Augen Gold Corp.
TSX VENTURE : GLD

Augen Gold Corp.

April 20, 2011 09:55 ET

Augen Gold Intersects 6.72 g/t Over 11.19 Metres Near Historical Jerome Mine on the North Shore of Lake Opeepeesway

TORONTO, ONTARIO--(Marketwire - April 20, 2011) - Augen Gold Corp. (TSX VENTURE:GLD) is pleased to provide an update on gold exploration within its 45-kilometre-long South Swayze Property, located approximately halfway between the mining centers of Sudbury and Timmins in Ontario.

"The Company's intersection of 6.72 g/t over 11.19 metres clearly highlights a newly recognized auriferous trend within the heart of a prominent 1.8-kilometre-long gold anomaly on the North Shore of Lake Opeepeesway, near the old Jerome Gold Mine, an historical producer," said J. David Mason, President and CEO of Augen Gold. "This is one of six auriferous zones we have identified in the area north of Lake Opeepeesway's east arm, and it reinforces our understanding of the GLD property as comprising a number of mine targets."

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 concentrated on the largest and strongest of several Soil Gas Hydrocarbon (SGH) gold soil anomalies, interpreted as potentially indicative of gold mineralization, as well as on several neighbouring I. P. chargeability anomalies and historic gold showings.

Assays for 28 drill holes are now available and the highlight from those recently received is a composite of 6.72 g/t Au over 11.19 metres (51.00 - 62.19 m) in drill hole NS11-111. This intersection is associated with a relatively wide quartz vein (57.00 - 60.00 m) within the main SGH gold anomaly, west and along strike from two previously reported high-grade intersections of 22.30 g/t Au over 0.37 m and 26.30 g/t over 0.70 m (Augen Gold News Release, February 1, 2011). These also lie within the main SGH anomaly.

These intersections occur near feldspar porphyry intrusions immediately south of a narrow west-northwest striking magnetic high attributed to magnetite-bearing Timiskaming sediment, and mark parts of a steep southerly dipping auriferous trend intersected by 12 Augen Gold holes over 1,600 metres of strike length. Relevant assays available for 8 of these holes, including those noted above, are shown below.

Together, these and other Augen Gold drill intersections and historical drill intersections of gold point to numerous parallel to subparallel, west-to-northwest-striking auriferous trends in the North Shore Area, one which marks the extension of gold mineralization at the past producing Jerome Mine. Many trends extend towards an extensive northwest-striking airborne magnetic low located along the west side of the North Shore Area that is thought to mark fault-controlled alteration.

DDH NoSample No.From (m)To (m)Width (m)Au (g/t)
NS10-89J922695236.73237.000.271.45
J922697238.00238.370.3722.3
NS10-90J922785182.00183.501.500.924
NS10-96J466829242.00242.700.7026.3
NS11-103J91953824.0025.361.360.247
J91954025.3626.000.640.585
J91954226.6227.621.000.293
NS11-106J91958815.7816.360.580.365
J91959016.3617.361.000.045
NS11-108J91966248.0548.500.452.77
J91966448.5049.981.480.562
NS11-110J91971788.5090.001.501.01
NS11-111Composite51.0062.1911.196.72

Readers are encouraged to refer to the maps titled "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, for more information.

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-analyized 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.

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: 127,691,347

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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