EcuaGold Updates Its Activities in Colombia, Peru and Ecuador

By theamericannews
3 months Ago

28 Julho 2008 – 10:02AM

Marketwired Canada

EcuaGold Resources Ltd. (“the Company” or “EcuaGold”) (TSX VENTURE:EGR) is
pleased to provide an update on the Company’s activities in Colombia and Peru
pursuant to EcuaGold’s revised exploration diversification strategy. The Company
has established subsidiaries in Colombia, ColombiaGold Resources S.A. (“CGR”)
and in Peru, PeruGold Resources S.A. (“PGR”). These subsidiaries are managed by,
and staffed with personnel from, the Company’s Ecuadorian subsidiary. EcuaGold’s
activities are presently limited to administrative and legal matters in Ecuador
due to the Mining Mandate issued by the Ecuador Constituent Assembly on April
18, 2008, which, among other provisions, provided for the suspension of
exploration activities in Ecuador for a period of 180 days.

CGR, which will be based in Medellin, Colombia, has been very active over the
past four months, principally in the Department of Antioquia (“Antioquia”),
Colombia. CGR has signed several confidentiality and exclusivity agreements with
various concession owners, mainly within the Segovia Batholith trend, and is
presently in advanced-stage negotiations to acquire several precious metals
projects in Antioquia, although final agreements have not yet been concluded.
CGR is also in the process of hiring Colombian geologists to staff its Medellin
office.

Colombia historically has been the largest gold producer in South America,
dating back to the pre-Colombian period. It is reported that over half of
Colombia’s historical production came from Antioquia, which abounds with
historical mines, both alluvial and underground hard rock. The Frontino Gold
Mine, which has been in production for over 150 years, is located in northeast
Antioquia, within the Segovia Batholith trend, and the Frontino Gold Belt is one
of the principal gold producing regions in Colombia.

PGR, which will be based in Lima, Peru, has also signed confidentiality
agreements with a Canadian junior mining company and private concessionaires
relating to a number of projects in southeast Peru. PGR also has had preliminary
discussions with a number of concessionaires with properties principally located
north of Lima. During August, the Company’s senior management team, with the
assistance of the Company’s senior consulting geologist, Dr. Richard Jemielita,
who has more than 20 years experience in Peru, will be conducting field visits
to the project opportunities located in southeast Peru.

The Company is actively maintaining contact with Ecuador’s Ministry of Mines and
Petroleum (“MMP”) in connection with the Government’s initiative to implement a
new Mines Law in Ecuador. The MMP submitted a draft of the new Mines Law to
President Correa in late June 2008. Based on recent published reports, there
appears to be room for encouragement, as the proposed new Mines Law may not
contain many of the adverse mining provisions previously discussed within the
Constituent Assembly. As provided by the Mining Mandate, the MMP formally
advised EcuaGold in June 2008 that all of the Company’s concession applications
in Ecuador were being cancelled. This affected 23 concession applications,
covering approximately 64,791 hectares. The cancellations were neither
predicated on the Company’s failure to pay concession or application fees nor to
a failure to submit requisite preliminary environmental impact assessment
reports. The Company has appealed this decision to the regional MMP offices and
was recently informed that the appeals have been submitted to the MMP in Quito
for resolution.

EcuaGold’s present financial resources are estimated to be sufficient to provide
a reserve of approximately $1 million to finance the Company’s exploration
diversification strategy and to maintain its day-to-day corporate and
administrative functions for the next 12 months.

About EcuaGold Resources:

EcuaGold Resources Ltd. is engaged in the acquisition, exploration and potential
development of primarily precious metals properties in Colombia, Peru and
Ecuador. The focus of the Company’s exploration activities is presently in
Colombia and Peru. EcuaGold controls, through wholly owned subsidiaries, a 100
percent interest in 13 granted concessions, comprising eight distinct projects,
in Ecuador, covering more than 34,000 hectares. 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 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.

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.

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