TORONTO, June 16 /CNW/ - Augen Gold Corp. ("Augen Gold" or the "Company") (TSX-V: AUJ) is pleased to provide an update of ongoing work at its 100% owned Jerome Mine property in Ontario.
Highlights
- 21 drill holes totaling 10,449 metres were completed between January
and March to test the depth and strike extensions of the previously
known gold bearing zones.
- Assay results for all 21 holes and 5 unanalysed Osprey Gold
Corporation holes are still pending and will be released on receipt
of results.
- The majority of the holes intersected one or more of the Main Zone,
South Zone 1 and South Zone 2.
- The potentially gold-bearing alteration zones were intersected to
depths of 640 metres - as much as 240 metres below the historical
drilling, and with estimated true widths of up to 35 metres. The
historical drilling was concentrated above the 350 metre level of the
Main and South Zones.
- Drilling along strike confirmed the extension of the Main Zone to the
west and potentially to the east. The strike length of the
potentially mineralized structures is approximately 2,500 metres.
- Assay results of the initial drilling are expected within the next
few days.
A map showing the location of drill holes can be viewed on Augen Gold's website (http://www.augengold.ca).
"We were very pleased with our Phase 1 drilling program. Whilst we await analytical results from our drilling we are encouraged by geological indications which suggest the mineralized structures at Jerome extend to depth and along strike. We now have indications that the potentially gold-bearing structures are present to 640 metres in depth and 2,500 metres along strike. We anticipate receiving assay results from some initial drill holes in the next few days" says Michael Fowler, President and CEO.
The Jerome Mine operated between 1940 and 1942, producing 56,200 ounces of gold and 15,600 ounces of silver. Subsequent surface and underground exploration programs performed up until 1989 expanded "probable and possible" resource estimates to 577,495 tons with a grade of 0.20 oz/ton Au (non-NI 43-101 compliant). Augen Gold's recent winter diamond drill program was designed to explore for extensions of the mineralized system at depth and along strike. The Jerome gold deposit consists of three sub-parallel vertically-dipping mineralized zones - the Main Zone, South Zone 2 (80 m south of the Main Zone), and South Zone 1 (40 m south of South Zone 2). Smaller shoots occur north and south of the Main Zone and South Zone 1. The Company is encouraged by visual examination of drill cores recovered in the recent drill program, which demonstrated that the strong alteration zones associated with previously defined gold mineralization persist to vertical depths of at least 640 metres (2100 feet). Assay results for all of the drilling are expected in the following weeks.
The Jerome Mine is located in Osway Township, approximately halfway between the mining centres of Sudbury and Timmins, and is accessible by road year-round. It lies in the Swayze Greenstone Belt, which is the western extension of the richly mineral-endowed Abitibi Greenstone Belt. Augen Gold's claims straddle the Ridout Deformation Zone, widely believed to be the western extension of the Cadillac-Larder Lake Deformation Zone, which is associated with gold mines in the Kirkland Lake and Val d'Or areas.
Between January 3 and March 10, 2008, Augen Gold completed 10,449 metres of NQ sized core drilling in 21 holes. The first two holes were drilled to twin and validate historic drill holes. Hole AG08-01 twinned Muscocho Exploration's hole S88-114 (which tested only the South Zone), and was extended to intersect the Main Zone. Augen Gold's drill hole AG08-02 twinned Osprey Gold Corporation's hole JX04-24, both testing only the Main Zone. Holes 3 to 12 were designed to test down-plunge and down-dip extensions of the Main and South Zones defined by earlier workers, with the objective of expanding the volume of mineralized rock.
Holes 13 through 18 tested the inferred western strike extensions of the mineralized zones under Opeepeesway Lake, and holes 20 to 22 tested the inferred eastern strike extensions of the mineralized zones under Opeepeesway Lake. Holes 13 through 22 were drilled from the lake ice at locations based on interpretation of the Company's airborne geophysical data. The preliminary interpretation of holes 13 though 22 is that the Main Zone was intersected in holes 14, 17 and 21, while hole 21 is also believed to have penetrated the South Zones in the upper part of the hole. Holes AG08-13C, -15C, -18, -20 and -22 intersected minor quartz-carbonate veining, but no alteration zones similar to the Main and South Zones. Hole AG08-23 was drilled in a northwesterly direction to test structures interpreted from aeromagnetic data cross-cutting the mineralized zones. Alteration interpreted as the South Zone 1 and South Zone 2 was intersected, but no structures were encountered which explain the geophysical features.
