Augyva Mining Resources Inc.

Augyva Mining Resources Inc.

March 15, 2005 08:00 ET

Augyva Acquires a Major Iron Ores Deposit in James Bay Area


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: AUGYVA MINING RESOURCES INC.

TSX VENTURE SYMBOL: AUV

MARCH 15, 2005 - 08:00 ET

Augyva Acquires a Major Iron Ores Deposit in James Bay
Area

RADISSON, QUEBEC--(CCNMatthews - March 15, 2005) - Augyva Mining
Resources Inc. ("Augyva") (TSX VENTURE:AUV) announces the signing of a
Letter Agreement (the "Letter Agreement") with Virginia Gold Mines Inc.
("Virginia") pursuant to which Augyva acquires 100% interest in an Iron
Ore property near Lac Duncan, close to the La Grande Airport, in the
James Bay area, Quebec.

Salient points of the Letter Agreement:

Augyva will issue 1.5 millions shares to Virginia within 45 days of the
Letter Agreement. Upon receipt of the share certificate, Virginia will
transfer its 100% interest (subject to royalty) in the Iron Ore property.

Augyva will pay a perpetual production royalty to Virginia in the amount
representing CA$0.40 per ton of iron concentrate from ore from the
property payable on a quarterly basis.

Augyva will have a buyback right to purchase 50% (CA$0.20 per ton of
concentrate) of such royalty for a total payment of CA$4 million.
Furthermore Augyva will be granted an additional option of buying back
20% ($0.08 per ton of concentrate) for an additional payment of CA$4.
Million.

For any other metal than iron, Virginia will earn a 2% NSR Royalty and
Augyva will have a buyback right to purchase 50% (1% NSR) in
consideration of CA$5. Million.

For any additional resources of iron ore covered by any mineral titles,
in an area of 1 kilometre surrounding the property, acquired before or
after February 2005, Augyva shall be subject to the royalty described
hereto.

The Letter Agreement is subject to the approval of the Regulatory
Authorities having jurisdiction over the securities of Augyva.

The Ministry of Natural Resources, Wildlife and Park (Quebec) in 1998
has published a report RG-9809 (prior to National Instrument 43-101)
that mentioned indicated resources in the Lac Duncan area discovered and
evaluated by Duncan Range Iron Mines between 1950 and 1960 for the
deposits No 1,2 3, 4,5 and 6 at approximately 1 billion ton of Iron Ore
averaging 32% of magnetite (0.97Gt; GM 32503 and GM 7692) Ingham & Ross
1958, Grondin 1962, Karma 1974. Since the historical estimates of the
Ministry are the only information currently available to Augyva, Augyva
believes that this information is relevant and reliable. The historical
estimates used categories that were in compliance with the National
Instrument 43-101.

A qualified person under National Instrument 43-101 has not approved
this information.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Augyva Mining Resources Inc.
    Georges Yvan Gagnon
    President
    auv@sympatico.ca
    or
    Augyva Mining Resources Inc.
    Investors' Relations
    Bertrand Dufour, Director
    (450) 240-0521
    dufour.bertrand@sympatico.ca
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy of this news release.