Augen Gold Provides Progress Report on Swayze Property Deposit Size and Grade


    Shares outstanding: 24,880,685

    TORONTO, Jan. 23 /CNW/ - Augen Gold Corp. ("Augen Gold" or "the Company")
(TSX-V: AUJ) announced today that its ongoing work at the Jerome Gold Mine has
enabled an upward revision from historical estimates of the potential size and
grade of the Swayze Property deposit.
    The Company advises that these potential grades and tonnage estimates
remain conceptual in nature and insufficient exploration has been performed to
define a mineral resource. The data will require further analysis to determine
what additional exploration will be required to better quantify the size and
grade of the deposit. It remains uncertain if this exploration would result in
the Jerome gold deposit being advanced to the category of a mineral resource
of potential economic interest. The following tables state the newly modeled
estimates and the historical resource estimate performed by Muscocho
Exploration Limited in 1989.-------------------------------------------------------------------------
             Conceptual Grade and Tonnage Estimates, Jerome Mine
    -------------------------------------------------------------------------
                                                                   Contained
    Lowest Grade                                  Grade,                Gold,
    Shell, g/t Au          Tonnes                   g/t               ounces
    -------------------------------------------------------------------------
    1.0 to 2.5     11,800,000 to 2,300,000   2.0 to 4.0   765,000 to 290,000
    -------------------------------------------------------------------------
    3.0 to 5.0      1,500,000 to   250,000   4.6 to 8.6   225,000 to  70,000
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
            Historical Resource Estimates, using Cut-off Grade of
                             0.115 opt (3.94 g/t)
    -------------------------------------------------------------------------
                                                                   Contained
                                                          Grade,        Gold,
    Source                                     Tonnes       g/t       ounces
    -------------------------------------------------------------------------
    Muscocho 1984, 'not recoverable' No.       53,930      6.82       11,830
    Cut-off: 4.46 g/t.
    -------------------------------------------------------------------------
    Muscocho 1989, "probable and possible".   523,900      6.86      115,499
    Cut-off: 3.94 g/t.
    -------------------------------------------------------------------------
    Totals:                                   577,830      6.85      127,329
    -------------------------------------------------------------------------

