Highlights from Augen Gold's Initial NI 43-101-Compliant Mineral Resource Estimate for the Jerome Mine Project
July 18 2011 - 2:37PM
Marketwired Canada
Augen Gold Corp. (the "Company", or "Augen Gold") (TSX VENTURE:GLD) retained
Burt Consulting Services ("BCS") to complete an initial NI 43-101-compliant
Mineral Resource estimate at the Company's Jerome Mine Project, the highlights
of which are outlined below. The Jerome Mine Project comprises 13.21 km2 of
Augen Gold's 100%-owned 237.9 km2 in the South Swayze Greenstone Belt between
Timmins and Sudbury.
"To summarize the most pertinent findings, our 43-101 compliant Mineral Resource
estimate shows that in the Jerome Mine Project area alone we have an inferred
resource of 1.03 million ounces contained gold at a cutoff grade of 0.3 grams
per tonne ("g/t") gold," said J. David Mason, President and CEO of Augen Gold
Corp. "We are pleased that the milestone of a Jerome Mine Project independent NI
43-101-compliant resource estimate has been reached and that at least one
million ounces of Inferred Resources are now well-defined. This provides
concrete validation of the underlying value of this property. We will continue
with confidence to build on this resource by completing additional drilling as
well as potentially defining further resources this year on the North Shore area
four kilometres to the northeast of the Jerome Mine Project."
SUMMARY
The Mineral Resource estimate is reported in Table 1 at a cutoff grade of 0.3
g/t Au. The effective date of this resource estimate is July 1, 2011. Inferred
Mineral Resources are 18.7 million tonnes averaging 1.7 g/t for 1.03 million oz
contained Au to a vertical depth of 300m. A NI 43-101-compliant technical report
in connection with the Mineral Resource and prepared by BCS will be filed on
SEDAR within 45 days of the date hereof. Table 1 shows the Mineral Resource at
the 0.30 g/t cutoff grade broken into constrained and unconstrained categories
and at several higher cutoff grades for comparison.
TABLE 1 MINERAL RESOURCE ESTIMATE
Effective July 1, 2011
Augen Gold Corporation - Jerome Mine Project
----------------------------------------------------------------------------
Classification Cutoff Grade Tonnes Average Grade Contained Gold
(g/t Au) (millions) (g/t Au) (000s oz)
----------------------------------------------------------------------------
Inferred Total (7) 0.3 18.7 1.7 1,030
----------------------------------------------------------------------------
Main & South
Zones
(constrained) 0.3 14.2 1.8 833
----------------------------------------------------------------------------
Other Zones
(unconstrained) 0.3 4.6 1.3 197
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Inferred Total 0.5 14.6 2.1 977
----------------------------------------------------------------------------
Inferred Total 0.7 11.9 2.4 927
----------------------------------------------------------------------------
Inferred Total 1.0 9.1 2.9 853
----------------------------------------------------------------------------
Notes:
1. CIM Definition Standards were followed for Mineral Resources.
2. Mineral Resources are estimated at a pit discard cutoff grade of 0.3 g/t
Au.
3. Mineral Resources are estimated using a gold price of US$1,400 per ounce
4. High assays are cut to 30 g/t Au.
5. Bulk density of 2.8 t/m3 was used.
6. Numbers may not add due to rounding.
7. Total of constrained and unconstrained blocks.
REASONABLE PROSPECTS FOR ECONOMIC EXTRACTION
In order to comply with the CIM Definition Standards requirement that a Mineral
Resource has reasonable prospects for economic extraction, both 0.3g/t Au assay
shell and pit configurations from similar deposits were used to constrain the
resource estimate. Gold mineralization at similar grades exists lateral to and
below the current constraints but at this time the drilling is not close enough
spaced to be considered to meet the requirements to be included in the resource.
NARRATIVE OF CURRENT ESTIMATES VS PREVIOUS ESTIMATES
The Inferred Mineral Resource is a substantial increase from the 0.5 million
tonnes at 7 g/t Au or 110,000 ounces (Possible & Probable) estimated by
Muscocho, 1989 (Lakefield Research, 1989 Recovery of gold from Jerome Project
samples for Muscocho Explorations). The historical Muscocho estimate was
prepared using 30m long section polygons, a cutoff grade of 4.5g/t Au, a
specific gravity of 2.6 g/cc, was un-cut and un-diluted. While conforming to
Association of Professional Engineers of Ontario (APEO) and National Policy 2a,
this historical resource does not conform to the current CIM classifications.
Ore blocks were constrained to the old mine workings and did not include a 30 m
crown pillar.
