Purecore Metals Inc. press release
Augen Gold Provides Progress Report on Swayze Property Deposit Size and Grade
CSE - Canadian National Stock Exchange ยท Canada
Shares outstanding: 24,880,685
TORONTO, Jan. 23 /CNW/ - Augen Gold Corp. ("Augen Gold" or "the Company") (TSX-V: AUJ) announced today that its ongoing work at the Jerome Gold Mine has enabled an upward revision from historical estimates of the potential size and grade of the Swayze Property deposit.
The Company advises that these potential grades and tonnage estimates remain conceptual in nature and insufficient exploration has been performed to define a mineral resource. The data will require further analysis to determine what additional exploration will be required to better quantify the size and grade of the deposit. It remains uncertain if this exploration would result in the Jerome gold deposit being advanced to the category of a mineral resource of potential economic interest. The following tables state the newly modeled estimates and the historical resource estimate performed by Muscocho Exploration Limited in 1989.
Conceptual Grade and Tonnage Estimates, Jerome Mine Contained Lowest Grade Grade, Gold, Shell, g/t Au Tonnes g/t ounces 1.0 to 2.5 11,800,000 to 2,300,000 2.0 to 4.0 765,000 to 290,000 3.0 to 5.0 1,500,000 to 250,000 4.6 to 8.6 225,000 to 70,000
Historical Resource Estimates, using Cut-off Grade of 0.115 opt (3.94 g/t) Contained Grade, Gold, Source Tonnes g/t ounces Muscocho 1984, 'not recoverable' No. 53,930 6.82 11,830 Cut-off: 4.46 g/t. Muscocho 1989, "probable and possible". 523,900 6.86 115,499 Cut-off: 3.94 g/t. Totals: 577,830 6.85 127,329
No. - near surface material close to crown pillar (Muscocho Exploration Ltd., Exploration report, May 1989). Whether or not this is recoverable is dependant on mining method and other geological, engineering and economic factors to be reviewed in the future. Historical Information: In the opinion of the Company, much of the work on the Swayze Property completed prior to 2001 appears to be reliable and to have been conducted by competent organizations. The pre-2001 data are considered historical according to NI 43-101 and these historical estimates are not NI 43-101 compliant. A qualified person has not done sufficient work to classify the historical estimates as current mineral resources or mineral reserves and the Company is not treating the historical estimates as current mineral resources or mineral reserves as defined in NI 43-101. Accordingly, the historical estimates should not be relied upon by investors.
Augen Gold has compiled available historical data from its 100% owned Jerome Gold Mine, located in Osway Township, Ontario. The mine was in production from 1941 to 1943 and development continued until 1945, when production ceased as a result of a shortage of labour due to the Second World War. When in production, the mine produced 303,966 tonnes at a head grade of 6.38 g/t Au yielding 56,878 ounces of gold and 15,114 ounces of silver with a gold recovery of 91.8%. Subsequent exploration programs were performed by different companies in 1974, 1980, 1984, 1988-1989, 2004 and by Augen Gold in 2008. Augen Gold's database includes the following data themes:
Drill hole assay intercepts digitized from maps and plans of previous operators Face chip samples reported on underground plans of the 200, 350, 500, 650 and 800 foot levels by Jerome Gold Mines (1939-1945) and Muscocho Exploration Ltd. (1988-1989) Results of trench sampling by Jerome Gold Mines - Results of diamond drilling performed by Augen Gold in 2008 Rock types and alteration zones derived from drill logs and examination of historical drill core Magnetic susceptibility measurements of drill core.
These data have been organized by MPH Consulting Limited to construct a 3D model, using Leapfrog (C) modeling software developed by Zaparo Ltd. Selected data from this model can be viewed on Augen Gold's website, www.augengold.ca. Please note that this is primarily a geological model intended to illustrate the distribution of the gold-mineralized zones at the Jerome Mine to assist in ongoing exploration and is an intermediate step along the path to determining a formal, NI 43-101 compliant mineral resource.
The Leapfrog program permits the construction of a series of shells, nested like the layers of an onion, that represent increasingly higher-grade volumes of rock. The higher-grade volumes are naturally smaller than, and nested inside, the larger, lower grade volumes of rock. The assay data from the Jerome Mine has been used to construct 39 grade shells between 0.5 g/t and 10.0 g/t Au at 0.25 gram per tonne increments. Previous work has determined that the specific gravity of the mineralized zones at Jerome is 2.8. With this knowledge, the volume of rock between each grade surface can be used to calculate an approximate tonnage for each shell. By adding the tonnage and contained grams of gold in each shell, Augen Gold has calculated conceptual estimates of the average grade and total tonnage of the deposit above, or within, any given grade shell, as shown in the table above.
The last well documented mineral resource estimate was performed by Muscocho Exploration Ltd. in 1989. Estimation parameters included a minimum mining width of four feet (1.2 m), a specific gravity of 2.8 and cut-off grades of 0.13, 0.115 and 0.10 ounces of gold per ton or 4.46, 3.94 and 3.43 g/t Au. Muscocho's resource estimate using the 3.94 g/t cut-off grade is shown in the table above. The Company believes that this resource is equivalent to an "inferred resource" as defined in the CIM Definition Standards on Mineral Resources and Mineral Reserves.
Correspondence between the modeled data and historical resource estimates is very good at grades above 2.5 g/t Au. The lower grade model shells are constrained by fewer data points, and are not regarded as reliable at the current state of knowledge. Further modeling will be used as a guide to optimize future exploration at Jerome.
Augen Gold's 2007-2008 exploration programs have added to the potential value of its Swayze Property. The conceptual modeling provides results consistent with historical reports and indicates potential for increasing the resources at the Jerome Mine. An update on results from Augen Gold's summer exploration program will be provided shortly.
Christopher Marmont, M.Sc., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the contents of this press release.
About Augen Gold
Augen Gold is a 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 determine the gold potential along strike on the contiguous mining claims, and to continue to expand its property portfolio with highly prospective mineral assets.
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.
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