Drilling by Latin American Gold's Ecuador affiliate confirms significant gold mineralization at its property in Nambija trend; Intercepts up to 1.1 oz. per ton (37.7 g/mt) over 11 meters.

GREENWICH, Conn.--(BUSINESS WIRE)--June 6, 1995--Initial results from 3,600 meters of diamond core drilling by Latin American Gold Ltd.'s affiliate in Ecuador have confirmed significant gold mineralization on company property.

The limited area drilled detected mineralized rock with an estimated average grade of 0.5 oz. of gold per ton (17.1 g/mt) it was announced today by Gerard E. Munera, chairman and chief executive officer of Latin American Gold Ltd.

"We have drilled 22 holes in part of the Mine Skarn deposit and we have encountered gold mineralization in 15. One hole encountered 11 meters averaging 1.1 oz. of gold per ton (37.7 g/mt). In addition, surface channels in the deposit have indicated grades as high as 2.8 oz. of gold per ton (96.0 g/mt) over 24 meters," Munera said.

"The Mine Skarn is estimated to have a length of 600 meters and a width of 200 meters of which only a limited area of 7,500 square meters has been drilled so far," he said, adding that "a first zone of mineralization was encountered close to the surface with an average thickness of nine meters and an average grade of 0.5 oz. per ton (17.1 g/mt), and that 40 meters below this upper area, a seven meter thick zone of gold mineralization, averaging 0.25 oz. per ton (8.6 g/mt) also was discovered."

An exploration program of mapping, sampling of surface and underground exposures and core drilling was begun by Latin American Gold in mid-February at the property of its 40 percent owned affiliate, Compania Minera Zamora S.A. (Cominzasa) in the original Guayzimi Alto concession held by Cominzasa. That company's land position in the Guayzimi Alto tenement was increased in April by 34 percent. This mining concession, formerly reached only by helicopter or pack animals, now is accessible by a road built jointly with Zamora Resources, another mining company in the district. The road will also facilitate access to Cominzasa's nearby exploration concession, Las Banderas, which covers 4,942 acres (2,000 hectares) of Cominzasa's 5,431 acres (2,198 hectares) in the Nambija gold belt.

In addition to the Mine Skarn deposit, other areas of significant exploration potential have been identified on the Guayzimi Alto concession, including several gold bearing skarns and large areas of stockwork sulfide mineralization. Geological work at Guayzimi Alto also revealed extensive outcrops of hydrothermally altered and sulfide-bearing volcanic and sedimentary units in a geological setting which looks like a gold-copper-molybdenum porphyry-type system. Road access is being prepared to test these areas in an upcoming drilling campaign.

In all, Latin American Gold's exploration program has drilled less than five percent of the hydrothermally altered rocks in the Guayzimi Alto concession. With the construction of the new drill roads in the upcoming weeks, a second core drill program totaling 5,000 meters will commence in new areas at Guayzimi Alto. Geological exploration will also commence shortly at the Las Banderas concession which appears to be geologically similar to the Guayzimi Alto property.

Latin American Gold has focused its current activities and investment on the Ecuador property and has an option to increase its ownership of Cominzasa by 4.2 percent. The shares of Latin American Gold, which has changed its corporate registry to Bermuda, are traded on the Canadian Dealing Network (CDN) under the symbol LAGD.

CONTACT: Latin American Gold Ltd., Greenwich

William A. Mulligan, 800/204-1847