(2.64 grams of Gold/tonne over 29.50 metres)
Shares outstanding: 76,655,940
TORONTO, July 20 /CNW/ - Augen Gold Corp. ("Augen Gold" or the "Company", TSX-V: GLD) is pleased to provide an update of gold exploration activity within its 100% owned South Swayze Property located approximately halfway between the mining centers of Sudbury and Timmins in Ontario and accessible by road year-round.
Assay results for thirteen drill holes (see Jerome Mine Model below) are now available and the highlight from those recently received is a composite of 2.64 g\t Au over 29.50 metres (105.50 - 135.00 m) in drill hole AG10-52. This drill hole is located 60 metres westerly and along trend of previously reported drill hole AG10-39 (Augen Gold News Release, June-21-2010) that had returned a composite of 2.25 g\t Au over 25.88 metres (79.62 - 105.50).
Highlights from assay results from eight other drill holes include 25.7 g\t Au over 0.55 m (39.00-39.55 m) in drill hole AG10-45, 9.45 g\t Au over 2.51 m (46.09-48.60 m) in drill hole AG10-46, 6.65 g\t Au over 0.50 m (53.50-54.00 m) in drill hole AG10-47, 8.07 g\t Au over 1.50 m (102.00-103.50 m) in drill hole AG10-48, 3.96 g\t Au over 0.60 m (47.40-48.00 m) in drill hole AG10-49, 6.59 g\t Au over 1.00 m (153.00-154.00 m) in drill hole AG10-50, 21.2 g\t Au over 1.20 m (118.00-119.20 m) in drill hole AG10-51 and 6.88 g\t Au over 1.00 m (135.00-136.00 m) in drill hole AG10-53.
Gold was determined at ALS Laboratory Group by fire assay AAS on 30 gram charges. Samples reporting more than 10 g/t Au were re-analyzed by the fire assay-gravimetric method to produce the reported values, also using 30 gram charges. Most drilling was performed at dips of 45 and 50 degrees and therefore true width would be reduced to 75%.
Augen Gold has been successful in raising approximately $4.9 million in financings, in 2Q10, comprised of $1.5 million in flow through, and $3.4 million in hard dollars and is now well financed to achieve its next exploration milestones. Since inception in October 2006, the Company has raised a total of approximately $16 million for the South Swayze Project.
This year's program is focused on three objectives as indicated in earlier June-08-2010 and June-21-2010 news releases by Augen Gold Corp. (see web site for maps and power point presentation www.augengold.ca).
First, the Company intends to further refine the "Jerome Mine Model" and use the model concepts across a large area (10 kilometres plus) from Jerome Mine to the Huffman Lake claims, the latter which had encouraging results announced last January. With this objective in mind, Augen Gold has completed twenty-three drill holes in the past fifty-two days at the Jerome Mine site for a total of over 3,000 metres of diamond drilling (see above highlights).
The second objective is to conduct detailed exploration in parts of the eastern end of the South Swayze Property adjacent to Trelawney Mining and Exploration Inc.'s promising new gold discovery. JVX Ltd. will begin an IP, magnetic and VLF survey next week over a recently completed 25 line kilometre grid in this area, and in two weeks, a crew will start the collection of soil samples for Soil Gas Hydrocarbons ("SGH") analysis. SGH geochemistry is organic and detects hydrocarbon based compounds that provide a signature directly related to bacteriological interaction with a target such as a gold deposit. Targets expected to be generated will be ranked and drill tested.
The third, and most likely the most important objective, is to drill test three unexplored lake sediment SGH anomalies under the east arm of Opeepeesway Lake. A barge to be used as a diamond drilling platform has been constructed, is being moved to the site, and drilling will commence by the start of the fourth week of July. SGH Anomaly maps displayed on Augen Gold's web site show that the targeted SGH anomalies are up to several hundreds of metres in width. Further, the anomalies are positioned along and near the regional auriferous trend that hosts the Jerome Mine in the west.
Further, Augen Gold has collected over two-thirds of a planned additional 1,760 soil samples for SGH analysis over a large area immediately north of the SGH anomalies at Opeepeesway Lake where historic drilling yielded up to 12.94 g\t Au over 0.70 m. JVX Ltd. will complete an IP survey in this area by the end of this week.
The current exploration program started in late September of 2009 and to date, approximately 350 line kilometres have been cut, approximately 260 line kilometres have been surveyed and 64 drill holes totalling over 9,000 metres have been completed.
About Augen Gold
Augen Gold is a gold exploration company with 24,581 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 such 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.
The information contained in this news release has been prepared by Augen Gold's Project Geologist, Gordon McRoberts, P.Geo., who is a Qualified Person for the Company's Jerome Project under the definitions established by National Instrument 43-101.
For more information on Augen Gold, visit our website at www.augengold.ca
The Company's documents may be accessed at www.sedar.com
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.
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, email@example.com