NEWS RELEASE
ECUADORIAN MINERALS CORPORATION
October 9, 1996
Trading: TSE.EMC
GABY and CERRO PELADO PROJECT UPDATES
Ecuadorian Minerals Corporation ("EMC") is pleased to announce the completion of an extensive 1996 drilling program carried out as part of the pre-feasibility study on the Gaby gold property in Ecuador. A total of 11,717 meters in 47 core holes were drilled. The objective of the program was to infill gaps in the main Gaby deposit and to initially test a surrounding, large gold geochemical anomaly.
Main
Gaby Deposit
A program of 30 core drill holes totaling 8,438 meters on
the main Gaby deposit has substantiated the body of gold
mineralization previously outlined and has shown an extension
of mineralization to the west following a
geochemical anomaly: the zone remains open to the
northwest of drill holes CAL - 3 and CAL - 6 (see attached map) and
will be followed-up shortly by additional drilling.
The presence of 3 near surface, higher grade gold centers averaging between 15% to 65% higher grade than the overall deposit grade was described in a news release dated April 2, 1996. In view of the low waste-to-ore ratios and substantially higher gold grades, it is considered that these mineralized centers, which would be mined during the first two years of production, will have a very positive impact on project economics. An additional factor that will positively affect the overall economics is that recent results of metallurgical optimization testwork by McClelland Laboratories Inc. of Sparks, Nevada indicate significant improvements in gold recoveries to levels of approximately 87%,, representing a 6 percentage point increase from the recoveries previously reported in a news release dated April 24, 1995.
The ongoing pre-feasibility studies for the main Gaby deposit are targeted for completion during the next 3 to 4 months by an independent engineering consulting company (Mineral Resources Development Inc. ["MRDI"] of San Mateo, California). This time period allows for a re-modeling of the deposit based on the entire drill hole database (approximately 34,000 meters of core and reverse circulation drilling), calculation of mineable reserves and an overall economic evaluation.
As part of the pre-feasibility study, a sizable re-assay program has recently been completed during the past three months in order to ensure a high level of quality control in the assay database: results from this program substantiated previous EMC results, including an increase of 2% to 3% for the 1996 drill program. Significant intercepts, utilizing the new assay data from all drill holes completed during the 1996 drill program, are given below.
NORTHERN PORTION OF MAIN GABY DEPOSIT (100% EMC)
Hole
| GBY - 1, | Interval (m) 4 - 66, | Intercept (m) 62, | Gold (g/t) 0.79 |
| Includes Interval (m) 36 - 66, | Intercept (m) 30, | Gold (g/t) 1.18 | |
| GBY - 2, | Interval (m) 34 - 152, | Intercept (m) 118, | Gold (g/t) 0.88 |
| Includes Interval (m) 70 - 132, | Intercept (m) 62, | Gold (g/t) 1.10 | |
| Interval (m) 222 - 294, | Intercept (m) 72, | Gold (g/t) 0.61 | |
| GBY - 3, | Interval (m) 90 - 200, | Intercept (m) 110, | Gold (g/t) 0.83 |
| Includes Interval (m) 108 - 190, | Intercept (m) 82, | Gold (g/t) 0.90 | |
| Interval (m) 286 - 348, | Intercept (m) 62, | Gold (g/t) 0.81 | |
| Includes Interval (m) 296 - 310, | Intercept (m) 14, | Gold (g/t) 1.53 | |
| GBY - 5, | Interval (m) 6 - 186, | Intercept (m) 180, | Gold (g/t) 1.05 |
| Includes Interval (m) 14 - 158, | Intercept (m) 144, | Gold (g/t) 1.14 | |
| GBY - 6, | Interval (m) 0 - 88, | Intercept (m) 88, | Gold (g/t) 1.10 |
| Includes Interval (m) 8 - 48, | Intercept (m) 40, | Gold (g/t) 1.46 | |
| GBY - 7, | Interval (m) 162 - 244, | Intercept (m) 82, | Gold (g/t) 0.86 |
| Includes Interval (m) 196 - 234, | Intercept (m) 38, | Gold (g/t) 1.19 | |
| GBY - 8, | Interval (m) 264 - 330, | Intercept (m) 66, | Gold (g/t) 0.99 |
| GBY - 10 *, | Interval (m) 20 - 178, | Intercept (m) 158, | Gold (g/t) 0.71 |
| GUA - 17, | Interval (m) 106 - 190, | Intercept (m) 84, | Gold (g/t) 0.69 |
| CAL - 3 *, | Interval (m) 16 - 30, | Intercept (m) 14, | Gold (g/t) 2.09 |
| Interval (m) 72 - 246, | Intercept (m) 174, | Gold (g/t) 0.74 | |
| Includes Interval (m) 168 - 216, | Intercept (m) 48, | Gold (g/t) 1.28 | |
| CAL - 6 *, | Interval (m) 5 - 62, | Intercept (m) 57, | Gold (g/t) 0.71 |
| Interval (m) 166 - 200, | Intercept (m) 34, | Gold (g/t) 1.41 |
SOUTHERN PORTION OF MAIN GABY DEPOSIT (51% EMC)
Hole
| GUA - 14, | Interval (m) 36 - 150, | Intercept (m) 114, | Gold (g/t) 0.96 |
