SOURCE: Spirit Exploration, Inc.

October 08, 2007 11:46 ET

Spirit Exploration, Inc. Increases Inferred Resource in Portovelo-Zaruma-Ayapamba Gold District of Ecuador to Over 1,000,000+ Ounces With New Acquisition

MACHALA, ECUADOR--(Marketwire - October 8, 2007) - Spirit Exploration, Inc. (PINKSHEETS: SPXP), through its wholly owned subsidiary, ECUADORGOLDCORP S.A., is pleased to announce it has acquired the Maria Olivia Concession, a highly mineralized property near Zaruma, Ecuador from Minera Pacifico. The Maria Olivia Project lies approximately 100 km to the west of Aurelian Resources and 120 km south of IAMGold's multi-million ounce Quimsacocha deposit. Dynasty Metals and Minerals Inc. hold a series of concessions in the same epithermal gold system as the Maria Olivia Concession. These three major Ecuadorian gold districts are part of a regional epithermal mineralizing system which covers the southern half of Ecuador.

A preliminary estimate of the inferred resource on the Maria Olivia Concession, from the three known veins (Tres Diablos, Bolivar, San Antonio) is 562,500 oz of gold equivalent. Peter Laipnieks, President of Spirit, stated, "We are extremely excited about acquiring this concession; it pushes our inferred resource in the Portovelo-Zaruma Region to over a million ounces of gold equivalent. It gives Spirit another source of high grade ore that we will rapidly develop to supply the milling operations at Muluncay."

The veins of Maria Olivia have an estimated strike length of 1 km and an average width of 1.3 meters and an average depth of 600 meters. A sampling of the veins produced average grades ranging from 12 to 16.96 g/t. The company believes additional veins will be found during further exploration with secondary veins, stringers, breccia and disseminated mineralization adding to the volume of mineralized material and raising the inferred resources.

Spirit's Phase 1 exploration program includes detailed mapping and prospecting. Stream sediment sampling and litho geochemical sampling will be carried out. All current and past underground workings shall be mapped, surveyed and sampled. Wall rock to at least a meter on either side of each vein will also be sampled. Upon completion and review of this data, sites will be selected, either underground or on surface, to test for new mineralized zones and for continuity of veins. Diamond drilling will allow detailed examination of vein and host rock, alteration patterns and structural elements. Sampling of core would be for gold, silver, copper and base metals. This work will create a more accurate estimate of grade and tonnage for the entire area. Spirit's Phase 2 includes having Spirit's underground engineering team begin designing a mining plan based on Phase 1 results.

The old SADCO operations formerly the largest mining company in South America until 1950 had scattered operations throughout the district. Generally, with the exception of the Grand Mine, the veins only extended to a depth of approximately 200 m below surface. The Grand Mine contains a gold-mineralized zone which extended to a depth of at least 660 m below surface. It was collared at an elevation 700 m below mine workings in the Maria Olivia concession area. This indicates that there is significant additional potential at depth of up to 1500 m for most of the concession in the district, including those veins contained within the Maria Olivia concession. No estimate of the value derived from silver or sulphide concentrate has been made, but it would add a significant amount to the value of this resource. The history of the Zaruma mining operations indicates that there is a significant opportunity to apply modern mining methods to a major resource which has had only limited exploitation in the past.

Further information is available on the company website:

Forward-Looking Statements: Certain information and statements included in this release are intended to constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied in such forward-looking statements

Contact Information

  • Contact:
    Peter Laipnieks