Augur reports W. Java gold project update

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

Central Jampang Gold Project, West Java
The Central Jampang gold project covers an area of approximately 300 hectares in south-western Java. Augur has a two year option to acquire 90% of Golden which holds the IUPs which comprise the project. The licence area covers a highly prospective mineralised zone which had been a focus of exploration by Mispec Resources Inc ('Mispec') in the mid 1990s. Java hosts a number of gold deposits including the Pongkor gold-silver deposit (+2,000,000 ounce gold deposit) which is approximately 50 kilometres north northwest of the Central Jampang licence area.

The general geology of the area consists of Miocene/Oligocene andesite and dacite rocks overlain by recent volcanic tuffs.

Mispec identified and reported significant epithermal gold mineralisation associated with structural trends. Much of this mineralisation is reported to be open at depth and along strike.

Furthermore, Mispec undertook geophysical surveys subsequent to their main drilling program and identified anomalies associated with the known mineralisation and four additional anomalies which either have not been drill tested or have had only limited drill testing.

Mispec was planning to undertake further work at Jampang, but was hampered in raising sufficient funds due to negative sentiment in the market in light of the 1997 Bre-X scandal, the Asian financial crisis and the prevailing price of gold.

Augur is progressing towards establishing the preliminary JORC resource for the Central Jampang Gold project. Planned work at Jampang includes ground geophysics and extensive diamond and reverse circulation (RC) drilling which has now commenced.

Drilling is initially focusing on the Puteran Simpang prospect where gold mineralisation had been reported during the 1990s by Mispec. Diamond drilling is being undertaken to confirm previous results. Drilling will also be undertaken to define further mineralisation along strike and below the historically reported mineralisation.

Augur is also planning for a significant RC drilling program to test a number of geophysical and geochemical anomalies to commence in May or June 2010. (end of excerpt)