Aurelian Resources Inc.

Aurelian Resources Inc.

December 05, 2006 09:00 ET

Aurelian Resources-Exploration Update

TORONTO, ONTARIO--(CCNMatthews - Dec. 5, 2006) - Aurelian Resources Inc. (TSX VENTURE:ARU) is pleased to provide an update of ongoing exploration at its Fruta del Norte (FDN) epithermal gold-silver discovery in southeastern Ecuador.

"The pace of exploration is picking up rapidly at FDN" says Aurelian President & CEO Patrick F. N. Anderson, "with new infrastructure in place, and the first of the new rigs drilling, Aurelian is advancing its goals of expanding the FDN deposit while defining a 43-101 compliant inferred resource in 2007. Furthermore, we expect the addition of the new rigs to increase the rate of our news flow".

"In the past week, we have had many inquiries as to the evolving nature of the political landscape in Ecuador after last Sunday's election. Before the election, Aurelian representatives participated in a luncheon hosted by Mr. Correa, the Ecuadorian President - elect, for the Chambers of Industry of Ecuador. During this luncheon, Mr. Correa reiterated that foreign investment will be both necessary and welcome during his term as President. He made no direct comment on the mining industry. As such, we do not anticipate any significant changes in policy that would impact the development of the FDN project under his administration".

Fruta del Norte (FDN)

The first of the new, larger, diamond drill rigs (a Longyear LF-70) has arrived and is drilling hole CP-06-90 in the southern part of FDN. Two additional rigs (Major Drilling - Boyles 37's) are clearing Ecuadorian customs at the port of Guayaquil and are expected onsite shortly. All three new rigs are more powerful than the two man-portable rigs currently onsite and will be able to drill deeper holes. Drilling on the FDN discovery will accelerate considerably, facilitating the company's near-term goals of drill testing the extents of the FDN deposit and infill drilling to define the FDN deposit to a level sufficient for a 43-101 compliant inferred resource estimate.

Initially, the three additional drill rigs will be deployed south of line 9582900N to define the extent of the FDN mineralization beneath the Hollin sandstone cover. Results to date indicate that the deposit remains open to the south.

Approximately 900 metres of strike length remains to be tested between the southernmost known mineralization at FDN and the northernmost and highest grade mineralization at BLP. It is yet to be conclusively determined if both these mineralized structures are directly connected or parallel to each other.

Mr. B. Terrence Hennessey, P. Geo., of Micon International Limited has been retained as the independent Qualified Person who will oversee preparation of an NI 43-101-compliant mineral resource estimate and to review ongoing QA/QC procedures. Mr. Hennessey is a highly regarded consulting geologist who has visited the FDN property on several occasions, and who prepared the resource estimate on the Bonza-Las Penas deposit in 2004 (PR December 14, 2004). The resource estimate for FDN is expected in the second quarter of 2007.

Drilling of other nearby targets such as El Tigre will be scheduled for the first quarter of 2007, depending on the drilling progress at FDN and the availability of additional drill rigs.

Thirty-five diamond drill holes have been completed at the FDN prospect, with results from twenty-six of these holes released. A further five holes have been completed at the Las Arenas geochemical anomaly three kilometers to the south of FDN. Drill results for both FDN and Las Arenas will be released as analytical data are received, validated and compiled.


Aurelian has completed a number of upgrades to the local infrastructure to support the increased pace of exploration and drilling at FDN. Approximately 8.5 kilometres of all-weather, gravel-surfaced road has been completed between the public road at our San Antonio camp and the main exploration camp at Penas. An additional 3.8 km of road is under construction to FDN itself. Lay down areas for the new diamond drill rigs have also been completed at the Penas camp, and construction of new and expanded core logging, accommodation, office and storage areas is expected to begin shortly.

About Aurelian:

Aurelian Resources Inc. is a publicly-listed (TSX VENTURE:ARU) junior resource company engaged in the business of exploring, discovering and developing mineral wealth in Ecuador. The Fruta del Norte discovery lies at the heart of the Condor Project properties, located in south-eastern Ecuador and consisting of 38 mining concessions totaling approximately 95,000 hectares.

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 mineralization 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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