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Head Office:
EcuaGold Resources Ltd.
1400 - 355 Burrard Street
Vancouver, BC, V6G 2G8
Canada
Contact (in the US):
Anthony F. Ciali
President & CEO
Tel: (609) 844-7746
Contact (Investor Relations)
Anthony Srdanovic
Tel: (604) 684-4743 ext 242
Toll Free: (866) 684-4743
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Telimbela Project
The wholly owned Telimbela Project concession area (San Pablo 1) covers a surface area of 4,200 hectares. In May 2006, Ecuador Gold S.A. ("EG") entered into Letter of Intent (the "LOI") with Ascendant Copper Corporation ("ACC"), a Toronto Stock Exchange listed company, on the Telimbela Project. ACC paid EG $US50,000 on signing the LOI. The parties agreed to sign a formal Purchase Option Agreement (the "Agreement"), whereby ACC would be required to expend US$250,000 in Year 1 on qualified exploration expenditures. If ACC decides to proceed with the Agreement after Year 1, ACC will be required to pay EG an additional US$50,000 and to expend US$750,000 on qualified exploration expenditures in Year 2. ACC has the option to acquire 100% of the Telimbela Project after Year 2 by paying EG US$100,000. In addition, should ACC exercise the option, EG would retain a 2% Net Smelter Returns Royalty on any metal produced.
The mineralization at Telimbela corresponds to a copper-molybdenum-gold porphyry deposit related to I type intrusive rocks. It is located on the western flank of the Western Cordillera of the Andes in the Bolivar Province, Ecuador. The regional geology is characterized by the presence of the Palaeocene-Eocene island arc volcano-sediments of the Macuchi Unit, which was intruded by a Miocene tonalitic batholith.
Palmira / Pico Azul Project
By an agreement dated April 18, 2006, as amended, Ecuador Gold S.A. was granted the option to acquire a 100% interest in the Pico Azul Concession. The option may be exercised by the payment to the concessionaire of the sum of US$100,000, to be paid as to US$50,000 in cash and as to US$50,000 in shares of the EGR. In order to maintain the option in good standing, the Ecuador Gold S.A. must pay the concessionaire three payments, each of US$5,000 at six-monthly intervals, then two payments, each of US$10,000 each six months thereafter, and then payments of US$15,000 each and every six months thereafter until the option is exercised or terminated.
If the option is exercised, the concessionaire will retain a Net Smelter Returns Royalty of 1.25%, which can be purchased for the sum of US$100,000, payable 50% in cash and 50% in shares of EGR.
The Palmira / Pico Azul Project (wholly owned) covers a surface area of 3,188 hectares and can be classified as a copper-molybdenum-gold porphyry, with a related high sulphidation gold epithermal system. The project is located in southern Ecuador, in the Vilcabamba Parish, Loja Province.
Asaray Project
The Asaray Project (wholly owned) covers a surface area of 3,245 hectares and is a high sulphidation epithermal gold-silver deposit, which was a grass-roots discovery made by Ascendant Exploration S.A. in 2003. Gold mineralization was first discovered in the Asaray (Satunsaray) project area in 1991 during a regional reconnaissance economic geology survey program (Jemielita and Bolaños, 1993).
Asaray is located within the Asaray "gold belt" in Ecuador (Collay-Shincata belt), which extends 120 Km NE-SW and 15 Km NW-SE (Jemielita and Bolaños, 1993), where other occurrences of vuggy silica and associated high sulphidation epithermal alteration and gold-silver mineralization have been recorded at Rio Collay, Loma Quipal, Cerro Colorado (Gima), Cerro Mozo and Saraguro (Litherland et. al., 1994). In addition, silver rich, high and intermediate sulphidation vein deposits occur respectively at Pilzhum, east of Azogues, and San Bartolomé, northwest of Sigsig.
San Miguel Project
In October 2006, the MEM granted Ecuador Gold S.A. two contiguous concessions (the "San Miguel Project"), amounting to 9,900 hectares. The San Miguel Project is located to the west of the town of El Corazon in the Cotopaxi Province and 120 Km to the SW of Quito, the capital of Ecuador. The property was identified based on the geological analysis and statistical treatment of stream sediment geochemical data of the geochemical program carried out during 1995-1997 by the Prodeminca Project for the Western Cordillera of the Ecuadorian Andes.
Nambija Option
The Company has obtained an option to purchase at cost (approximately US$ 1.2 million, primarily in litigation costs), in cash and shares, 100% of the Nambija Condominio Norte and Sur concessions from Ascendant Holdings Limited (AHL), pending and conditional upon the successful outcome of AHL's legal proceedings against Canuc Resources, the majority owner of the concessions. The legal proceedings have been ongoing for two years. The Nambija Project (69 hectares) is located close to the town of Zamora in the Nambija mining district approximately 400 kilometres due south of Quito, on the Amazonian basin side of the Andes (continental divide). The Nambija mining concessions encompass the heart of the Nambija gold mining district. Only limited modern exploration has been carried out on the property. The Incas originally mined at Nambija and around 1550 the Spaniards initiated mining activities, which were subsequently abandoned in the 1700s. It was only rediscovered in the early 1980's when the entire district became subject to a gold rush of small scale, and primitive, mining activity by a very large number of miners. Historical gold production (as many as 600 tunnels, or some 16 kilometres of underground workings) from the various shoots and zones at Nambija reportedly has ranged from 1.5 million ounces (reportedly bought by the Bank of Ecuador) to in excess of 3 million ounces. Oromonte Resources commissioned a NI 43-101 report on Nambija in September 2005. The report noted that gold has been mined from 3 principal areas within the Nambija mining concessions - Gold Star, El Arco and El Tierrero and that Estimates for the Gold Star Mine alone have ranged as high as 1 million ounces of gold, with general agreement that the potential to develop a resource of 500,000 tonnes of high grade material in one, or more, deposits is realistic.
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