Aurelian Update on FDN Infill and Other Drill Results from Condor Project



    Trading Symbol TSX:ARU

    TORONTO, Aug. 19 /CNW/ - Aurelian Resources Inc. (TSX:ARU) today
announced additional drill results from the Fruta Del Norte ("FDN")
gold-silver deposit discovered in its Condor Project in southeastern Ecuador.
The majority of the results are from infill holes in the central high grade
part of the system (9583300N to 9583700N). These new data come from
exploration activity that was completed prior to the April 2008 suspension of
activities but on which QA/QC, verification and review have just been
completed. Aurelian also reported on other drilling on the Condor project to
the east and the west of FDN.
    The infill results from FDN include 95.56 metres grading 38.18 g/t of
gold ("Au") and 23.9 g/t of silver ("Ag") in CP-08-198, 149.09 metres grading
25.40 g/t of Au and 23.1 g/t of Ag in CP-08-204, 134.95 metres grading
22.39 g/t of Au and 14.1 g/t of Ag in CP-08-206 all on section 9583350N and
202.65 metres grading 15.70 g/t of Au and 20.8 g/t of Ag in CP-08-201 on
section 9583450N.
    "The new drill results confirm the continuity of geology and grade in the
central part of FDN," said Patrick F.N. Anderson, President and CEO. "This
drill program was intended to increase the drill density within the known
resource envelope and to provide support for upgrading a portion of the
existing Inferred Mineral Resource to the Indicated category. Unfortunately we
were unable to complete the infill program due to the Mining Mandate
suspension. While an updated resource estimate is underway by Micon
International Ltd. and P&E Mining Consultants Inc., these same consultants
anticipate that very little of the existing Inferred Mineral Resource will be
upgraded to the Indicated category by using the currently completed drilling.
Our consultants have also advised us that they do not anticipate the currently
completed drilling will result in a significant material change in the tonnage
or grade of the mineral resources at the deposit."
    As of Aurelian's press release dated October 4, 2007, calculations at the
FDN deposit returned an initial Inferred Mineral Resource of 58.9 million
tonnes grading 7.23 g/t of gold and 11.8 g/t of silver for 13.7 million ounces
of contained gold and 22.4 million ounces of contained silver, determined at a
cut off grade of 2.3 g/t gold-equivalent (Report titled "A Mineral Resource
Estimate for the Fruta del Norte Deposit, Cordillera del Condor Project,
Zamora-Chinchipe Province, Ecuador" and dated November 15, 2007 filed on
www.sedar.com). The results reported in today's release were not included in
that calculation.

    FDN Results
    ------------

    Mineralized intercepts (uncut and cut) from 31 FDN drill holes are
tabulated below. The intercepts are calculated with the 2.3 g/t Au Eq lower
cut, the same used in the Inferred Mineral Resource estimate; this cut off is
used in the description of results in the following text (unless otherwise
stated). Maps, cross sections, photos, gold and silver assay data from this
and previous press releases may be viewed at www.aurelian.ca.

