EcuaGold goes after more copper porphyry in Ecuador

EcuaGold Resources (EGR-V) says it will acquire a 100% interest in a 31-sq.-km parcel of land from a private owner in Bolivar province, 180 km southwest of Ecuadors capital, Quito.

Recent rock chip sampling of outcrops in the principal target area of the Curiacu concession returned assay results of up to 3.46 grams gold per tonne, 17.7 grams silver per tonne and 3.21% copper over three metres.

The Curiacu project is in the 50 km X 200 km Western Miocene porphyry copper belt, where several historical porphyry copper/gold projects have been explored.

The majority of EcuaGolds concessions are in southern Ecuador, a prospective region that has attracted a number of mining companies. These include Aurelian Resources‘ Condor project, Iamgolds Quimsacocha project, International Minerals Rio Blanco and Gaby projects and Dynasty Metals & Minings Zaruma and Jerusalem projects.

EcuaGold holds a 100% interest in a total of 13 concessions in Ecuador made up of nine different projects. Altogether the company has landholdings of about 340 sq. km, a number that will more than double if its applications for further concessions are granted.

EcuaGolds principle projects are the Molleturo project, a high-grade polymetallic vein system in Azuay province, and the Curiplaya project, a gold-copper porphyry system in Loja province. It also owns a 100% stake in the San Bartolome project, about 20 km south of Ecuadors third-largest city, Cuenca.

Under the purchase option agreement on Curiacu, EcuaGold will pay the owner of the property US$4,000 upon signing the option as well as the 2007-2008 mining concession fees of US$3,100.

The deal requires EcuaGold make semiannual payments to the owner until and unless the option is exercised. EcuaGold can exercise the option at any time and acquire the concession by paying the owner US$125,000.

EcuaGold listed on the TSX Venture Exchange on Jan. 12.

EcuaGolds shares closed at $0.23 apiece, up $0.03 on a trading volume of 1,000.