EXPLORATION 1999 — Ecuadorian targets high-grade properties

Ecuadorian Minerals (EMC-T) intends to raise US$2.5 million to explore three gold properties: Vetaspata in Peru; Beroen in central Ecuador; and Paccha in southern Ecuador.

At Vetaspata, north of Lake Titicaca near the Bolivian border, EM plans to carry out prefeasibility work, including 5,000 metres of drilling, metallurgical testing and underground development.

The 47-sq.-km property contains a series of flat-lying horizons (or mantos) of gold mineralization, which are hosted in Paleozoic sandstones. Channel sampling returned 17.9 grams gold per tonne in underground workings.

At the much larger Beroen project, EM gained control of a 338-sq.-km land package, following an agreement in which Rio Tinto (RTP-N) granted the junior an option to buy its interest for US$2.5 million in cash and shares, plus a 2% net smelter return royalty.

EM plans to drill 2,000 metres at Beroen in order to test the northern extension of mineralization discovered by Rio Tinto. The latter intercepted several bonanza-grade gold-silver intervals while testing the lower elevations of the mineralizing system. Highlights included 34.5 metres grading 12.3 grams gold and 109 grams silver, and 27 metres of 10.4 grams gold and 103 grams silver.

Mineralization at Beroen, which is hosted in a volcanic sequence, extends for more than 1,000 metres vertically and over a strike length of 1,800 metres. EM will test the upper portion of this epithermal system on the San Luis concession.

Southwest of Beroen, in the Zaruma-Portovelo district, lies the 6-sq.-km Paccha property, which EM acquired from from Compagnie Generale de Matieres Nucleaires (Cogema) in return for a 3% net smelter return royalty on future production.

During a 15-hole program on the property, Cogema encountered several high-grade intervals along a 1-km vein. Hole 2 intersected 7.7 metres grading 6.4 grams gold; hole 2A hit 10.7 metres of 17.4 grams gold; and the last 15.6 metres of hole 11 ran 5.1 grams gold. No hole penetrated deeper than 40 metres.

East of the brecciated vein, field reconnaissance crews outlined an altered and silicified zone measuring 500 by 250 metres. Seven of nine shallow holes returned anomalous values, and EM believes this zone hosts potential for bulk-minable material.

Mineralization at Paccha is hosted in Oligocene-aged andesite flows and pyroclastics, which are possibly associated with a collapsed caldera.