Augen Gold Corp.
TSX VENTURE : GLD

Augen Gold Corp.

March 07, 2011 16:20 ET

Augen Gold Reports on Gold Exploration Program

TORONTO, ONTARIO--(Marketwire - March 7, 2011) - Augen Gold Corp. (TSX VENTURE:GLD) is pleased to provide an update on gold exploration within the eastern part of its South Swayze Property near Coté Lake, where Trelawney Mining and Exploration Inc. has recently announced a substantial 43-101-compliant estimated mineral resource (for complete details, see Trelawney's release dated March 7, 2011).

Augen Gold reports that it has delineated a Soil-Gas Hydrocarbon (SHG) anomaly east of Clam Lake. This anomaly is located at the western end of Trelawney's base line and near the mineral claims that Augen recently optioned to Sanatana Diamonds Inc. (TSX VENTURE:STA) pursuant to an option agreement (the "Option Agreement"). Please see the new SGH map entitled "SGH Anomaly Clam Lake", that is now on our web site (www.augengold.ca). Following final approval of the TSX Venture Exchange for the Option Agreement, Sanatana is expected to test this anomaly.

The claims due north of the Trelawney Coté Lake targets are 100%-owned by GLD, as shown on the map entitled "Joint Venture Claim Map" (http://tinyurl.com/JV-Claim-Map) both of which are also on the web site.

With regard to the West Coté Lake Grid, twelve drill holes have been completed for more than 3,100 metres. Most of the drilling was concentrated within two SGH gold soil anomalies rated as 5.5 out of a possible 6 and interpreted as potentially indicative of gold mineralization.

Soil Gas Hydrocarbon (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 first five drill holes (WC10-120 to WC11-124) targeted a portion of a large SGH gold anomaly coincident with stripped and washed pyritic outcrop or with I. P. chargeability anomalies, in the north-central part of the grid. Variably altered rock with up to several percent disseminated pyrite or pyrrhotite was intersected in places and gold assays yielded up to 2.56 g/t Au over 0.22 metres.

A second group of five drill holes (WC11-125 to WC11-129) were positioned within or beside a separate SGH gold anomaly coincident in places with I. P. chargeability anomalies near the northeast corner of the West Coté Lake Grid, adjacent to the Trelawney Property. This area was interpreted to lie within a west-northwest-striking auriferous trend that includes the historical Murgold-Chesbar gold deposit, located several kilometres to the southeast. Widespread weak to strongly altered rock was intersected with common disseminated pyrite. Assays yielded up to 11.25 g/t Au over 0.30 metres.

WEST COTE GRID SUMMARY DRILL HOLD INTERSECTIONS
DDH
No
Sample
No.
From
(m)
To
(m)
Width
(m)
Au
(g/t)
Ag
(g/t)
             
WC10-120 J919031 44.28 44.50 0.22 2.56 1.1
  J919033 45.00 46.50 1.50 0.023 <0.5
  J466061 95.08 96.07 0.99 0.028 <0.5
             
WC10-121 J466944 142.65 144.00 1.35 0.067 <0.5
  J466007 158.80 160.00 1.20 0.353 <0.5
  J466029 183.00 184.50 1.50 0.088 <0.5
  J466032 187.50 189.00 1.50 0.347 <0.5
             
WC11-122 J466116 24.00 25.00 1.00 0.013  
  J466135 71.00 72.00 1.00 0.018  
             
WC11-123            
             
WC11-124 J466324 119.10 120.08 0.98 0.513  
  J466332 137.50 139.00 1.50 0.180  
  J466338 158.00 159.50 1.50 0.060  
  J088008 238.00 239.50 1.50 0.138  
             
WC11-125 J466442 56.40 57.50 1.10 0.214  
  J466443 64.75 65.05 0.30 11.25  
  J466447 69.50 70.50 1.00 0.231  
  J466461 118.50 120.00 1.50 0.462  
             
WC11-126 J466352 22.72 23.72 1.00 0.216  
  J466356 45.00 45.99 0.99 0.684  
  J466364 94.00 94.30 0.30 0.133  
  J466388 188.30 189.00 0.70 1.05  
             
WC11-127 J088063 158.00 159.50 1.50 0.266  
  J088065 159.50 161.00 1.50 0.278  
  J088083 225.00 226.50 1.50 0.067  
  J088085 228.00 229.50 1.50 0.212  
             
WC11-128 J088216 38.00 39.00 1.00 0.199  
  J088239 84.60 86.10 1.50 0.538  
  J088257 112.00 113.50 1.50 0.135  
  J088267 136.75 137.15 0.40 0.255  
  J088287 197.75 198.05 0.30 0.402  
             
WC11-129 J088131 46.50 48.00 1.50 0.276  
  J088187 205.43 207.00 1.57 0.045  
  J088194 213.70 215.20 1.50 0.098  
             
WC11-130 J088368 90.80 91.88 1.08 0.124  
  J088385 131.69 133.00 1.31 0.124  
  J088397 170.39 171.89 1.50 0.167  

The eleventh drill hole (WC11-130) targeted a chargeability anomaly south-southwest of the SGH anomaly noted above, and numerous intervals of strongly chloritized rock bearing pyrite were encountered within the uppermost one hundred metres of the hole. Assays for gold were, however, low although elevated copper was noteworthy. A twelfth drill hole (WC11-131), nearly one hundred metres easterly of drill hole WC11-130, and adjacent to the property boundary, encountered common weak to strongly altered rock with disseminated pyrite in places. Assays are pending.

Drilling at the West Coté Lake Grid has yet to satisfactorily account for the highly rated SGH gold soil anomalies and the possibility that these anomalies represent REDOX zones rather than the apical-type anomalies that they have been treated as, will be explored.

SGH gold anomalies of the apical type mark vertical projections over the center of gold mineralization whereas the REDOX type of SGH anomaly appears as a halo about the location of most interest, the vertical projection over the center of gold mineralization.

Augen Gold will explore the area interpreted as the centre of a large REDOX type of SGH anomaly, a part which would be located between the two groups of drill holes described above. A portion of this area is near the occurrence of chloritized rock in drill hole WC11-130, and chloritized rock generally shows positive correlation to significant gold in the region.

The company will also test for the north-westerly dip extension of the Coté Lake Gold Deposit, with five vertical drill holes spaced one hundred metres apart and positioned near Augen Gold's property boundary with Trelawney. These holes are south to southwest of drill hole WC11-130 and will be drilled to a depth of 500 metres.

Readers are encouraged to refer to the maps titled "West Coté Lake Grid DDH Plan Map", "SGH Compilation Model West Coté", and "WCG Redox Interp Feb 28 2011" posted on Augen Gold's website, www.augengold.ca, for more information. 

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 or consult SEDAR 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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