AURELIAN RESOURCES INC.
NEWS RELEASE
Trading Symbol TSX:ARU
January 25, 2008
For immediate release
Aurelian Reports Strong Infill Drill Results on FDN;
Concessions in Good Standing and Progress in Government Discussions
TORONTO, ON ??? Aurelian Resources Inc. (TSX:ARU) today announced additional drill
results at the Fruta Del Norte (“FDN”) deposit on its Condor Project in southeastern
Ecuador. The results are from infill holes in the central high grade part of the system
on 50 m spaced sections. These include 149.63 metres grading 12.51 g/t of gold (“Au”)
and 15.71 g/t of silver (“Ag”) in CP-07-180 and 119.05 metres grading 8.03 g/t of Au
and 22.6 g/t of Ag in CP-07-170, both on section 9583450N. On section 9583550N,
drilling returned 75.81 metres grading 11.06 g/t of Au and 22.5 g/t of Ag in CP-07-178A
and 51.76 metres grading 10.00 g/t of Au and 15.0 g/t of Ag in CP-07-177.
The FDN deposit contains an Inferred Resource of 58.9 million tonnes grading
7.23 g/t of gold and 11.8 g/t of silver for 13.7 million ounces of contained gold and
22.4 million ounces of contained silver, determined at a cut off grade of 2.3 g/t goldequivalent
(ARU PR 4/10/2007). The results reported in this release were not included
in the earlier resource estimate.
"We are making excellent progress on our main value drivers - moving FDN towards
development, achieving political certainty and exploring other promising targets on our
concessions," says Patrick F.N. Anderson, President and CEO. "Infill drilling on the
north-central zone of FDN should allow us to move that portion of the deposit from the
inferred resource category to measured and indicated over the next several months.
Meanwhile, we continue to progress our mine planning and engineering studies."
"As has been previously reported, for the better part of the past year the government
of Ecuador has been expediting a review of all mining concessions. We understand
that concessions which are in arrears in patent payments may be revoked as outlined
in the mining law. All patent payments on Aurelian concessions are up to date.”
"We continue our discussions with the government of Ecuador with the goal of
outlining a stability agreement under which the FDN deposit can be brought into
development. As such we have been in regular weekly meetings with Ecuador's
Ministry of Petroleum and Mines since early January. Discussions are proceeding well,
with all parties at the table keen to arrive at an agreement that benefits the country as
well as our investors. The goal is to establish royalties, taxes and other requirements
for development of FDN as well as discussing draft mining laws and policies that will
govern the rest of our concessions. The government is aiming to complete these
discussions in March."
Mr. Anderson concluded, “Results from our regional target, Papaya, have been
returned. Assays show gold mineralisation continues to the north of FDN. Although
the results are not of economic interest they do underscore the widespread nature and
occurrence of gold in our concessions. The regional program will continue in 2008
with resources devoted to working up and drilling more of our many other gold targets.”
FDN Results
Mineralised intercepts (uncut and cut) from four recent FDN drill holes are tabulated
below followed by brief descriptions of each hole. The intercepts are calculated with
the same 2.3 g/t Au Eq lower cut used in the Inferred Resource estimate (ARU PR,
October 4, 2007); this cut off is used in the description of results in the following text
(unless otherwise stated). Maps, cross sections, photos, gold and silver assay data
from this and previous press releases may be viewed at www.aurelian.ca.
On infill section 9583450 drill holes CP-07-170 and CP-07-180 have both
intercepted significant widths of mineralisation that correlate well with intervals
predicted by the October 2007 block model. The deeper of the two holes CP-07-170
(azimuth 87/dip -55) reported a best intercept of 119.05m @ 8.03 g/t Au and
22.6 g/t Ag which includes a higher grade zone assaying 44.30 m @ 13.32 g/t Au and
38.3 g/t Ag. The best interval in CP-07-180 (azimuth 89/dip -48) assayed 149.63 m @
12.51 g/t Au and 15.71 g/t Ag, which includes 33.93 m @ 29.76 g/t Au and 16.1 g/t Ag.
