Aguila American Resources Ltd.
TSX VENTURE : AGL

February 18, 2011 08:30 ET

Aguila American Completes Work Program on Peru Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 18, 2011) - Aguila American Resources Ltd. ("Aguila") or (the "Company") (TSX VENTURE:AGL) - Mr. John Huguet Reports:

The Company has completed a reconnaissance geological mapping and rock geochemical sampling along a mineralized and brecciated zone of limestone near the small-scale mining operations under the supervision of Mr. James A. McCrea, P. Geo. Nineteen samples were collected from iron-manganese, oxidized, brecciated and/or silicified host rocks along the mineralized structure that is exposed by road cuts and various underground workings. Thirteen samples were collected along a 150-metre section spanning the east-northeasterly trending Zones 1 and 2. The analytical results from these thirteen samples have been tabulated as follows:

Sample Area Length Gold
No. Type (m2) (m) (gpt)
20503 Panel Chip 2.00   2.457
20506 Chip   1.75 7.450
20507 Panel Chip 2.00   16.000
20508 Chip   2.25 0.417
20509 Chip   1.50 1.249
20510 Chip   1.50 4.977
20511 Chip   0.70 0.957
20513 Chip   1.40 5.020
20515 Panel Chip 2.50   4.363
20516 Panel Chip 2.00   8.750
20517 Panel Chip 2.35 2.35 4.549
20518 Chip   2.20 2.923
20519 Grab 1.50   5.500

The Angostura Property is comprised of eight concessions which cover the main portion of the Angostura Gold Prospect. The project is located in southern Peru in the Department of Apurimac, approximately 430 kilometers southeast of Lima and 180 kilometers southwest of the city of Cuzco, and can be reached along paved highways and gravel roads. An electrical power grid line passes through the property. There are significant advanced exploration projects and producing mines in the general vicinity of the Angostura property such as the large Las Bambas copper-gold-molybdenum project and Tintaya copper-gold mine belonging to Xstrata Plc., situated 25 km to the east and 140 km to the southeast respectively, and the Santa Rosa gold mine belonging to Andean American which is situated approximately 20 km to the south.

The geological model for the mineralization on the Property is similar to that of many gold deposits in Nevada, U.S.A. where the gold mineralization is hosted by collapsed, brecciated and replaced limestone as a result of early decarbonatization by acidic hydrothermal fluids focused along faults, followed by the collapse and brecciation of limestone, gold precipitation, and late-stage silicification and barite deposition.

According to a technical report prepared for the Company by Mr. Victor A. Jaramillo, P. Geo., titled 'The Angostura Property Technical Report and dated November 30, 2006, five mineralized zones have been identified on the Property. Of them, Zone 1 is approximately 150 meters long and has an average width of 30 meters. Zone 2 is located to the east of Zone 1 and has a defined width of 75 metres with an average grade of 3.64 g/t Au.

Oxide structures have been identified approximately 2,100 meters to the west, and 2,700 meters to the east of Zone 1 resulting in a strike length of close to 5 km. A potential tonnage for the mineralized gold -bearing structure has been estimated to be in the range of 45 to 90 million tonnes with grades ranging between 1.0 to 3.0 g/t Au (the potential quantity and grade is conceptual in nature there has been insufficient evidence to support a mineral resource and it is uncertain if further exploration will result in a discovery or mineral resource). Forty-seven trenches and pits 1 meter deep and 10 meters long have been dug and sampled with grades ranging from 1.29 g/t Au to 8.19 g/t over 3 metres, including 5.45 g/t Au over 17.50 metres (Jaramillo, 2006).

Selected gold sample result highlights from historic sampling (with true widths) included:

West of Angostura Creek

Trench Width Metres g/t Gold
T-1W 6.0 1.21
T-3W 3.50 3.19
T-6AW 3.30 2.60
T-11W 8.00 2.37
T-12W 8.00 3.48
T-13W 5.00 1.86

East of Angostura Creek

Trench Width Metres g/t Gold
T-BE 2.40 2.69
T-4E 8.40 2.77
T-13E 5.00 1.63
T-15E 3.00 (zone 2) 5.45
T-16E 17.50 (zone 2) 5.24
T-17E 3.00 (zone 2) 8.19

Mr. James A. McCrea., P. Geo., a qualified person as defined by NI 43-101, reviewed this news release and approves all scientific and technical disclosure.

On behalf of the Board of Directors,

John Huguet, President & CEO

Aguila American Resources Ltd.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Aguila American Resources Ltd.
    Damien Lowry
    (604) 685 9316
    (604) 683 1585 (FAX)