Augur to continue drilling program at Wonogiri project in 2012

ASX-listed miner Augur Resources Ltd said it will continue its drilling program at the Wonogiri project in Central Java next year, with an objective to determine a JORC compliant resources at the mining site.

The Wonogiri project consists of two Izin Usaha Pertambangan (IUP) or Mining Business Licences covering a total area of approximately 3,928 hectares in Central Java, Indonesia. The IUPs cover areas considered prospective for epithermal gold and porphyry gold-copper mineralisation. Augur can earn a majority interest of up to 80% in the Wonogiri project.

The Wonogiri project has become the flagship project of the company as drilling continues to indicate a significant area of mineralization associated with the Randu Kuning porphyry system. The mineralization at Randu Kuning has been identified from surface and remains open at depth. In addition, the porphyry mineralization remains open to the north and to the west.

The company has identified additional targets in close proximity to the Randu Kuning porphyry. These targets are epithermal vein targets which can be identified at surface. Rock chip sampling has returned some impressive results with values of over 16 g/t gold being returned from rock samples. Augur has started a program of drill testing these epithermal prospects.

Geophysical mapping and geological mapping of the area to the south of Randu Kuning has highlighted a further alteration zone. Field working and geochemical work will be undertaken during 2012 to determine the extent of mineralization in the area.

?Wonogiri is a significant project with size potential. Given the favorable results to date, this will remain our key focus for 2012. We will maintain an active drill program as we further define the resource and will undertake drilling assessment of the surrounding prospects,? it said.

At Jampang project, drilling of the Lipi deposits and satellite deposits was completed during the year. We are currently finalizing JORC resource estimates for the project as well as continuing metallurgical testing and determining potential feasibility of the project. A final decision on the project will be made in the near future. (demas)