Highlights:

- Assay results from un-sampled archival drill core returned 18.41 metres of 1.06 g/t gold including intervals of 0.27 metres of 49.9 g/t gold and 0.15 metres of 17.2 g/t gold from one drill hole, and 11.63 metres of 3.03 g/t gold in another hole, including an interval of 0.46 metres grading 41.7 g/t gold.

- These assay results are consistent with nearby holes and occur above the 198 metre level. This area represents a potential resource which could be readily accessible because it is close to the surface.

"These new findings support initial test results that suggest the high grade nature and continuity of mineralization which is also close to surface and could be relatively easily accessible. The wide intersections and presence of additional shoots of mineralization between the main zones also raise the possibility that a portion of the mineralization may have open-pit potential. We will be looking into all potential mining scenarios once we have completed a resource estimation on Jerome," said Michael Fowler, President and CEO, Augen Gold Corp. "We have commenced modeling this data, to obtain a better understanding of the geometry of the several mineralized zones, so that we can better evaluate the economic potential of the deposit and plan further work."

The latest results were derived from samples from Osprey Gold Corp.'s 2004 diamond drill holes numbers JX04-12, -14, -15, -16, -17 and -32. The results in the table below include previously reported results which have been updated as a result of Augen Gold's sampling of adjacent core and check analyses of Osprey samples. Osprey's 2004 core sampling was confined to the Main and South mineralized zones. Augen Gold management subsequently discovered additional mineralized zones, which were sampled and reported in this news release. The holes were drilled within a distance of 70 metres along strike, immediately east of the 500 foot level cross-cut.

New samples from Hole JX04-12 tested two alteration zones which lie between the South Zone 2 and Main Zone, indicating the presence of additional zones of lower grade gold-molybdenum mineralization. Grades of up to 1.01 g/t Au and 310 ppm Mo were obtained within these intervals. The Main Zone was intersected between 196.60 and 219.95 for an estimated true width of 16.34 metres, within which occur the two significant mineralized intervals shown in the following table.

Core from drill hole JX04-14 tested three mineralized zones - the South Zone 2, an unnamed zone between South Zone 2 and the Main Zone, and the North Main Zone. Two high grade samples were obtained from between the South Zone 2 and Main Zone. The Main Zone was intersected between 138.23 and 165.14 for a true width of 16.95 metres. The North Main Zone was intersected at a horizontal distance of 15 to 21 metres north of the Main Zone, and returned low gold values and anomalous molybdenum values. -- www.cnxmarketlink.com