Augur reports Indonesian gold, cooper projects update

The following is an excerpt taken from Australian-listed firm Augur Resources Ltd quarterly report ended 31 December 2010 released on Monday.

Central Jampang Gold Project
During the quarter Augur continued its successful diamond drill program at the central Jampang project. The focus of the drilling during the period continued to be the main Lipi prospect.

An additional 11 diamond holes were drilled during the period and results received for 10 holes, with only two holes not returning significant results.

Interpretation of the data received from the current drill program indicates that the mineralisation at Lipi is epithermal supergene enriched gold ? copper.

The significant results received during the quarter continue to provide encouragement at Lipi and within the Central Jampang project as a whole. Key features of the Lipi mineralisation are the shallow nature of the mineralisation, multiple zones of gold mineralisation, occurrence of very significant copper mineralisation in the south of the prospect and the steep dipping nature of the mineralisation.

Interpretation of the recently acquired ground magnetics and induced polarisation (IP) data supports the potential for extension of the Lipi mineralisation to the north and south of the currently known mineralisation.

Copper mineralisation at Lipi had historically been identified, however systematic sampling for copper is understood not to have occurred. Drilling by Augur suggests that significant copper mineralisation may occur in the southern portion of the Lipi deposit. Further significant copper mineralisation was intersected during the quarter including 5 metres at 2.42% copper from 159 metres in hole JADD39 and 1 metre at 6.66% copper from 176.5 metres in hole JADD34.

An RC drilling program is planned for Lipi, Lipi East, Lipi West, Lipi North and Puteran Simpang and additional IP targets. This program is expected to commence in early 2011.

Wonogiri
Augur?s wholly owned subsidiary; Augur Investments Pty Ltd (?Augur?), entered into a Membrandum of Understanding (MOU) agreement with PT Oxindo Exploration (?Oxindo?) and PT Alexis Perdana Mineral (?APM?) during the quarter whereby Augur can earn a majority interest of up to 80% in the Wonogiri project in central Java, Indonesia.

The Wonogiri project consists of two Izin Usaha Pertambangans (IUPs) or Mining Business Licences covering a total area of approximately 3,928 hectares. The IUPs cover areas considered prospective for epithermal gold and porphyry copper-gold mineralisation.

An extensive database of information was collected and collated by Oxindo including geological, geochemical, drilling and ground magnetic data. This data is being utilised to direct the current field program. Oxindo targeted Wonogiri for large porphyry copper deposits.

Gold mineralisation has been identified both near surface (<5 metres) and at depth (> 400 metres) within the north of the project area.

Initial geological mapping indicates significant areas of extensively altered volcanics with multiple quartz veining. The gold at surface appears to be directly related to quartz veining. Multiple extensive veining occurs at surface. To date quartz veining with a cumulative strike length of 2.3 kilometres has been identified.

Historically, a total of five diamond holes have been drilled within the IUPs. Two of the diamond holes intercepting significant gold intervals including hole DHH1 which intersected 49 metres at 1.05 g/t gold and 0.28% copper from 83 metres depth, a further 15 metres at 1.61 g/t gold and 0.20% copper from 137 metres and yet a further 6 metres at 1.51 g/t gold and 0.17% copper from 155 metres. Hole DHH2 returned 37 metres at 1.77 g/t gold and 0.24% copper from 458 metres.

Rock chip sampling by Augur has confirmed the presence of gold and copper with a total of 18 samples from 52 rock chip samples returning greater than 1.0 g/t gold with six samples returning greater than 7.0 g/t gold. Maximum copper results from the rock chip sampling returned 2.89% copper.

Mapping and trenching has been planned and will be undertaken during early 2011. Preliminary drill targets have also been identified and, subject to drill rig availability, Augur expects to commence drilling in the first quarter of 2011. (end of edited excerpt)