Aurogin shares up after receiving final permit

Aurogin Resources (AUQ-T) has the final permit needed to begin production at its El Sastre Main zone gold project in Guatemala.

Midday in Toronto on July 27 Aurogin’s shares were up nearly 11% or 3 to 31 on roughly 90,000 shares traded.

The operating license was granted to Rocas El Tambor — Aurogin’s Guatemalan subsidiary and is valid for 25 years with another 25 year option available at the request of Rocas El Tambor.

The El Sastre main zone is one of four mineralized gold zones at the company’s El Sastre project, which is situated 37 km. northeast of Guatemala City.

Gold resources at the El Sastre main zone currently stand at roughly 49,000 oz. of indicated resource — 370,000 tonnes at 4.14 grams of gold per tonne; and 117,265 oz. of inferred resource — 1.2 million tonnes at 3.13 grams gold.

In addition, Toronto-based Aurogin says it has defined 518,000 oz. of inferred resources 13 million tonnes at 1.25 grams gold at its Lupita Zone, located 600 metres west of the El Sastre Main Zone.

Construction of a heap-leach pad at the El Sastre main zone is roughly two-thirds finished, Aurogin says, with completion scheduled for the end of the third quarter and the first gold pour slated for the fourth quarter of 2006.

Aurogin is planning to produce 20,000 oz. of gold a year at the facility.

Diamond drilling is ongoing at the Main zone with roughly 25 holes planned. Once those holes are completed the drill-rig will be moved to the El Arenal zone to outline a 43-101 compliant mineral resource.

Aurogin says gold at El Arenal is oxidized, fine-grained and metallurgically similar to that found at the El Sastre Main zone.

El Arenal is 2 km. southeast of the Main zone and 2.6 km southeast of the Lupita zone and falls within the newly acquired operating license. The remaining two zones Lupita and Bridge, are not covered by the license. Drilling is ongoing at the Bridge zone.

The El Sastre project is one of two core projects for Aurogin — the other being its Lone Mountain project in Nevada which is located on the Battle Mountain-Cortez gold trend.