    No. - near surface material close to crown pillar (Muscocho Exploration
    Ltd., Exploration report, May 1989). Whether or not this is recoverable
    is dependant on mining method and other geological, engineering and
    economic factors to be reviewed in the future. Historical Information: In
    the opinion of the Company, much of the work on the Swayze Property
    completed prior to 2001 appears to be reliable and to have been conducted
    by competent organizations. The pre-2001 data are considered historical
    according to NI 43-101 and these historical estimates are not NI 43-101
    compliant. A qualified person has not done sufficient work to classify
    the historical estimates as current mineral resources or mineral reserves
    and the Company is not treating the historical estimates as current
    mineral resources or mineral reserves as defined in NI 43-101.
    Accordingly, the historical estimates should not be relied upon by
    investors.Augen Gold has compiled available historical data from its 100% owned
Jerome Gold Mine, located in Osway Township, Ontario. The mine was in
production from 1941 to 1943 and development continued until 1945, when
production ceased as a result of a shortage of labour due to the Second World
War. When in production, the mine produced 303,966 tonnes at a head grade of
6.38 g/t Au yielding 56,878 ounces of gold and 15,114 ounces of silver with a
gold recovery of 91.8%. Subsequent exploration programs were performed by
different companies in 1974, 1980, 1984, 1988-1989, 2004 and by Augen Gold in
2008. Augen Gold's database includes the following data themes:-  Drill hole assay intercepts digitized from maps and plans of previous
       operators
    -  Face chip samples reported on underground plans of the 200, 350, 500,
       650 and 800 foot levels by Jerome Gold Mines (1939-1945) and Muscocho
       Exploration Ltd. (1988-1989)
    -  Results of trench sampling by Jerome Gold Mines - Results of diamond
       drilling performed by Augen Gold in 2008
    -  Rock types and alteration zones derived from drill logs and
       examination of historical drill core
    -  Magnetic susceptibility measurements of drill core.These data have been organized by MPH Consulting Limited to construct a
3D model, using Leapfrog (C) modeling software developed by Zaparo Ltd.
Selected data from this model can be viewed on Augen Gold's website,
www.augengold.ca. Please note that this is primarily a geological model
intended to illustrate the distribution of the gold-mineralized zones at the
Jerome Mine to assist in ongoing exploration and is an intermediate step along
the path to determining a formal, NI 43-101 compliant mineral resource.
    The Leapfrog program permits the construction of a series of shells,
nested like the layers of an onion, that represent increasingly higher-grade
volumes of rock. The higher-grade volumes are naturally smaller than, and
nested inside, the larger, lower grade volumes of rock. The assay data from
the Jerome Mine has been used to construct 39 grade shells between 0.5 g/t and
10.0 g/t Au at 0.25 gram per tonne increments. Previous work has determined
that the specific gravity of the mineralized zones at Jerome is 2.8. With this
knowledge, the volume of rock between each grade surface can be used to
calculate an approximate tonnage for each shell. By adding the tonnage and
contained grams of gold in each shell, Augen Gold has calculated conceptual
estimates of the average grade and total tonnage of the deposit above, or
within, any given grade shell, as shown in the table above.
    The last well documented mineral resource estimate was performed by
Muscocho Exploration Ltd. in 1989. Estimation parameters included a minimum
mining width of four feet (1.2 m), a specific gravity of 2.8 and cut-off
grades of 0.13, 0.115 and 0.10 ounces of gold per ton or 4.46, 3.94 and 3.43
g/t Au. Muscocho's resource estimate using the 3.94 g/t cut-off grade is shown
in the table above. The Company believes that this resource is equivalent to
an "inferred resource" as defined in the CIM Definition Standards on Mineral
Resources and Mineral Reserves.
    Correspondence between the modeled data and historical resource estimates
is very good at grades above 2.5 g/t Au. The lower grade model shells are
constrained by fewer data points, and are not regarded as reliable at the
current state of knowledge. Further modeling will be used as a guide to
optimize future exploration at Jerome.
    Augen Gold's 2007-2008 exploration programs have added to the potential
value of its Swayze Property. The conceptual modeling provides results
consistent with historical reports and indicates potential for increasing the
resources at the Jerome Mine. An update on results from Augen Gold's summer
exploration program will be provided shortly.
    Christopher Marmont, M.Sc., a Qualified Person as defined by National
Instrument 43-101, has reviewed and approved the contents of this press
release.

    About Augen Gold

    Augen Gold is a gold exploration company with 24,042 hectares of mining
claims over a 45-kilometre length located in Swayze Greenstone Belt, including
the formerly producing Jerome Gold Mine and directly adjacent to the Young
Shannon gold deposit. The Company's objective is to aggressively explore the
Jerome mine in order to determine the gold potential along strike on the
contiguous mining claims, and to continue to expand its property portfolio
with highly prospective mineral assets.The TSX Venture has not reviewed and does not accept responsibility for
    the adequacy or accuracy of this release.-------------------------------------------------------------------------
    This news release contains forward-looking statements. These statements
are based on information currently available to the Company and the Company
provides no assurance that actual results will meet management's expectations.
Forward-looking statements include estimates and statements that describe the
Company's future plans, objectives or goals, including words to the effect
that the Company or management expects a stated condition or result to occur.
Forward-looking statements may be identified by such terms as "believes",
"anticipates", "expects", "estimates", "may", "could", "would", "will", or
"plan". Since forward-looking statements are based on assumptions and address
future events and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results relating to, among other things, results of
exploration, project development, reclamation and capital costs of the
Company's mineral properties, and the Company's financial condition and
prospects, could differ materially from those currently anticipated in such
statements for many reasons such as: changes in general economic conditions
and conditions in the financial markets; changes in demand and prices for
minerals; litigation, legislative, environmental and other judicial,
regulatory, political and competitive developments; technological and
operational difficulties encountered in connection with the activities of the
Company; and other matters discussed in this news release. This list is not
exhaustive of the factors that may affect any of the Company's forward-looking
statements. These and other factors should be considered carefully and readers
should not place undue reliance on the Company's forward-looking statements.
The Company does not undertake to update any forward-looking statement that
may be made from time to time by the Company or on its behalf, except in
accordance with applicable securities laws.

    %SEDAR: 00025779E



For further information: J. David Mason, Chairman, Augen Gold Corp.,
Tel: (416) 479-3300, Toll-free: (888) 442-8436; For more information on Augen
Gold, visit our website at www.augengold.ca; The Company's documents may be
accessed at www.sedar.com