Augyva Mining Resources Inc.
TSX VENTURE : AUV

Augyva Mining Resources Inc.

November 11, 2010 17:03 ET

Canadian Century Iron Ore Completes $6 Million Funding of Augyva's Duncan Lake Property Substantially Ahead of Schedule

MONTREAL, QUEBEC--(Marketwire - Nov. 11, 2010) - Augyva Mining Resources Inc. (TSX VENTURE:AUV) ("Augyva") and Canadian Century Iron Ore Corporation ("Century") are pleased to announce that Century has completed its funding of $6,000,000 to earn a 51% interest in Augyva's Duncan Lake Property (the 'Project'), in accordance with the option and joint venture agreement entered into between the parties in May 2008 (the "Agreement"), a year and a half ahead of the expiry of the option for such earn-in, i.e. May 20, 2012 under the Agreement. Following completion of the funding, Century has delivered written notice to Augyva to exercise its option under the Agreement and the parties anticipate that closing of the transfer will occur within the following 10 days.

On closing, Augyva (49% interest) and Century (51% interest) will form a joint venture in respect of the Duncan Lake Property. In accordance with the terms of the Agreement, Century will have the option to acquire a further 14% interest in the property by incurring exploration, construction and/or operating costs totaling $14,000,000 or by completing a Feasibility Report in respect of the Project.

Mr. Georges-Yvan Gagnon, President of Augyva commented "We are very pleased that Century has completed its funding of the '51% earn-in' on the Duncan Lake Project substantially ahead of schedule. The proceeds of the funding will be used to continue the winter exploration program and cover exploration expenses Augyva has so far incurred on the Duncan Lake Property which substantially increases the cash position of the Company. This reflects both Augyva and Century's strong confidence in the development of the Property".

"We have been working with M. Gagnon and his team on the Duncan Lake Project for a little more than 2 years and we continue to be very supportive of the Project. The 43-101 compliant Technical Report has been completed and disclosed, an Opportunity Study is being completed by Met-Chem for internal use and a preliminary logistics study has been carried out to evaluate various logistics solutions. Roche Ltd. of Montreal has been engaged to carry out an environmental scoping study (ESS) for the Project. Accordingly, the Board of Directors of Century has determined to complete the funding of the 'earn-in' of its 51% interest in the Duncan Lake Project a full 18 months before the expiration of the option under the Agreement.", said Mr. Sandy Chim, a director of Century and also a director of Augyva.

About the Duncan Lake Property

The Duncan Lake Property "DLP" was discovered in the 1960s, and explored sporadically until 1976. In 2005, Augyva acquired the DLP and initiated field reconnaissance, magnetic field surveys, and grab sampling of iron ore occurrences in 2006, mainly on Deposit 1. The DLP consists of six (6) different blocks or deposits identified as Deposits 1 to 6. A magnetic field survey was carried out systematically on all deposits, followed by a major drilling campaign consisting of 52 diamond drill holes totaling 10,456 meters, which was initiated in 2008 and completed in 2009.

On March 4, 2010, the Company filed on SEDAR a National Instrument 43-101 ("NI 43-101") compliant technical report on the mineral resource estimate (the "Report") for its Duncan Lake Iron Ore Project. The Report was prepared by Met-Chem Canada Inc. of Montreal, Quebec. The NI 43-101 Report is also available on the Company web site.

The following is a summary of the mineral resource estimate based on the Company's 2008-2009 preliminary drilling program, using a cut-off grade of 16% Fe:

Summary of the mineral resource estimate  
   
Resource classification Tonnes Fe  %
Measured 5,700,000 23.29 %
Indicated 25,615,000 23.48 %
Inferred 821,135,000 24.56 %

About Augyva Mining Resources Inc.

Augyva is an exploration and development company with 5 properties located in the James Bay and Abitibi regions of the Province of Quebec. Its major project under development is the Duncan Lake Property described above and located in the western part of the La Grande Greenstone Belt and hosts Algoma type iron deposits in a volcano-sedimentary sequence. The property, directly accessible by road, covers 4,615 hectares. Further to a drilling program of over 10,000 meters, completed in May 2009, a National Instrument NI 43-101 compliant technical report on the mineral resource estimate (the 'Technical Report'), prepared by Met-Chem Canada Inc., was released in March 2010. Met-Chem has further continued to carry out an internal opportunity study of the Property. Augyva also awarded Roche Ltd the mandate to carry out an environmental scoping study (ESS) for the project. Other iron and related opportunities continue to be evaluated on an ongoing basis.

In addition to advancing the Duncan Lake Iron Ore Project, Augyva holds 100% interest on 4 highly prospective gold and base metal properties: Yasinski (gold, platinum, chromite and other base metals) and Kali (gold, copper and other base metals) in the James Bay region, and: Senneville (gold) and Malartic (gold) in the Abitibi region. For more information about Augyva, go to www.augyva.com.

About Canadian Century Iron Ore Corporation (Century)

Century is a subsidiary of Century Iron Ore Holdings Inc., an iron ore property developer and investor with extensive network and relationships in the Far East market, particularly China, and having substantial investments in iron ore properties in Canada with the vision of building an iron ore resource base for the insatiable growing demand for iron ore of the global market driven primarily by China which bought about 70% of the total seaborne iron ore trade in 2009. 

About the Option and Joint Venture Agreement

On May 20, 2008, the Company signed an option and joint venture agreement with Canadian Century Iron Ore Corporation ("Century"). Under the terms of the agreement, Century can earn an initial 51% interest in the Duncan Property by funding $6 million over a 4-year period with a minimum of $1.5 million in the first year, for the exploration and development of the property. Pursuant to the agreement, and after earning the initial 51% interest, Century will have the option to increase its interest in the property to 65% by expending a further $14 million in the following 4 years thereafter. After Century completes its earn-in of the initial 51% interest, Century and Augyva will form a joint venture reflective of their proportionate ownership interest in the property. Augyva will remain manager and operator of the property until Century acquires a 51% interest.

This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Augyva's disclosure documents on the SEDAR website at www.sedar.com. Neither Augyva nor Century undertakes to update any forward looking information except in accordance with applicable securities laws.

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

  • Augyva Mining Resources Inc.
    Georges-Yvan Gagnon
    President
    819-275-1614
    www.augyva.com