Eaglecrest Explorations to focus gold exploration on Dona Amelia and Paititi-Buriti zones in Bolivia

Eaglecrest Explorations (TSX-V: EEL, FSE: EAT) told investors that, in-light of a strategic review, it has decided to focus all its exploration efforts in Bolivia, on the areas immediately surrounding the Dona Amelia zone and on the evaluation of the Paititi-Buriti zone at the San Simon project.

The company also said that in has extended its Letter of Intent (LOI) with Grupo de Bullet, in relation the Fredonia Project in Colombia, until August 17th 2010, to allow for the completion of a definitive agreement. 

"The Board of Directors has recently reviewed the overall asset portfolio and strategic plans for the Company and has re-focused the Company's objectives and activities to optimize shareholder value," Eaglecrest President and COO Hans Rasmussen commented.

Last week, Eaglecrest announced that it has hired SRK Consulting to prepare a NI43-101 compliant Mineral Resource Estimate, and an associated Independent Technical Report for the Dona Amelia gold zone, in Bolivia. The company expects the report to be completed during the third quarter 2010.  The Dona Amelia zone is one of the three primary areas being explored by Eaglecrest at the San Simon Property.

"We are confident that the completion of a resource estimate on the high grade Dona Amelia zone will be a major strategic step forward in realizing value from our significant investment in the San Simon Property",  Eaglecrest President and COO Hans commented.

The SRK resource estimate will focus on the gold shoots along the easternmost drilled portion of the Dona Amelia zone, including the high-grade Trinidad-Mina Vieja zone which contains the L463 Gold Shoot.

Eaglecrest has given notice, to four of the six Bolivian property owners, that it is removing various concessions from the exploration and option agreements, allowing the company to reduce its prospective land holdings unilaterally and at no cost.

Subsequently, the company will retain 16 concessions, totaling 120.5km2. “The decision to reduce the size of the San Simon holdings was based on the results of exploration work conducted in 2008 and 2009, and took all prior technical data into consideration. The reduction will reduce future holding costs and enable the Company to focus exploration on the areas that are known to have significant gold mineralization or are considered to have excellent exploration potential”, Eaglecrest stated.

In Columbia, in relation to the Fredonia Project, the company said that both parties - Eaglecrest and Grupo de Bullet – are working in earnest towards the completion of the definitive documents. Title due diligence was completed and confirmed that all 33 concessions have been granted to Grupo de Bullet by the Colombian Mining Agency, with the total area granted now exceeding the 18,000 hectares envisaged in the initial LOI, and reaching to more than 21,000 hectares.

Eaglecrest initially signed the LOI with Grupo de Bullet back in December 2008. The Fredonia Project Area is located in the Cauca River Valley, between the Eastern and Western Cordillera of the Andes Mountains, north-western Colombia. The company also noted that several other projects are also being evaluated in the Central Cordillera porphyry gold belt.

Fredonia is a large area of principally unexplored ground, which Eaglecrest believes has a high-probability for the discovery of one or more large porphyry style gold deposits – based on initial reconnaissance exploration by Bullet, the proximity to significant proven gold resources, and preliminary geophysical work.