JUNE 09, 2004
The Board of Directors of Aguila American Resources Ltd. (TSX-V: AGL) is pleased to announce that after two preliminary work programs and one major work program carried out by a major gold mining company, the decision has been made to initiate our first diamond drill program on the Angostura Prospect.
As a follow up on to the highly encouraging results obtained from the earlier program, including the detailed mapping and geophysical (reverse polarity and chargeability) programs carried out by the major gold mining company, Aguila will initiate a 10 hole 1,200 meter diamond drill program. The work will start immediately with site and pad preparation. The objective of the program is to test the continuity and depth of the observed and tested mineralization as well as the geophysical and mapped anomalies. In excess of 4,800 meters of strike have previously been reported, the geophysical and geological mapping have outlined the swelling and shrinking nature of the mineralization. The work program will now test for commercial grade of gold and silver.
The Angostura Property covers approximately 4,100 hectares and consists of two exploration concessions and 5 claims, which cover the main portion of the Angostura Gold Prospect. The project area 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 metres and 4,400 metres. The geology of the property consists of moderate to steep north dipping cretaceous limestones of the ferrobamba formation which trend ENE along a corridor that ranges in width from approximately 200 meters to the west to greater than 500 meters in the eastern area. This limestone corridor is in fault contact (Vilcabamba Fault) to the south with interbedded thin layers of quartz sandstones/siltstones and shales of the soraya formation of lower cretaceous age, and to the north by tertiary granodioritic intrusive rocks of the apurimac batholith.
Gold mineralization on the Angostura Property is hosted within an elongated ENE trending silica-rich, iron-manganese structure in limestones. This zone appears to be structurally related to the E-W trending, south dipping regional Vilcabamba. The oxide mineralization is characterized by massive and partial replacement of a collapsed limestone breccia structure.
The commitment from Aguila to the property owner for a specify work program has been significantly advanced by the work accomplished by the major gold mining company. This also relieves Aguila American Resources of the financial obligation of performing this work.
ON BEHALF OF THE BOARD #1305 - 1090 WEST GEORGIA STREET VANCOUVER, B.C. V6E 3V7 Tel: (604) 685 9316 Fax (604) 683 1585 TSX Venture Symbol: AGL
