Augur reports Java gold project update

The following is an excerpt taken from Australian-listed firm Augur Resources Ltd quarterly report ended 31 December 2011 released on Monday.

The Company?s Indonesian projects are the Wonogiri project and the Jampang project, both located on the island of Java.

Wonogiri Project - (Augur 51%)
During the quarter, Augur completed the first phase earn-in requirements for a 51% stake in the Wonogiri project. This is a significant event as the Wonogiri project has, and continues, to indicate the presence of significant gold and copper mineralisation.

Drilling during the quarter continued to focus on defining gold and copper mineralisation at the Randu Kuning prospect. In addition, two drill rigs were engaged to undertake reconnaissance drilling on epithermal targets in the northern region of the Wonogiri project.

At the Randu Kuning prospect significant results were returned from most holes including hole WDD021 which returned 132.0 metres at 0.75 g/t gold and 0.17% copper from 45.5 metres at 52.0 metres at 0.31 g/t gold and 0.11% copper and hole WDD019 which returned 95.5 metres at 0.74 g/t gold and 0.16% copper from 41.0 metres depth, including 5.0 metres at 5.08 g/t gold and 0.50% copper from 82.0 metres and a further 66.0 metres at 0.47 g/t gold and 0.11% copper from 198.5 metres.

The drilling to date indicates that there is a significant shallow gold-copper porphyry mineralised zone at Randu Kuning. Mineralisation within the oxide zone extends from surface and grades into a sub vertical suiphide zone generally between 20 and 40 metres depth. Previous drilling has intersected gold mineralisation at depths of over 400 metres.

The extensive gold and copper mineralisation is associated with a microdioritic to dioritic intrusive porphyry body which has extensive potassic alteration in the central portion of the Randu Kuning prospect. Mineralisation is dissemination within the intrusion and also within extensive stockworking and sheeted qua?tz veining zones.

An extensively altered feldspar porphyry has been identified directly north of Randu Kuning in hole WDD022. The style of alteration indicates the potential for mineralisation below the hole path of WDD022. Hole WDD022 did intersect a number of gold mineralised zones including 4.5 metres at 1.05 g/t gold from 43.0 metres and 1.0 metre at 4.99 g/t gold from 62.0 metres.

Hole WDD025 was drilled approximately 320 metres south of the central Randu Kuning porphyry zone. This hole was targeting a coincident magnetic high and surface geochemical anomaly that is located within a mineralised corridor of over 1,300 metres strike length. This hole intersected gold mineralisation in a number of zones including 35.7 metres at 0.34 g/t gold from 145.8 metres and 9.1 metres at 0.53 g/t gold from

185.9 metres. The gold zones in WDD025 may indicate that the Randu Kuning mineralisation extends further south.

Augur has commenced a deep drilling program to test for higher grade copper and gold mineralised zones at depth and to test for the western edge of the mineralised system at depth. Porphyry systems such as that at Wonogiri have the potential for high grade copper and gold adjacent to the central intrusive zone.

Surface trenching, and geological mapping continued during the quarter over regional targets. Trenching has been used to define a number of anomalous zones proximal to the Randu Kuning porphyry.

The most significant trench results received for the quarter are from three short trenches on the northern boundary of the Melikan prospect. Results include 1.5 metres at 1.07 g/t gold, 3.0 g/t silver and 0.63% zinc. The Melikan prospect is located approximately 1,700 metres to the south of Randu Kuning.

Average measured specific gravity for the mineralised zone at Wonogiri is approximately 2.74.

Jampang Project
During the quarter Augur received an independent maiden Inferred Resource estimate of 5.5 Mt at 0.91 g/t gold, 2.8 g/t silver and 0.14% ?opper (cut-off 0.4 g/t gold) for the Central Jampang Gold project.

The resource is estimated to contain 161,000 ounces of gold, 494,000 ounces of silver and 7,800 tonnes of copper.

The resource estimate includes three zones within the Jampang project area. These zones are Lipi, Puteran Simpang arid PasirKeusik South. The majority of the resource estimate is contained in the Lipi zone.

The resource was estimated using Inverse Distance techniques based on a total of 140 drill holes including reverse circulation and 41 diamond holes. Holes were generally drilled on fences of 100 metres along strike and 40 to 80 metres across strike.

The block model used in the estimation was based on 5 (cross strike) x 5 (along strike) x 5 (depth) metre blocks covering each of the zones. Extrapolation along strike and interpolation between drill sections was limited to a maximum of 75 metres.

The resource remains open at depth at all three zones. Potential for additional resource exists along strike particularly at Lipi.

The company is currently in discussions with PT Golden Pricindo Indah (Golden) the owners of the Jampang project, regarding revising the terms of the call option which the company has to purchase a 90 % interest of Golden for US$ 9.0 million option (?option agreement?) (end of excerpt)