Augen Gold Fends Off Attacks from Dissidents to Protect Shareholder Value

TORONTO, Aug. 26 /CNW/ - Augen Gold Corp. (GLD) continues to defend against seizure by dissident shareholders, releasing a circular and letter to shareholders in advance of the annual general meeting scheduled for September 30, 2010.   (The circular and shareholder letter can be found at:  www.sedar.com)

In recent weeks, a dissident group has threatened the Company's success and shareholder investment.  The group is attempting to take control of the Company without paying fair value to shareholders by replacing the current Board of Directors with its own handpicked nominees.  Management believes the dissident group is led by individuals that have previously been insiders of Augen Gold.

David Mason, President and CEO of Augen Gold Corp states: 

"We have reached a critical stage - and need continued support to ensure control of the Company is not transferred to a small group of minority shareholders who appear to want control without paying shareholders fair value."

Mason has outlined a solid foundation established for future growth, stating that the Company has already taken steps to:

  • Discover the potential in the historic Jerome Mining property in 2008;
  • Raise $16 million in challenging capital markets to fund exploration and retire debt;
  • Find and finance the purchase of the property opportunity in 2006;
  • Increase the target from the historic scope at the Jerome mine of 127,329 ounces to a computer modeled target on the Leapfrog modeling program for a 50 m search radius of up to 24 million tons with a grade ranging from 1.4 to 7.1 g/t at cut-off grades of 0.05 to 5.0 g/1 and
  • Identify several other targets that have the potential to be Jerome size or greater.

Mason further stated:

"We are ready to proceed with the exploration drilling required to fully ascertain the potential of our targets.  A program of $2 million in drilling is prepared for the balance of this year. The platform for diamond drilling is currently in place over the largest anomaly and well advanced in a program to test the potential over an anticipated 5 km strike length, including a target north of Trelawney Mining's Cote Lake discovery.

The leadership of Augen Gold has demonstrated that it is best positioned to raise the funds necessary and develop the program to explore and unlock the value of the Company's property, and maximize value for shareholders."

The annual general meeting of shareholders and election of directors is scheduled to take place at 10:00 a.m. (Toronto time) in the Fraser & Beatty Room, Fraser Milner Casgrain LLP, 39th Floor, 1 First Canadian Place, Toronto, Ontario, M5X 1B2, on Thursday, September 30, 2010.

Shareholders that have any questions or need assistance in voting please contact Laurel Hill Advisory Group, the Company's proxy solicitation agent, at:     

Toll Free: 1.877.304.0211    
Collect: 416.304.0211    
email: assistance@laurelhill.com

About Augen Gold:

Augen Gold is a gold exploration company with 23,877 hectares of staked and patented mining claims in the Southern Swayze Greenstone Belt, including the formerly producing Jerome Gold Mine. The claims cover a 45 kilometre long section of the Ridout Deformation Zone, believed to be the western extension of the Kirkland Lake/Larder Lake Break. The geological setting is comparable to the major gold camps of Timmins and Kirkland Lake, and the claims contain numerous gold showings that have received very little historical exploration. Augen Gold is the first company to have assembled a coherent ground position. Augen Gold has performed a detailed airborne geophysical survey over the whole area, and its sampling program has confirmed the historically reported gold values.

The correlation of many gold showings with geophysical features indicates excellent potential for the discovery of additional deposits. The Company's objectives are to aggressively explore the gold showings that correlate with geophysical anomalies, continue resource definition at the Jerome Mine, and to expand its property portfolio with highly prospective mineral assets. 

Shareholders that have any questions or need assistance in voting please contact Laurel Hill Advisory Group, the Company's proxy solicitation agent, at:

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.

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. 

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1 Full disclosure of the ranges and applicable limitations and qualifications is set out in the press release of Augen Gold Corp. dated August 19, 2010 titled "Augen Gold Corp. Provides an Update for the Jerome Gold Mine".  Gordon McRoberts, Exploration Manager for the Company, is the qualified person responsible for preparing or supervising the preparation of this information.


SOURCE AUGEN GOLD CORP.

For further information: For further information:

J. David Mason
Chief Executive Officer and Director
Augen Gold Corp.


Tel. 416-915-4231 reception and voice mail
Email: dmason@augengold.ca

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AUGEN GOLD CORP.

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