Gold Corp. (TSX VENTURE:GLD) is pleased to announce that it has again intersected high-grade gold within its North Shore Trend, northeast of the historical Jerome Gold Mine. The North Shore Trend is centrally located within Augen's 45-kilometre-long South Swayze Property, which is approximately halfway between the mining centers of Sudbury and Timmins in Ontario.

"The Company's intersection of 10.60 g/t Au over 10.50 metres continues the definition of a newly recognized auriferous zone within the heart of a prominent 1.8-kilometre-long gold SGH anomaly on the North Shore of Opeepeesway Lake, near the historical Jerome Gold Mine," said J. David Mason, President and CEO of Augen Gold. "This composite includes 66.80 g/t Au over 1.50 metres, the best of several high-grade intersections encountered to date, along the trend. Five of eleven recent drill holes for which assays are available have hit high-grade gold."

New Sample Drill Hole Intersections, North Shore Trend
DDH NoSample No.From (m)To (m)Width (m)Au (g/t)
NS11-109Composite85.9489.593.651.04
Composite169.50180.0010.5010.60
NS11-115J08914061.5063.001.500.975
J08914163.0064.501.500.380
J089149160.66161.030.370.524
NS11-116Composite60.0064.124.126.58
Composite99.64102.002.361.24
J089170111.00112.501.501.58

Previously Released Sample Drill Hole Intersections, North Shore Trend
NS10-89J922695236.73237.000.271.45
J922697238.00238.370.3722.3
NS10-96J466829242.00242.700.7026.3
NS11-111Composite51.0062.1911.196.72

Between October 27, 2010 and March 15, 2011, GLD completed 34 drill holes for 8,240 metres in the North Shore area, northeast of Jerome. The drilling tested several Soil Gas Hydrocarbon (SGH) gold soil anomalies interpreted as potentially indicative of gold mineralization, as well as I. P. chargeability anomalies and historic gold showings.

Assay results for 11 of 12 drill holes that outline the promising North Shore Trend within the largest and strongest of the SGH gold anomalies are now available. Highlights for results recently received from 3 holes are 10.60 g/t Au over 10.50 metres (169.50-180.00 m) including 66.80 g/t Au over 1.50 metres (169.50-171.00 m) in drill hole NS11-109 and 6.58 g/t Au over 4.12 metres (60.00-64.12 m) including 23.20 g/t Au over 1.12 metres (63.00-64.12 m) in drill hole NS11-116.

These significant gold intersections compliment those previously announced along the North Shore Trend, including 6.72 g/t Au over 11.19 metres in drill hole NS11-111 (51.00-62.19 m), 22.30 g/t Au over 0.37 metres in drill hole NS10-89 (238.00-238.37 m) and 26.30 g/t Au over 0.70 metres in drill hole NS10-96 (242.00-242.70 m) (Augen Gold News Releases, February 01, 2011 and April 20, 2011).

This newly recognized auriferous trend on the North Shore strikes west-northwest for over 1,600 metres, consists of two segments that flank the centre of a narrow magnetic high attributed to magnetite-bearing Timiskaming sediment, and dips steeply to the south. The trend is located near feldspar porphyry intrusions, intersects a flexure in stratigraphy, and projects westerly towards an extensive airborne magnetic low thought to mark fault-controlled alteration.

Readers are encouraged to refer to the newest posted maps, entitled "North Shore Trend High Grade Au Intersections (May-10-2011)" (http://tinyurl.com/3kvpk7g), which shows recent high-grade intersections, and "North Shore Trend Au Composite Intersections (May-10-2011)" (http://tinyurl.com/3pe72dq), which shows interesting composites. In addition, "North Shore Area DDH Location Map With SGH Gold Soil Anomalies" and "North Shore Area Ground Magnetic Map with DDH Locations" posted on Augen Gold's website, www.augengold.ca, may also be helpful.

SGH geochemistry is organic and detects hydrocarbon-based compounds that provide a signature directly related to bacteriological interaction with a target such as a hidden gold deposit. Gold in drill core samples was determined at ALS Laboratory Group by fire assay AAS on 30 gram charges. Samples reporting more than 10 g/t Au were re-analyzed by the fire assay-gravimetric method, also using 30 gram charges. Drilling was performed at a dip of 45 degrees and therefore true width would be reduced to 75%.

Since inception in October 2006, Augen Gold has raised more than $25 million for the South Swayze Project.

About Augen Gold

Augen Gold is a gold exploration company with 23,685 hectares of staked and patented mining claims in the Southern Swayze Greenstone Belt, including the formerly producing Jerome Gold Mine. The claims cover a 45-kilometre long section of the Ridout Deformation Zone, believed to be the western extension of the Kirkland Lake/Larder Lake Break. The geological setting is comparable to the major gold camps of Timmins and Kirkland Lake, and the claims contain numerous gold showings that have received very little historical exploration. Augen Gold is the first company to have assembled such a coherent ground position. Augen Gold has performed a detailed airborne geophysical survey over the whole area, and its sampling program has confirmed the historically reported gold values. The correlation of many gold showings with geophysical features indicates excellent potential for the discovery of additional deposits. The Company's objectives are to aggressively explore the gold showings that correlate with geophysical anomalies, continue resource definition at the Jerome Mine, and to expand its property portfolio with highly prospective mineral assets.

The information contained in this news release has been prepared by Augen Gold's Project Geologist, Gordon McRoberts, P.Geo., who is a Qualified Person for the Company's Jerome Project under the definitions established by National Instrument 43-101. The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource.

For more information on the South Swayze Project, please refer to the Company's NI 43-101 compliant technical report "Amended and Restated Technical Report on the Augen Gold Corp. Claims, Porcupine Mining Division, District of Sudbury, Ontario, Canada" (effective April 8, 2008, available on the Company's profile at www.sedar.com).

For more information on Augen Gold, visit our website at www.augengold.ca.

The Company's documents may also be accessed at www.sedar.com.

Shares outstanding: 127,691,347

This news release contains forward-looking statements. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

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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