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Augur Resources Intersects 289 Metres At 0.68g/t Gold At Wonogiri Project, Indonesia

Augur Resources (ASX: AUK) has intersected 289 metres of mineralisation at an average grade of 0.68 grams per tonne (g/t) gold equivalent at the Wonogiri gold copper project in Indonesia.

Results from this drilling program have defined the western boundary of the mineralisation, which will be used in the estimation of a JORC Resource, targeted for the June quarter 2012.

Highlights from the latest results include:

- 289 metres at 0.68g/t gold equivalent from 156 metres, including 17 metres at 1.46g/t gold equivalent;
- 88 metres at 0.82g/t gold equivalent from 96 metres; and
- 96 metres at 0.52g/t gold equivalent from 224 metres.

These results indicate that mineralisation at the Randu Kuning porphyry deposit widens at depth. Gold and copper mineralisation extends from the surface to more than 420 metres and remains open at depth.

Interpretation of geological data indicates that mineralisation could extend further south than the area currently defined by drilling.

New targets near Wonogiri

In February Augur identified a new epithermal prospect at the Wonogiri Gold-Copper Project in central Java, 690 metres southeast of the Randu Kuning porphyry.

The newly discovered Gawe prospect was identified by drilling, which returned:

- 15 metres at 0.6 grams per tonne (g/t) gold and 3.2g/t silver from 38 metres;
- 12 metres at 0.25g/t gold and 1.5g/t silver from 60 metres; and
- 22 metres at 0.33g/t gold and 3.1g/t silver from 84 metres.

Mineralisation in the Gawe prospect occurs mainly within a dioritic crackle breccia, the extent of which is unknown. Breccias associated with porphyries can host major mineralisation.

The results from the Gawe prospect highlight the prospectivity of targets close to Randu Kuning. Positive gold results from drilling north of Randu Kuning include:

- 5 metres at 1.39g/t gold from 79.5 metres; and
- 1 metre at 1g/t gold from 220 metres.

Analysis

The Wonogiri project has become the flagship project of the company as drilling continues to indicate a significant area of mineralisation associated with the Randu Kuning porphyry system.

Significantly, mineralisation at Randu Kuning has been identified from surface and remains open at depth.

In addition, the porphyry mineralisation remains open to the north and to the west.

Drilling during 2012 will be aimed at defining the edges of the system.

Given the drill results to date and the structural zone similarities to significant porphry deposits, clearly Wonogiri is shaping up as a significant project with large scale potential which should become more defined in 2012.