Aguila American Gold Limited
TSX VENTURE : AGL

Aguila American Gold Limited

May 02, 2012 09:00 ET

Aguila American Samples 33.9 Grams Gold Over One Meter in Artisanal Workings, Contracts More Core Drilling Services Ltd.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 2, 2012) - Aguila American Gold Ltd. ("Aguila" or the "Company") (TSX VENTURE:AGL) - Mr. John Huguet is pleased to announce the Company has completed a trenching, geochemical sampling and mapping program covering an extensive zone of alteration and the sampling of 3 artesanal mine workings located along the strike of the mineralized Ferrobamba limestone contact.

In addition, the Company has engaged More Core Diamond Drilling Services Ltd. ( "More Core") of Stewart, British Columbia, Canada to perform 7000 meters of core diamond drilling at its wholly-owned Angostura Gold project, 22 kilometres west of Xstrata's US$4.2 billion Las Bambas copper project.

The Company selected More Core for its extensive experience in core drilling on very steep terrain with mid-sized, man portable, equipment, capable of delivering a larger diameter drill core product while meeting the Company's negotiated mandate of an absolute minimum amount of surface disturbance. More Core is expecting to ship all necessary equipment, which is new and expressly modified to meet the Company's criteria, from Vancouver, BC, next week. The equipment is also readily convertible for underground core drilling and available to the Company as it advances towards potential resource definition depending results from this initial surface core drilling campaign.

Aquila previously reported sampling from Zones 1 and 2 in the main oxide gold area. This release includes results from Zone 2 as well, the Feliciano Bedia workings, the working from Pit E which is 900 metres east north east of Zone 2 and from 3 workings located 600 metres west southwest of Zone 2 on the west side of the Angostura River within the Company's Angostura Primera concession.

At the Feliciano Bedia workings, sampling returned highs of up to 33.9 grams/tonne Au over 1 metre with a weighted average of 11.4 grams/tonne Au over 9.2 meters of selective channel sampling spaced at various intervals along a working 29 metres in length appearing to be open above, below and to the east, when sampled in December of 2011, and generally following an east-west trending structure in the Ferrobamba-Formation (recrystallized limestone). The hanging and footwalls, where exposed, consist of recrystallized limestone with variable amounts of oxidized sulphides. The tunnel was sampled near the working face from a channel, chiselled across the roof of the tunnel. The first sample was taken at a point 28 metres from the mouth, then at 24.5 metres, 21 metres, 16 metres and at 12 metres from the mouth. Results are listed in Table 1 below.

Location Interval Width Sample Element Au Ag Cu Pb Zn Mn Ba
Mine Working Unit ppm ppm ppm ppm ppm % ppm
MW of Feliciano Bedia (28 m) 0.00 - 1.00 m 1.00 m 2601 11.60 4.0 40 <5 229 >1 1477
MW of Feliciano Bedia (28 m) 1.00 - 2.00 m 1.00 m 2602 33.90 4.9 60 <5 288 >1 825
MW of Feliciano Bedia (24.5 m) 0.00 - 1.00 m 1.00 m 2603 5.78 7.7 122 <5 435 >1 2705
MW of Feliciano Bedia (24.5 m) 1.00 - 1.50 m 0.50 m 2604 9.50 7.2 114 11 583 >1 662
MW of Feliciano Bedia (21 m) 0.00 - 1.00 m 1.00 m 2605 3.59 3.7 36 <5 211 >1 889
MW of Feliciano Bedia (21 m) 1.00 - 2.00 m 1.00 m 2606 12.50 3.3 37 <5 125 0.9 649
MW of Feliciano Bedia (16 m) 0.00 - 1.00 m 1.00 m 2607 5.85 3.0 64 <5 244 >1 644
MW of Feliciano Bedia (16 m) 1.00 - 2.10 m 1.10 m 2608 13.10 3.8 71 <5 269 >1 375
MW of Feliciano Bedia (12 m) 0.00 - 0.80 m 0.80 m 2609 4.81 2.1 22 <5 83 >1 515
MW of Feliciano Bedia (12 m) 0.80 - 1.60 m 0.80 m 2610 11.00 3.0 43 <5 176 >1 611
Weighted
Average
11.40 4.2 67 <5 253 >1 935

The second mine working, called Pit E by Jaramillo* in his 2006 report (V.A. Jaramillo: The Angostura Property Technical Report, 2006, 70 pp.), reported 3 entrances and samples from this zone. The 2 accessible parts of Pit E were sampled by chiselled channels and cut channel sampling methods yielding silver assays as high as 589 grams/tonne over 1 metre with the weighted average of 242 grams/tonne over 14.4 metres of selective channel sampling, while noting that Pit E is some 900 metres east and 400 metres higher in elevation then the Feliciano Bedia working and in a separate zone of a potentially, very large, mineralized system. Results are listed in Table 2 below.