Two holes have been completed on infill section 9583550N with CP-07-177 (azimuth
87/dip -62) intercepting intense epithermal mineralisation assaying 24.60 m @ 5.73 g/t
Au and 4.1 g/t Ag and 51.76 m @ 10.00 g/t Au and 15.0 g/t Ag. Down dip from these
intercepts drill hole CP-07-178A reported a mineralised interval of 75.81 m @ 11.06 g/t
Ag and 22.5 g/t Ag, which includes 13.00 m @ 25.40 g/t Au and 38.1 g/t Ag..
With the results reported here, data for 104 diamond drill holes at FDN have been
released, only 85 of which were complete and included in the October 2007 Inferred
Resource estimate. Infill drilling at FDN and exploration drilling on additional targets is
ongoing with six drills currently operating on the property. Results for current and
future drill holes will be released as analytical data are received, validated and
compiled.
The FDN deposit is hosted by intensely silicified andesitic volcanic and intrusive rocks
that are buried by clastic sedimentary rocks of the Suarez Formation of Jurassic age
within a pull-apart basin. The hydrothermal system is characterized by multiphase
quartz-carbonate-sulphide stock work veining and hydrothermal brecciation.. FDN is
interpreted to be an intermediate sulphidation epithermal gold-silver system that
predates, but is in part contemporaneous with, infilling of the basin.
Drilling has outlined a mineralised envelope at FDN that is traceable continuously for
over 1400 metres along strike, exceeds 100 metres in width through the central and
southern portions, has a vertical extent of over 350m and dips moderately westward
through to vertical with an eastern contact that dips steeply to the east south of
9583500N. Drill holes intersect this envelope at various angles and therefore drill hole
intercept lengths reported in this and earlier press releases are not true widths.
Inspection of drill cross sections allow the width of the mineralised envelope to be
estimated visually.
Regional ??? Papaya
At Papaya, a target defined by mapping, sampling and a geophysical IP anomaly,
anomalous mineralisation has been intersected in a number of scout drill holes. Two
east west orientated fences of holes were completed on sections 9584700N (4 holes,
CP-07-150, 155, 160 and 166) and 9584900N (2 holes, CP-07-171 and 173), which
are 750 and 950m north of the FDN deposit respectively. The holes intercepted a
number of broad zones (tens of metres) of crystalline quartz and sulphides in andesite
and multiple fault zones. Assays from the holes were low grade, with broad zones of
>0.1 g/t Au and a best intercept of 19.84 m @ 1.05 g/t Au and 8.9 g/t Ag within
CP-07-173 (note ??? using a lower cut off of 0.5 g/t Au).
Technical Information
Samples consist of half HQ, NQ, NTW and BTW-size diamond core that are split by
diamond saw on site, prepared at the ALS Chemex laboratory in Quito, and assayed
by 50g fire assay with an AAS or gravimetric finish at the ALS Chemex Lima
Laboratory. The quality assurance-quality control (QA-QC) program of Aurelian
includes the insertion of certified standards of known gold content every 20 samples,
blanks at least every 20 samples and field or lab duplicates every 20 samples.
Samples from significant drill intercepts are sent to two additional independent
laboratories to verify gold and silver analyses. Metallic screen fire analyses for gold are
also run regularly as an additional QA-QC check. The half core remaining after
sampling is retained on site for verification and reference purposes.
Stephen Leary (MAusIMM), Aurelian’s Exploration Manager, is the Qualified Person in
compliance with National Instrument 43-101 with respect to this release. He has
reviewed the contents for accuracy.
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About Aurelian
Aurelian Resources Inc. is a publicly-listed (TSX:ARU) resource company engaged in
the business of exploring, discovering and developing mineral wealth in Ecuador. The
Fruta del Norte (FDN) discovery lies at the heart of the Condor Project properties,
located in southeastern Ecuador and consisting of 38 mining concessions totalling
approximately 95,000 hectares. The initial inferred resource for FDN was released in
October 2007 and included 58.9 million tonnes grading 7.23 g/t gold and 11.8 g/t silver
for 13.7 million ounces of contained gold and 22.4 million ounces of contained silver.
Aurelian is committed to working with the government and people of Ecuador to
achieve a modern, sustainable mining industry, which will play an important role in the
future growth of the country. Visit www.aurelian.ca for more information.
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Forward Looking Statement:
Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralisation and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company’s actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.
Contact
Patrick Anderson, President and CEO
Phone: (416) 868-9100
pfnanderson@aurelian.ca
Marla Gale, Investor Relations
Phone: (416) 868-9100
mgale@aurelian.ca