EcuaGold Resources Ltd.
TSX VENTURE : EGR

EcuaGold Resources Ltd.

January 17, 2008 09:00 ET

EcuaGold Updates its Activities in Ecuador

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 17, 2008) - EcuaGold Resources Ltd. ("the Company" or "EcuaGold") (TSX VENTURE:EGR) is pleased to provide an update on the Company's activities in Ecuador. EcuaGold has one of the largest mineral interest positions in Ecuador, comprising nine distinct exploration projects and covering approximately 99,000 hectares. The Company's principal properties are the Molleturo, San Bartolome and the Curiplaya Projects, for which Ecuador's Ministry of Mines and Petroleum has approved EcuaGold's respective Environmental Impact Study submissions. In addition, NI 43-101 reports were prepared for the Molleturo and Curiplaya Projects in connection with EcuaGold's TSX Venture Exchange listing.

The Molleturo and San Bartolome Projects are high-grade polymetallic properties with historic small-scale underground mining operations. The mean assay results from historical sampling of the Roman and Isabel Veins at Molleturo are: 392.0 g/t Ag, 3.4 g/t Au, 0.69% Cu, 2.3% Pb and 4.24% Zn. San Bartolome is Ecuador's largest historic silver producer, with reported historic grades of 20 oz/t Ag, 1.15% Pb and 2.9% Zn.

Plans to initiate a drilling program on the Molleturo Project in 2007 were delayed principally because of persistent opposition to EcuaGold's exploration activities by a small group within the Molleturo community. The opposition is principally based close to the Molleturo drill target, the underground workings of the former small-scale mining operation. Accordingly, EcuaGold's Molleturo activities in 2007 were concentrated on community and government relations and community projects. The objective of which was to enable the Company to move forward on its planned exploration program.

During the fourth quarter of 2007, EcuaGold initiated a select grab sampling program at the San Bartolome Project of mineralized waste dump vein material from the previous small-scale mining operations. The results of this program supported San Bartolome's reported historic high-grades, with the assays returning 40.9 to 71.7 oz/t Ag; 2.87 to 5.15 g/t Au, 0.84 to 4.36% Pb and 2.66 to 10.84% Zn (See EcuaGold news release of November 1, 2007). Follow up programs have included more detailed mapping of the concession, structural analyses and further outcrop sampling, which have identified additional areas of interest outside of the old mine workings, including a possible extension of the veins to the southwest and a new mineralized area on strike with and 2.5 Km to the east of the old mine workings. Assay results from this program are pending.

In November 2007, EcuaGold strengthened and restructured its community relations team with the appointment of new community relation managers for the Molleturo and San Bartolome Projects and a community relations coordination manager. A community relations office was established in the city of Cuenca, which is central to both projects, logistically and politically. In addition, EcuaGold has been aggressively pursuing all political and legal options to ensure the enforcement of its legal rights to carry out its planned exploration activities at the Molleturo and San Bartolome Projects. The Company's objective is to initiate a drilling program at either or both of these past producing projects as soon as possible. The drill targets have been identified, at depth below the previous mine workings, and EcuaGold has confirmed the availability of drill rigs to carry out the programs.

During 2007, the majority of the Company's exploration expenditures were incurred on the Curiplaya Project, where a 7,200 metre drilling program was completed on the "Core Zone" copper-gold porphyry target, following a detailed grid and geochemistry sampling program and magnetometry and IP surveys. In general, the assay results from this drilling program returned anomalous precious and base metals values, but did not identify any target that would warrant a follow up drilling program. While there are several untested areas within the "Core Zone" target, EcuaGold is presently focusing its efforts on testing other major targets within the Curiplaya concession, including the "West Zone", an epithermal breccia target with reported values of up to 6.0 g/t Au, and the "Limon Zone", a copper/gold porphyry target with reported rock chip values up to 1.78% Cu. A detailed grid has been completed on the West Zone, and the related geochemistry sampling program is underway and will be finalized during January 2008, with assay results expected in early February. The Limon Zone grid is 75% complete and will be finalized, along with geochemistry sampling, in February 2008. Follow up work, assuming favorable assay results, will include magnetometry and IP surveys to help refine drill targets.

