NEWS RELEASE
ECUADORIAN MINERALS CORPORATION
July 16, 1996
Trading: TSE.EMC
ECUADORIAN COMMENCES DRILLING AT CERRO PELADO
GABY PRE-FEASIBILITY STUDY UPDATE
Ecuadorian Minerals Corporation ("EMC") is pleased to announce that drilling has commenced on their 100%-owned Cerro Pelado gold property in southwestern Ecuador. The 123 square km property is located approximately 35km south of EMC's Gaby gold project where a large gold resource is currently in the pre-feasibility stage of development.
Drilling commenced on July 4, 1996 at Cerro Pelado, where EMC controls the major portion of a 5km x 3km mineralized gold belt. The geology and mineralization are very similar to Gaby, comprising extensive mineralized stockworks and breccias within intrusives and metasediments. An intensive sampling program carried out by the Company in the northern portion of the property (the El Viejo area) has identified two large soil gold anomalies (+100ppb), the largest, northern anomaly measuring 2.6km x 1km with gold values up to 1.7g/t and a southern anomaly covering an area of 1.2km x 0.7km with soil gold samples up to 1.4g/t (see attached map). Both of these soil anomalies are larger in surface area than that of the main Gaby deposit. Panel sampling of outcrops along an access road that crosses the southern anomaly returned average values of 0.8g/t gold over 175m with individual gold values up to 2.3g/t. Gold values from an extensive follow-up program of rock panel sampling of hand-dug pits have confirmed results of the soil sampling program with values up to 4.0g/t gold. Within each of the anomalies there are numerous areas of +0.5g/t gold and these will be the primary focus of the initial drilling program. A drilling program of approximately 2,000m in 14 core holes is planned at a total cost estimated at US $491,000.
At the Gaby project the pre-feasibility study continues and is scheduled to be completed this fall by the independent engineering company, Mineral Resources Development Inc. (MRDI) of San Mateo, California. Originally scheduled to be completed this summer, the study completion date has been extended by agreement with the Ecuadorian partners to accommodate a more extensive drilling program than was originally planned on the major gold geochemical anomaly surrounding the main Gaby deposit. A total of approximately 12,550m of core drilling is scheduled to be completed for this program, compared to the original estimate of 10,000m; one core rig remains active on the property and 800m of drilling remains to be completed in the western portion of the gold geochemical anomaly. Infill drilling on the 100% EMC-held part of the main Gaby deposit has been completed and the results reported in a news release dated April 2, 1996. Results from the recently completed drilling on the 51% EMC-held Guadalupe property and satellite drill holes will be released when all assay data have been compiled and verified by EMC's extensive quality control program. The additional time afforded by the extension of the study has also provided an opportunity for more detailed metallurgical testwork to be carried out in order to optimize gold recovery. Preliminary results received from McClelland Labs of Sparks, Nevada are positive for higher gold recoveries than had been indicated by previous test results which reported a weighted average gold recovery of 81% (see press release dated April 24, 1995). Testwork continues and final results will be made available when received; these are expected in the next 4 - 6 weeks.
Stephen J. Kay, President and CEO
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For additional information,contact Linda North at Tel: (602) 483-9932 or Fax: (602) 483-9926.