| Includes Interval (m) 36 - 72, | Intercept (m) 36, | Gold (g/t) 1.60 | |
| GUA - 15, | Interval (m) 4 - 36, | Intercept (m) 32, | Gold (g/t) 0.74 |
| GUA - 19 *, | Interval (m) 66 - 114, | Intercept (m) 48, | Gold (g/t) 0.67 |
| GUA - 21 *, | Interval (m) 22 - 72, | Intercept (m) 50, | Gold (g/t) 0.78 |
| Interval (m) 94 - 112, | Intercept (m) 18, | Gold (g/t) 0.84 | |
| GUA - 23 *, | Interval (m) 126 - 166, | Intercept (m) 40, | Gold (g/t) 0.56 |
| GUA - 25 *, | Interval (m) 22 - 140, | Intercept (m) 118, | Gold (g/t) 0.72 |
| Includes Interval (m) 60 - 114, | Intercept (m) 54, | Gold (g/t) 0.89 | |
| Interval (m) 158 - 212, | Intercept (m) 54, | Gold (g/t) 0.67 | |
| GUA - 26 *, | Interval (m) 34 - 52, | Intercept (m) 18, | Gold (g/t) 1.01 |
| GUA - 27 *, | Interval (m) 0 - 26, | Intercept (m) 26, | Gold (g/t) 0.85 |
| Interval (m) 46 - 48, | Intercept (m) 2, | Gold (g/t) 20.13 |
Notes: The majority of holes were drilled at a -60
degree inclination.
* = assay results subsequent to the April 2, 1996 news
release.
A preliminary review of cross-section data through the deposit shows strongly mineralized areas which indicate the presence of deeper, mineralized zones which may have acted as feeders to the known gold mineralization. Future deep core drilling, to depths of approximately 750 to 1,000 meters, will test this hypothesis as part of a planned feasibility study next year.
Satellite Drilling Program
A preliminary, broad spaced drill testing program of 17
core holes totaling 3,279 meters, over a large 5.5 km x
1.7 km geochemical anomaly that surrounds the main Gaby
deposit, has outlined widespread, local areas of low
grade gold mineralization and has also indicated the
presence of a high grade gold-bearing shear zone
located approximately 0.4 km east of the main Gaby
deposit. This Tama zone trends
approximately north-south and has so far been tested by
only 3 drill holes together with a surface sampling
program. The zone is identifiable over a strike length of
600 meters and remains open at each end. Drill intercepts
to date have given values up to 23.0 g/t gold
over 2m and the highest grade surface rock
sample obtained over the zone also runs 23.0 g/t gold.
Following completion of the main Gaby deposit
pre-feasibility study, additional drilling will be
carried out on the Tama zone and further drilling on
other satellite target areas is being evaluated.
Shares Issued for the Guadalupe Concession
As part of the agreement for EMC to maintain its 51%
interest in the Guadalupe concession, which hosts the
southern portion of the main Gaby deposit, EMC issued
189,558 shares to Zappa Resources Inc. on September 12,
1996 at a price of Cdn. $1.81 per share, for the
equivalent of US $ 250,000 as required under the terms of
the joint venture agreement. EMC has also completed the
required first year work expenditure of US $ 600,000,
with total expenditure to date in excess of US $865,000.
CERRO PELADO PROJECT
The first phase of drill testing of the large gold
geochemical anomalies on the El Viejo area of the Cerro
Pelado project in Ecuador has been completed. Twelve
shallow core holes totaling 1,540 meters have been
drilled to date. Based only on the gold assays,
significant intervals in 3 holes were identified and are
listed below; complete copper assays are pending. Overall,
the full extent of mineralization has not yet been fully
defined by drilling.
Hole
| CP - 1, | Depth(m) 173, | Interval (m) 42 - 64, | Intercept (m) 22, | Gold (g/t) 1.28 |
Mineralization open to the south, east and west includes,
| Interval (m) 43 - 49, | Intercept (m) 6, | Gold (g/t) 2.22 | ||
| Interval (m) 58 - 64, | Intercept (m) 6, | Gold (g/t) 1.56 | ||
| CP - 3, | Depth(m) 130, | Interval (m) 6 - 12, | Intercept (m) 6, | Gold (g/t) 0.83 |
| Interval (m) 50 - 68, | Intercept (m)18, | Gold (g/t) 0.93 |
Mineralization open laterally
| CP - 10, | Depth(m) 60, | Interval (m) 52 - 60 *, | Intercept (m) 8, | Gold (g/t) 1.15 |
Mineralization open to the south and at depth
* hole bottoms in mineralization (2.19 g/t gold)
Gold mineralization is generally related to stockworking within altered intrusive and to a breccia/metamorphic contact zone. Based on these encouraging initial results with mineralization still open in several directions, follow-up trenching in the vicinity of these mineralized drill holes is in progress. The drill rig has remained on the property and additional drilling is scheduled to begin shortly.
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.