December 5, 2006 - Aguila American Resources Ltd. (TSX-V:AGL) announces that an updated independent National Instrument 43-101 Technical Report on the Angostura Property has been received from Victor Jaramillo, P. Geo, of Discover Geological Consultants. The report contains updated information on a recent exploration program and recommended future drill programs, budgets and targets.
A potential tonnage for the mineralized gold bearing structure has been estimated to be in the range of 45 to 90 million tonnes. The low end considers that only 50% of the calculated tonnes may contain potentially economic mineralization. Grades could range from 1.0 to 3.0 g/t gold based on surface trench and underground sample analytical results. It must be noted that this potential quantity and grade is conceptual in nature, as such, there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the targets being delineated as a mineral resource.
Potential tonnage information is based on the following assumptions:
Surface geological mapping and trenching show the oxide mineralized structure extends at least 2 kilometers WNW of the Angostura Creek and 2 kilometers ENE of it. We can then consider a strike length of approximately 4 kilometers in terms of lateral continuity. Trenching and outcrop mapping show that widths vary from a few meters to at least 80 meters. An average width of 30 meters will be assumed. To estimate depth of mineralization the following can be considered: Mineralization has been exposed by trenching at approximately 3,925 meters above sea level, and at the base of the Angostura Creek, at approximately 3,380 meters above sea level. This will give a vertical elevation difference of 545 meters. For vertical continuity (not differentiating between oxide and primary mineralization), 300 meters will be considered depth of mineralization from surface. A specific gravity of 2.5 will be used to calculate tonnage potential based on similar mineralization as that found at the Santa Rosa Mine.
Using the above parameters the potential tonnage can be estimated as follows: Strike Continuity = 4,000 meters Average width = 30 meters Depth = 300 meters S.G. = 2.5
Gold mineralization on the Angostura Property is hosted within an elongated ENE trending silica-rich, iron-manganese structure in limestone. The mineralization is structurally related to the E-W trending, south dipping regional Vilcabamba Fault. The oxide mineralization is characterized by massive replacement of a collapsed limestone breccia structure.
Two mineralized zones have been identified on the Angostura Property. Zone No.l is approximately 150 metres long and has an average width of 30 metres. Zone No.2 is located to the east of Zone No.1 and work in 2003 defined a width of 75 metres with an average grade of 3.64 g/t gold. Silica-rich, iron manganese oxide structures have been identified approximately 2,100 metres to the west, and 2,700 metres to the east of Zone No.1.
A follow-up exploration program will consist of an initial Phase I drill program on mineralized Zones No.1 and No.2, a magnetic and IP/resistivity geophysical survey over the western and eastern extensions of the mineralized structure and the development of underground exploration tunnels into Zones No. 1 and No.2.
The Angostura Property has an excellent geological potential that warrants further exploration work. The property has never been explored by drilling. The Company believes that potential exists for large tonnage and low grade, bulk mineable gold mineralization and for underground gold mineralization.
The Angostura Property covers approximately 5,200 hectares and is comprised of seven exploration concessions and two claims which cover the main portion of the Angostura Gold Property. The project is located in southern Peru in the Department of Apurimac, approximately 430 kilometers southeast of Lima and 80 kilometers southwest of the city of Cuzco, and can be reached along paved highways and gravel roads. The area is mountainous and elevations on the property vary between approximately 3,300 meters and 4,100 meters.
Aguila American Resources commissioned Mr. Victor Jaramillo, M.Sc.A., of Discover Geological Consultants of Vancouver, BC to provide a Qualified Person's Technical Report for the Angostura Property. Mr. Victor Jaramillo, President of Discover Geological Consultants is a Professional Geoscientist with over 25 years experience, and is registered with the Association of Professional Engineers and Geoscientists of British Columbia. Mr. Jaramillo is also a Fellow of the Geological Association of Canada, a Fellow of the Society of Economic Geologists, a member of the Geological Society of Nevada, a member of the Geological Society of America and a member of the Prospectors and Developers Association of Canada.
The Qualified Person for this news release is Victor Jaramillo, P.Geo.
The complete NI 43-101 Technical Report will be available on SEDAR at www.sedar.com.
On behalf of Aguila American Resources Ltd.,
"John Huguet" John Huguet President & CEO
About Aguila American:
Aguila American Resources Ltd. (TSX.V-AGL) is a junior mineral exploration company engaged in the acquisition and exploration for precious and base metals on unproven mineral interests located in Peru. The Company is currently focusing its financial resources on its Angostura Property in Peru where the Company is undertaking geological investigations and preparing a drill program to test the Angostura Property.