In January 2008, a detailed channel sampling program will be initiated at the Curiacu Project to follow up on the positive results obtained from the initial rock chip sampling work carried out in October 2007. This work confirmed that copper/gold porphyry-style mineralization is present in the identified Curiacu target areas and returned assay results of up to 3.46 g/t Au, 17.7 g/t Ag, 3.21% Cu over three metres from the project's principal target area (See EcuaGold news release of October of October 24, 2007).

The political reforms initiated in 2007 by the new President of Ecuador, Rafael Correa, as well as uncertainties about the new government's future policies regarding the mining industry, made it difficult for mining companies to effectively operate in Ecuador during the last year. However, EcuaGold management is encouraged by President Correa's statement in late 2007, "Yes to mining, but with adequate controls, with adequate community consultations, respecting the community, the environment and the state." The government has acknowledged Ecuador's untapped mining potential and recognizes its potential contribution to the future development of the country. As a responsible mining company, with an excellent operating track record in Ecuador, EcuaGold is fully committed to working with the government and the various mining chambers and mining companies in Ecuador to arrive at a workable set of regulations for the mining industry that will benefit the state, the communities, the environment and our shareholders. Discussions are presently taking place among government officials, the mining chambers and mining companies on proposed changes to Ecuador's Mines Law. This process, along with future deliberations in the Constitutional Assembly, will continue over the next several months, with the final outcome uncertain at this time. However, the government has stated that the new Mines Law should include, among others, provisions for a royalty payable to the state, higher annual per hectare mining fees, environmental controls, and community participation and programs.

Please refer to EcuaGold's website at www.ecuagoldresources.com for further information on the Company's projects and activities.

Dr. William F. Lindqvist, a director of the Company, is the Qualified Person in compliance with National Instrument 43-101 with respect to this release.

About EcuaGold Resources:

EcuaGold Resources Ltd. is engaged in the acquisition, exploration and potential development of primarily precious metals properties in Ecuador. The Company presently controls, through wholly owned subsidiaries, a 100 percent interest in 13 concessions in Ecuador, comprising nine distinct projects. The company also has pending applications for 21 more concessions that are associated with three existing projects and two new projects. EcuaGold's current land position covers more than 34,000 hectares and will increase to approximately 99,000 hectares if the pending concession applications are granted in full.

The majority of EcuaGold's concessions are located in southern Ecuador, a highly prospective region that is currently host to a number of projects. These include, among others, Aurelian Resources' Condor Project, IAMGOLD's Quimsacocha Project, International Minerals' Rio Blanco and Gaby Projects and Dynasty Metals & Mining's Copper-Gold Belt, Zaruma and Jerusalem Projects.

EcuaGold's principal properties are the Molleturo Project, a high-grade polymetallic vein system, and the Curiplaya Project, a gold-copper porphyry system. NI 43-101 Reports were prepared for each project in connection with EcuaGold's TSX Venture Exchange.

On Behalf of the Board of Directors of ECUAGOLD RESOURCES LTD.

Anthony F. Ciali, President, CEO and Director

The statements contained in this news release that are not purely historical are forward-looking statements. Forward-looking statements may relate to the success of any of the company's strategic initiatives, the company's expectations, beliefs, growth and future prospects, and the company's position in the market and future opportunities therein. Forward-looking statements may also include, without limitation, any express or implied statement relating to future events, industry performance, general business and economic conditions or circumstances, regulatory and legal requirements, and other matters, many of which are beyond the control of the company. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. All forward-looking statements included in this news release are based upon information available to the company as of the date hereof and the company does not undertake any obligations to update forward-looking statements should circumstances or management's beliefs or opinions change.

No stock exchange has approved or disapproved the information contained herein.

Contact Information