Location Interval Width Sample Element Au Ag Cu Pb Zn Mn Ba
Unit ppm ppm % % % % ppm
Labor 1 (lower level) 0.00 - 1.00 m 1.00 m 2431 0.60 142.9 0.39% 0.48% 0.32% 0.38% 367
Labor 1 (lower level) 0.00 - 1.00 m 1.00 m duplicate 0.73 91.4 0.30% 0.23% 0.27% 0.48% 558
Labor 1 (lower level) 1.00 - 2.00 m 1.00 m 2433 0.25 61.9 0.44% 0.52% 0.27% 0.45% 1289
Labor 1 (lower level) 2.00 - 3.00 m 1.00 m 2435 0.27 135.9 1.27% 4.52% 1.00% 2.15% 177
Labor 1 (lower level) 3.00 - 4.00 m 1.00 m 2436 1.00 287.0 1.42% 6.74% 1.67% 1.49% 279
Labor 1 (lower level) 4.00 - 5.00 m 1.00 m 2437 0.19 50.2 0.76% 1.08% 0.51% 0.39% 1815
Labor 1 (lower level) 5.00 - 6.00 m 1.00 m 2439 0.13 92.1 0.48% 1.42% 0.42% 0.26% 4722
Labor 1 (lower level) 6.00 - 7.00 m 1.00 m 2440 0.66 245.0 0.56% 5.98% 0.27% 0.51% 359
Labor 1 (lower level) 7.00 - 8.00 m 1.00 m 2441 2.86 573.0 0.15% 4.88% 0.21% 0.10% 134
Labor 1 (upper level) 0.00 - 1.00 m 1.00 m 2447 0.83 251.0 0.72% 0.12% 0.08% 0.66% 723
Labor 3 (upper level) 0.00 - 0.90 m 0.90 m 2442 0.75 346.0 0.25% 1.26% 0.14% 0.15% 181
Labor 3 (upper level) 0.00 - 1.00 m 1.00 m 2443 0.28 589.0 0.52% 0.53% 0.21% 0.47% 321
Labor 3 (upper level) 1.00 - 1.70 m 0.70 m 2444 0.20 381.0 0.71% 0.07% 0.25% 1.79% 880
Labor 3 (upper level) 0.00 - 0.80 m 0.80 m 2445 0.51 290.0 0.22% 0.24% 0.32% 0.47% 928
Labor 3 (outside) 0.00 - 1.00 m 1.00 m 2446 0.06 153.0 0.35% 0.05% 0.06% 0.57% 447
Weighted
Average
0.63 242.0 0.59% 1.94% 0.41% 0.67% 883

The third mine working is within the surface property of Giber Sotomayor located west of the Angostura River where Jaramillo excavated 2 trenches in 2003. The objective of the visit was to sample the abandoned mine workings where sample assays yielded gold values as high as 6.96 grams/tonne Au over 1 metre and a weighted average of 2.07 grams/tonne Au over 16.6 metres of selective channel sampling. Results are listed in Table 3.

Location Interval Width Sample Element Au Ag Cu Pb Zn Mn Ba
Unit ppm ppm ppm ppm ppm % ppm
Labor 1 0.00 - 0.80 m 0.80 m 2250 0.12 42.3 5443 23 127 >1 2191
Dump at Mn-rich outcrop - 2251 0.33 54.8 7462 120 104 >1 1654
Labor 2 0.00 - 1.00 m 1.00 m 2252 3.80 2.3 94 18 22 >1 752
Labor 2 1.00 - 1.30 m 0.30 m 2253 0.20 1.9 3 <5 23 >1 85
Labor 2 0.00 - 1.00 m 1.00 m 2254 0.20 1.5 4 <5 32 >1 2200
Labor 3, level - 5 m 0.00 - 1.00 m 1.00 m 2256 2.13 1.2 8 <5 17 >1 601
Labor 3, level - 5 m 1.00 - 2.00 m 1.00 m 2258 6.96 1.8 19 <5 9 >1 391
Labor 3, level - 5 m 2.00 - 3.00 m 1.00 m 2259 2.29 1.6 4 <5 14 >1 917
Labor 3, level - 5 m 2.00 - 3.00 m 1.00 m duplicate 2.84 1.2 7 <5 15 >1 788
Labor 3, level - 5 m 3.00 - 3.70 m 0.70 m 2261 3.73 2.1 20 <5 16 >1 1510
Labor 3, level - 5 m 3.70 - 4.70 m 1.00 m 2262 2.66 1.7 9 <5 21 >1 542
Labor 3, level - 5 m 4.70 - 5.70 m 1.00 m 2263 3.50 1.6 8 <5 20 >1 325
Labor 3, level - 5 m 5.70 - 6.70 m 1.00 m 2264 3.32 1.9 7 <5 36 >1 633
Labor 3, level - 5 m 6.70 - 7.30 m 0.60 m 2265 1.26 1.8 3 <5 25 >1 660
Labor 3, level mine mouth 0.00 - 1.00 m 1.00 m 2266 0.35 1.8 2 <5 20 >1 191
Labor 3, level mine mouth 1.00 - 2.00 m 1.00 m 2267 1.42 2.0 3 <5 18 >1 279
Labor 3, level mine mouth 2.00 - 3.00 m 1.00 m 2268 0.54 2.4 2 <5 20 >1 300
Labor 3, level mine mouth 3.00 - 4.00 m 1.00 m 2269 0.75 1.7 3 <5 23 >1 665
Labor 3, level mine mouth 4.00 - 5.00 m 1.00 m 2270 2.84 2.1 3 <5 43 >1 756
Labor 3, level mine mouth 5.00 - 6.00 m 1.00 m 2271 0.56 <0.5 5 <5 18 0.92 384
Weighted
Average
2.07 6.4 653 ? 31 >1 794

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

On behalf of the Board of Directors,

John Huguet, President

Statements in this press release regarding the Company which are not historical facts are "forward-looking statements" that involve risks and uncertainties. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties may prove to be inaccurate for any reason whatsoever. Actual results in each case could differ materially from those currently anticipated in such statements. Except as required by law, the Company does not intend to update any changes to such statements.

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 Gold Limited
    Damien Lowry
    Cell: 778.995.7265 or Toll Free: 1.866.669.9377
    www.aguilaamerican.ca