NEWS RELEASE August 25, 2003
The Board of Directora of Aguila American Resources Ltd. (TSX-V: AGL) is pleased to announce the results the geological field program on its Angostura Property in southern Peru. The work program took place during April, May and early June 2003.
The Company has expanded its land position such that the property now comprises 4,100 hectares of owned and optioned land.
Previous geological work defined two main gold mineralized zones (Zones 1 and 2). Zone 1 strikes ENE and dips very steeply to the north. Mineralized Zone 2 has seen the majority of previous exploration and small-scale mining activity on the property. It can be traced on surface over a strike length of approximately 200 metres with an ENE trend and a moderate to steep dip to the north.
Recent trenching and outcrop mapping has defined a width of 75 meters for Zone 2 with an approximate average grade of 3.64 g/t gold (based on samples taken from trenches T-12,13,14,15,16 and 17). Mineralization has also been observed to continue approximately 2.1 km west of Zone 1 and approximately 2.7 km east of Zone 1 respectively. Sections along this mineralized structure are offset by NW trending faults, with displacements that average approximately 50 meters.
At Angostura the mineralization is related to a gold bearing iron-manganese oxide collapsed breccia structure hosted in limestones. This collapsed breccia has been observed to continue along a length of 4.8 km, and remains open laterally to the west and east. Its average width at this time has not been established, as in most trenches, mineralization and/or strong alteration remained open on both sides. This will be determined later by geophysical work followed by geological mapping, trenching and if warranted diamond drilling. Mineralization found outside of Zone 2 has true widths of more than 20 meters as seen in some trenches. Oxide gold bearing mineralization has been located close to the Angostura Creek (approximately 3,380 meters above sea level) up to approximately 3,925 meters in elevation.
Field work included geological mapping (1:1000), 47 hand dug trenches and pits, and 132 chip channel samples. The majority of this work was completed over the western and eastern extensions of Zones 1 and 2. Trenches averaged approximately 1.0 meter in depth and 10 meters in length. These were oriented as much as possible perpendicular to the ENE mineralized trend. During the geological work a detailed topographic survey (1:1,000) was completed over 600 hectares following the mineralized trend.
AGUILA AMERICAN RESOURCES LTD.
News Reléase dated August 25, 2003 Page 2
Significant mineralization West of the Angostura Creek:
Trench T-1W: 1.21 g/t gold across 6.0 meters Trench T-3W: 3.19 g/t gold across 3.50 meters Trench T-6AW: 2.60 g/t gold across 3.30 meters Trench T-11W: 2.37 g/t gold across 8.00 meters Trench T-12W: 3.48 g/t gold across 8.00 meters Trench T-13W: 1.86 g/t gold across 5.00 meters
Significant mineralization East of the Angostura Creek:
Trench T-Be: 2.69 g/t gold across 2.40 meters Trench T-4e: 2.77 g/t gold across 8.40 meters Trench T-13e: 1.63 g/t gold across 5.00 meters Trench T-15e: 5.45 g/t gold across 3.00 meters (Zone 2) Trench T-16e: 5.24 g/t gold across 17.50 meters (Zone 2) Trench T-17e: 8.19 g/t gold across 3.00 meters (Zone 2)
As part of the sampling program a QA/QC program was completed. It consisted of the insertion of 6 blanks, 6 standards, and 6 duplicates into the sample sequence. All samples were submitted to CIMM Laboratories in Lima, Peru where they were prepared for analysis (gold by 50g fire assay and AAS, and 34 element ICP). Mr. Victor Jaramillo, M.Sc.A., P.Geo, with over 20 years of professional experience, was the Company's Qualified Person for this phase of work on the Angostura Project.
The Angostura Property has an excellent geological potential that warrants further exploration work. The property has never been explored using geophysical methods or drilling. The Company believes that potential exists for both large tonnage, low grade, bulk mineable gold mineralization and underground high grade gold mineralization.
A follow-up exploration program will be conducted over the property at a later date. It will consist of an initial magnetic and IP/resistivity geophysical survey, followed by geological mapping, trenching and if warranted diamond drilling and/or exploration adits.
ON BEHALF OF THE BOARD
"John Huguet"
John Huguet Director
