Aurelian Comments on Recent Political Developments in Ecuador Affecting the Condor Project and Fruta del Norte (FDN) Resource Development
08:55 EDT Monday, April 21, 2008
TORONTO, ONTARIO--(Marketwire - April 21, 2008) - Aurelian Resources Inc. (TSX:ARU) today commented on the new Mining Mandate adopted by Ecuador's Constituent Assembly on April 18th, 2008.
Aurelian is providing this preliminary assessment to keep investors updated on the potential impact of the new Mining Mandate on the Company's exploration and development activities in Ecuador. Some of the major features of the new Mining Mandate that may have an impact on the Company are as follows:
- The new Mining Mandate limits mining companies to holding a maximum of three concessions. Should this apply to Aurelian, the Company will retain title to the single concession containing the Fruta del Norte (FDN) epithermal gold-silver deposit, as well as two others that Aurelian believes contain the most prospective geology for additional epithermal discoveries. Aurelian will seek to protect all investments made to date at its other concessions that it has been actively exploring since 2003.
- The new Mining Mandate invokes an immediate 180-day suspension of activities on virtually all mining concessions in Ecuador while a new Mining Law is drafted and adopted. Aurelian is awaiting formal notification from the Ministry of Mines and Petroleum of the effects of the Mining Mandate on the Company's operations, as defined in the final provisions of the mandate.
In response to this departure from previous indications of support by Ecuador's government for large-scale mining, Aurelian's Chief Executive Officer, Patrick Anderson, commented that, as recently as last week, Company staff were encouraged by meetings with Ecuador's Ministry of Mines and Petroleum, where arrangements were made for detailed discussions in the coming weeks on a stability agreement for FDN. "We assume that these discussions toward a stability agreement will be suspended for the immediate future," Mr. Anderson further stated. "While we take some encouragement from President Correa's continued public statements in support of large-scale mining, this mandate is not in keeping with such expressed support.
Nevertheless, we will continue to work with the government of Ecuador to create a long-term sustainable mining industry that benefits investors and other stakeholders in Ecuador. We also expect to continue work on a resource update and a previously announced scoping study for FDN."
Aurelian is seeking further clarification from government officials on how the new Mining Mandate will be implemented and will provide additional commentary as more detail becomes available. An unofficial English translation of the new Mining Mandate prepared internally by the Company is available on Aurelian's website at www.aurelian.ca. Aurelian's management remains committed to working to create value for shareholders as it continues to monitor the situation in Ecuador and assess any changes that may be made to existing mining laws.
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