Augmitto extends the Patrick on Beaauchastel property ld

Extensions to depth of mineralized gold showings on the Patrick zone have been identified by recent drilling on the Beauchastel Twp. property near Rouyn, Que., by Augmitto Explorations.

The drilling is situated 1,400 ft north of the area of carbonate- hosted gold mineralization which has been the company’s main target area for the past three years, says President George E. Brewster.

Preliminary calculations show a possible drill-indicated reserve of 250,000 tons at 0.20 oz gold per ton on the Patrick structure over a 900-ft strike length to a depth of 600 ft. This includes a block of some 52,000 tons grading 0.31 oz.

The mineralized zone is open along strike through a further length of 2,600 ft. A single hole has been drilled 800 ft west of the present reserve area and has indicated the continuation of mineralization along strike, says Mr Brewster.

Fill in drilling is in progress along strike as well as below 600 ft.

Mr Brewster says the gold showings are associated with quartz veining occurring within altered andesitic flows. The structures have been tested in detail by diamond drilling over a strike length of 800 ft.

The original showings were explored in the 1920s and 1930s by surface pitting, trenching and included an incline to the 100-ft level. Mr Brewster says these workings will be pumped and rehabilitated in the near future.

Old records show one pit with an average cut value of 0.48 oz over 6.29 ft to a depth of 35 ft and values ranging up to 0.53 oz were encountered underground.

A parallel structure occurs within 50 ft of the above, although no values over 0.04 oz have been recorded. Intersections in two holes some 250 ft north of the main structure indicate a third structure. A fourth structure has been encountered in three holes about 200 ft south of the main vein, says Mr Brewster.

This past fall, the company entered an agreement with MVP Explorations and Co. Limited Partnership and MVP (Quebec) Exploration and Co. Limited Partnership, whereby MVP has agreed to advance up to $2.5 million to Augmittto to be expended on behalf of MVP as Canadian Exploration expenses on a flow-through share transaction by Feb 28.

Augmitto is obliged to issue one common share for each $1.2089 of CEE expended on its properties. The company has received conditional approvals by both the TSE and ME for the MVP private placement.

Mr Brewster also notes that the Augmitto warrants issued in connection with the company’s recent Quebec public financing started to trade on the TSE and ME on Jan 14. Each warrant entitles the holder to acquire one common share for $1.75 and is exercisable until Sept 15.