Auriga Gold Corp.
TSX VENTURE : AIA

Auriga Gold Corp.

July 29, 2011 16:43 ET

Auriga Gold Reports Financial and Operating Results for the Year Ended March 31, 2011

TORONTO, ONTARIO--(Marketwire - July 29, 2011) - Auriga Gold Corp. (TSX VENTURE:AIA) ("Auriga Gold" or the "Company") today reports the release of its Management's Discussion and Analysis ("MD&A") and Financial Statements ("Financials") for the year-ended March 31, 2011.

The MD&A and Financials are available at SEDAR at www.sedar.com or on the Company's website at www.aurigagold.ca. These documents can also be obtained from application to the Company.

Financial and Operating Highlights for the Fiscal Year ended March 31, 2011

  • In May 2010, Auriga Gold announced reorganizational changes including a name change from Ursa Major International Inc., a 1:4 consolidation of common shares, and continuance of the articles of incorporation to Ontario. Auriga Gold announced a strategy of exploring and developing gold and precious metal deposits located in the principal precious metal districts of Manitoba and Saskatchewan, Canada.
  • In October 2010, the Company announced the closing of a non-brokered private placement to raise total gross proceeds of $5,350,762.
  • In October 2010, the Company completed the acquisition of the Maverick Gold project (former Puffy Lake Mine and Nokomis properties) by payment of $2.5 million and the issuance of 4.0 million common shares to Pioneer Metals ULC, a wholly owned subsidiary of Barrick Gold Corporation. The Company also completed the acquisition of the Fox River properties by the issuance of 1,262,500 common shares to Xstrata Canada Corporation.
  • In November 2010, the Company's common shares commenced trading on the TSX Venture Exchange ("TSXV") as a Tier 2 mining issuer under the trading symbol "AIA".
  • In December 2010, the Company commenced the first phase drilling program at the Maverick Gold project to confirm the historical (pre-NI 43-101) gold resources and form the basis for a preliminary economic assessment.
  • The 15 hole, 3,350 meter Phase 1 program was completed in March 2011 and resulted in the intersection of numerous high grade mineralized veins with intercepts including: hole A3-05 with 11.99 g/t gold over 2.50 meters, a second intersection in hole A3-05 with 65.42 g/t gold over 0.5 meters, A3-06 with 18.65 g/t gold over 0.84 meters; hole A3-07 with 30.44 g/t gold over 2.0 meters; and A3-02 with 9.19 g/t over 2.0 meters.
  • A 32 hole, 1,600 meter Phase 2 program was initiated in March 2011 to test the potential of shallow open pit mining of the mineralized vein system. A highlight includes A3-16 which intersected 5.0 meters grading 6.59 g/t gold from a depth of 8.20 meters.
  • In April 2011, the Company acquired additional claims to increase the size of the Maverick property to 6,640 hectares (66 square kilometers).
  • In the year ended March 31, 2011, Auriga Gold incurred exploration expenditures including exploration property acquisition costs of $3,565,609.
  • Auriga Gold's net loss totalled $904,584 for the twelve months ended March 31, 2011 and as of March 31, 2011 the Company had cash in the amount of $658,948.
  • Subsequent to the year end, the Company initiated a NI43-101 resource estimate for the Puffy Lake Mine property with P&E Mining Consultants Inc.
  • Subsequent to the year end, the Company completed an early warrant exercise program to raise net proceeds of $1,486,497 and completed a flow through private placement to raise gross proceeds of $2,105,000.

Auriga Gold's CEO, Richard Sutcliffe, stated, "This past year, we have been laying the ground work for a fast start-up to production at the Maverick Gold property, near Flin Flon, Manitoba. Our initial NI43-101 resource estimate for the Puffy Lake Deposit at Maverick Gold will be released in early August. Drilling has resumed on the property to test additional historical resources and gold showings that occur on the major 20 kilometer long gold bearing trend on our property that includes both the Puffy Lake Deposit and the Nokomis deposit."

Outlook

The acquisition of the Puffy Lake property positions Auriga Gold as a new Canadian company focused on gold resource expansion, near-term production, and project acquisition in the Flin Flon greenstone belt and adjacent areas of central Canada. The Company has been acquiring assets in Manitoba and Saskatchewan over the past year. Management considers that these provinces currently offer a particularly favourable environment for mineral exploration and development. The Company intends to acquire quality advanced projects with defined resources in central Canada. The Company's management has a proven record of discovery, resource expansion permitting and developing projects through to production.

Auriga Gold has combined its exploration and development activity of the Puffy Lake Property and Nokomis Property as the Maverick Gold Project. The Company has completed the first phase drilling program at the Maverick Gold Project to confirm the historical (pre-NI 43-101) gold resources at the Maverick Gold project, complete a NI43-101 resource estimate and form the basis for a preliminary economic assessment. P & E Mining Consultants Ltd. have been engaged to complete the NI43-101 resource estimate and results are anticipated at the beginning of the Company's second quarter. The Puffy Lake property contains an historical gold resource, 1,000 tonne per day flotation concentrator for processing gold ores, a ramp developed to 130 meters depth and related mining infrastructure. These assets will potentially enable the Company to rapidly advance the project to production. The Company has reactivated environmental baseline studies and is in the process of developing a plan to initiate dewatering of the ramp at the Puffy Lake Mine. The Company resumed drilling at the Puffy lake deposit in July with the objective of expanding the known resource.

About Auriga Gold Corp.

Auriga Gold 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.

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.

Contact Information