Augen Gold Corp.
TSX VENTURE : GLD

Augen Gold Corp.

February 02, 2011 08:31 ET

Augen Gold Reports Preliminary Definition of Six Trends on North Shore Opeepeesway Target

Conference Call Scheduled for 4:00 PM EST

TORONTO, ONTARIO--(Marketwire - Feb. 2, 2011) - Augen Gold Corp. (TSX VENTURE:GLD) is pleased to provide an update on gold exploration within its South Swayze Property. 

Management will be available on a conference call at 4:00 PM on Wednesday. Please call one of these dial-in numbers: (416) 915-8692 (Toronto callers); +1-866-850-3418 (toll-free for North American callers); +1 800-0160-8097 (toll-free for global callers). The conference code is 8459021#.

NORTH SHORE

"Our results, though preliminary, have permitted us to refine our definition of at least six auriferous trends on the North Shore of Lake Opeepeesway, of which the southernmost two are based on high-grade intersections in two separate lake drill holes, completed from the barge last summer, with the most southerly being the probable extension of the 'Jerome Trend'", said J. David Mason, President and CEO of Augen Gold. "Readers are directed to a compilation map on the home page of our web site – AURIFEROUS TRENDS NORTH SHORE OPEEPEESWAY. There one can view clearly the preliminary results. Of particular note is the most northerly zone, coloured in red, which has several high-grade intersections. This northerly higher-grade zone could extend more than 2 kilometres in strike length. The most southerly trend is defined initially from a barge drill hole and is thought to be greater than 20 kilometres long, with a significant expression on land. Just north of this is a second high-grade trend at least 3 kilometres long. We are greatly encouraged by these results. Plans are being made to add a third drill to this area and expand the size of the NS Grid drill program considerably to more than 30 additional diamond drill holes."

Augen Gold has completed 21 drill holes for more than 5,200 metres using one drill in the North Shore area, located within the central part of Augen Gold's 45-km-long South Swayze property, 20 kilometres west-northwest of the West Coté Lake area and two-to-six kilometres northeast of the historical Jerome Mine.

The drill holes initially were able to target only the small portion of the largest and strongest SGH gold soil anomaly in the North Shore area that was accessible prior to freeze-up, as well as several I. P. chargeability anomalies and historic showings nearby. So far, assays for 15 drill holes include several anomalous gold intersections with highlights of 22.30 g/t Au over 0.37 m and 26.30 g/t over 0.70 m positioned along the axis of the main SGH anomaly. Together, these intersections and historical anomalous intersections of gold point to numerous west-to-northwest-striking auriferous trends in the area, one which marks the extension of gold mineralization at the past producing Jerome Mine.

Augen Gold is currently testing a frozen marshy area that can now support a diamond drill at a point where the main SGH gold soil anomaly (to the southeast) meets a prominent airborne magnetic low (to the northwest). The magnetic low is thought to mark significant and widely occurring iron-carbonate alteration, similar to that at the Jerome Mine, with sulphidization (iron oxide is replaced by sulphide).

WEST COTE

"As an additional update," added Mr. Mason, "We are seeing one trend at the West Coté Lake Grid in particular, very close to Trelawney, which we are currently testing. The West Coté Lake Grid is one of at least four important targets within the Augen Gold's South Swayze Property. It contains several trends which could be prolific and warrants an intensive drill program of more than 30 drill holes to 250 metres or deeper."

Readers are encouraged to refer to the maps titled "West Coté Lake Grid DDH Location Map", "Auriferous Trends North Shore Opeepeesway" and "North Shore Grid with DDH Locations (Assays Pending) & Future DDH Locations" 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.

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: 125,046,361

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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