NEWS RELEASE
ECUADORIAN MINERALS CORPORATION
December 2, 1998
Trading: TSE.EMC
AT VETASPATA IN SOUTHEASTERN PERU
Ecuadorian Minerals Corporation ("EMC") is pleased to announce that its wholly-owned Peruvian subsidiary, Minera Oro Vega S.A., has discovered high grade gold mineralization in surface and underground workings on the Vetaspata gold property, which comprises approximately 47 sq. km. of mining concessions in the Puno region of southeastern Peru, approximately 250 km east of Cuzco (see location map).
In the central part of the Vetaspata property (see plan map) a stacked series of flat-lying, stratabound, gold-bearing, pyritic sandstone horizons (“mantos”) are present over an area, as defined to date by limited exploration work, of approximately 700m by 500m within a Paleozoic quartzite sequence. The initial primary area of interest, presently being worked underground on a small scale by local miners, comprises 3 mantos over a vertical interval of approximately 25m, varying in thickness from 0.65m to 1.2m along a known strike length of at least 400m (see attached map). There is considered to be a strong possibility of lateral extensions of these mantos to the east and west under surface cover and for the existence of additional mantos at depth. A total of 87 rock panel samples taken by EMC from the 3 mantos averaged 16.6 g/t gold over an average width of 1.0m with the best exposed upper manto containing an average of 19.7 g/t gold for 61 samples. Visible gold, ranging up to 2.2mm in size, is present in several samples.
In underground workings, continuous 2m rock panel samples from the currently gold-producing Rosario adit, within the upper manto, averaged 17.9 g/t gold (uncut values) over the entire 54m of adit length, with a high of 43.7 g/t (with gold values cut to a maximum of 30 g/t the 54m interval averages 15.9 g/t). Approximately 70m to the southeast of the Rosario adit, semi-continuous panel samples from the Calisaya adit averaged 32m at 39.7 g/t gold (uncut values) including a 2m panel at 184 g/t (with gold values cut to a maximum of 30 g/t the 32m interval averages 17.6 g/t).
All samples have been analyzed by conventional fire assay at American Assay Laboratories in Lima, Peru. A number of repeat assays have been carried out for samples ranging from 5 to 169 g/t gold with excellent reproducibility.
Surface cover in the area is extensive but other partially exposed, mineralized mantos have been identified within this primary target area, including a zone immediately to the north of the Rosario and Calisaya adits (where access is currently more difficult for sampling) and an area approximately 500m to the southeast of the adits where extensive Spanish colonial era workings have been identified. Several million tonnes of material appear to have been mined on surface using water hydraulicking in addition to underground mining by adits which are now inaccessible. Two in-situ, manto rock panel samples collected close to the Spanish adit entrances reported 3 to 4 g/t gold. The extent of this mineralization, however, is unknown at this time as outcrop in the immediate area of the adits is very limited.
Additional field work is planned to seek lateral extensions of the known mantos together with a search for additional mantos in the primary target area and will include a thorough evaluation of the Spanish colonial era workings. In addition, a more district-wide exploration program will search for similar deposits within the overall property position. A drilling program is planned by EMC as soon as possible following the collation and evaluation of results from EMC’s preliminary exploration work and the receipt of all necessary governmental permits. The drilling program will be carried out on either a stand-alone basis by EMC (subject to the availability of financing) or through the negotiation of a strategic joint venture alliance.
In the immediate target area (as shown on the location map) the Company has an option to acquire a 100% interest from private individuals controlling approximately 75% of the mineralization known to date. Terms of this agreement include a total of US$186,000 in option payments over a 36 month period (US$100,000 of which is due in month 36) and a 6% Net Profits Interest (“NPI”) royalty upon commencement of commercial production. In adjacent concessions to the west (comprising approximately 25% of the mineralization known to date), the Company holds the rights to acquire an outright 55% interest with the remaining 45% interest being held by Peru’s largest tin producer, the private company Minsur S.A.
A finders fee will be payable as a result of this transaction and the finders fee and the option agreement are both subject to regulatory approvals. The acquisition of the option and other property rights are also subject to certain Peruvian government approvals which are expected 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.