Vancouver, British Columbia - March 31st 2016: Aguila American Gold Limited ('Aguila' or the 'Company') (TSX-V: AGL) Mr. John Huguet, President and CEO, provides the following update:
The Peruvian Government have put teeth and actions together in their new Mining Laws aimed at converting illegal and informal mining activities into mainstream taxpaying businesses. The Government has provided a 4 year grandfathering period to allow informal miners to enter proper tax paying status. This 4 year period ends in April of this year. The new laws should bring many benefits to the miners and the environment, as well as growing the country's GDP.
Initially the government underestimated the quantity of minerals being processed and the number of informal miners involved. Today estimates exceed 200,000 miners working in clandestine operations which continue to cause damage to the environment and less than safe mining practices. Recently the Government has totally destroyed 34 illegal processing plants which were receiving and processing minerals from illegal sources. The Company has devoted resources; including investing in engineering studies to investigate opportunities resulting from steps the government is taking regarding formalization of informal miners. From this was born the Company's 'El Triunfo' project.
El Triunfo is a project to construct a central 350 TPD high grade gold processing plant. There are 56 surrounding communities currently producing between 5 and 80 tonnes per day of high grade gold offering their minerals to the Company. Engineering for the plant was completed in 2015, needing only vendor finalization to complete foundation works. The Environmental Impact Assessment was completed during 2015, importantly for a 15 year production period. All access and required project infrastructure has also been granted permits. The project is environmentally sustainable with zero liquid effluent and maximized recycling principles incorporated. Power, water and hard surfaced roads are also permitted and respect all local community wishes. Importantly, the 350 tonne per day plant incorporates a crushing and grinding circuit which can operate on a one shift basis. The back end agitated leach portion of the design is easily expandable should sufficient minerals and government approvals be available. Currently 1,400 TPD of minerals are being produced in the local area.
Aguila was the first company in the Department of Apurimac to formalize mineral production in the zone. This was achieved through alignment with the local communities and all levels of government.
The monetary improvements to the mineral producers are several times more beneficial on an individual, quality of life, new community infrastructure, education and health care basis. All of this based on the investigation Aguila has carried out over the past 2 years.
Aguila is currently investigating forms of financing for the proposed project.
ON BEHALF OF THE BOARD,
'John Huguet'
John Huguet
President and CEO
Aguila American Gold Limited
Aguila American Gold Limited is an emerging gold exploration company with an experienced executive management team focused on advancing and developing their prospective gold project, Angostura. Angostura is located 180 kilometres southwest of city of Cuzco, in the Department of Apurimac, southwestern Peru. Angostura is located in a prolific mineral trend, approximately 25 kilometres from the Las Bambas Mine, a major mining project being developed in the area.
For more information visit www.aguilagold.com
Aguila American Gold Limited
Tel: (604) 685 9316
Fax: (604) 683 1585
http://www.aguilagold.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.