Augustine Ventures Inc.

Augustine Ventures Inc.

November 25, 2011 09:30 ET

Augustine Ventures Receives Amended NI 43-101 Technical Report for Surluga Gold Deposit, Wawa, Ontario

TORONTO, ONTARIO--(Marketwire - Nov. 25, 2011) - Augustine Ventures Inc. ("Augustine" or the "Company") (CNSX:WAW) has received an amended NI 43-101 Technical Report by Watts, Griffis & McOuat Limited ("WGM") on its Surluga Gold Property (the "Property") in Wawa, Ontario. The amended report contains correction of a factual mistake which resulted in an erroneous conclusion about the Quality Control (QC) of a standard that had been inserted into stream of drill core samples processed by Accurassay Laboratories Ltd. ("Accurassay"). In preparing the original report, the mean and standard deviation of the certified gold content of sample HSG-3 was incorrectly read as 4009±25 ppb gold when in fact the certified value was 4009±250 ppb gold. As a result of the error, WGM erroneously concluded that most of the assays of this standard fell outside the acceptable range, and stated that "Accurassay performed poorly". All of the assays of sample HSG-3 did in fact fall within the acceptable range of 1 standard deviation above and below the mean, and statements to this effect have been corrected in the amended report.

This error in reporting the QC standards did not in any way materially affect the Mineral Resource estimate reported in the original report in our press release dated November 1, 2011. To summarize, the original report includes an Inferred Mineral Resource estimate of 32,269,000 tonnes at a grade of 1.14 g Au/t for the Surluga Gold Deposit, or "Jubilee Shear". The following table illustrates the resources at different cut-offs:

Resource Estimate Sensitivity Analyses at Various Cut Offs
Cut-off grade
(g Au/t)
(g Au/t)
Ounces of gold contained Category
0.2 (base case) 32,169,000 1.14 1,182,000 Inferred
0.5 22,355,000 1.49 1,072,000 Inferred
  1. Mineral Resources were estimated using an ordinary kriged block model. A grade capping factor of 200 g Au/t was applied. A base case lower cut-off grade of 0.2 g Au/t and a global specific gravity of 2.77 t/m3 is assumed. No deductions for mining recovery or otherwise were included in this estimate;
  2. Mineral Resources were estimated using a three-year trailing average of US$960/ounce, and an exchange rate of US$0.90=C$1.00;
  3. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing, or other relevant issues;
  4. The quantity and grade of reported Inferred Mineral Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category;
  5. The Mineral Resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.

Wayne Isaacs, Chairman & CEO of Augustine states that, "the error has now been corrected and it had no material effect on the Mineral Resource estimate. We would like to thank WGM for their quick resolution of the issue and we are looking forward to proceeding with our planned exploration of the Wawa Gold Property."

Per the Assignment Agreement between Citabar Limited Partnership ("Citabar"), Citadel Gold Mines Inc. ("Citadel"), Delta Uranium Inc., Delta Precious Metals Inc. (Ontario) and Augustine dated September 15, 2010, Augustine issued another 250,000 common shares to Citabar on the first anniversary of Ministry of Northern Development and Mines consent to transfer the title to the mineral claims from Citadel to Citabar, which consent was received in November 2010 (see news release dated April 20, 2011).

Augustine has an option to earn a 60% interest in the 2,345-hectare Surluga Property by making certain cash payments and share issuances (which have been made to date), and by spending $8 million on the Property before November 5 2014. In addition, the Company has a 100% interest in 320 contiguous hectares added by staking, and unpatented claims totalling another 2,576 hectares, also contiguous that were recently acquired (see news release dated September 27, 2011).

The amended WGM report can be viewed on the Company's website at and on SEDAR.

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 on the Property.

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 Colin Bowdidge, Ph.D., P.Geo., a Qualified Person as defined in NI43-101.

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