Aurelian Resources (ARU): Aurelian cuts 4.14 g/t Au over 237.25 m...

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Wednesday, 04/05/2006 6:55:54 PM

Wednesday, April 05, 2006 6:55:54 PM

Aurelian cuts 4.14 g/t Au over 237.25 m at Condor

2006-04-05 11:04 ET - News Release

Mr. Patrick Anderson reports

AURELIAN INTERSECTS 237 METRES AVERAGING 4.14 G/T OF GOLD AND 60 METRES AVERAGING 3.42 G/T IN INITIAL DRILL PROGRAM AT THE NEW FDN EPITHERMAL GOLD-SILVER DISCOVERY

Aurelian Resources Inc. has cut a 237.25-metre intercept, grading 4.14 grams per tonne of gold, and a 60-metre intercept, grading 3.42 g/t of gold, at its wholly owned Condor project in southeastern Ecuador. These results are from two of six holes completed at the FDN blind epithermal gold-silver discovery. Results have been received for four holes. The intersections are approximately one kilometre north of the Bonza-Las Penas (B-LP) epithermal gold-silver deposit (see Stockwatch news dated Dec. 14, 2004) and are interpreted to be the northern continuation of that system, which has now been mapped for over three kilometres. To date, there has been no drilling between the current program at FDN and the B-LP deposit.

"With this discovery, we have added more than a kilometre of strike length to the B-LP deposit that we targeted and drilled in 2004 and 2005," says Aurelian president and chief executive officer, Patrick F.N. Anderson. "The first two holes of the program aided us in modelling the geometry of the system and the second two holes have proven the existence of an extensive mineralized system with grade at depth. The intensity of the mineralization at FDN is an order of magnitude stronger than we see at B-LP."

Mr. Anderson said the two holes that intercepted grade are separated by a strike length of over 90 metres and both are open at depth. "The drill is currently working to complete the final four holes of the program. These results will be released when they are received. Given the strength of the numbers reported so far, we are working to develop a drill program that will identify a resource on this new discovery."

Results are summarized in the tables below. As drill hole CP-06-51 includes a significant number of high-grade assays, this hole has been recalculated using a top cut of 31.1 grams per ton Au. All drill holes have an azimuth of 90 degrees and dip between 45 degrees and 75 degrees. Locations are displayed in map and cross-section at Aurelian's website. A complete list of results may be viewed at Aurelian's website.

 
  
                UNCUT DATA 
  
 Drill    From     To     Int.   Au   Ag  
 hole       m      m       m     g/t  g/t 
  
 CP-06-49  23.00  25.00   2.00  0.61  2.4 
 CP-06-49  47.00  49.00   2.00  1.23  1.6 
 CP-06-49  74.00  76.00   2.00  1.20  1.1 
 CP-06-49 140.70 141.00   0.30  0.52  3.8 
 CP-06-50  70.00  71.00   1.00  0.60  0.9 
 CP-06-50  77.80  78.05   0.25  1.55 18.8 
 CP-06-50 202.50 203.50   1.00  0.69  1.7 
 CP-06-50 218.00 222.00   4.00  0.63  8.7 
 CP-06-50 305.00 307.50   2.50  1.15  3.3 
 CP-06-51 192.45 429.70 237.25  4.14  8.5 
 incl.    199.45 240.90  41.45  9.06 10.4 
 incl.    211.35 212.35   1.00  52.4 26.2 
 incl.    221.30 222.10   0.80  31.0 24.5 
 incl.    234.90 235.90   1.00  80.3 25.6 
 incl.    303.70 325.80  22.10 15.58  6.1 
 incl.    303.70 305.15   1.45 175.0 40.0 
 incl.    317.10 317.80   0.70  51.4 20.9 
 incl.    370.00 371.00   1.00  35.3 27.1 
 CP-06-52 214.80 215.80   1.00  0.64  1.2 
 CP-06-52 279.90 340.15  60.25  3.42  3.3 
 incl.    280.90 320.40  39.50  4.35  3.8

Note

Intervals are calculated using a lower cut of 0.5 g/t Au and no top cut. They include a maximum of five-metre internal waste.

 
  
   CP-06-51 WITH A TOP CUT OF 31.1 G/T AU 
  
 Drill    From     To     Int.   Au   Ag  
 hole       m      m       m     g/t  g/t 
  
 CP-06-51 192.45 429.70 237.25  2.89  8.5 
 incl.    199.45 240.90  41.45  7.36 10.4 
 incl.    303.70 325.80  22.10  5.50  6.1

Note

Intervals are calculated using a lower cut of 0.5 g/t Au and a top cut of 31.1 g/t Au, which include a maximum of five-metre internal waste.

