Augen Gold Corp.
TSX VENTURE : GLD

Augen Gold Corp.

October 05, 2010 14:54 ET

Augen Gold Delineates Drill Targets East of Jerome

TORONTO, ONTARIO--(Marketwire - Oct. 5, 2010) - Augen Gold Corp. ("Augen Gold" or the "Company") (TSX VENTURE:GLD) is pleased to provide an update of gold exploration north of Opeepeesway Lake within its 100% owned South Swayze Property located approximately halfway between the mining centers of Sudbury and Timmins in Ontario and accessible by road year-round.

Numerous Soil Gas Hydrocarbon (SGH) anomalies potentially indicative of gold mineralization have been outlined by Actlabs of Ancaster, Ontario following their analysis of 1,760 soil samples collected by Augen Gold in an area measuring 8.4 kilometres (NW-SE) by 6 kilometres (NE-SW), immediately north of Opeepeesway Lake, and 2 to 6 kilometres east of the Jerome Mine. These anomalies are up to 1.5 kilometres long and several hundreds of metres wide.

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.

The most northerly positioned SGH anomalies occur near the southeast-striking Timiskaming sediment\Keewatin volcanic unconformity. One prominent centrally located SGH anomaly extends adjacent to the inferred trend of an under-explored east-striking gold-bearing quartz vein (The Smith Vein) for which historic drilling yielded up to 2.70 g/t Au over 1.53 m. This SGH anomaly also extends south and approaches a flexure in the regional porphyry/sediment contact near an historic drill intersection with 12.94 g/t Au over 0.70 m.

Many of the southerly located SGH anomalies potentially mark an easterly-striking trend with mineralization potential that includes recent anomalous drill intersections of 15.00 g/t Au over 1.20 m (138.50-139.70 m) and 2.29 g/t Au over 1.50 m (171.20-172.70 m) in drill hole OP10-67 at Opeepeesway Lake (Sept-14-2010 Augen Gold News Release).

Parts of some SGH anomalies north of the lake are coincident with I. P. chargeability anomalies, and many are located adjacent to these I. P. anomalies. Further, some SGH anomalies are associated with magnetic lows potentially indicative of alteration.

Augen Gold is presently drill testing lake sediment SGH anomalies under the east arm of Opeepeesway Lake using a barge as a drilling platform (Sept-14-2010 Augen Gold News Release) and has met with success as indicated above.

Ten drill holes totaling 2,173 metres have been completed on the lake to date. This drilling commenced during the last week of July 2010 and will continue through late October until the working window dictated by the spawning activity of local fish habitat closes. At this time, the many excellent targets north of Opeepeesway Lake will be drill tested.

The current exploration program started in late September of 2009 and to date, approximately 350 line kilometres have been cut, approximately 300 line kilometres have been surveyed with geophysical methods and 74 drill holes totalling over 12,000 metres have been completed. This program also includes recent detailed exploration in parts of the eastern end of the South Swayze Property adjacent to Trelawney Mining and Exploration Inc.'s promising new gold discovery.

Augen Gold has been successful in raising approximately $9.1 million in financings in 2010 and is well financed to achieve its exploration milestones. Since inception in October 2006, the Company has raised over $20 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 Property, 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 be accessed at www.sedar.com.

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.

Shares outstanding: 99,988,159

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.

Contact Information

  • Augen Gold Corp.
    J. David Mason
    Chief Executive Officer and Director
    416-915-4231
    dmason@augengold.ca