Aurelian Resources (ARU)

[Tackler]

Aurelian drills 102.49 m of 4.98 g/t Au at Condor

2007-01-31 12:24 ET - News Release

Mr. Patrick Anderson reports

AURELIAN INTERSECTS 102.49 METRES AT 4.98 G/T GOLD AND 171.85 METRES AT 3.40 G/T GOLD IN DRILLING AT FDN

Aurelian Resources Inc. has received results from seven additional drill holes from the buried epithermal gold-silver discovery at Fruta Del Norte on its wholly owned Condor project in southeastern Ecuador. These include a 102.49-metre interval grading 4.98 grams per tonne gold and 9.9 g/t silver in drill hole CP-06-92, and a 171.85-metre interval grading 3.40 g/t Au and 6.2 g/t Ag in drill hole CP-06-89. In addition, a bonanza-grade epithermal vein was intersected in drill hole CP-06-87 which assayed 5.7 m at 75.84 g/t Au.

"The drilling continues to expand the size of the system as well as confirming that we have a very good understanding of the geometry of the system which remains open to the south," says Aurelian president and chief executive officer Patrick F.N. Anderson. "Our work program continues unabated into the new year and we currently have five drill rigs working 24 hours a day and seven days a week on the FDN discovery. A new road onto the discovery has greatly facilitated the logistics of supporting the additional machines, crews and core produced. Once current infrastructure upgrades to our camp are complete, we will be able to deploy one of the smaller rigs to further test targets defined by our regional program."

Results are summarized in the tables below. Intervals containing high-grade assays have been recalculated using a geostatistical top cut of 105 g/t gold.

 
  
                   UNCUT DATA 
  
 Drill        From       To  Interval     Au   Ag 
 hole           (m)      (m)       (m)   g/t  g/t 
  
 CP-06-90   385.75   511.00    125.25   1.72  6.0 
 CP-06-90   546.00   587.20     41.20   1.56 14.3 
 CP-06-90   593.10   604.00     10.90   0.99  4.7 
 CP-06-90   680.30   688.30      8.00   1.62  2.7 
 CP-06-87   369.00   454.00     85.00   7.61 11.1 
 including  419.10   424.80      5.70  75.84 17.1 
 CP-06-87   459.90   663.00    203.10   1.29  9.4 
 CP-06-89   341.85   513.70    171.85   3.40  6.2 
 including  384.20   444.20     60.00   5.51  4.0 
 CP-06-89   525.70   542.70     17.00   1.81  5.8 
 CP-06-92   316.00   418.49    102.49   4.98  9.9 
 including  353.40   389.60     36.20   8.77 11.8 
  
     INTERVALS WITH A TOP CUT OF 105 G/T AU 
  
 Drill        From       To  Interval     Au   Ag 
 hole           (m)      (m)       (m)   g/t  g/t 
  
 CP-06-87   369.00   454.00     85.00   6.09 11.1 
 CP-06-89   341.85   513.70    171.85   2.94  6.2 
  
 

CP-06-87 (azimuth 089/dip minus 56) was drilled on Line 9582900N, between and south of drill holes CP-06-83 and 85. The drill hole intersected epithermal quartz-carbonate-sulphide veining and brecciation, including a banded vein with abundant visible gold assaying 5.7 m at 75.84 m. This vein correlates well with veins seen in drill holes CP-06-83 and CP-06-85.

On Section 9583200N, drill hole CP-06-89 (azimuth 86/dip minus 65) was drilled to test the mineralized system down dip from holes CP-06-52 and 55. The hole drilled through the west fault at 337 m and into intense epithermal quartz-carbonate-sulphide mineralization assaying 171.85 m at 3.4 g/t Au and 6.2 g/t Ag. Within this interval higher-grade zones (60 m at 5.51 g/t Au) also occur.

CP-06-90 (azimuth 089/dip minus 67) was drilled on Line 9582800N. The hole intersected a broad zone of epithermal mineralization from 385 m, assaying 125.25 m at 1.72 g/t Au and six g/t Ag and 41.2 m at 1.56 g/t Au and 14.3 g/t Ag.

One drill rig has been moved back to the central part of FDN to test the vertical extents of the system and also infill drill in preparation for a resource estimate. This rig has completed drill hole CP-06-92 (azimuth 88/dip minus 63) on Section 9583600N that was designed to undercut drill holes CP-06-64 and 66. The hole intersected very intense mineralization from 316 m to the end of hole (418.49 m) which assayed 102.49 m at 4.98 g/t Au and 9.9 g/t Ag. The drill hole was lost within mineralization due to a collapse when the rods were pulled for a bit change.

Drill hole CP-06-88, which was drilled approximately 1,200 metres south of FDN, appears to have encountered the margin of the Camp porphyry and did not intersect significant epithermal mineralization. Drill hole CP-06-91 (south of FDN on Section 9582000N) was halted while still in the Suarez formation conglomerates due to technical difficulties during drilling.

Drill holes with assays pending or in progress include infill holes CP-07-95 and 96 on Section 9583600N. Both drill holes have intersected very intense mineralization higher than expected, with the top of the mineralized block approximately 100 m vertically below surface on this section. CP-06-94, CP-07-98 and 99 are in progress on sections 9582800N, 9582700N and 9582600N respectively to test the southern continuation of FDN. Drill holes CP-07-98 and 99 have intersected buried quartz sinter within the Suarez formation conglomerates. Either hole has yet to intersect the underlying volcanics. Drill hole CP-07-97 is in progress farther south on Section 9582000N to test an area where epithermal silicification and marcasite replacement of the conglomerate has occurred at depth.

Drill hole CP-06-86, the final hole drilled at Las Arenas, did not intersect significant mineralization.

Forty-two diamond drill holes have been completed at 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 Line 9583500N) the vein orientations and correlation of mineralization between drill holes indicates that the system is vertical. This makes the true width of the system between 45 per cent and 60 per cent of the down hole intervals reported in this press release.

Stephen Leary, 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.