Aguila American Gold (CVE:AGL) says it has elected Blair Way as its new president and CEO after an annual general meeting of shareholders. 

 "We are very pleased to have attracted Blair to this role. His management and interpersonal skills combined with his background and experience with mining projects in many different countries makes him well suited for leading this company to the next level," said chairman John Huguet in a statement last night. 

Way was most recently vice president, project director, reporting to the CEO of Ventana Gold's LaBodega project in Colombia. Ventana was purchased by Ike Batista in 2009 for $1.5 billion. 

Prior to this, Way was president and project director for OceanaGold Philippines on the Didipio gold copper project, and before this, was project manager for Non Ferrous Group with Hatch Associates. 

He also worked as project director for BHP Billiton in Queensland, leading a group that was responsbile for implementing A$210 million of improvement projects from pre-feasibility through to commissioning.              

"I look forward to leading the company and driving the exploration activities on the Angostura project to an NI 43101 compliant resource," said Way.

"This asset exhibits all the attributes I look for in a project. I greatly anticipate working with the AGL team, with the aim of growing the company through to mid-tier status."            

Also at the annual meeting, the directors appointed John Huguet as chairman, Nick DeMare as CFO and James McCrea as VP of exploration.

Aguila American Gold is an emerging gold exploration company focused on advancing its flagship gold project, Angostura, located 180 kilometres southwest of city of Cuzco, in the Department of Apurimac, southwestern Peru. 

Angostura is situated around 25 kilometres from the Las Bambas Mine, a $4.5 billion mining project being developed by Xstrata Mining Pty.

Late last month, the Vancouver-based company said that drilling has now started at the project. The aim of the program is to produce an NI 43-101 compliant resource by the second quarter of next year.

In preparation for the campaign, the drill camp has been completed, along with 7 drill pads of the 20 permitted. The company is using a custom built, mid-sized, man-portable diamond drill capable of delivering a larger-diameter drill core.

Aguila said its crews will be drilling 2x12 hour shifts per day until the Christmas break, with initial drilling focused on zones 1 and 2 of the more than 5.0 kilometres of mapped strike length. 

Vancouver-based Aguila American Gold (CVE:AGL) says that drilling has now started at its Angostura gold project in southern Peru. The aim of the program is to produce an NI 43-101 compliant resource by the second quarter of next year.

In preparation for the campaign, the drill camp has been completed, along with 7 drill pads of the 20 permitted. The company is using a custom built, mid-sized, man-portable diamond drill capable of delivering a larger-diameter drill core.

Aguila said its crews will be drilling 2x12 hour shifts per day until the Christmas break, with initial drilling focused on zones 1 and 2 of the more than 5.0 kilometres of mapped strike length. 

These zones are the main oxide gold-bearing areas on the property, and the company said they are considered to be the highest priority targets, with an outcrop of oxide mineralization for over 400 metres. 

The zones have been tested for gold mineralization through mapping, sampling, trenching and channel sampling in various campaigns, as well as through the evaluation of a multitude of artisanal workings, the company said. 

In May, the gold miner reported that sampling of workings returned highs of up to 33.9 grams per tonne (g/t) gold over 1 metre, with a weighted average of 11.4 g/t gold over 9.2 metres, for selective channel sampling at various intervals along 29 metres in length. 

Previously reported trenching results for the area include 75 metres of sampling at an average grade of 3.64 g/t gold. 

Aguila said the target and mineralization begins at surface and is believed to be open along strike and at depth.

The first drill hole is designed to test the true width of oxide zone 2 at depth. The company said the potential depth of the zone of oxide mineralization is believed to be in the range of 600 metres from oxide samples taken one kilometre east of the zone, at close to 4000 metres to mine workings in the valley 400 metres east of the zone. 

Aguila American also said Thursday that it has received the final copy of the geophysical report, detailing what it called "very encouraging" results from magnetics and polarization surveys. The report will be used to select more drill targets for the current program and to help prioritize targets for the next phase of drilling. 

Angostura holds eight titled concessions consisting of 8,644 hectares. The low temperature gold mineralization is associated with a halo of iron carbonate alteration, the company noted, and is up to 80 metres wide with an average width of 45 metres. 

