AIA

Auriga Gold Corp. (TSX VENTURE:AIA) ("Auriga Gold" or the "Company") today filed
its updated Preliminary Economic Assessment ("PEA") report on the Combined Open
Pit and Underground Operation at the Puffy Lake Mine, Maverick Gold Project,
Flin Flon, Manitoba, to SEDAR (www.sedar.com) and to the Auriga Gold website
(www.aurigagold.ca).


Highlights of the PEA:



--  A total of approximately 2,039,000 tonnes of mill feed would be produced
    from five open pits and the underground mine and processed at the to-be-
    refurbished existing mill at a rate of 750 tpd. The project would
    operate for 7.5 years and produce a total of about 348,000 oz Au for
    sale. The existing mill and infrastructure would be refurbished
    concurrently with the development of the initial open pit. 

--  The Base Case is based on a gold price of US$1,400/Au oz (at Dec 31/11
    the 12 and 24 month trailing averages were US$1,568/oz and US$1,396/oz
    respectively). The projected pre-tax NPV(8%) is $79.6M; pre-tax IRR is
    84%; with pre-tax payback reached in 20 months of processing. It is
    projected that 50,000 tonnes of mill feed would be processed during mill
    ramp-up in the pre-production year. 

--  The capital costs amount to $18.1M and include a 20% capital cost
    contingency. The projected life of mine sustaining capital costs
    including closure costs amount to $26.6M. 

--  The projected average production cash cost is $950/oz Au. This cost
    includes $873/oz Au for operating costs and $77/oz Au for sustaining
    capital costs. 



Richard Sutcliffe, Auriga Gold's President and CEO commented, "We are pleased to
have the PEA report completed and filed, as we continue to drive our Maverick
Gold Project forward. With the existing 1,000 tpd mill and related on-site
infrastructure, this Project provides an opportunity to resume production at a
rate of approximately 40,000 ounces per year, with relatively low capital
requirements and robust economics."


In addition, the company is now drilling the Nokomis deposit located 8 km
northeast of the Puffy Lake mine and mill on the Maverick Gold property. It is
our intention to continue expanding the gold resources on the Maverick Project
with particular emphasis on potential near surface mineralization.


Technical information related to the updated PEA contained in this news release
has been reviewed and approved by David Orava, M.Eng., P.Eng., Associate Mining
Engineer with A.C.A. Howe International Limited, who is an independent Qualified
Person as defined by NI 43-101, with the ability and authority to verify the
authenticity and validity of this data.


The updated PEA makes use of Inferred Mineral Resources which is considered too
speculative geologically to have economic considerations applied to them that
would enable them to be categorized as Mineral Reserves. Mineral Resources which
are not mineral reserves do not have demonstrated economic viability.


About Auriga Gold

Auriga Gold Corp. is a Canadian mine development and exploration company focused
on developing the Puffy Lake Mine and expanding gold resources on its Puffy Lake
and Nokomis deposits (the "Maverick Gold Project"). The Company plans to upgrade
and expand the resources at the Maverick Gold Project, initiate test mining,
complete feasibility studies of mineral reserves, and bring the Puffy Lake Mine
back into production. The Puffy Lake Mine includes a 1,000 tpd flotation mill, a
developed underground ramp to 135 metres depth, is fully road accessible and
close to existing mining infrastructure. The Maverick Gold Project is located in
the Flin Flon Greenstone Belt of Central Manitoba.


Certain information regarding the Company including management's assessment of
future plans and operations, may constitute forward looking statements under
applicable securities laws and necessarily involve risks associated with mining
exploration and development, volatility of prices, currency fluctuations,
imprecision of resource estimates, environmental and permitting risks, access to
labour and services, competition from other companies and ability to access
sufficient capital. As a consequence, actual results may differ materially from
those anticipated in the forward-looking statements. A feasibility study has not
been completed and there is no certainty the disclosed targets will be achieved
nor that the proposed operations will be economically viable. This press release
is not and is not to be construed as an offer to buy or sell securities in the
United States.

(TSXV:AIA)
Historical Stock Chart
Von Jun 2024 bis Jul 2024

(TSXV:AIA)
Historical Stock Chart
Von Jul 2023 bis Jul 2024