EcuaGold
Updates its Activities in Colombia, Peru and Ecuador
Vancouver, B.C. - July 28,
2008 - EcuaGold Resources Ltd. ("the Company"
or "EcuaGold") (TSX Venture Exchange: EGR) is pleased to
provide an update on the Company's activities in Colombia and Peru
pursuant to EcuaGold's revised exploration diversification strategy.
The Company has established subsidiaries in Colombia, ColombiaGold
Resources S.A. ("CGR") and in Peru, PeruGold Resources S.A.
("PGR"). These subsidiaries are managed by, and staffed with
personnel from, the Company's Ecuadorian subsidiary. EcuaGold's
activities are presently limited to administrative and legal matters in
Ecuador due to the Mining Mandate issued by the Ecuador Constituent
Assembly on April 18, 2008, which, among other provisions, provided for
the suspension of exploration activities in Ecuador for a period of 180
days.
CGR, which will be based in Medellin, Colombia, has been very active over
the past four months, principally in the Department of Antioquia
("Antioquia"), Colombia. CGR has signed several confidentiality
and exclusivity agreements with various concession owners, mainly within
the Segovia Batholith trend, and is presently in advanced-stage
negotiations to acquire several precious metals projects in Antioquia,
although final agreements have not yet been concluded. CGR is also in the
process of hiring Colombian geologists to staff its Medellin office.
Colombia historically has been the largest gold producer in South
America, dating back to the pre-Colombian period. It is reported that
over half of Colombia's historical production came from Antioquia, which
abounds with historical mines, both alluvial and underground hard rock.
The Frontino Gold Mine, which has been in production for over 150 years,
is located in northeast Antioquia, within the Segovia Batholith trend,
and the Frontino Gold Belt is one of the principal gold producing regions
in Colombia.
PGR, which will be based in Lima, Peru, has also signed confidentiality
agreements with a Canadian junior mining company and private
concessionaires relating to a number of projects in southeast Peru.
PGR also has had preliminary
discussions with a number of concessionaires with properties principally
located north of Lima. During August, the Company's senior
management team, with the assistance of the Company's senior consulting
geologist, Dr. Richard Jemielita, who has more than 20 years experience
in Peru, will be conducting field visits to the project opportunities
located in southeast Peru.
The Company is actively maintaining contact with Ecuador's Ministry of
Mines and Petroleum ("MMP") in connection with the Government's
initiative to implement a new Mines Law in Ecuador. The MMP
submitted a draft of the new Mines Law to President Correa in late June
2008. Based on recent published reports, there appears to be room for
encouragement, as the proposed new Mines Law may not contain many of the
adverse mining provisions previously discussed within the Constituent
Assembly. As provided by the Mining Mandate, the MMP formally advised
EcuaGold in June 2008 that all of the Company's concession applications
in Ecuador were being cancelled. This affected 23 concession
applications, covering approximately 64,791 hectares. The cancellations
were neither predicated on the Company's failure to pay concession or
application fees nor to a failure to submit requisite preliminary
environmental impact assessment reports. The Company has appealed this
decision to the regional MMP offices and was recently informed that the
appeals have been submitted to the MMP in Quito for resolution.
EcuaGold's present financial resources are estimated to be sufficient to
provide a reserve of approximately $1 million to finance the Company's
exploration diversification strategy and to maintain its day-to-day
corporate and administrative functions for the next 12 months.
About EcuaGold Resources:
EcuaGold
Resources Ltd. is engaged in the acquisition, exploration and potential
development of primarily precious metals properties in Colombia, Peru and
Ecuador. The focus of the Company's exploration activities is presently
in Colombia and Peru. EcuaGold controls, through wholly owned
subsidiaries, a 100 percent interest in 13 granted concessions,
comprising eight distinct projects, in Ecuador, covering more than 34,000
hectares. The majority of EcuaGold's concessions are located in southern
Ecuador, a highly prospective region that is currently host to a number
of projects. These include Aurelian Resources' Condor Project, IAMGOLD's
Quimsacocha Project, International Minerals' Rio Blanco and Gaby Projects
and Dynasty Metals & Mining's Copper-Gold Belt, Zaruma and Jerusalem
Projects.
On Behalf of the Board of Directors of
ECUAGOLD RESOURCES LTD.
Anthony F. Ciali
President, CEO and Director
FOR FURTHER INFORMATION PLEASE CONTACT:
The statements contained in this news release that are not purely
historical are forward-looking statements. Forward-looking statements may
relate to the success of any of the company's strategic initiatives, the
company's expectations, beliefs, growth and future prospects, and the
company's position in the market and future opportunities therein. Forward-looking
statements may also include, without limitation, any express or implied
statement relating to future events, industry performance, general
business and economic conditions or circumstances, regulatory and legal
requirements, and other matters, many of which are beyond the control of
the company. Forward-looking statements involve risks and uncertainties,
which could cause actual results to differ materially from those
projected. All forward-looking statements included in this news release
are based upon information available to the company as of the date hereof
and the company does not undertake any obligations to update
forward-looking statements should circumstances or management's beliefs
or opinions change.
No stock exchange has approved or disapproved the information contained
herein.
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