Holes 1 through 12 all intersected one or more of the known potentially gold-bearing alteration zones. Please make reference to the table and figures in this news release. The key feature of the results is that the Jerome alteration zones were traced to between 60 and 240 metres below the level of the previous drilling. The bulk of the previous drilling took place above the 350 metre level. The following table summarizes the potentially mineralized alteration zones observed in the drill core:
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Hole Final
Number Azimuth Dip Depth South Zone 1 South Zone 2
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From To From To
Degrees Degrees Metres m m m m
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AG08-01 35 -58 531.00 165.10 165.52 192.14 206.55
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AG08-02 35 -48 295.00
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AG08-03 35 -54 474.00 232.10 233.20 272.90 299.73
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AG08-04 35 -56 636.00 252.18 271.35 312.94 349.19
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AG08-05 35 -54 567.00 208.95 209.30 243.40 270.05
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AG08-06 35 -58 622.00 253.40 275.42 321.40 324.85
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AG08-07 35 -71 613.50 199.23 220.71 253.14 277.8
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AG08-08 35 -70 557.00 200.95 203.81 244.30 286.86
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AG08-09 35 -63 699.00 428.75 451.75 483.50 489.90
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AG08-10 35 -63 747.00 314.50 383.25
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AG08-11 35 -62 660.00 424.90 461.38
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AG08-12 18 -58 744.00 262.58 265.41 325.06 330.89
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AG08-13C 8 -60 304.00
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AG08-14 8 -60 328.00
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AG08-15C 8 -60 297.50
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AG08-17 12 -60 421.00
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AG08-18 12 -60 321.00
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AG08-20 6 -60 315.00
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AG08-21 6 -45 375.00 81.19 96.35
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AG08-22 6 -60 313.00
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AG08-23 300 -45 353.00 160.00 167.00 206.70 207.25
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Hole
Number Main Zone
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From To
m m
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AG08-01 366.47 386.97
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AG08-02 130.50 155.90
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AG08-03 368.75 399.40
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AG08-04 536.30 544.16
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AG08-05 459.75 485.00
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AG08-06 528.44 533.92
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AG08-07 489.30 494.45
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AG08-08 490.22 493.62
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AG08-09 645.00 649.00
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AG08-10 660.33 713.80
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AG08-11 588.70 596.67
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AG08-12 704.59 726.98
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AG08-13
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AG08-14 126.88 130.00
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AG08-15
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AG08-17 192.00 208.55
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AG08-18
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AG08-20
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AG08-21 234.68 240.40
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AG08-22
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AG08-23
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The alteration zones are structurally controlled by brittle-ductile shears, which are likely part of the Ridout Deformation Zone. The alteration zones consist of highly sheared, sericitic and carbonated (calcite, dolomite and ankerite), 'bleached', pale grey to white felsic porphyries and metasedimentary wackes and arkoses of the late Archean Timiskaming series. Some have now been altered almost entirely to carbonate. Disaggregated quartz veins occur irregularly within these zones, and there are also 1 to 2 cm wide veins of quartz-carbonate-black tourmaline, and local streaks of fuchsite in South Zone 1. A broad envelope of one or more of iron-carbonate, hematite and calcite alteration is apparent in the country rock.
Augen Gold is well advanced in digitizing historical drill and underground sampling data. This data will be compiled with the results of Augen Gold's recent drilling to produce a 3D model of the mineralized zones, which will be used to optimize the next phase of exploration at the Jerome Mine site.
A final report on the airborne geophysical survey has been received from Fugro Airborne Surveys, and will form the basis for further exploration of Augen Gold's claims along 45 km of the Ridout Deformation Zone. A surface exploration program will be getting underway shortly to investigate and evaluate the many gold and base metal showings and geophysical anomalies throughout Augen Gold's extensive claim holdings.
Sample Processing
All core was photographed, measured and logged geologically and geophysically. Alteration zones and significant quartz veins or sulphide-bearing intervals are marked for sampling and sawn in half. Standards and blank samples are inserted at regular intervals. Half of the sawn core is retained and half is taken directly by Augen Gold's personnel to ALS Chemex's preparation laboratory in Timmins. There it is crushed and pulverized and the pulps are forwarded to ALS Chemex's analytical laboratories for gold assay and multi-element trace geochemical analysis. Random samples are riffle split after crushing and each pulverized split is analysed. Trace element analysis will be useful to identify quantities and distribution patterns of elements such as silver, molybdenum and sulphides. All core is stored in core racks at the Jerome Mine site. A total of 2,591 samples have been shipped for analysis.
Augen Gold is currently reviewing historical drill core. In particular, the Company is sampling drill core from five holes drilled by Osprey Gold Corporation in 2004, which were not sampled, and several other holes that were incompletely sampled. The results of this work will be reported when available, but will likely be in the next few weeks.
About Augen Gold
Augen Gold Corp. is a junior gold exploration company with 24,042 hectares of mining claims over a 45 kilometre length located in Swayze Greenstone Belt, including the formerly producing Jerome gold mine and directly adjacent to the Young Shannon gold deposit. The Company's objective is to aggressively explore the Jerome mine in order to explore the gold potential along strike on the contiguous mining claims, and to continue to expand its property portfolio with highly prospective mineral assets. The information contained in this news release has been reviewed and approved by Augen Gold's Senior Vice-President, Exploration, Christopher Marmont, P.Geo., who is the qualified person for the Company's Jerome Project under the definitions established by National Instrument 43-101. The diamond drilling program was conducted under direct supervision of Mr. Marmont
Please refer to Augen Gold's web-site for maps, photographs, geological details and additional information.
For more information on Augen Gold, visit our website at www.augengold.ca
The Company's documents may be accessed at www.sedar.com
The TSX Venture has not reviewed and does not accept 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.