Auriga Gold Corp.

Auriga Gold Corp.

October 04, 2011 12:41 ET

Auriga Gold Updates Development Plan and Progress at Maverick Gold Project

TORONTO, ONTARIO--(Marketwire - Oct. 4, 2011) - Auriga Gold Corp. (TSX VENTURE:AIA)("Auriga Gold" or the "Company") is pleased to provide an update on its development plan and progress at the Maverick Gold project located near Flin Flon, Manitoba. Upon completion of the initial NI 43-101 mineral resource estimate for the Puffy Lake deposit (see press release dated August 4, 2011), Auriga Gold engaged ACA Howe International Limited ("ACA Howe") to perform a Preliminary Economic Assessment ("PEA") study on the Maverick Gold Project to evaluate mining options, operating parameters and estimate operating and capital costs. The results of the PEA study are expected to be released in October 2011. In preparation for the Company's plan to re-start test mining operations within the next year, the Company has also undertaken site refurbishment tasks and inspections of the mill and surface facilities.

During the past quarter, site refurbishment activity focused on upgrading the mine access road and detailed inspection of equipment and surface facilities. The site management office has been re-established and the Company expects to establish a camp facility by end of 2011. The Company has also recently completed a LiDAR survey of the Maverick property to provide a detailed digital elevation model for both engineering and exploration purposes.

Auriga Gold has received a cost estimate from Manitoba Hydro for reconnection of grid electrical power from Sherridon, Manitoba to the mine site. The cost to Auriga Gold is estimated at $1.3 million and the Company will receive a credit for this amount applied to its electricity bill. Manitoba Hydro confirmed that electrical power can be reconnected within three months of a decision to proceed; the Company expects the power line construction will commence early in 2012.

Richard Sutcliffe, Auriga Gold's President and CEO commented, "Over the past few months, we achieved a number of significant milestones at our Maverick Gold Project including a successful drilling program that confirmed the continuity and historical resource grades at the Puffy Lake deposit and an initial NI 43-101 resource estimate at the Puffy Lake mine. Having completed this first stage, we have shifted our attention to the tasks needed to restart operations at the Puffy Lake mine and mill. This has laid the groundwork for our project team to redevelop the site and perform rehabilitation of the mill, which we expect to commence early next year."

About Auriga Gold

Auriga Gold Corp. is a Canadian mining company focused on developing the Puffy Lake Mine and expanding gold resources on its Puffy Lake and Nokomis properties (the "Maverick Gold Project"). The Company plans to upgrade and expand the resources at the Maverick Gold Project and bring the Puffy Lake Mine back into production in 2012. The Puffy Lake Mine includes a 1,000 tpd flotation mill, a developed underground ramp to 135 metres depth, is fully road accessible and close to existing mining infrastructure. The Maverick Gold Project is located in the Flin Flon Greenstone Belt of Central Manitoba.

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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