Guatemala

[Tackler]

Aurogin nears completion of Guatemala gold mine

2006-09-13 07:20 ET - News Release

Mr. Neil Gow reports

AUROGIN NEARS MINE COMPLETION AT EL SASTRE

Aurogin Resources Ltd.'s construction of the gold mine in Guatemala is nearing completion. This week the company has initiated mineral extraction and loading the new leach pad. The zero-discharge heap-leach facility has been designed to produce gold at a rate of 20,000 ounces per year. The first gold pour is on schedule for the fourth quarter of calendar 2006.

Construction

Construction at the El Sastre main zone mine (see news issued in Stockwatch dated July 10, 2006), is progressing well, with approximately 90 per cent of the project completed to date:

-all environmental and operating permits are in place (see news issued in Stockwatch dated July 27, 2006);
-access and haulage road construction is complete;
-liner installation in all the solution ponds is complete;
-liner installation in pad area is complete;
-water reticulation systems are complete;
-electrical power supply systems are complete;
-construction of plant area and main process structures is complete; and
-final piping and commissioning has been initiated.

Once construction is complete, the plant will be commissioned and leaching will start.

Production drilling

Infill drilling (five-metre by 10-metre centres) in the starter pit area at the El Sastre main zone is complete. Numerous high-grade intersections were encountered, including:

GC 27 -- 5.0 grams per tonne gold over 6.3 metres;
Expl 01 -- 4.9 grams per tonne gold over 8.4 metres;
GC 04 -- 4.0 grams per tonne gold over 5.0 metres; and
Expl 03 -- 3.7 grams per tonne gold over 4.5 metres.

These drill data were used to generate detailed starter pit designs and production schedules for first phase mining activities.

"We are proud of the fact that, although we are a relatively small public company, we are now on the verge of becoming only the second gold producer in Guatemala," stated Darren Koningen, PEng, vice-president -- engineering for Aurogin. "We are also extremely pleased with the progress achieved to date at the construction site, which is a real tribute to the quality of the team we have assembled," he added. Mr. Koningen is the qualified person under National Instrument 43-101 standards for the project.