A Qualified Person, as defined in NI 43-101, has not done sufficient work to
classify the historical estimate referenced herein as a current Mineral
Resource. The Company is not treating the historical resource referenced herein
as a current Mineral Resource. The historical estimate, while indicative of the
presence of mineralization, is not compliant with the CIM classifications and
should not be relied upon.
ADDITIONAL OPPORTUNITIES
In addition to the NI 43-101-compliant Mineral Resource disclosed herein, BCS
estimates that using a low-grade, open pit scenario for further drilling in and
around the mine workings the resource at the Jerome Mine Project could
potentially be both increased and the category be advanced to Indicated. These
opportunities are conceptual in nature and it is uncertain if further
exploration will result in targets being delineated as an updated Mineral
Resource.
DATABASE
Augen Gold drilled 33 core holes totaling 4375 m in 2010. These were drilled in
the eastern portion of the deposit with an average grid spacing of 25m. The NI
43-101-compliant resource estimate used the results from the Augen Gold 2008 and
2010 drill holes as well as 917 surface (average 25m spacing) and underground
core holes (average 10m spacing) drilled by previous property holders, results
of previous underground 2m spaced chip/channel sampling by Jerome Gold Mines and
assays from 15 surface trenches. While much of the historical data is not
directly verifiable (lack of assay certificates, no QA/QC information, unknown
analytical techniques) BCS believes that the quality of the data coupled with
the twinning of several holes by Augen Gold is sufficient to indicate the
presence of gold mineralization and provide an Inferred Resource. The current
drill core is stored on a secured area on the Jerome Mine property, in Osway
Township, near Gogama, Ontario.
BCS composited the drill hole and channel sampling assays into 1m composites,
non-assayed intervals were given a zero value. A capping level of 30 g/t Au was
selected based on statistical analysis of the composited data. An inverse
distance squared algorithm was used to interpolate gold grades into 5m(x) by
2.5m(y) by 5m(z) blocks with the long axes aligned vertically and grid east-west
horizontally to approximately follow the trend of the known mineralization. A
50m by 5m by 50m search ellipsoid oriented in the same direction as the blocks
was used to weight average a minimum of three and a maximum of 9 composited
samples. Only those blocks below the overburden and outside of the mined area
were considered in the Mineral Resource estimation. The Mineral Resource was
further constrained by a 0.3g/t Au assay shell around the two main zones (Main
and South Zones) to provide two estimates, one within the main zones
(constrained) and one that includes the lesser explored, subsidiary
mineralization (unconstrained).
CONSULTANT'S RECOMMENDATIONS
BCS recommends that further in-fill drilling be carried out in the area
immediately west of the mine workings where, due to lack of data support, the
historical drill results could not be used in the estimate. Re-examination and
possibly fill-in sampling of available core using current analytical techniques
would serve to assess the low-grade potential outside of the obvious quartz vein
zones. BCS further recommends a Preliminary Assessment be carried out to assess
the potential economics of mining the Jerome Mine Project deposit by open pit.
MANAGEMENT'S PLANS
The Company plans to have up to three diamond drills on the North Shore this
year and is currently defining two zones of up to 1.8 km each. In light of the
results of the NI 43-101-compliant Mineral Resource, further drilling will be
completed at the Jerome Mine Project area. In addition, additional geophysical
induced polarization and soil gas hydrocarbon surveys will be completed
throughout several key prospective areas within this 45 km-long property.
QP SIGN-OFF
The Mineral Resource estimate for the Jerome Mine Property has been prepared by
Philip Burt, MET, B.Sc., P.Geol., and Patrick Chance, M.Sc., P.Eng., Geological
Engineer, each being an independent Qualified Person under the definitions
established by NI 43-101, and each having reviewed and approved the contents of
this release.
About Augen Gold
Augen Gold is a gold exploration company with 23,685 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.
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.
For further information on the Jerome Mine Property, please refer to the
Company's NI 43-101-compliant technical report entitled "Technical Report on the
Jerome Mine Property" dated July 27, 2007, and available on www.sedar.com.
For more information on the South Swayze Project, please also refer to the
Company's NI 43-101-compliant technical report "Amended and Restated Technical
Report on the Augen Gold Corp. Claims, Porcupine Mining Division, District of
Sudbury, Ontario, Canada" (effective April 8, 2008, available on the Company's
profile at www.sedar.com along with the Company's other relevant documents).
For more information on Augen Gold, visit our website at www.augengold.ca. Read
our blog at www.augengold.wordpress.com, and follow us on www.twitter.com
(#augengoldcorp).
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.
Shares outstanding: 127,711,347
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