Oct 27 2010
Augen Gold Corp. (TSX VENTURE:GLD) has provided further information on its gold exploration results near Cote Lake within the eastern part of its 100%-owned South Swayze Property, located approximately halfway between the mining centers of Sudbury and Timmins in Ontario and approximately 200 metres northwest of a substantial discovery at Coté Lake.
"The Soil Gas Hydrocarbon (SGH) mapping we are using permits us to make highly refined estimates of the size of the deposits near Coté Lake," said J. David Mason, CEO of Augen Gold Corp. "We see two sizeable anolomalies in this area, one projecting from an area adjacent to Trelawney Mining and Exploration Inc.'s promising new gold discovery, and the other trending in a more northeasterly direction. Each looks to be at least equivalent to the anomalies identified over Opeepeesway Lake this Spring, and trenching and sampling on the anomalies west of Coté Lake will commence shortly."
The Cote Lake Gold Zone has yielded several zones of Soil Gas Hydrocarbon (SGH) anomalies potentially indicative of gold mineralization that are associated with I. P. chargeability anomalies.
SGH geochemistry is organic and can detect hydrocarbon based compounds that provide a signature directly related to bacteriological interaction with a target such as a hidden gold deposit.
Augen Gold was first active within this area in October-2008 as part of their property-wide prospecting program, collecting several grab samples that returned up to 3.25 g\t Au. The company then completed one drill hole (WC10-38) in April, 2010, before drilling was halted pending completion of a financing (see Augen Gold news release of June 07, 2010). This hole showed common weak alteration, local minor disseminated pyrite, and local very weakly anomalous gold.
A 2.4 kilometre (E-W) by 2.0 kilometre (N-S) grid (the West Cote Lake Grid) was installed in June, 2010, followed by geophysical surveys in July, 2010, and the collection of 1,085 soil samples in August, 2010. Actlabs of Ancaster, Ontario recently analysed these samples for their SGH signature and provided an interpretation:
An extensive zone of SGH anomalies in the northwestern half of the grid is up to 500 metres wide, strikes northeast for over 1.5 kilometres, and appears to straddle the northeast striking contact between supracrustal rock (to the northwest) and the Chester Granodiorite (host to the Cote Lake Gold Zone) to the southeast.
The northeastern part of this anomaly intersects a northerly striking zone of SGH anomalies that is up to 250 metres wide and that extends south along the mid-point of the grid to the southern property boundary. Several I. P. chargeability anomalies occur within these two zones, or flank them.
A smaller J-shaped zone of SGH anomalies located within the northeastern quarter of the grid near the property boundary is up to 250 meters wide, strikes northerly and is coincident with several I. P. chargeability anomalies.
Prospecting within the West Cote Lake Grid is currently underway and several areas bearing disseminated pyrite have been selected for stripping.
Moreover, soil samples are currently being collected within the Schist Lake Grid, which covers a large area extending from northwesterly to northeasterly of the West Cote Lake Grid; these will be analysed for their SGH signature. This area had been surveyed with I. P., VLF and mag earlier this year.
The current exploration program for the South Swayze Project started in late September of 2009 and to date, approximately 350 line kilometres have been surveyed with geophysical methods, 3,640 soil and lake sediment samples have been analysed for their SGH signature, and 80 drill holes totalling over 12,500 metres have been completed. This program also includes Augen Gold's current drilling campaign along the east arm of Opeepeesway Lake near the Jerome Mine.
Augen Gold has been successful in raising approximately $9.1 million in financings in 2010 and is well financed to achieve its exploration milestones. Since inception in October 2006, the Company has raised over $20 million for the South Swayze Project.
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. The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource.