Auriga Gold Corp.
TSX VENTURE : AIA

Auriga Gold Corp.

May 17, 2011 09:04 ET

Auriga Gold Intersects Near-Surface High-Grade Veins Including 2.34 Meters at 21.49 g/t Gold at Maverick Project, Manitoba

TORONTO, ONTARIO--(Marketwire - May 17, 2011) - Auriga Gold Corp. (TSX VENTURE:AIA) ("Auriga Gold" or the "Company") is pleased to announce that further drill results continue to intersect near-surface high-grade gold mineralization in the northern and central areas of the Puffy Lake deposit at the Maverick Gold Project. The Maverick Gold Project, located 65 km northeast of FlinFlon, Manitoba, includes the past-producing Puffy Lake Mine and Mill, the adjacent Nokomis Property, and staked mining claims covering a total of 6,640 hectares (66.4 km2).

The current results include holes A3-34, 36 and 37 that intersected near-surface mineralization in the northern part of the PuffyLake deposit. Highlights in the northern area included hole A3-36 with 1.72 meters grading 28.41 g/t gold and A3-37 with 2.20 meters grading 16.25 g/t gold. Holes A3-31, 32, 33, and 34 tested mineralization in the Sherridon zone, a separate parallel vein system that comes to surface in the central part of the deposit. A highlight of drilling in the Sherridon zone includes hole A3-30 that intersected 2.34 meters at a grade of 21.49 g/t gold.

"These results continue to show that the northern part of the Puffy lake deposit appears to have the best continuity and grade," stated Richard Sutcliffe, Auriga Gold's President and CEO. "In addition, these results include our first intersections from the Sherridon zone, which is a parallel vein system that comes to surface and occurs at a structurally higher level in the deposit. The consistent grade of the mineralization we have encountered is most encouraging as we prepare to deliver an updated resource estimate."

MAVERICK GOLD PROJECT
SUMMARY OF SIGNIFICANT ASSAYS
HoleLocationAzimuth/
Incl.
From
(m)
To
(m)
Length
(m)
Au
gpt
Northern Area, Near Surface Mineralization
A3-34373218E/6100538N0/-9065.7066.701.005.44
A3-36373194E/6100557N0/-9017.3717.850.488.02
and54.6056.321.7228.41
incl.55.3256.321.0044.06
and63.5064.000.5028.55
A3-37373194E/6100557N235/-4514.7316.011.289.57
and36.2638.462.2016.25
incl.36.2636.750.4942.63
and47.2848.000.7213.09
Sherridon Zone Near Surface Mineralization
A3-30373600E/6100376N0/-9013.2615.602.3421.49
incl.13.2614.110.8557.26
A3-31373614E/6100388N0/-9017.5320.422.894.94
incl.20.0720.420.3521.02
A3-32373630E/6100400N0/-9031.6233.291.6715.79
incl.32.3032.750.4555.91
A3-33373645E/6100412N0/-90hole terminated before it intersected zone
note: true widths are currently estimated at 85-90% of drilled widths

Auriga Gold has completed the drilling on the Phase 1 and 2 drilling program and assay results on the remaining holes are currently pending. P&E Mining Consultants Inc. has been retained to complete a NI43-101 resource estimate on the Maverick Gold Project that will include the results of the current program and historical drilling. The Company plans to release the updated resource estimate this summer and complete a Preliminary Economic Assessment later this year on the re-start of the Puffy Lake mine and mill.

A plan section showing the location of the diamond drill holes in relation to historical reserve blocks is available on the Company's website at www.aurigagold.ca.

About Auriga Gold

Auriga Gold Corp. is a Canadian mine development and exploration company with an experienced 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 bring 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 close to existing 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 a minimum mining width of 1.2 metres. The Maverick Gold Project is located in the FlinFlon Greenstone Belt of Central Manitoba.

NI 43-101: A qualified person has not done sufficient work to verify the historical resource estimates at PuffyLake 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.

Qualified Person

The Company's Qualified Person ("QP") for the drill program at the Maverick Gold Project is Bruce Mackie, P.Geo. As QP, Mr. Mackie has prepared or supervised the preparation of the scientific or technical information for the property and has verified the data disclosed in this press release.

Sample Preparation, Analyses and Security

The assay and sample information as well as geological descriptions are taken from drill logs as prepared by the project geologists for the drill program. All drill cores are NQTW in size and assays are completed on split or sawed half-cores, with the second half of the core kept for future reference. The samples are put into rice bags which are sealed with security locks for shipping directly to Accurassay Laboratories, an accredited assay laboratory, in Thunder Bay, Ontario. The samples are analysed using standard fire assay procedures with an AA/ICP finish, using 50g aliquots. Assay results greater than 2.50 gram per tonne will be rerun using a gravimetric finish. In addition to the standard quality control of the laboratory, a series of blanks and standards are inserted in every shipment for quality control purposes.

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. This press release is not and is not to be construed as an offer to buy or sell securities in the United States.

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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