Ecometals plans diamond drill testing at Rio Zarza

2009-06-26 10:56 ET - News Release

Mr. Fran Scola reports

ECOMETALS PLANS DRILL TESTING AT RIO ZARZA GOLD PROJECT

Ecometals Ltd. confirms its plans for diamond drill testing onthe Rio Zarza gold project of anomalous geophysical and geochemistryresults, and a structural scenario analogous to Kinross's Fruta del Norte golddeposit.

Rio Zarza gold project

The Rio Zarza gold project is located north of Zamora, the district capital ofZamora-Chinchipe province, southeastern Ecuador. The project adjoins theKinross (formerly Aurelian) exploration licence that covers the Fruta delNorte epithermal deposit, with a reported 13.7 million ounces gold (Micon, 2007).

Work on the Rio Zarza and other projects in the Ecometals portfolio has beenon hold for the last year due to the imposition of a moratorium on explorationby the government of Ecuador, and the enactment of new mining legislation andregulations. Ecometals is in the process of applying for environmental andwater-use permits to continue exploration, and plans to drill the Rio Zarzaproject as expediently as possible after receipt of these permits.

The west side of the Rio Zarza project is underlain by the Zamora granitebatholith, and on the east side there is a volcano-sedimentary assemblagedeposited in an extensional pull-apart rift basin that hosts the Kinross Frutadel Norte and Bonza las Penas deposits.

Detailed induced polarization (IP)/resistivity surveys have outlined a significant linear chargeabilityanomaly 200 metres wide by 850 metres long associated with an interpreted faultstructure that is analogous to the Fruta del Norte response. Anomalous goldand associated elements (arsenic, mercury) are spatially correlated to the IP anomaly,and are characteristic of epithermal-type mineralization. Silicification,disseminated sulphides and argillic/sericite alteration of the Suarez Fmsuggest close proximity to the source of mineralization.

An initial program of three diamond drill holes, for a total of 1,200 metres, isplanned to intersect the core of the IP chargeability anomaly. Should resultsprove encouraging, the drilling program will be continued to further definethe mineralization.

Further details and maps of the planned drilling program can be obtained fromthe Ecometals website.

Chief executive officer, Fran Scola, said, "The company has made aconsiderable investment in Ecuador and has a long-term commitment to thecountry, so we are pleased that after such a long enforced delay we are ableto now announce our intention to test the potential of the Rio Zarza project."

Qualified person

S.R. McMullan, PGeo, vice-president of exploration for Ecometals, isa qualified person according to National Instrument 43-101 and hassupervised the preparation of the technical information included in this pressrelease.

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