April 8, 2004 - The Board of Directors of Aguila American Resources Ltd. (TSX-V: AGL) is pleased to provide this update on the Angostura Prospect, which is located 3,800 meters above sea level in South Eastern Peru.
The Angostura Property covers approximately 4,100 hectares and consists of two exploration concessions and 5 claims, which cover the main portion of the Angostura Gold Prospect. The project area is located in southern Peru in the Department of Apurimac, approximately 430 kilometers southeast of Lima and 80 kilometers southwest of the city of Cuzco, and can be reached along paved highways and gravel roads. The area is mountainous and elevations on the property vary between approximately 3,300 metres and 4,400 metres. The geology of the Property consists of moderate to steep north dipping Cretaceous limestones of the Ferrobamba Formation which trend ENE along a corridor that ranges in width from approximately 200 meters to the west to greater than 500 meters in the eastern area. This limestone corridor is in fault contact (Vilcabamba Fault) to the south with interbedded thin layers of quartz sandstones/siltstones and shales of the Soraya Formation of lower Cretaceous age, and to the north by Tertiary granodioritic intrusive rocks of the Apurimac Batholith.
Gold mineralization on the Angostura Property is hosted within an elongated ENE trending silica-rich, iron-manganese structure in limestones. This zone appears to be structurally related to the E-W trending, south dipping regional Vilcabamba. The oxide mineralization is characterized by massive and partial replacement of a collapsed limestone breccia structure.
The company had anticipated announcing the start of a drill program by this time; however the ongoing due diligence and discussions with a major mining company have delayed this announcement. Detailed assay results are also still to be received.
If the discussions result in an agreement then drilling would be performed as part of an earn in by the joint venture partner. If the drilling is performed by the company, it would do so with the benefit of substantial technical data developed and compiled by the major mining company. In this case, a financing would have to be completed. In either case, the benefit should accrue to the property and the shareholders of the company. A decision is anticipated by May 15, 2004.
The Angostura Property has an excellent geological potential that warrants further exploration work. The work to date has been positive. The collapsed breccia was expanded to 280 metres X 300 metres X 140 metres depth. In addition similar geology and geochemistry was mapped over a 4,875 metre strike length. 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.
ON BEHALF OF THE BOARD
"John Huguet" President & Director
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press.