    
    -------------------------------------------------------------------------
                   Uncut data, 2.3 g/t Au Eq(*) lower cut
    -------------------------------------------------------------------------
     Cross      Drill     From       To     Interval                 Au Eq(*)
    section      hole   (metres)  (metres)  (metres)  Au g/t  Ag g/t   g/t
    -------------------------------------------------------------------------
    9582500N  CP-08-217   No significant intercepts
    -------------------------------------------------------------------------
              CP-08-194  179.15    203.85     24.70     7.92     7.8    8.04
              ---------------------------------------------------------------
              CP-08-194  225.40    234.40      9.00     6.78     8.7    6.92
              ---------------------------------------------------------------
    9583300N  CP-08-194  267.40    335.75     68.35     3.91     5.9    4.00
              ---------------------------------------------------------------
              CP-08-194  342.75    436.48     93.73     4.30     9.6    4.45
              ---------------------------------------------------------------
              CP-08-199  236.11    316.59     80.48    20.01    10.3   20.18
    -------------------------------------------------------------------------
              CP-08-191  239.24    431.20    191.96    10.30     9.7   10.46
              ---------------------------------------------------------------
              CP-08-193  225.00    416.00    191.00    11.41     8.5   11.55
              ---------------------------------------------------------------
              CP-08-196  306.90    399.72     92.82     5.16    12.5    5.36
              ---------------------------------------------------------------
              CP-08-196  406.76    427.00     20.24     5.46     9.1    5.61
              ---------------------------------------------------------------
    9583350N  CP-08-198  263.02    358.58     95.56    38.18    23.9   38.56
              ---------------------------------------------------------------
              CP-08-198  371.80    395.65     23.85     2.69     7.8    2.81
              ---------------------------------------------------------------
              CP-08-198  431.65    464.65     33.00     4.50    19.5    4.82
              ---------------------------------------------------------------
              CP-08-204  260.91    410.00    149.09    25.40    23.1   25.78
              ---------------------------------------------------------------
              CP-08-206  178.85    313.80    134.95    22.39    14.1   22.61
    -------------------------------------------------------------------------
              CP-07-187  380.12    463.70     83.58    11.24    28.6   11.70
              ---------------------------------------------------------------
              CP-07-187  470.70    494.70     24.00     4.15    26.9    4.59
              ---------------------------------------------------------------
              CP-07-187  548.39    553.39      5.00     9.65    31.6   10.16
              ---------------------------------------------------------------
              CP-08-195  174.70    230.50     55.80     5.65     7.3    5.77
              ---------------------------------------------------------------
    9583450N  CP-08-201  172.15    374.80    202.65    15.70    20.8   16.04
              ---------------------------------------------------------------
              CP-08-225  193.00    338.80    145.80     6.08    12.8    6.28
              ---------------------------------------------------------------
              CP-08-230  187.75    321.72    133.97     5.80    10.3    5.97
              ---------------------------------------------------------------
              CP-08-235  168.26    180.00     11.74    13.56     5.2   13.64
              ---------------------------------------------------------------
              CP-08-235  191.60    321.48    129.88     7.92    13.3    8.14
              ---------------------------------------------------------------
              CP-08-235  329.48    368.00     38.52    14.70    28.5   15.16
    -------------------------------------------------------------------------
              CP-07-183  314.85    446.70    131.85    10.15    13.5   10.37
               (xx)
              ---------------------------------------------------------------
              CP-08-190  117.65    174.65     57.00     7.38     7.8    7.50
              ---------------------------------------------------------------
    9583500N  CP-08-192  184.05    307.10    123.05     5.63     7.6    5.75
              ---------------------------------------------------------------
              CP-08-192  337.50    350.10     12.60     9.25    14.7    9.48
              ---------------------------------------------------------------
              CP-08-236  140.00    193.36     53.36     3.02     4.9    3.10
    -------------------------------------------------------------------------
              CP-07-186  246.70    267.50     20.80     3.40     6.7    3.51
              ---------------------------------------------------------------
              CP-07-186  289.50    406.60    117.10    11.09    18.2   11.38
    9583550N  ---------------------------------------------------------------
              CP-08-224  164.35    227.15     62.80     4.40     6.7    4.50
              ---------------------------------------------------------------
              CP-08-227  131.65    148.65     17.00    10.21    16.5   10.47
    -------------------------------------------------------------------------
              CP-08-214  166.65    175.65      9.00     2.95     7.8    3.08
              ---------------------------------------------------------------
              CP-08-214  187.65    237.80     50.15     7.80     9.5    7.96
              ---------------------------------------------------------------
              CP-08-214  300.65    324.65     24.00     2.31     3.0    2.35
    9583600N  ---------------------------------------------------------------
              CP-08-218  213.80    223.00      9.20     3.05     4.7    3.13
              ---------------------------------------------------------------
              CP-08-218  229.80    294.64     64.84    14.66    14.0   14.88
              ---------------------------------------------------------------
              CP-08-218  306.64    340.70     34.06     4.00    10.0    4.16
    -------------------------------------------------------------------------
              CP-08-197  185.18    231.10     45.92     6.41     7.8    6.54
              ---------------------------------------------------------------
