NEWS RELEASE
ECUADORIAN MINERALS CORPORATION
November 27, 1995
Trading: TSE.EMC
ECUADORIAN
RESUMES DRILLING AT GABY, ECUADOR
New Director Appointed
The drilling program is expected to be completed in April 1996 and initially will utilize one drill rig, a second rig being added in January. A total of approximately 10,000 meters of core and reverse circulation drilling in 35 to 40 drill holes is designed to accomplish two principal goals: 4,500 meters will infill and further delineate gold mineralization on the main Gaby deposit, which hosts the currently known gold resource and which is still open in several directions and at depth; 5,500 meters will test, for the first time, the recently defined major gold geochemical anomaly which surrounds the main Gaby deposit and which covers a surface area of 5.5km by 1.7km, an area some ten times the size of the main Gaby deposit.
The drilling forms part of a pre-feasibility study which is scheduled to be completed by the summer of 1996. This study will provide a preliminary evaluation of the feasibility of putting Gaby into production, including an assessment of tonnages, grades, optimal process flow-sheet, capital and operating costs. Subject to the results of this study, a final feasibility study will be commissioned, the completion of which would be dependent upon the potential ultimate size of the deposit and could take an additional one to two years.
Funding for this drill program and for completion of the pre-feasibility study is being provided by the exercise of share purchase warrants from previous private placements. To date approximately Cdn$1.1 million has been received and a further Cdn$3.0 million is expected before the end of this year. The warrants are exercisable at a price of Cdn$1.25 with approximately 1.10 million expiring December 14, 1995 and 1.75 million expiring on March 24, 1996.
EMC is pleased to announce the appointment as director of Mr. Robert Henseler of Zurich, Switzerland. Mr. Henseler has over 25 years of experience in marketing, investment consulting and sales for several banks and financial institutions. He is presently with CAT Finance AG in Zurich as an investment consultant for institutional clients.
In addition, EMC has granted an aggregate of 80,000 Incentive Share Options pursuant to its Stock Option Plan, including 50,000 to Mr. Henseler and 30,000 to employees. The exercise price is Cdn$1.35 per share until November 2005 and the granting of these options is subject to regulatory approval.
EMC is a Toronto-listed exploration and development company with a focus on bulk mineable gold-copper porphyry deposits in the northern Andes of South America, principally Ecuador and Peru. The Company has 22.2 million shares issued and 26.3 million shares fully diluted.
Stephen J. Kay, President and CEO
The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.
For additional information,contact Linda North at Tel: (602) 483-9932 or Fax: (602) 483-9926.