The property is located in a prolific mineral trend, approximately 25 kilometres from the Las Bambas Mine, a $4.5 billion mining project being developed by Xstrata Mining.

The company said results from the drill campaign and geophysics will help determine resource areas could be accessed from surface or from future underground drill stations.

In addition, the company said Al MacGregor, of More Core Diamond Drilling Services, arrived in Lima, Peru to oversee the drilling contract.

Shares, in afternoon trade, rose 2.5 cents, or 13.89 per cent, climbing to 20.5 cents each on the TSX Venture Exchange.

Earlier this month, the gold miner inked an agreement with the Peruvian community of Mollepina, representing a key step forward for Aguila American's flagship project.

The deal grants Aguila the right to conduct exploration activities like soil studies, diamond drilling and geophysics, as well as provides complete access to the land, utilizing specialized man portable equipment to reduce surface impact, while permitting construction of basic infrastructure, camps and offices as required.

Aguila said the initial term for the agreement is two years, under which the company has also agreed to maximize local employment and help enhance the community’s basic infrastructure.

The deal represents the final requirements to submit Aguila's 8,255 metre drill plan for the property, with the receipt of a drill permit expected in early May.

President and CEO John Huguet says the community agreement is a milestone for the company, with the receipt of the permit set to jump start activities at the project, which has been held by Aguila American for eleven years.

The acreage in southern Peru covers about 9,200 hectares and consists of nine exploration concessions and two claims that cover the main portion of the Angostura gold prospect.

The community agreement announced this month was borne from a long process that started after the Mollepina community began mining illegally at Angostura in 2008. Aguila American launched proceedings to remove these miners, and through this process, developed a "sustainable relationship" says Huguet, allowing the community to mine legally as artisanal miners.

Under the collaborative deal, the company also agreed to assist in the formalization process of Mollepina's artisan miners on the Delicia concession, where it has given them 10 hectares for their exclusive use.

Aguila said that the artisan miner agreement grants it a one percent royalty of total sales and the right to purchase artisan miners’ production at market value.

"The responsible position we have taken has led us to a beneficial one. We will continue to assist the Mollepina miners with education and infrastructure and we plan to live in harmony with them," says Huguet.  "The company has now done all the fundamentals to allow the government to issue a drill permit."

Indeed, Aguila American plans to drill 8,200 metres of core into what it considers to "very prospective ground".

Huguet says there has been extensive trenching completed on the project, with grades as high as 6 grams per tonne (g/t). Previous trenching results include 75 metres at an average grade of 3.67 grams per megatonne (g/Mt) gold.

"We do anticipate a very productive resource. Our initial target for an NI 43-101 compliant resource is one million ounces, with half in the inferred category and the other half in the indicated category."

Huguet went on to say that he has "extreme confidence" in the first 3,000 metres of planned drilling as predictable outcomes are expected because of the extensive trenching programs on over 5,600 metres of strike length.

"We have determined the width, and are now proving up the depth, with very interesting tonnage and grades expected," Aguila's CEO adds.

The anticipated drill plan has been broken up into two phases, with the first 3,015 metres aimed at delineating a near surface resource, while phase two aims to advance the potential resource down dip and along strike.

The property is located 180 kilometres southwest of Cuzco, with paved highway and gravel roads linked directly to key zones. Huguet says there is also a power line, and a small camp on site, which will eventually have to be increased for drillers. However, he doesn't anticipate any difficulties in achieving infrastructure requirements.

Aguila American has a cash position of around $3 million, which Huguet expects should be enough to fund the drill program and last through the year.

"After a slow build up, investors have been very patient, but can now expect an aggressive drill program in 2012, with plans to add even a third rig. Shareholders will now have something very worthwhile on their hands," Huguet concludes.

Drill results for the program, which is anticipated to kick off in May, will be released as soon as they are received, Aguila said.

The Vancouver-based junior company's stock has risen more than 7.4 percent year-to-date, and is currently changing hands around 29 cents.

