Augustine Ventures Inc.

Augustine Ventures Inc.

July 10, 2012 10:20 ET

Augustine Ventures Identifies Additional Gold Resource Potential at the Wawa Gold Project

TORONTO, ONTARIO--(Marketwire - July 10, 2012) - Augustine Ventures Inc. ("Augustine" or the "Company ") (CNSX:WAW) announces that it has identified a number of specific targets that could increase the gold resource potential of its Wawa Gold Project, located near Wawa, Ontario. Augustine has previously reported that the Surluga deposit on its Wawa Gold Project contained a NI 43-101 compliant inferred mineral resource estimate of 32,169,000 tonnes, at a grade of 1.14 g Au/t, and 1.18 million ounces of contained gold, (see press release of November 1, 2011). Previous and ongoing work demonstrates that there is potential to significantly increase the gold resource of the Surluga deposit along strike and down dip. In addition, recently completed work by Augustine has defined a new geological model, that when applied, demonstrates the presence of historically untested and poorly tested targets around the Surluga deposit and elsewhere within the Wawa Gold Project, including the recently acquired Oakley Lake claims (see press release of September 8, 2011).

The next phase of exploration and drilling will test these new targets with a view to substantially increasing the inferred gold resource.

The Wawa Gold Project is an amalgamation of previously separate gold properties that includes eight past producing mines and more than 60 gold occurrences. Based on the work completed to date, the gold occurrences on the Wawa Gold Project have been reinterpreted to be a single, relatively large, intrusion related, gold-bearing hydrothermal system with an associated suite of porphyry intrusions. The suite of gold occurrences extends across an area within the limits of the Wawa Gold Project, approximately six kilometres long and two kilometres wide. Reinterpretation to a single depositional model also changes the width, strike and dip projections of known gold occurrences, including the known Surluga deposit which contains the current NI 43-101 compliant inferred resource of 1.18 million ounces of gold. Consequently, all know gold occurrences and previously explored areas need to be re-evaluated for their gold resource potential.

On the basis of work completed to date, specific targets on the Wawa property have been identified and can be generally characterized as:

  • Strike and dip extensions of the Surluga deposit;

  • Untested to poorly tested faulted off-sets of the Surluga deposit;

  • Untested "splays" that continue from the hanging wall of the Surluga deposit to the surface;

  • Poorly tested "splays" that extend beyond the Surluga deposit;

  • Poorly tested gold occurrences within the Wawa Gold Project analogous to the Surluga deposit;

  • Untested airborne VTEM anomalies, south end of the Wawa Property.

Each of these groups of targets has the potential to not only increase the gold resource base of the Wawa Gold Project, but also for the discovery of additional gold deposits. Augustine's next phase of exploration and drilling will test these locations.

Drilling completed by the previous operator, Citadel Gold Mines Inc. in 2007 successfully intersected the down dip extension of the known Surluga deposit. Confirmation of the 2007 assay results of the drill core was reported by Scott Wilson Roscoe Postle Associates Inc. in a NI 43-101 Technical Report on the Surluga Property, Wawa, Ontario, Canada, report dated December 6, 2010 (the "SWRPA Report"). The SWRPA Report confirmed the reported gold assay data, but recommended that the drill core should be relogged and that previously unsampled drill core within the gold-bearing zones should be sampled. This work was recently completed by Augustine and the results have been compiled with the previously sampled and reported assay results (see table below). A total of 318 samples were collected from 13 of the 15 drill holes completed. Results confirmed that unsampled drill core was gold-bearing, with 98 assays reporting over 0.10 g/t Au, of which 18 exceeded 1.0 g/t Au, with the highest assay giving 5.49 g/t Au across 0.45 metres of drill core. The average sample interval of the 318 samples collected was 0.76 metres. These results clearly demonstrate a significant down dip continuation of a relatively wide zone of low-grade gold mineralization. Combined with the geological reinterpretation that suggests the strike of the deposit is most likely not parallel to the Jubilee Shear (which had been the main target for previous workers), the potential for additional resource continuing along strike and down dip of the Surluga deposit is considered excellent. A significant proportion of holes drilled during the next phase of exploration will be directed at increasing the inferred resource of the Surluga deposit.

