No Worries Here Let ARU''s drills TurnAurelian Resources Inc (C-ARU) - News Release
Aurelian Resources drills 72.83 m of 7.63 g/t Au at FDN
2007-06-06 11:15 ET - News Release
Shares issued 33,300,615
ARU Close 2007-06-05 C$ 28.00
Mr. Patrick Anderson reports
AURELIAN INTERSECTS 72.83 METRES GRADING 7.63 G/T GOLD AND 78.00 METRES GRADING 5.26 G/T GOLD IN DRILLING AT FDN
Aurelian Resources Inc. is providing the results from 11 additional drill holes from the buried epithermal gold-silver discovery at Fruta Del Norte (FDN) on its wholly owned Condor project in southeastern Ecuador. These include 72.83 metres grading 7.63 grams per tonne (g/t) gold (Au) and 15.3 g/t silver (Ag) in CP-07-110, and 78.0 metres grading 5.26 g/t Au and 5.6 g/t Ag in CP-07-112. Both drill holes have added significant mineralization, bringing the deposit closer to the surface on sections 9583700N and 9583500N, respectively. In the northern portion of the deposit on Section 9583800N, infill hole CP-07-119 intercepted 82.90 metres grading 4.11 g/t Au and 7.8 g/t Ag.
On Section 9583700N, scissor hole CP-07-114 intersected 77.70 metres grading 6.26 g/t Au and 15.3 g/t Ag, and farther down in the same hole, there is an intercept of 190.85 metres grading 6.09 g/t Au and 7.5 g/t Ag.
At the south end of the FDN system, drill hole CP-07-116A intersected 147.70 metres grading 2.37 g/t Au and 6.6 g/t Ag, followed by 89.70 metres grading 3.27 g/t Au and 12.6 g/t Ag, in an area where the mineralization has spread over a horizontal width of approximately 300 metres.
"FDN continues to expand based on excellent results from our infill and step-out drilling," says Patrick F.N. Anderson, Aurelian's president and chief executive officer. "Work on our Condor project carries on unabated and Aurelian has become the largest employer in the local area, with more than 200 personnel on site. We expect the environment in Ecuador to continue to be favourable for business as the government develops and then finalizes its mining policy and laws. We anticipate any new policy or laws to be based on the framework the Ministry of Energy and Mines released publicly in March -- no nationalization, possible introduction of a royalty similar to those seen in Chile and Peru, and respect for the environment and local communities. Aurelian is committed to working with the government and people of Ecuador to achieve a modern, sustainable mining industry which will play an important role in the future growth of the country."
Mr. Anderson adds, "We are within several weeks of completing the drilling to be included in our 43-101 resource, which should result in release of the report summary in midsummer, along with metallurgical studies."
A table containing more complete intercepts from the 11 drill holes is included in this news release, while maps, cross-sections, photos, and full gold and silver assay data from this and previous press releases in Stockwatch may be viewed at the company's website.
FDN results
Intervals containing high-grade assays have been recalculated using a top cut of 105 g/t Au.
UNCUT DATA
Drill hole From (m) To (m) Interval (m) Au (g/t) Ag (g/t)
CP-07-108 no significant assays
CP-07-116A 405.50 553.20 147.70 2.37 6.6
including 453.65 472.40 18.75 4.19 5.4
CP-07-116A 560.00 649.70 89.70 3.27 12.6
including 593.20 607.60 14.40 10.54 31.9
which includes 593.20 593.50 0.30 304.00 688.0
CP-07-109 604.10 656.62 52.52 2.18 1.3
including 617.15 626.00 8.85 7.56 4.2
CP-07-109 663.34 693.00 29.66 1.03 2.0
CP-07-109 740.20 743.20 3.00 4.96 5.0
CP-07-118 317.79 403.00 85.21 2.94 5.5
including 338.10 360.60 22.50 8.60 6.5
which includes 359.00 359.57 0.57 199.50 54.5
CP-07-118 451.00 557.00 106.00 1.38 7.8
including 472.00 474.00 2.00 33.50 47.6
CP-07-118 618.00 646.91 28.91 1.80 8.9
including 629.50 630.50 1.00 34.10 113.0
CP-07-113 289.00 431.50 142.50 4.70 10.4
including 290.35 317.52 27.17 9.84 11.4
CP-07-112 164.30 242.30 78.00 5.26 5.6
including 164.30 216.00 51.70 7.26 7.2
CP-07-115 141.00 169.60 28.60 1.10 5.4
CP-07-110 112.35 185.18 72.83 7.63 15.3
including 151.57 184.18 32.61 14.33 21.6
CP-07-111 228.13 239.00 10.87 1.43 4.9
CP-07-114 144.00 221.70 77.70 6.26 15.3
including 158.80 201.60 42.80 9.69 17.6
CP-07-114 244.50 435.35 190.85 6.09 7.5
including 288.96 345.73 56.77 10.73 10.6
and including 397.90 425.90 28.00 10.18 12.2
CP-07-119 156.70 239.60 82.90 4.11 7.8
including 202.65 209.80 7.15 17.54 17.0
Note that intervals are calculated using a lower cut of 0.5 g/t Au and
no top cut. They include a maximum of five metres of internal waste.
