2.25 GRAMS OF GOLD/TONNE OVER 25.88 METRES
Shares outstanding: 76,655,947
TORONTO, June 21 /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.
Highlights from assay results for four drill holes (See Jerome Mine Model below) include 20.2 g/t Au over 0.35 m and 7.86 g/t Au over 1.04 m from drill hole AG10-39, 5.54 g/t Au over 0.56 m from drill hole AG10-42, 2.38 g/t Au over 0.80 m from drill hole AG10-43 and 21.2 g/t Au over 0.70 m from drill hole AG10-44B. In addition, drill hole AG10-39 returned a composite of 2.25 g/t Au over 25.88 metres (79.62 - 105.50 m). The composite did not deduct internal waste or bottom cut and is a weighted average over the entire 25.88 metres.
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 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 exploration program is focused on three objectives as indicated in the earlier June 08, 2010 news release by Augen Gold Corp.
First, the Company intends to further refine the "Jerome Mine Model" and use the model's 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 eleven drill holes in the past twenty days at the Jerome Mine for a total of over 1,400 metres of diamond drilling (see above highlights).
The second objective is to conduct detailed exploration in parts of the eastern end of the property adjacent to claims held by Trelawney Mining and its promising new gold discovery. To date, line cutters have completed a 25 line kilometre grid and JVX Ltd., the Company's geophysics contractor, will follow with ground IP, magnetic and VLF surveying in the next several weeks as ground crews become available. Targets expected to be generated will then be ranked and drill tested.
The third, and 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. Augen Gold is currently constructing a barge to be used as a diamond drilling platform. This drilling program is expected to commence by mid-July 2010.
Augen Gold has collected one-third 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 historical drilling yielded up to 12.94 g/t Au over of 0.70 m. JVX Ltd. is currently completing an IP survey in this area.
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 49 drill holes totalling over 7,500 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