Shares outstanding: 24,880,585
TORONTO, July 7 /CNW/ - Augen Gold Corp. ("Augen Gold" AUJ - TSX.V)
announced today it has entered into an option agreement to acquire a mineral
property located three kilometres south of its 100%-owned Jerome Gold Mine in
the Porcupine Mining Division of Ontario.
The property, which extends for 6.4 km along strike and 1.5 to 2.0 km
across strike, lies within the southern Swayze Greenstone Belt. It is
underlain by mafic to intermediate volcanic rocks, metasediments and sulphide
iron formation which are prospective for the occurrence of gold and base metal
deposits. The iron formation is reflected by distinct electromagnetic
anomalies defined by Augen's 2007 helicopter-borne geophysical survey. Minor
gold and copper occurrences associated with iron formation have been noted
immediately north of the option property. The property also includes
gold-in-till and gold-in-lake sediment anomalies identified by regional
surveys performed by the Ontario Geological Survey. Augen Gold intends to
perform exploration of these geochemical and geophysical anomalies on the
Option Property and on the Company's adjacent mineral claims this summer.
Under the terms of the option agreement, Augen Gold has been granted an
option to acquire an undivided 100% interest in six mineral claims located in
Arbutus, Fingal, Huffman and Osway Townships, subject to a 2.5% net smelter
returns royalty. The Company may exercise the option by making payments to the
vendor totaling $100,000 in cash and 120,000 common shares of Augen Gold over
three years. Augen Gold may purchase one-half (i.e. 1.25%) of the royalty for
$1,500,000 at any time.
"With this acquisition, Augen Gold increases its already dominant land
holdings in the southern Swayze Greenstone Belt, which hosts two gold deposits
and numerous gold and base metal occurrences. We are encouraged by the geology
of this property, which we believe has good potential to contain an iron
formation-hosted gold deposit, similar to many important gold mines in
identical geological environments around the world," said Michael Fowler,
President and CEO of Augen Gold. "We expect to perform exploration drilling on
the property this summer."
The proposed option agreement is subject to acceptance by the TSX Venture
About Augen Gold
Augen Gold Corp. 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 is 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 information contained in this news release has been prepared by Augen
Gold's Senior Vice-President, Exploration, Christopher Marmont, P.Geo., who is
the qualified person for the Company's Jerome Project under the definitions
established by National Instrument 43-101.
Please refer to Augen Gold's web-site for maps, photographs, geological
details and additional information.
For more information on Augen Gold, visit our website at www.augengold.ca
The Company's public documents may be accessed at www.sedar.com
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.
For further information:
For further information: Michael G. Fowler, President and Chief
Executive Officer, Tel: (416) 777-2007 Ext 224, Toll-free: (888) 442-8436 Ext
224; John F. Walter, John Walter Communications, Tel: (647) 430-0197