Augen Gold Announces TSX Approval of Its Option an
Augen Gold Announces TSX Approval of Its Option and Joint Venture Agreement With Sanatana
3/30/2011 9:22:57 AM - Market Wire
TORONTO, ONTARIO, Mar 30, 2011 (MARKETWIRE via COMTEX News Network) --
Augen Gold Corp. (TSX VENTURE: GLD) is pleased to announce that the TSX-V has approved its option and joint venture agreement with Sanatana Diamonds Inc. (TSX VENTURE: STA) (originally announced on December 15, 2010 and effective February 14, 2011). In this agreement, Sanatana acquires the right to earn up to 51% ownership of 46 of Augen Gold's active mineral claims, comprising 19,006 acres, to be known as the Watershed Property, over part of the Southern Swayze Greenstone Belt within the townships of Yeo, Chester, Neville, and Benneweis, Ontario. The 51% earn-in agreement requires Sanatana to spend $5 million on exploration over the next three years and to complete a pre-feasibility study within five years.
Sanatana has fulfilled the initial terms of the option and joint venture agreement with Augen Gold, dated Feb 14, 2011 (please see GLD press release dated February 16, 2011), by making a first tranche payment to Augen Gold Corp. of $150,000 CDN and 2,000,000 STA shares. These shares are subject to a statutory hold period expiring on July 26, 2011. GLD is to receive an additional 3,000,000 STA shares in two tranches and has the right to acquire up to 10% of any new issue by STA.
The Watershed Property mineral claims are located both along strike and across section from the recent Trelawney Mining and Exploration's Cote Lake gold discovery. The geology of the Watershed Property is typical of the Swayze Greenstone Belt, comprising structurally complex mafic to felsic metavolcano-sedimentary supracrustal rocks intruded in places by granodiorite to diorite rocks of the Chester Granitoid Complex. There are ten historical high-grade gold mineralized showings highlighting the gold-bearing tenor of the property.
Sanatana proposes to immediately undertake a ground I.P. geophysical survey over a 1,400 acre area adjacent to the Trelawney property boundary to attempt to delineate extensions to the Cote Lake gold mineralization. It is anticipated that this work will define targets for the drilling program this season.
Other fieldwork to come after spring break-up will include acquisition of detailed airborne geophysical data, geological mapping, and systematic geochemical sampling over the entire property area. New areas of interest brought to light by this work will become the focus of future drill programs.
About Augen Gold and Its South Swayze Project
Augen Gold (TSX VENTURE: GLD) 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, 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. 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.
For more information on the South Swayze Project, please 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).
For more information on Augen Gold, visit our website at
www.augengold.ca.
The Company's documents may also be accessed at
www.sedar.com.
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: 127,691,347
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.
Contacts: Augen Gold Corp. J. David Mason Chief Executive Officer and Director 416-915-4231 dmason@augengold.ca
www.augengold.ca
SOURCE: Augen Gold Corp.
mailto:dmason@augengold.ca
https://www.augengold.ca