Sunday 23rd October 2016

Resource Clips

Auriga reports Manitoba Gold Assays including 125.08 g/t over 7.6m

Resource Clips - essential news on junior gold mining and junior silver miningAuriga Gold Corp TSXV:AIA announced assays from the Nokomis deposit of its Maverick gold project in Manitoba. Results include

1.91 g/t gold over 7.3 metres
125.08 g/t over 7.6 metres (including 820.28 g/t over 1.1 metres)
12.27 g/t over 5.2 metres
2.95 g/t over 4.6 metres
5.1 g/t over 6.4 metres
9.65 g/t over 5.6 metres (including 62.23 g/t over 0.5 metres)

President/CEO Richard Sutcliffe tells, “Auriga Gold acquired the Maverick project just over a year ago. We really like both the regional exploration potential and the existing infrastructure in the area—this is the Flin Flon Mining Camp. Our focus until recently had been strictly on the Puffy Lake deposit, which is a resource that we built up to three-quarters of a million ounces. This winter we moved out for the first time to one of the satellite deposits on this regional trend, and we’ve come back with some really exciting results from the first drill holes on the Nokomis deposit.

Our main focus as a company is to become a gold producer, and we can do that in the near term—Richard Sutcliffe

“The purpose of the drill program was initially to firm up a historical showing and, really, we are focused on shallow resources,” Sutcliffe continues. “These are all from surface to a maximum depth of 63 metres, and there are some pretty exciting widths and grades here. This is a very high-grade, near-surface deposit. I think it’s likely to become a significant source of feed for our Puffy Lake Mill, which is just seven kilometres away. It also demonstrates a very significant opportunity for resource expansion on this property package. It’s a very important mineralized trend—this is the second deposit we’re drilling on it.

“There is a mill on the property. We do see an opportunity to restart test mining on the property within the year. Our main focus as a company is to become a gold producer, and we can do that in the near term. In parallel with that, we keep a drill turning on the property, and we see exciting exploration potential—we’re committed to maintaining an ongoing exploration program. This is a significant opportunity, and we think we can quickly get the company to in excess of 40,000 ounces of gold production on an annual basis.

“We have a PEA and a 43-101 resource study, and we are going to move this forward into a test-mining program based on the PEA. [Puffy Lake] is a historical producer,” Sutcliffe notes. “It produced gold for just under two years back in 1988-1989. We have all the infrastructure on site, major infrastructure permits, and things like that are in place to resume. So this is an advanced-stage property with near-term production potential. We would anticipate initiating test mining at the end of this year. We would then wrap the results of that test mining into feasibility [study], then declare commercial production in the following year.

“The PEA outlines an $18 million program, and about half of that is earmarked for mill and site refurbishment. Then about half of the program is earmarked for exploration drilling, definition drilling, underground rehab and surface-pit preparation. We’ve got financing going right now, so there will be a couple of news items on that shortly.

“Manitoba is a great province,” Sutcliffe concludes. “It’s a great jurisdiction that’s very supportive of mining. We’re in a region that has an important mining heritage, and we’ve had a lot of support from the Manitoba government in driving this forward. We’re really excited to have a project that has such near-term development and production potential. We think we’re on a very significant regional structure that has lots of gold exploration opportunities. We see a lot of upside, and we think as we drive this to our objective there is some significant opportunity for share-price appreciation.”

View Company Profile

Richard H. Sutcliffe

or Alison Tullis
Manager, Investor Relations

by Ted Niles

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