2011-03-30 10:23 ET - News Release

Mr. Gordon Blankstein reports

ANDOVER UPDATES STATUS OF PROJECTS: A CLAIRIFYING NEWS RELEASE

Andover Ventures Inc., as a result of a review by the British Columbia Securities Commission, is issuing the following news release to clarify and update its disclosures.

Sun project, Ambler district, Alaska

The company announced in Stockwatch on April 20, 2009, that it would complete a new resource calculation on the Sun polymetallic deposit. This study was delayed due to corporate financial constraints and corporate focus on the East Tintic mining district, Utah.

The company is currently undertaking a new resource calculation for the Sun project located in the Ambler mining district of northwest Alaska. As disclosed in the company's Jan. 12, 2011, Stockwatch news release, this calculation will include data from the 20-hole drill program conducted by Andover during the 2007 drill season. Andover anticipates the completion of this report by the end of the fourth quarter of 2011.

Planning for the 2011 drill season is also under way. Andover's 2007 drill program was focused on the Main Sun target. This year's program is designed to test SW Sun and to further extend the Main Sun deposit toward Picnic Creek to the northeast.

East Tintic mining district, Utah -- Burgin mine project and Trixie mine project

Burgin mine project

The company announces that the current indicated resources previously reported for the Zone A deposit on the company's website are historic in nature, not NI 43-101 compliant, and should not be relied upon.

Other potential silver, lead and zinc replacement exploration targets within the Burgin complex, as previously stated on the company's website, are historic in nature and are not compliant with policy NI 43-101, and therefore the information should not be relied upon.

As announced in a company news release in Stockwatch dated Nov. 1, 2010, Chief Consolidated Mining Company (78.53 per cent controlled by Andover) retained Mine Development Associates (MDA) of Reno, Nev., to produce an NI 43-101 technical report on the Burgin mine project. Work on this report is currently under way.

The new report will consist of both a mineral resource estimate and a preliminary economic assessment (PEA). The scope of the PEA will include:

       Review of existing economic studies for the project, as well as reports pertaining to mining, geotechnical studies, hydrology and metallurgy;

       Creation of underground development and mine volume measurements that will consider all mineral resources, including inferred;

       Investigation of appropriate mining methods and processing options;

       Development of a mining sequence that maximizes value to the operation;

       Development of production schedules of resources within the mine designs;

       Development of preliminary-assessment-level cost and capital estimates;

       Development of preliminary-assessment-level cash flow.

This new MDA study will build on previous work summarized in the following reports:

       Update of 1988 Burgin mine feasibility study by Mine Development Associates, Oct. 5, 2001;

       Estimate of the minable reserves for the new Burgin project, Utah county, Utah, completed Aug. 1, 1989, by Pincock, Allen and Holt Inc. of Lakewood, Colo., United States;

       Sunshine Mining Company's new Burgin project, Eureka, Utah, feasibility study, Volume 1 and Volume 2, by Allan R. Young, development engineer, Sunshine Mining Company, May, 1988.

The work by MDA will produce a mineral resource estimation and preliminary economic assessment that will comply with Canadian NI 43-101 requirements. Deliverables will include the resource block model and all digital files related to the resource estimate, underground development and mining volume designs, a production schedule and cash flow analysis, and an NI 43-101 technical report for filing on SEDAR. Chief anticipates the MDA report will be completed by the end of Q4 2011.

Trixie mine

A management decision to proceed to production from the Trixie mine was based on:

       A bonded and permitted mill being in place on the property;

       A production shaft, a secondary escape shaft and associated hoisting equipment in place on the property;

       A stockpile of surface material to be processed during the start-up phase;

       A data review of old historic non-compliant NI 43-101 reports indentifying non-compliant minable mineral blocks.

While the company plans to proceed to production without confirming these historic resources, no reliability can be placed on these historic resources.

Chief Consolidated Mining Company (78.53 per cent controlled by Andover) as disclosed in the company's March 11, 2011, Stockwatch news release, has hired Michael R. Carter as general manager for Chief's East Tintic district mining properties in Utah, United States. Mr. Carter is responsible for hiring and managing all staff required to place the Trixie gold mine into production as well as the development of the other assets in the district including the Burgin extension deposit.

The company also announced in Stockwatch on Jan. 26, 2011, that Alastair H. Summers, BA, Sc, PEng, PGeol, had completed a report on the Trixie gold mine complex that recommends restarting production of the Trixie mine. The study focused on rehabilitating the Trixie mine and utilizing the associated Burgin mill to process the ore.

Further news on staff additions, and mine and mill developments will be made as they are completed. Dr. Stewart Jackson., PGeol, a director of Andover Ventures, is the qualified person responsible for the accuracy of this news release in compliance with NI 43-101.
 

 

 

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