INTERVALS WITH A TOP CUT OF 105 G/T AU
Drill hole From (m) To (m) Interval (m) Au (g/t) Ag (g/t)
CP-07-116A 560.00 649.70 89.70 2.61 12.57
CP-07-118 317.79 403.00 85.21 2.31 5.52
Note that intervals are calculated using a lower cut of 0.5 g/t Au and
a top cut of 105 g/t Au. They include a maximum of five metres of
internal waste.
CP-07-108 (azimuth of 90 and dip of minus 76) was drilled on Section 9582600N to test the down-faulted western block to the west of CP-07-99 (see Stockwatch, May 2, 2007). The hole did not intersect significant mineralization.
On Section 9582700N, CP-07-116A (azimuth of 91 and dip of minus 65) intersected a broad zone of epithermal stockwork veining and narrow veins, returning best intercepts of 147.70 metres grading 2.37 g/t Au and 6.6 g/t Ag, and 89.70 metres grading 3.27 g/t Au and 12.6 g/t Ag. The hole is part of a five-hole fence drilled to test the southern part of the system. The results and geological core logging indicate that the system is broadening to the south and is up to 300 metres wide on this section.
Drill hole CP-07-109 (azimuth of 90 and dip of minus 63) was drilled on Section 9582800N, and tested the area west and downdip of previously reported holes CP-06-90 and CP-06-94 (see Stockwatch, Jan. 31, 2007, and March 27, 2007). The hole intersected dispersed epithermal stockwork veining between approximately 600 metres and 700 metres downhole, with the best intersection assaying 52.52 metres at 2.18 g/t Au and 1.3 g/t Ag, including 8.85 metres at 7.56 g/t Au and 4.2 g/t Ag.
An eastward step-out hole on 9583000N (CP-07-118, azimuth of 89 and dip of minus 60) successfully intersected several broad zones of epithermal stockwork veining, including an intercept of 22.50 metres assaying 8.60 g/t Au and 6.5 g/t Ag within a wider interval of 85.21 metres assaying 2.94 g/t Au and 5.5 g/t Ag. This hole confirms the eastward broadening of the FDN mineralization to the south, beginning at around 9583000N.
CP-07-113 (azimuth of 269 and dip of minus 60) is a second scissor hole on Section 9583400N, and intersected a broad zone of epithermal brecciation and veining with visible gold. The hole assayed 142.50 metres at 4.70 g/t Au and 10.4 g/t Ag, including 27.17 metres at 9.84 g/t Au and 11.4 g/t Ag. The hole went through a lower-grade zone on Section 9583400N but confirms the geometry and intensity of mineralization previously intersected on this section.
Drill hole CP-07-112 (azimuth of 90 and dip of minus 52) was drilled to test the extent of mineralization on Section 9583500N, updip of CP-06-60 (see Stockwatch, July 7, 2006). The drill hole intersected approximately 80 metres of epithermal stockwork veining, adding additional cross-sectional area to the eastern part of the FDN block on this section. The best interval in CP-07-112 assayed 78.0 metres at 5.26 g/t Au and 5.6 g/t Ag.
