Guatemala

[Tackler]

Aurogin expects first gold pour at El Sastre in Q4 2006

2006-05-15 10:14 ET - News Release

Mr. Greg Taylor reports

AUROGIN UPDATES EL SASTRE GOLD PROJECT

Aurogin Resources Ltd. has provided a progress review on its El Sastre gold project in Guatemala.

Leach pad construction

Construction of the company's heap-leach pad at its El Sastre Main zone (see April 11, 2006, news release in Stockwatch) is progressing, with approximately one-third of the projected completed to date:


the key construction and operating team has been assembled;
earthworks required for plant construction are substantially complete and the earthworks construction phase of the pad area has commenced;
pond and pad liners are expected to be delivered shortly, with installation planned for June;
detailed design has been completed and orders have been placed for long-lead-time items; and
overburden is being removed from a section of the El Sastre Main zone in preparation for mining.

The company is currently projecting a first gold pour during the fourth quarter of calendar 2006. Following a ramp-up phase, Aurogin expects to reach a production rate of at least 20,000 ounces of gold per year during 2007.

Exploration

Exploration drilling at the Bridge zone is continuing, although the rate of progress has been hampered by equipment and crew availability. Partial results from the first two holes have been received and showed anomalous gold values. Cumulative detailed results will be announced once they are available.

The company is sourcing additional drill support and expects to commence a program at the El Arenal zone to establish a National 43-101-compliant resource estimate. El Arenal is located two kilometres southeast of the El Sastre Main zone and 2.6 kilometres southeast of the company's Lupita zone. Gold found at El Arenal is fine grained and similar, metallurgically, to the El Sastre Main zone. This is significant not only in regard to the leachability of the material, but because it supports the theory that the El Arenal and El Sastre Main zones may be connected. Metallurgical testing by SGS Lakefield Research Ltd. on a composite sample from El Arenal zone demonstrated gold recoveries in excess of 98 per cent after 14 days.