Augur?s main target at W. Java project returns 20m at 2.79 g/t of gold

Australian firm Augur Resources Ltd said Wednesday that the results of the first diamond drilling in the main Lipi zone within its Central Jampang gold project in south-western Java confirmed mineralization in the area.

The driling results of the JADD10 hole indicate significant gold mineralisation with 20m at 2.79 g/t gold from 34.6m depth, the company said in statement.

The results support historical results which indicated extensive shallow gold mineralisation within the Lipi prospect, the firm said, adding gold in hole JADD10 is associated with a strongly silicified hydrothermal breccia.

The Lipi gold zone has historically been identified over 600m in strike length with the mineralisation open to the south and at depth. Interpretation by Augur suggested that the mineralisation may exist further north that previously defined.

Drilling by Augur during 2010 has confirmed that gold mineralisation exists further to the north at the Lipi North prospect (previously reported hole JADD8 returned 10m at 7.47 g/t gold). This has been further supported by the drilling of hole JADD9 which intersected 4m at 1.18 g/t gold and 12.12 g/t silver from 147m.

The drilling of hole JADD13 is underway. Core from holes JADD11 and JADD12 are currently awaiting analysis.

A detailed ground magnetic survey will commence this week with the aim of defining additional drill targets, in particular to the east and west of the Lipi mineralisation.

Augur has planned a detailed drill program with the aim of defining an initial JORC compliant resource by late 2010. The resource is expected to include mineralisation within the Lipi and Puteran-Simpang prospects. (kanti)