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Augur Resources Propels Interest In Wonogiri Project To 80%

Augur Resources (ASX: AUK) has met the required US$3.5 million (A$3.38 million) expenditure to increase its stake in its flagship Wonogiri project in central Java to 80%.

It has also started a Pre-Feasibility Study with the target of completing an initial pit design during 2012 and the Pre-Feasibility Study itself by May 2013.

"Augur has again achieved a key milestone for the Wonogiri project with the company meeting its earn‐in requirement to acquire 80% of Wonogiri," Grant Kensington, managing director, said.

"This follows the significant achievements of defining the large Randu Kuning gold‐copper resource and becoming the registered owner of 90% of PT Alexis Perdana Mineral, all which have been achieved in the last few months."

The company has to date defined a combined JORC Measured, Indicated and Inferred Resource of 1.54 million gold equivalent ounces at the Randu Kuning gold‐copper deposit.

It had also earlier this month received official approval for the conversion of PT Alexis Perdana Mineral, the holder of the Wonogiri copper-gold project in Indonesia, to an official foreign owned company.

Augur's 90% registered interest in PT Alexis Perdana Mineral had represented a 51% beneficial ownership in Wonogiri.

The remaining 10% interest is held on behalf of PT Oxindo, a subsidiary of the Minerals and Metals Group, Augur's joint venture partner.

Wonogiri

The Wonogiri project covers 3,928 hectares and has been shown to concentrate grades of up to 21.2% copper and 90.6 grams per tonne (g/t) gold from the Randu Kuning porphyry deposit.

In mid-May Augur delivered to the market favourable metallurgical results for the Wonogiri project which showed high recoveries of up to 89% gold and 96.1% copper from the Randu Kuning porphyry deposit using simple flotation testing.

Further upside is that detailed analysis of the concentrate indicated that it contained silver of up to 77.3g/t silver.

The concentrate appears to be high quality with very little lead (0.04%), zinc (0.09%) and arsenic (0.02%).

Randu Kuning remains open at depth. In addition, the porphyry mineralisation remains open to the north and to the west.

The project lies within the Sunda‐Banda arc, an area considered prospective for epithermal gold and porphyry copper‐gold mineralisation.

Indonesia

Indonesia is host to some of the world's largest gold-copper deposits, notably the 120 million gold ounce and 96.6 billion copper pound Grasberg, 12 million gold ounce and 12.6 billion copper pound Batu Hijau and 28 million gold ounce and 15 billion copper pound Tujuh Bukit.

Gold-copper porphyry deposits continue to be highly prized given the high tonnage potential and possibility for large gold and copper production.

The mining economics are also extremely favourable with low operating costs of well below US$500 per ounce for gold and under $0.90 per pound for copper, with further upside being the potential for long mine lives.

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