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TORONTO, June 8 /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 in northern Ontario, approximately halfway between the mining centres of Sudbury and Timmins and which is accessible by road year-round.
Augen Gold has been successful in raising approximately $4.9 million in financings, comprised of $1.5 million in flow-through dollars, and $3.4 million in hard dollars. The Company is now well financed to achieve its next exploration milestones.
This year's exploration program will focus on three objectives:
First, the Company intends to further refine the "Jerome Mine Model" and take the concepts across a large area (10 km plus) from Jerome Mine to the Huffman Lake claims, the latter which had encouraging results announced last January. During the first part of June 2010, Augen Gold completed three drill holes (AG10-39, AG10-42 and AG10-43) at the Jerome Mine and expects assay results to be available shortly, starting in mid-June of 2010.
The second objective is to explore in detail those parts of the eastern end of the property adjacent to claims held by Trelawney Mining and its promising new gold discovery. On March 5, 2010, Augen Gold announced the commencement of a five-hole, 1,250 metre drilling program in this part of the property. The focus is the area along and near structures defined with airborne magnetic data by JVX Ltd., the Company's geophysics contractor. These structures extend several kilometres across the Augen Gold claims and project toward the area of recent drilling by Trelawney. Augen Gold also considered information that was made available on the possible trend of the new gold discovery.
Only one hole was completed in this area as the drilling was halted pending completion of the most recent financing. This drill hole, AG10-38, shows common weak alteration and local minor disseminated pyrite. Assays are available but did not show more than very weakly anomalous gold.
A grid, which includes the location of drill hole AG10-38, will shortly be installed in the area near the new gold discovery by Trelawney and this will allow for detailed ground IP, magnetic and VLF surveying to be completed in an effort to precisely define drill targets.
The third, and most likely the most important objective, is to drill test three unexplored lake sediment Soil Gas Hydrocarbons (SGH) anomalies under the east arm of Opeepeesway Lake using a barge presently under construction (News Release April 14, 2010). Augen Gold expects to commence this drilling in early July 2010.
The SGH anomalies are positioned along a prominent regional auriferous trend that includes significant gold mineralization at the Jerome Mine and at Huffman Lake (News Release January 21, 2010) and that is located at and near the deformed contact between the southern margin of the Jerome Porphyry and Timiskaming sediment.
Activation Labs of Ancaster, Ontario had performed the analysis of 845 lake sediment samples collected at Opeepeesway Lake in February and March of 2010 and indicated that two of the SGH anomalies (A, B) have characteristics similar to SGH anomalies overlying unexposed gold deposits elsewhere in Canada and in Nevada, and that a third SGH anomaly (C) points to the presence of disseminated sulphide (News Release April 14, 2010). Interpretation maps provided by Activation Labs can be viewed at www.augengold.ca.
Augen Gold also plans to collect an additional 1,760 soil samples for SGH analysis over a large area immediately north of the east arm of Opeepeesway Lake. This survey was not completed last winter because of frozen soil, but will cover the prospective north contact of the Jerome Porphyry with Timiskaming sediment. Numerous historical gold occurrences occur near the contact in this area and include a drill intersection of 12.94 g\t Au over of 0.70 m.
JVX Ltd. has outlined several IP chargeability anomalies coincident with or near the northern Jerome Porphyry / sediment contact, and most of the surface gold occurrences in this area have not been drill-tested beyond 60 metres vertical depth.
The current exploration program started in late September of 2009 and to date, approximately 325 line kilometres have been cut, approximately 250 line kilometres have been surveyed and 41 drill holes totalling over 7,000 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.
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; For more information on Augen Gold, visit our website at www.augengold.ca; The Company's documents may be accessed at www.sedar.com