The majority of past producing mines and known gold occurrences are in close association with the Jubilee Stock, host to the Surluga deposit. There is also a group of poorly understood gold occurrences at the south end of the property hosted by a suite of intermediate to felsic volcanics that are intruded by a complex of mafic to felsic porphyries. The contact between the porphyries and the volcanics is in close spatial association with a conjugate set of sub-parallel VTEM conductors that extend for more than two kilometres, in an approximately north-south direction. Historically, exploration in this area has been limited with no apparent modern exploration activity being carried out, other than the collection and assaying of a few scattered bedrock grab samples.

Late in 2011, Augustine collected a total of 27 samples during two days of prospecting in the area of the conductors. Three of the samples reported significant gold values (0.64, 0.2 and 0.14 g/t Au) while the other 24 samples reported less than 0.03 g/t Au. In light of these results, three additional unpatented mining claims, totaling 324 hectares, were staked to cover additional portions of the VTEM conductors and their down dip extensions. Further prospecting and surface sampling needs to be done in the area. Upon completion of the surface work, a limited number of drill holes are planned to determine the gold potential of the VTEM conductors and surrounding area.

Hole # From (m ) To (m ) Length (m ) Au g/t
S07-391 595.90 630.30 34.40 1.24
Including 600.90 619.40 18.50 2.15
Including* 600.90 604.30 4.40 11.44
S07-385 59.62 66.30 6.68 3.57
Including* 61.10 66.30 5.20 4.55
S07-385 192.00 198.00 6.00 0.59
S07-384 534.30 594.00 59.70 0.46
Including 555.06 570.62 15.56 1.05
S07-383 451.12 491.10 39.98 0.54
Including* 452.00 453.90 1.90 6.0
S07-386 547.56 599.30 51.74 0.21
Including* 564.90 574.22 9.32 0.58
S07-386B 550.70 608.00 57.30 0.34
Including 563.10 588.20 25.10 0.55
S07-387 451.50 500.80 49.30 0.52
Including* 476.10 484.5 8.40 1.96
S07-389 555.08 589.20 34.12 0.69
Including 555.08 571.93 16.85 1.37
Including 557.55 562.60 5.05 4.31
S07-393 680.50 692.80 12.30 1.67
S07-393B 675.85 697.77 21.92 0.83
Including 681.38 691.50 10.12 1.74
*2007 drill core previously reported assay intervals by Citabar General Partnership Inc.
-All gold values are uncut
-True thickness of the intersections cannot be determined at this time.
-Drill hole S07-393A was not available for sampling
-Additional reported assays from drill holes S07-388, 390, 391, and 392 were not significant
-Drill holes spaced along a strike length of approximately 650 metres, 50 to 150 metres apart.

About Augustine Ventures Inc.

Augustine Ventures Inc. is a junior gold exploration company which has secured an option to earn a 60% interest in the Surluga Gold Project which encompasses 2,345 hectares in McMurray Township, southeast of the town of Wawa. Over 95 percent of the Property consists of leases and/or patents for both mineral and surface rights that are easily accessible. The Property has a known depth extension to 600 meters, a history of past production from the known deposits and a large number of untested but documented gold occurrences.

Augustine has recently acquired a 100% undivided interest in an additional 161 claim units totalling 2,576 hectares adjacent to its Surluga Gold Project known as the Oakley Lake Property situated in McMurray and Naveau Townships near Wawa, Ontario.

Technical information in this news release has been prepared and/or reviewed by Edward Walker Ph.D., P.Geo., an independent Qualified Person as defined in NI43-101.

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