Auriga Gold Corp.

Auriga Gold Corp.

December 08, 2010 12:43 ET

Auriga Gold Begins Drilling the Maverick Gold Project, Flin Flon Area, Manitoba

TORONTO, ONTARIO--(Marketwire - Dec. 8, 2010) - Auriga Gold Corp. (TSX VENTURE:AIA) ("Auriga Gold" or the "Company") has commenced the first phase drilling program at the Maverick Gold Project, located 65 kilometres northeast of Flin Flon, Manitoba. The Maverick Gold project includes the past producing Puffy Lake Mine and the adjacent Nokomis Property. Initially Auriga Gold will conduct a 2,500 metre phase I drill program to confirm the historical (pre-NI 43-101) gold resources at the Maverick Gold project thus forming the basis for a preliminary economic assessment.

Richard Sutcliffe, Auriga Gold's President and CEO stated, "We are very pleased to be starting the initial round of drilling at the Maverick Gold Property and the prospect of improving the quality and quantity of the existing gold resources at the Puffy Lake Mine. Our focus will initially be on exploration drilling results; however, this property has excellent location and infrastructure and we anticipate an opportunity to quickly develop a mine plan at Maverick Gold."

The initial confirmation drilling program will consist of approximately 20 holes on three sections totaling 2,500 metres. Initial assay results are anticipated early in 2011 and the phase I program will be completed early in the New Year. A follow-up phase II program of up to 5,000 metres of shallow drilling is currently planned to follow up on the confirmation drilling. Bruce Mackie, P.Geo, is the qualified person for the program.

The Puffy Lake Mine produced over 28,000 ounces of gold in 1988 and 1989. The Mine features a 1,000 tpd mill and concentrator in excellent condition, a deposit developed by a ramp to a depth of 130 metres, and related mining infrastructure. In 1993, Kilborn Engineering Pacific Ltd. estimated that the property contained probable resources of 1,346,200 tonnes of mineralization @ 8.57 g/t Au and possible resources of 833,700 tonnes @ 7.15 g/t Au. The resource was estimated as part of a 1993 feasibility study prepared for Pioneer Metals and uses a cut-off grade of 3.5 g/t Au and minimum mining width of 1.2 metres. The resource is a historical resource that predates NI 43-101, is not compliant with current definitions, has not been verified by the Company, and consequently should not be relied on by investors.

About Auriga Gold

Auriga Gold is a Canadian exploration and development company with an experienced technical team focused on expanding gold resources and developing the combined Puffy Lake and Nokomis properties (the "Maverick Gold Project"). The Company plans to upgrade and expand the historic resources at the Maverick Gold Project and evaluate bringing the Puffy Lake Mine back into production. The Puffy Lake Mine includes a 1,000 tpd flotation mill, a developed underground ramp to 130 metres depth, is road accessible and is close to existing mining infrastructure. The Maverick Gold Project is located in the Flin Flon area of central Manitoba, a region that hosts a number of significant base and precious deposits.

National Instrument 43-101 (NI 43-101) - Bruce Mackie, P.Geo, an independent consultant to the Company, and a registered Professional Geologist, is designated as the Qualified Person under NI 43-101 and has reviewed and approved the contents of this news release. A qualified person has not done sufficient work to verify the historical resource estimates at Puffy Lake and Nokomis. These historic estimates predate NI 43-101, are not compliant with current definitions, have not been verified by the company and consequently should not be relied on by investors. The historical estimates are provided as an indication of historically reported estimates.

Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. A feasibility study has not been completed and there is no certainty the disclosed targets will be achieved nor that the proposed operations will be economically viable.

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.

Contact Information