Augen Gold Corp.

Augen Gold Corp.

October 19, 2010 08:00 ET

Augen Gold Intersects Significant Gold Trend at Opeepeesway Lake East of Jerome

TORONTO, ONTARIO--(Marketwire - Oct. 19, 2010) - Augen Gold Corp. ("Augen Gold" or the "Company") (TSX VENTURE:GLD) is pleased to expand on a recent update (see Oct-05-2010 Augen Gold News Release) regarding gold exploration at 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.

"The results support the Company's current drive to delineate our resource prior to moving to produce a 43-101-compliant report," said J. David Mason, CEO of Augen Gold Corp. "It appears this extension east of Jerome is at least seven kilometres in strike length. There is easily enough size to this to support moving one more drill to the project this Fall, and if warranted a 3rd drill will be added. Bearing in mind that we are delineating over a million ounces of gold (see table immediately below) in the Jerome area, which is only 750 metres to 1.5 kilometre in strike length, this 7 kilometres long target could represent a major addition to our property."

    Leapfrog – 50 m Buffer 
  Cut-off Grade (g/t Au) Tonnes   Grade Au (g/t)  
  0.50 to 1.0 24,171,000 to 12,106,000   1.4 to 2.1  
  1.5 to 2.5 7,037,000 to 2,610,000   2.8 to 4.2  
  3.0 to 5.0 1,835,000 to 554,508   4.8 to 7.1  

Augen Gold is presently drilling targets along the east arm of Opeepeesway Lake using a barge as a drilling platform, and has tested several Soil Gas Hydrocarbon (SGH) anomalies in lake sediment that have been treated as potentially indicative of gold mineralization. Through this, the company has located the position of an east to southeast-striking auriferous trend that extends at least seven kilometres from the Jerome Mine easterly to near the east end of Opeepeesway Lake. (Please see maps related to the North Shore posted on the Augen Gold website at

Updates to Recent Reports

Recent assay results for drill hole OP10-74 located on this trend and near the east end of the lake show anomalous gold between 201.30 m and 212.00 m in porphyry with quartz-carbonate veins carrying pyrite and chalcopyrite. The assays are:

    15.25 g/t Au over 0.20 m (201.30-201.50 m),
    1.415 g/t Au over 1.00 m (206.00-207.00 m),
    6.50 g/t Au over 0.35 m (209.00-209.35 m),
    4.85 g/t Au over 1.15 m (209.35-210.50 m), and
    1.545 g/t Au over 1.50 m (210.50-212.00 m).

Drill hole OP10-74 is two kilometres east-southeast of significant gold (15.00 g/t Au over 1.20 m) in drill hole OP10-67, the first hole to be drilled on the lake (Sept-14-2010 Augen Gold News Release).

Both drill hole OP10-67 and the Jerome Mine (located over four kilometres west-northwest of drill hole OP10-67) are positioned at approximately the same distance (750 to 800 metres) south of a prominent porphyry/sediment contact that strikes east to southeast over eight kilometres, from northwest of the Jerome Mine to north of Opeepeesway Lake (and drill hole OP10-67).

The gold intersection in drill hole OP10-67 and the Jerome Mine are therefore interpreted to mark points along a part of the same regional auriferous trend east of Jerome Mine that parallels the porphyry/sediment contact and that is little explored. Anomalous gold in drill hole OP10-74 spots that trend further to the east-southeast.

Moreover, a two kilometre section of this trend west-northwest of drill hole OP10-67 projects through the southern portion of three recently delineated SGH anomalies in soil immediately north of Opeepeesway Lake. These anomalies are interpreted as potentially indicative of gold mineralization (Oct-05-2010 Augen Gold News Release).

Thirteen drill holes totaling 2,938 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 (previously described in 05-Oct-2010 Augen Gold News Release) closes. At this time, 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 surveyed with geophysical methods and 80 drill holes totalling over 12,500 metres have been completed. This program also includes recently 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.

Gold in drill core 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 to produce the reported values, also using 30 gram charges. Drilling at Opeepeesway Lake was performed at dips of 60 to 65 degrees so therefore true width would be reduced to 50 to 60%.

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 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

For more information on Augen Gold, visit our website at

The Company's documents may be accessed at

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: 102,269,182

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