The acreage located in Southern Peru covers about 5,198 hectares and consists of nine exploration concessions and two claims which cover the main portion of the Angostura gold prospect.

The community agreement grants Aguila the right to conduct exploration activities like soil studies, diamond drilling and geophysics, as well as providing complete access to the land, utilizing specialized man portable equipment to reduce surface impact while permitting construction of basic infrastructure, camps and offices as required.

Aguila said the initial term for the agreement is two years, under which the company has agreed to maximize local employment and help to enhance the community’s basic infrastructure.

The deal represents the final requirements to submit Aguila's 8,255 metre drill plan, with the receipt of a drill permit expected in early May.

The drill plan is broken up into two planned phases. The first phase aims to drill 3,015 metres to delineate a near surface resource, while phase two aims to advance the potential resource down dip and along strike, Aguila said.

Meanwhile, the company also noted it has agreed to assist in the formalization process of Mollepina’s artisan miners located on the Delicia concession, where it has granted 10-hectares for their exclusive use and operations.

Indeed, Aguila will help artisan miners in all legal proceedings and proper training, but artisan miners will be responsible for the development of their assigned area. The company won’t be held liable, as a result, from artisan miners’ activities.

Aguila said that the artisan miner agreement grants it a one percent royalty of total sales and the right to purchase artisan miners’ production at market value.

The company, which is publically traded on Canada's junior stock exchange, explores and develops mineral properties mainly in Peru.

The Angostura property, located in southwestern Peru, is a highly prospective gold property, containing eight titled concessions that cover 4,869 hectares.  Aguila American said it is in the process of securing additional mineral claims that would cover another 2,965 hectares.

The target mineralization has been interpreted as gold-bearing oxide replacement bodies, with two contiguous zones of mineralization mapped.

The company said that the low temperature gold mineralization is associated with a halo of iron carbonate alteration and is up to 250 metres wide, with an average width of 75 metres. Previous trenching results include 75 metres at an average grade of 3.67 grams per megatonne (g/Mt) gold.

The company said the latest sampling and trenching program successfully extended the known zone of iron carbonate alteration that is associated with the mineralization for more than 800 metres east of the mapped mineralization, which is the object of a budgeted 20 platform, 8,000 metre drill program planned for the fall of 2011.

Four new trenches were excavated across the zone east of the oxide mineralization outcrops where the artisanal miners are currently working, the company said.

The work program to date has identified a third phase drill program, in addition to the two phase, 8,000 metre drill program planned for the zone at Angostura, and would require additional permitting to allow for more than the planned 20 drill platforms.

This drill permitting will begin immediately after the current drill permit application has been submitted, the company said.

It also said the process is underway to convert the informal artisanal miners at the site into formal contract miners.

Check your facts: Peru pays a higher tax rate for mining then those on your list. GDP is high as well
This may play out in the boosting of royalty rates from 3% to 5%, and increasing the corporate tax rate to 35%, which will bring these rates into line with other major mineral producers such as Canada, Australia and Chile.

In the meantime major producers such as Xstrata, Peru Copper, Freeport-McMoRan (NYSE:FCX), Rio Tinto (NYSE:RIO, LON:RIO) and a host of other miners remain committed to investing over US$20.7 billion in developing a host of new mining projects. Glencore International (LON:GLEN) also has substantial interests in Peru, recently announcing an investment of US$475 million to acquire a 70% stake in the Mina Justa Project, affirming that Peru remains a favored location for development of major mining projects.

Aguila American Gold is led by John Huguet as CEO, who has more than 35 years of experience in the development of producing mines in South America, and led the Peruvian Business Council where he was twice decorated by the Peruvian Government.

Management support is provided by Christopher Verrico, who has 25 years experience in development and management of open pit mining; and James McCrea who has 20 years resource exploration experience in the Americas, and served in senior roles at Silver Standard and Cumberland Resources. 

Aguila American Gold carries a market capitalization of just $8 million and holds cash of $5 million. Insiders and institutions hold 40% of the 39 million issued shares, which provides a very tight share capital for rapid price appreciation in the event of a significant drilling and exploration results.