              CP-08-202  183.75    192.75      9.00     6.18     5.0    6.26
              ---------------------------------------------------------------
              CP-08-202  203.54    272.54     69.00     6.38     7.6    6.51
              ---------------------------------------------------------------
              CP-08-202  309.54    340.54     31.00     8.83     6.9    8.95
              ---------------------------------------------------------------
              CP-08-202  360.54    366.54      6.00    12.71    11.7   12.89
              ---------------------------------------------------------------
              CP-08-205  226.57    318.10     91.53    10.23     9.8   10.39
              ---------------------------------------------------------------
              CP-08-205  358.10    378.00     19.90    10.15    23.1   10.52
              ---------------------------------------------------------------
    9583650N  CP-08-210  No significant intercepts
              ---------------------------------------------------------------
              CP-08-211  238.85    260.85     22.00     2.41     3.8    2.47
              ---------------------------------------------------------------
              CP-08-211  286.85    302.30     15.45     2.88    19.0    3.19
              ---------------------------------------------------------------
              CP-08-211  314.45    422.00    107.55    12.60    19.8   12.92
              ---------------------------------------------------------------
              CP-08-213  127.95    198.44     70.49     8.48    11.1    8.66
              ---------------------------------------------------------------
              CP-08-213  254.20    272.20     18.00     2.97     6.4    3.07
              ---------------------------------------------------------------
              CP-08-213  306.20    443.30    137.10     7.50    15.0    7.74
              ---------------------------------------------------------------
              CP-08-232  134.06    159.00     24.94     3.56    23.3    3.94
              ---------------------------------------------------------------
              CP-08-232  169.00    204.17     35.17     5.29     6.6    5.40
    -------------------------------------------------------------------------
      Note: intervals are calculated using a lower cut of 2.3 g/t Au Eq
           and no top cut, they include up to 6m of internal waste.
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
        Intervals with a 2.3 g/t Au Eq(*) lower cut and a top cut of
                           105g/t Au and 97 g/t Ag
    -------------------------------------------------------------------------
     Cross      Drill     From       To     Interval                 Au Eq(*)
    section      hole   (metres)  (metres)  (metres)  Au g/t  Ag g/t   g/t
    -------------------------------------------------------------------------
    9583300N  CP-08-199  236.11    316.59     80.48    19.53     9.8   19.69
    -------------------------------------------------------------------------
              CP-08-191  239.24    431.20    191.96     8.63     9.2    8.78
              ---------------------------------------------------------------
              CP-08-193  225.00    416.00    191.00    11.24     8.5   11.38
              ---------------------------------------------------------------
              CP-08-196  306.90    399.72     92.82     5.16     9.2    5.31
    9583350N  ---------------------------------------------------------------
              CP-08-198  263.02    358.58     95.56    31.26    22.6   31.63
              ---------------------------------------------------------------
              CP-08-198  431.65    464.65     33.00     4.50    18.9    4.81
              ---------------------------------------------------------------
              CP-08-204  260.91    410.00    149.09    19.22    18.0   19.52
              ---------------------------------------------------------------
              CP-08-206  178.85    313.80    134.95    13.08    11.9   13.27
    -------------------------------------------------------------------------
              CP-07-187  380.12    463.70     83.58    11.06    28.6   11.52
              ---------------------------------------------------------------
              CP-07-187  470.70    494.70     24.00     4.15    25.1    4.56
              ---------------------------------------------------------------
              CP-08-201  172.15    374.80    202.65    13.76    17.8   14.04
    9583450N  ---------------------------------------------------------------
              CP-08-225  193.00    338.80    145.80     6.08    12.2    6.28
              ---------------------------------------------------------------
              CP-08-230  187.75    321.72    133.97     5.80    10.1    5.97
              ---------------------------------------------------------------
              CP-08-235  329.48    368.00     38.52    13.26    22.0   13.62
    -------------------------------------------------------------------------
    9583500N  CP-07-183  314.85    446.70    131.85     8.94    12.9    9.15
               (xx)
    -------------------------------------------------------------------------
    9583550N  CP-07-186  289.50    406.60    117.10    10.62    18.3   10.91
    -------------------------------------------------------------------------
    9583600N  CP-08-218  229.80    294.64     64.84    13.21    13.4   13.42
    -------------------------------------------------------------------------
              CP-08-202  309.54    340.54     31.00     7.61     6.9    7.72
              ---------------------------------------------------------------
              CP-08-205  226.57    318.10     91.53     9.38     9.7    9.54
    9583650N  ---------------------------------------------------------------
              CP-08-205  358.10    378.00     19.90    10.15    22.0   10.50
              ---------------------------------------------------------------
              CP-08-213  306.20    443.30    137.10     7.50    12.9    7.71
    -------------------------------------------------------------------------
        Note: intervals are calculated using a lower cut of 2.3 g/t Au Eq
         and a 105 g/t Au and 97 g/t Ag top cut, they include up to
                            6m of internal waste.
    -------------------------------------------------------------------------
    (*)  Au equivalent grade ("Au Eq") was calculated on the basis of
         US$550/oz Au, US$10/oz Ag, 90% Au recovery, 80% Ag recovery which
         combine for an Au Eq ratio of 61.9 grams Ag = 1 gram Au.
    (xx) Drill hole CP-07-183 is a geotechnical drill hole oriented to the
         NE (azimuth 45 degrees) and crosses from section 9583450N onto
         9583500N.
    