Also on Section 9583500N, CP-07-115 (azimuth of 90 and dip of minus 52) tested the FDN system farther updip of CP-07-112. The hole intersected a zone of epithermal stockwork veining, assaying 28.60 metres at 1.10 g/t Au and 5.4 g/t Ag. This hole and other recently drilled in a similar location on other sections show that a small internal fault has stepped the mineralization down to the west by approximately 50 metres. This has added a significant volume of mineralization.
Several holes were drilled on Section 9583700N, including two shallower holes (CP-07-110 and CP-07-111) to test the area eastward and updip of CP-06-65 and CP-06-67 (see Stockwatch, Sept. 14, 2006, and Oct. 18, 2006). Hole CP-07-110 (azimuth of 90 and dip of minus 59) intersected epithermal breccia, stockwork and veining, with the best intercept assaying 72.83 metres at 7.63 g/t Au and 15.3 g/t Ag. Hole CP-07-111 (azimuth of 89 and dip of minus 50) was drilled from the same drill pad but at a shallower angle. This hole also intersected epithermal stockwork and veining, but with weaker gold mineralization. The best intercept assayed 10.87 metres at 1.43 g/t Au and 4.9 g/t Ag.
Also on Section 9583700N, hole CP-07-114 (azimuth of 270 and dip of minus 80) was drilled as a scissor hole to test the mineralization at depth. Drilled downdip, the hole encountered a very intense zone of epithermal brecciation, stockwork and veining, with significant intervals including 77.70 metres grading 6.26 g/t Au and 15.3 g/t Ag, followed by 190.85 metres grading 6.09 g/t Au and 7.5 g/t Ag. As this was a scissor hole, the intercept does not represent a true width, although it does demonstrate the continuity of mineralization over 250 vertical metres on this section.
Drill hole CP-07-119 (azimuth of 91 and dip of minus 55) was an infill hole on Section 9583800N between holes CP-06-69 and CP-06-75 (see Stockwatch, Oct. 18, 2006, and Dec. 15, 2006). The hole intersected a broad zone of epithermal brecciation and veining, with the best intercept assaying 82.90 metres at 4.11 g/t Au and 7.8 g/t Ag.
Results from 64 diamond drill holes have been released for the FDN prospect to date. Further drill results will be released as analytical data are received, validated and compiled.
The FDN target is interpreted to be an intermediate sulphidation epithermal gold-silver system. The deposit is buried by dominantly postmineralization basin infill sediments (Suarez formation) of Jurassic age within a pull-apart basin. The hydrothermal system is characterized by a combination of multiphase quartz-carbonate-sulphide stockwork veining and hydrothermal brecciation within intensely silicified andesitic volcanic rocks that underlie the basin. In the southern part of FDN (south of 9583500N), the system is interpreted to dip moderately to steeply westward with a vertical structure bounding it to the east and is cut by a steep east-dipping fault to the west. At the north end of the system (including and north of Section 9583500N), the vein orientations and correlation of mineralization between drill holes indicate that the system is vertical. South of 9583000N, the system broadens into a zone of epithermal stockwork and larger veins that is up to 300 metres in horizontal width. In this part of the system, the main upflow zone is interpreted to have moved from west to east.
Drilling at the FDN deposit has outlined a mineralized envelope that is traceable continuously for over 1,200 metres along strike, exceeds 100 metres in width through the central and southern portions, dips moderately westward through to vertical, and has a vertical extent of over 250 metres. Drill holes intersect this envelope at an angle and, therefore, drill hole intercept widths reported in this press release are not true widths.
Samples consist of half NQ-size, NTW-size and BTW-size diamond core that are split by diamond saw on site, prepared at the ALS Chemex laboratory in Quito and assayed by 50-gram fire assay with an AAS or gravimetric finish at the ALS Chemex laboratory in Lima. The quality assurance and quality control (QA/QC) program of Aurelian includes the insertion of certified standards of known gold content every 20 samples, blanks at least every 20 samples and field or lab duplicates every 20 samples. Samples from significant drill intercepts are sent to two additional laboratories to verify gold and silver analyses. Metallic screen fire analyses for gold are also regularly run as additional QA/QC checks. The remaining half of the core is retained for verification and reference purposes.
Stephen Leary (MAusIMM), Aurelian's exploration manager, is acting as qualified person in compliance with National Instrument 43-101 with respect to this release. He has reviewed the contents for accuracy.
We seek Safe Harbor.