Aurelian Resources Inc.
TSX : ARU

Aurelian Resources Inc.

January 25, 2008 13:16 ET

Aurelian Reports Strong Infill Drill Results on FDN; Concessions in Good Standing and Progress in Government Discussions

TORONTO, ONTARIO--(Marketwire - Jan. 25, 2008) - Aurelian Resources Inc. (TSX:ARU) today announced additional drill results at the Fruta Del Norte ("FDN") deposit on its Condor Project in southeastern Ecuador. The results are from infill holes in the central high grade part of the system on 50 m spaced sections. These include 149.63 metres grading 12.51 g/t of gold ("Au") and 15.71 g/t of silver ("Ag") in CP-07-180 and 119.05 metres grading 8.03 g/t of Au and 22.6 g/t of Ag in CP-07-170, both on section 9583450N. On section 9583550N, drilling returned 75.81 metres grading 11.06 g/t of Au and 22.5 g/t of Ag in CP-07-178A and 51.76 metres grading 10.00 g/t of Au and 15.0 g/t of Ag in CP-07-177.

The FDN deposit contains an Inferred Resource of 58.9 million tonnes grading
7.23 g/t of gold and 11.8 g/t of silver for 13.7 million ounces of contained gold and 22.4 million ounces of contained silver, determined at a cut off grade of 2.3 g/t gold-equivalent (ARU PR 4/10/2007). The results reported in this release were not included in the earlier resource estimate.

"We are making excellent progress on our main value drivers - moving FDN towards development, achieving political certainty and exploring other promising targets on our concessions," says Patrick F.N. Anderson, President and CEO. "Infill drilling on the north-central zone of FDN should allow us to move that portion of the deposit from the inferred resource category to measured and indicated over the next several months. Meanwhile, we continue to progress our mine planning and engineering studies."

"As has been previously reported, for the better part of the past year the government of Ecuador has been expediting a review of all mining concessions. We understand that concessions which are in arrears in patent payments may be revoked as outlined in the mining law. All patent payments on Aurelian concessions are up to date."

"We continue our discussions with the government of Ecuador with the goal of outlining a stability agreement under which the FDN deposit can be brought into development. As such we have been in regular weekly meetings with Ecuador's Ministry of Petroleum and Mines since early January. Discussions are proceeding well, with all parties at the table keen to arrive at an agreement that benefits the country as well as our investors. The goal is to establish royalties, taxes and other requirements for development of FDN as well as discussing draft mining laws and policies that will govern the rest of our concessions. The government is aiming to complete these discussions in March."

Mr. Anderson concluded, "Results from our regional target, Papaya, have been returned. Assays show gold mineralisation continues to the north of FDN. Although the results are not of economic interest they do underscore the widespread nature and occurrence of gold in our concessions. The regional program will continue in 2008 with resources devoted to working up and drilling more of our many other gold targets."

FDN Results

Mineralised intercepts (uncut and cut) from four recent FDN drill holes are tabulated below followed by brief descriptions of each hole. The intercepts are calculated with the same 2.3 g/t Au Eq lower cut used in the Inferred Resource estimate (ARU PR, October 4, 2007); this cut off is used in the description of results in the following text (unless otherwise stated). Maps, cross sections, photos, gold and silver assay data from this and previous press releases may be viewed at www.aurelian.ca.



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Uncut data, 2.3 g/t Au Eq(i) lower cut
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Cross Drill From To Interval Au Ag Au
section hole (metres) (metres) (metres) g/t g/t Eq(i)
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CP-07-170 334.70 337.70 3.00 2.56 2.1 2.59
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CP-07-170 344.60 463.65 119.05 8.03 22.6 8.40
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including 414.50 458.80 44.30 13.32 38.3 13.94
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CP-07-170 598.10 605.10 7.00 0.92 171.7 3.69
9583450N ----------------------------------------------------------------
CP-07-180 278.25 282.25 4.00 2.40 5.1 2.48
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CP-07-180 289.00 438.63 149.63 12.51 15.7 12.77
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including 295.77 329.70 33.93 29.76 16.1 30.02
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CP-07-180 447.04 467.65 20.61 2.51 4.9 2.59
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CP-07-177(ii) 218.75 243.35 24.60 5.73 4.1 5.79
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CP-07-177 252.24 304.00 51.76 10.00 15.0 10.24
9583550N ----------------------------------------------------------------
CP-07-178A 384.90 460.71 75.81 11.06 22.5 11.42
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including 444.57 457.57 13.00 25.40 38.1 26.02
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Note: intervals are calculated using a lower cut of 2.3 g/t Au Eq and no
top cut, they include up to 6m of internal waste.
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Intervals with a 2.3 g/t Au Eq(i) lower cut and a top cut of
105g/t Au and 97 g/t Ag
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Cross Drill From To Interval Au Ag Au
section hole (metres) (metres) (metres) g/t g/t Eq(i)
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9583450N CP-07-170 344.60 463.65 119.05 8.03 20.6 8.37
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9583550N CP-07-180 289.00 438.63 149.63 9.63 15.7 9.88
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Note: intervals are calculated using a lower cut of 2.3 g/t Au Eq and a
105 g/t Au and 97 g/t Ag top cut, they include up to 6m of internal waste.
---------------------------------------------------------------------------

(i) Au equivalent grade was calculated on the basis of US$550/oz Au,
US$10/oz Ag, 90% Au recovery, 80% Ag recovery which combine for an Au Eq
ratio of 61.9 grams Ag equals 1 gram Au.