    The majority of holes were drilled from west to east (azimuth of
approximately 90 degrees), with the exception of scissor holes CP-08-194,
CP-08-199, CP-08-193, CP-08-198, CP-08-210 and CP-08-213 which were drilled
from east to west (azimuth of approximately 270 degrees). Geotechnical drill
hole CP-07-183 is also an exception having been drilled obliquely across the
deposit towards the NE at an azimuth of 45 degrees.
    All drill holes have intersected the deposit in broad zones of epithermal
stockwork and breccia style mineralization, with the exception of CP-08-210
which was abandoned due to technical reasons.
    In addition, drill hole CP-08-217 is a step out drill hole completed at
the south end of the FDN deposit on section 9582500N. The hole intersected
weak epithermal stockwork veining and did not return any significant assay
intervals.
    With the results reported here, data for 141 diamond drill holes at FDN
have been released, only 85 of which were complete and included in the initial
Inferred Mineral Resource released in October 2007. While drilling operations
have been suspended since April 2008, results for drill holes completed prior
to the suspension will be released as analytical data are received, validated
and compiled.
    The FDN deposit is hosted by intensely silicified andesitic volcanic and
intrusive rocks that are buried by clastic sedimentary rocks of the Suarez
Formation of Jurassic age within a pull-apart basin. The hydrothermal system
is characterized by multiphase quartz-carbonate-sulphide stock work veining
and hydrothermal brecciation. FDN is interpreted to be an intermediate
sulphidation epithermal gold-silver system that predates but is in part
contemporaneous with infilling of the basin.
    Drilling has outlined a mineralized envelope at FDN that is traceable
continuously for over 1,400 metres along strike, exceeds 100 metres in width
through the central and southern portions, has a vertical extent of over
350 metres ("m") and dips moderately westward through to vertical with an
eastern contact that dips steeply to the east south of 9583450N. Drill holes
intersect this envelope at various angles and therefore drill hole intercept
lengths reported in this and earlier press releases are not true widths.
Inspection of drill cross sections allow the width of the mineralized envelope
to be estimated visually.