The first four drill holes of the current program targeted two zones at FDN. The first (CP-06-49) tested a strong IP anomaly originally thought to be the northern extent of the system. The other three drill holes (CP-06-50, 51 and 52) aimed to intersect at depth, a zone of epithermal quartz replacement in conglomerate found in outcrop. The conglomerate is interpreted as infill of a large pull-apart basin (two kilometres by seven kilometres), almost all of which is within Aurelian concessions. Pull-apart basins are a structural environment ideal for the formation of epithermal gold mineralization. The majority of the epithermal mineralization associated with this basin is now interpreted to predate the conglomerate. This indicates that most of the epithermal gold-silver mineralization is buried by the conglomerate.

Drill hole CP-06-49 intersected a weakly mineralized (24 m at 0.22 g/t Au and eight metres at 0.49 g/t Au) hydrothermal breccia and weak widely spaced epithermal stockwork veining. Although the assays were low grade, the hole confirmed that epithermal mineralizing fluids had circulated in the area. The drill rig was then moved 250 m to the west, to test the volcanics below the conglomerate. Drill hole CP-06-50 intersected a zone of weak epithermal mineralization within the conglomerate (28.05 m at 0.18 g/t Au) before intersecting 20 m of buried quartz sinter, the surface expression of epithermal mineralization and the first indication that a significant epithermal system lay buried below the conglomerate. The hole also intersected a broad zone of hydrothermal breccia in the underlying andesitic volcanics. The mineralization returned low gold values (63.6 m at 0.16 g/t Au and 26.50 m at 0.24 g/t Au), with the geochemistry indicating the mineralization is high in the epithermal system.

As the main epithermal system was interpreted to lie farther west and at deeper levels. The next drill hole (CP-06-51) was drilled with a steeper dip from the same drill platform. At 192.45 m, silicified conglomerate was intersected and, at 199.45 m, a zone of intense epithermal quartz stockwork veining and brecciation in silicified volcanics. Visible gold has been observed within a number of the stockwork veins. The drill hole stayed within mineralization to 429.70 m (237.25 m at 4.14 g/t Au and 8.5 g/t Ag, including 41.45 m at 9.06 g/t Au and 22.10 m at 15.58 g/t Au). Certain significantly sized high-grade banded quartz-rhodochrosite-sulphide veins with visible gold were also intersected (1.45 m at 175 g/t Au and 40.0 g/t Ag, true width is estimated at 80 centimetres and 70 cm at 51.4 g/t Au and 20.9 g/t Ag, true width estimated at 65 cm). The hole ended at 432.5 m, with anomalous gold (0.34 g/t) and silver (6.5 g/t) at the end of the hole.

Drill hole CP-06-52 was drilled 92 m west and 89 m south of holes CP-06-50 and 51. The hole also intersected very intense epithermal stockwork veining and brecciation, and assays 60.25 m at 3.42 g/t Au and 3.3 g/t Ag over the entire volcanic interval. Unfortunately, the drill hole was lost due to a collapse higher up the hole before the hole could test the entire system. The hole ended in epithermal stockwork and breccia mineralization in silicified volcanics.

As both holes CP-06-51 and CP-06-52 ended in mineralization, a true width of the zone cannot be accurately determined at this time.

Assay results are pending for the latest two drill holes to be completed (CP-06-53 and 54). Both holes have intersected epithermal stockwork veining. Drilling is continuing along strike and downdip to confirm the grade, widths and orientation of the mineralization.

Drilling is comprised of HQ or NQ diamond core, with recovery close to 100 per cent. The samples are sawed half core and were assayed at ALS Chemex's Vancouver Laboratory by fire assay, with an ICPAES or gravimetric finish. Sample preparation was performed by Chemex's prep facility in Quito. As part of quality assurance and quality control (QA/QC), certified standards of known gold content are inserted every 20 samples, blanks every 25 samples, and field and lab blind duplicates taken every 25 samples. Additional blanks are inserted in the sample stream when visible gold is observed. Metallic screen fire assaying is in progress as an additional (QA/QC) check of the higher-grade intervals. Half core samples have been retained on site for verification and reference purposes.

Stephen Leary, MAusIMM, is acting as qualified person, in compliance with National Instrument 43-101, with respect to this release. He has reviewed the contents for accuracy.