(ii) CP-07-177 is a geotechnical drill hole from which a 1m sample was
taken from the mineralised interval for geotechnical test-work. This sample
has not yet been assayed, but should not materially change the grade of the
calculated interval as it represents only 4% of its length.


On infill section 9583450 drill holes CP-07-170 and CP-07-180 have both
intercepted significant widths of mineralisation that correlate well with intervals predicted by the October 2007 block model. The deeper of the two holes CP-07-170 (azimuth 87/dip -55) reported a best intercept of 119.05m @ 8.03 g/t Au and 22.6 g/t Ag which includes a higher grade zone assaying 44.30 m @ 13.32 g/t Au and 38.3 g/t Ag. The best interval in CP-07-180 (azimuth 89/dip -48) assayed 149.63 m @ 12.51 g/t Au and 15.71 g/t Ag, which includes 33.93 m @ 29.76 g/t Au and 16.1 g/t Ag.

Two holes have been completed on infill section 9583550N with CP-07-177 (azimuth 87/dip -62) intercepting intense epithermal mineralisation assaying 24.60 m @ 5.73 g/t Au and 4.1 g/t Ag and 51.76 m @ 10.00 g/t Au and 15.0 g/t Ag. Down dip from these intercepts drill hole CP-07-178A reported a mineralised interval of 75.81 m @ 11.06 g/t Ag and 22.5 g/t Ag, which includes 13.00 m @ 25.40 g/t Au and 38.1 g/t Ag.

With the results reported here, data for 104 diamond drill holes at FDN have been released, only 85 of which were complete and included in the October 2007 Inferred Resource estimate. Infill drilling at FDN and exploration drilling on additional targets is ongoing with six drills currently operating on the property. Results for current and future drill holes will be released as analytical data are received, validated and compiled.

The FDN deposit is hosted by intensely silicified andesitic volcanic and intrusive rocks that are buried by clastic sedimentary rocks of the Suarez Formation of Jurassic age within a pull-apart basin. The hydrothermal system is characterized by multiphase quartz-carbonate-sulphide stock work veining and hydrothermal brecciation. FDN is interpreted to be an intermediate sulphidation epithermal gold-silver system that predates, but is in part contemporaneous with, infilling of the basin.

Drilling has outlined a mineralised envelope at FDN that is traceable continuously for over 1400 metres along strike, exceeds 100 metres in width through the central and southern portions, has a vertical extent of over 350m and dips moderately westward through to vertical with an eastern contact that dips steeply to the east south of 9583500N. Drill holes intersect this envelope at various angles and therefore drill hole intercept lengths reported in this and earlier press releases are not true widths. Inspection of drill cross sections allow the width of the mineralised envelope to be estimated visually.

Regional - Papaya

At Papaya, a target defined by mapping, sampling and a geophysical IP anomaly, anomalous mineralisation has been intersected in a number of scout drill holes. Two east west orientated fences of holes were completed on sections 9584700N (4 holes, CP-07-150, 155, 160 and 166) and 9584900N (2 holes, CP-07-171 and 173), which are 750 and 950m north of the FDN deposit respectively. The holes intercepted a number of broad zones (tens of metres) of crystalline quartz and sulphides in andesite and multiple fault zones. Assays from the holes were low grade, with broad zones of greater than 0.1 g/t Au and a best intercept of 19.84 m @ 1.05 g/t Au and 8.9 g/t Ag within CP-07-173 (note - using a lower cut off of 0.5 g/t Au).

Technical Information

Samples consist of half HQ, NQ, NTW and BTW-size diamond core that are split by diamond saw on site, prepared at the ALS Chemex laboratory in Quito, and assayed by 50g fire assay with an AAS or gravimetric finish at the ALS Chemex Lima Laboratory. The quality assurance-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 independent laboratories to verify gold and silver analyses. Metallic screen fire analyses for gold are also run regularly as an additional QA-QC check. The half core remaining after sampling is retained on site for verification and reference purposes.

Stephen Leary (MAusIMM), Aurelian's Exploration Manager, is the Qualified Person in compliance with National Instrument 43-101 with respect to this release. He has reviewed the contents for accuracy.

About Aurelian

Aurelian Resources Inc. is a publicly-listed (TSX:ARU) resource company engaged in the business of exploring, discovering and developing mineral wealth in Ecuador. The Fruta del Norte (FDN) discovery lies at the heart of the Condor Project properties, located in south-eastern Ecuador and consisting of 38 mining concessions totalling approximately 95,000 hectares. The initial Inferred Resource for FDN was released in October 2007 and included 58.9 million tonnes grading 7.23 g/t gold and 11.8 g/t silver for 13.7 million ounces of contained gold and 22.4 million ounces of contained silver. 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. Visit www.aurelian.ca for more information.

Forward Looking Statement

Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralisation and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

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