    Significance of the Recent FDN Infill Drilling Results
    -------------------------------------------------------

    In support of the resource estimation work being carried out by Micon
International Limited ("Micon") and P&E Mining Consultants Inc. ("P&E"), a
geostatistical review of the FDN drilling results was conducted by AMEC E&C
Services (Inc.) ("AMEC") of Phoenix, Arizona in early 2008. The work was
carried out by Dr. Bruce Davis, Consulting Geostatistician, FAusIMM and was
peer-reviewed by Dr. Harry Parker, Technical Director of AMEC, FAusIMM and
Registered Geologist in California and Arizona. The results are summarized in
a March 2008 report entitled "Preliminary Geostatistical Analysis for Fruta
del Norte Property". The report is not a Technical Report as that term is
defined in National Instrument 43-101 but is available at www.aurelian.ca.
    The key conclusion from the AMEC report was that "the drill spacing
required to declare Indicated Mineral Resources and to support Probable
Mineral Reserves is on the order of 25m for a production rate of 5,000 tpd,
and on the order of 35m for a production rate of 10,000 tpd." AMEC has
consented to the presentation of this conclusion in this press release. The
Preliminary Economic Assessment currently underway for FDN uses a base case
production rate of approximately 5,000 tpd, and as such the infill drilling
program was designed to reach the target of 25m by 25m drill spacing.
    After reviewing the most recent drill data for FDN with Aurelian
exploration staff, B. Terrence Hennessey, P.Geo., of Micon and Eugene Puritch,
P.Eng., of P&E have provided the following comment on the data and its likely
impact on the FDN resource estimate:
    "As a result of the implementation of the Mining Mandate by the
Ecuadorian government the recommended program has not yet been completed.
While much of the initial phase of 50m spaced drilling was finished very
little of the ultimately planned 25m spaced holes were started. As a
consequence it is anticipated that very little of the existing Inferred
Mineral Resource will be upgraded to the Indicated category by using the
currently completed drilling in an updated mineral resource estimate.
    Most of the drilling completed at FDN in 2008 was the infill program to
raise the confidence level of the mineral resources. A review and comparison
of the final QA/QC-approved intersections from the new 50m spaced drilling
against the previous mineralized domain model has shown few surprises. It is
anticipated that the new data will result in only modest changes to the
mineralized envelope used to control the grade interpolation. It is not
anticipated that the currently completed drilling will result in a significant
material change in the tonnage or grade of the mineral resources at the
deposit."

    Other Drill Results
    --------------------

    The first of several deep drill holes, (CP-08-219), has been completed on
section 9583500N, designed to test for the offset part of the FDN deposit at
depth on the west side of the west fault. The hole was stopped at 1,343m and
failed to intersect any epithermal mineralization of significance.
    Results for drilling designed to test for mineralization east of FDN was
received with two holes (CP-08-226 and CP-08-234) having been completed. Both
holes intersected a broad zone of low grade epithermal mineralization that
starts approximately 300m east of the FDN deposit and is characterized by weak
epithermal quartz-carbonate-sulphide stockwork veining and brecciation in
andesite. The two holes were both orientated to the east (azimuth 90 degrees)
and had dips of 55 degrees (CP-08-226) and 50 degrees (CP-08-234). At a
0.1 g/t Au lower cut, no upper cut and including up to 11m of internal waste,
drill hole CP-08-226 returned an interval from 333.46m to 677.90m of 344.44m @
0.37 g/t Au and 4.8 g/t Ag which includes 29.60m @ 0.95 g/t Au and 11.2 g/t Ag
from 450m to 479.60m. Drill hole CP-08-234 returned an interval from 178.33m
to 473.73m of 295.40m @ 0.18 g/t Au and 4.1 g/t Ag. The mineralization has not
been intersected close to the surface and is buried below the
post-mineralization Hollin formation sandstone which is estimated at up to 80m
thick.
    In addition, ten holes have been completed in the Suarez pull-apart basin
as part of a three fence program drilled to test for buried mineralization and
to better understand structures within this 2km by 12km sediment filled basin.
The fences are very widely spaced, approximately 2 to 3 km apart and located
at approximately 9581400N, 9579500N and 9576800N. Only two holes were
completed on the southern fence before the Mining Mandate suspended drilling
operations in April. The ten holes have failed to intersect any epithermal
mineralization of significance.

