NEWS RELEASE
ECUADORIAN MINERALS CORPORATION
May 26, 1999
Trading: TSE.EMC
DRILLING PLANNED TO START IN JUNE
Ecuadorian Minerals Corporation (“EMC”) is pleased to report the results of a recent detailed mapping and rock sampling program by EMC over the Alejandra mineralized zone in the northern portion of the Beroen epithermal gold/silver deposit within the San Luis concession (see attached map). This zone, which contains bonanza grade gold/silver mineralization, is one of 3 primary targets scheduled for an upcoming diamond drilling program by EMC comprising approximately 1,500m and planned for late June 1999. Based on published data, the key targets outlined by EMC at Beroen show many similarities with the high grade deposits under development by Meridian Gold Inc. at the El Peñón property in northern Chile. The planned drilling program at Beroen will be funded by the recently completed non-brokered private placement financing of Cdn$2.2million (see news release dated May 17, 1999).
Eighty-two large, rock panel samples were collected by EMC from available outcrop over a northeast-southwest trending mineralized zone measuring approximately 200m in length by 150m width within the Alejandra area (previously referred to as the Alejandra-Minerva zone in earlier news releases). Approximately 75% of the zone is obscured by surface cover while the northeast and southwest projections of the mineralized zone are not exposed. Three principal, steeply dipping, high grade quartz veins, up to 3 meters in width, cut silicified, clay-altered, brecciated and stockworked volcanic/sedimentary rocks. Where exposed in outcrop the quartz veins appear to be persistent in length and width.
A total of 16 rock panel samples collected from the quartz veins gave average, uncut grades of 39.1 g/t gold and 209 g/t silver with a maximum gold grade of 126.9 g/t and maximum silver grade of 500 g/t. Cutting gold grades to 50 g/t and silver grades to 300 g/t provides average values of 27.8 g/t gold and 166 g/t silver. Visible gold has been identified at a number of outcrops formed by the high-grade quartz veins. A 4m length sample across one of the quartz veins includes a 3m vein width and a 1m wide wallrock zone yielding uncut grades of 37.7 g/t gold and 283 g/t silver. An additional vein sample carries uncut grades of 126.9 g/t gold and 436 g/t silver over a width of 1.3m.
A total of 66 rock panel samples were collected from all other rock types exposed in the zone, excluding vein structures, resulting in average, uncut grades of 3.4 g/t gold and 39 g/t silver. Highest values obtained from these 66 samples for gold and silver were 35.8 g/t and 304 g/t respectively. In the southwestern portion of the zone a section of silicified breccia averaged 23.1 g/t gold and 273 g/t silver over a sample interval of 14m. Previous reconnaissance rock sampling of the zone by Rio Tinto produced comparable overall gold and silver values (see news releases dated April 8, 1999) and (June 10, 1998) but in most cases Rio Tinto did not separately report sample values obtained from high grade quartz veins and host rocks. Drilling has not been carried out within the zone to date.
The levels of gold and silver values obtained from the sampling program are considered typical of those associated with bonanza-style mineralization related to epithermal precious metal systems. Sample analyses were carried out by Intertek Testing Services (Bondar Clegg), Vancouver using conventional fire assay methods. Duplicate assays, determined for a number of samples, showed excellent reproducibility.
In addition to the Alejandra zone, 2 further targets on the Beroen property are scheduled for drilling. A second target, the San Luis zone, comprises coincident geochemical, alteration and geophysical anomalies, covering an area of 850m by 750m, in the uppermost part of the mineralized system to the north of the Alejandra zone. The Company considers that this area has potential to host a sizeable, concealed bulk-mineable precious metal deposit together with additional bonanza grade veins. Evidence for the latter is indicated by the presence of an approximately 2m wide, near vertical, silicified zone, about 20 m long, located near the EMC camp, where a single rock panel sample across the vein gave values of 17.4 g/t gold and 103g/t silver. A further target, the Dorada zone, is located 800m south of the San Luis concession. Previous rock sampling carried out by Rio Tinto over a 200m by 200m area within the Dorada zone gave an average, uncut gold grade, calculated by EMC, of 7.8 g/t gold and 29 g/t silver (with high values of 188.6 g/t gold and 288 g/t silver) for 152 samples. Again, chargeablility and resistivity geophysical anomalies are coincident with the mineralized zone.
Detailed field work completed to date by EMC at Beroen points to many features in common with the El Peñón property operated by Meridian Gold Inc. in northern Chile. Mineralization at both properties is related to Tertiary age, low sulfidation, adularia-sericite alteration type, epithermal precious metal systems. The styles of mineralization at each property comprise quartz veins, massive quartz flooded veins and hydrothermal breccias containing bonanza grade gold/silver values. In addition, at both properties the principal control to mineralization is supplied by district scale faulting.
Further exploration results from work carried out on the various mineralized zones of the Beroen deposit will be released as they become available.
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.