Dec 9 2010
Auriga Gold Corp. (TSX VENTURE:AIA) has commenced the first phase drilling program at the Maverick Gold Project, located 65 kilometres northeast of Flin Flon, Manitoba.
The Maverick Gold project includes the past producing Puffy Lake Mine and the adjacent Nokomis Property. Initially Auriga Gold will conduct a 2,500 metre phase I drill program to confirm the historical (pre-NI 43-101) gold resources at the Maverick Gold project thus forming the basis for a preliminary economic assessment.
Richard Sutcliffe, Auriga Gold's President and CEO stated, "We are very pleased to be starting the initial round of drilling at the Maverick Gold Property and the prospect of improving the quality and quantity of the existing gold resources at the Puffy Lake Mine. Our focus will initially be on exploration drilling results; however, this property has excellent location and infrastructure and we anticipate an opportunity to quickly develop a mine plan at Maverick Gold."
The initial confirmation drilling program will consist of approximately 20 holes on three sections totaling 2,500 metres. Initial assay results are anticipated early in 2011 and the phase I program will be completed early in the New Year. A follow-up phase II program of up to 5,000 metres of shallow drilling is currently planned to follow up on the confirmation drilling. Bruce Mackie, P.Geo, is the qualified person for the program.
The Puffy Lake Mine produced over 28,000 ounces of gold in 1988 and 1989. The Mine features a 1,000 tpd mill and concentrator in excellent condition, a deposit developed by a ramp to a depth of 130 metres, and related mining infrastructure. In 1993, Kilborn Engineering Pacific Ltd. estimated that the property contained probable resources of 1,346,200 tonnes of mineralization @ 8.57 g/t Au and possible resources of 833,700 tonnes @ 7.15 g/t Au. The resource was estimated as part of a 1993 feasibility study prepared for Pioneer Metals and uses a cut-off grade of 3.5 g/t Au and minimum mining width of 1.2 metres. The resource is a historical resource that predates NI 43-101, is not compliant with current definitions, has not been verified by the Company, and consequently should not be relied on by investors.
Source: Auriga Gold Corp.