    Airborne Geophysical Survey
    ----------------------------

    As previously reported in Aurelian's Q1 2008 MD&A, an airborne
geophysical survey of the entire Condor Project was begun in that quarter but
was cancelled in light of the suspension of activities under the April 18,
2008 Mining Mandate. Approximately three percent of the planned survey area
had been completed at the time of the suspension. The results of the airborne
survey over this small area generally confirmed the results of previous ground
geophysical surveys over the same area, but no new targets were identified.

    Technical Information and Review
    ---------------------------------

    Drill core samples consist of half HQ, NQ, NTW and BTW-size diamond core
that are split by diamond saw on site, prepared at the ALS Chemex laboratory
in Quito, and assayed by 50g fire assay with an AAS or gravimetric finish at
the ALS Chemex Lima Laboratory. The quality assurance-quality control (QA-QC)
program of Aurelian includes the insertion of certified standards of known
gold content every 20 samples, blanks at least every 20 samples and field or
lab duplicates every 20 samples.
    Samples from significant drill intercepts are sent to two additional
independent laboratories to verify gold and silver analyses. Metallic screen
fire analyses for gold are also run regularly as an additional QA-QC check.
The half core remaining after sampling is retained on site for verification
and reference purposes.
    Stephen Leary (MAusIMM), Aurelian's Exploration Manager, is the in-house
Qualified Person ("QP") in compliance with National Instrument 43-101 with
respect to this release. He has reviewed the contents for accuracy.

    About Aurelian
    ---------------

    Aurelian Resources Inc. is a publicly-listed (TSX:ARU) company engaged in
exploring, discovering and developing mineral wealth in Ecuador. The Fruta del
Norte (FDN) discovery lies at the heart of the Condor Project, located in
south-eastern Ecuador. The initial Inferred Mineral Resource for FDN was
released in October 2007 and included 58.9 million tonnes grading 7.23 g/t
gold and 11.8 g/t silver for 13.7 million ounces of contained gold and
22.4 million ounces of contained silver (Report titled "A Mineral Resource
Estimate for the Fruta del Norte Deposit, Cordillera del Condor Project,
Zamora-Chinchipe Province, Ecuador" and dated November 15, 2007 filed on
www.sedar.com). Visit www.aurelian.ca for more information.
    On July 24th, 2008, Kinross Gold Corporation announced a friendly
business combination with Aurelian Resources Inc. by way of a takeover bid.
The Board of Directors of Aurelian has unanimously determined that the Kinross
offer is fair and in the best interests of Aurelian shareholders, and has
accordingly unanimously recommended that shareholders accept the offer and
deposit their Aurelian shares under the Kinross offer. For details on the
offer please visit www.aurelian.ca.

    Forward Looking Statement

    Some of the statements contained herein may be forward-looking statements
which involve known and unknown risks and uncertainties. Without limitation,
statements regarding future political events, potential mineralization,
metallurgy and resources, exploration results, and future plans and objectives
of the Company are forward looking statements that involve various degrees of
risk and may not be within the control of the Company. The following are
important factors that could cause the Company's actual results to differ
materially from those expressed or implied by such forward looking statements:
changes in the world wide price of mineral commodities, general market
conditions, risks inherent in mineral exploration, risks associated with
development, construction and mining operations, the uncertainty of future
profitability, the uncertainty of access to additional capital, and political
risks in Ecuador.

    %SEDAR: 00017235E




For further information:

For further information: Patrick F.N. Anderson, President and CEO,
Phone: (416) 868-9100; Marla Gale, Director of Investor Relations, Phone:
(416) 868-9100, mgale@aurelian.ca

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