TORONTO, ONTARIO--(Marketwire - Feb. 15, 2011) - ANDINA Minerals Inc. (News - Market indication) (the "Company") today announced results from the first six (6) completed drill holes in 2011 at the Ojo de Agua East ("ODAE") mineralized zone, situated at the Volcan Project site some 6.5 kms from the known Dorado zone and approximately 4 kms to the north of the proposed Mill and Heap Leach Pad in the Volcan Phase 1 Development Plan. These completed holes are from the 10,000 metre (m) Strategic Exploration Program in the current field season.
The ODAE zone is part of the mineral concessions acquired from Barrick Gold Corporation in 2009.
Four (4) of the six (6) completed holes consist of combined reverse circulation pre-collars with a Diamond drill finish (see Table 1).
Results of the drill hole are as follows:
Table 1
Hole RODAE-853 returned 2.2 grams per tonne gold ("g/t Au") over 104 m, including 30 m at 3.98 g/t Au. Hole RODAE-853 was pre-collared to a depth of 132 m and followed up with a Diamond drill to a total depth of 539.15 m. The objective was to intercept the down-dip continuity of hole RODAE-851 which intercepted 122 m of 1.45 g/t Au in the previous 2009/2010 field season (see press release June 8, 2010). The results extend the ore shoot an additional 100 m, to a depth of 300 m, and increase the grade of the zone.
Along what was considered to be a northerly strike continuity of the known mineralized zone, Andina tested at 100 m intervals and this resulted in hole RODAE-861 intercepting 144 m at 0.51 g/t Au and hole RODAE-856 intercepting 38 m at 0.464 g/t Au, while hole RODAE-854 to the south did not intercept mineralization. Hole RODAE-857, a reverse circulation hole collared into the northeastern 100 ppb geochemical halo, with the objective to test for oxidized ore, did not return positive results.
An important parameter, requiring additional investigation, is the presence of an approximately 150 m deep oxidized zone at ODAE.
"Hole RODAE-853 demonstrates down-dip continuity of increasing high-grade mineralization at ODAE and supports our belief that we have intercepted a structurally controlled mineralized system at ODAE with significantly higher average grades than the main Volcan deposits. This could meaningfully impact Volcan's development plan and economics as we prepare a feasibility study for Volcan during 2011" stated George Bee, President and CEO of Andina. "This additional result provides an excellent opportunity to supplement our existing mill feed with higher grade than is contemplated in our Phase 1 Development Plan".
Map and sections showing all drill results to date from ODAE may be accessed as links at the bottom of this release.
Results to Date and Geology
Andina has drilled 13 successful holes to date into the structural gold target at ODAE. Its north-south trending corridor has now been traced over 750 m; of which 500 m are drill indicated, while another 250 m can be inferred from new trench results cutting the corridor. These trenches show 100 m of 54 ppb gold, a strong indicator for continuity of ODAE towards a northerly direction.
The central higher grade zone however, is interpreted as a deep rooted sub-circular diatreme whose central core is located around holes RODAE-853 and RODAE-861.
This diatreme is characterized by phreatomagmatic breccias, indicating near surface explosive events. Its dimensions are approximately 200 m by 150 m and it appears to have used the north-south dilational zone and secondary north-west structures to develop. Best grades are located at its core and its total depth may well extend to greater depth. Total width of the structural corridor outside the diatreme is in the order of 50 m.
Diatreme hosted gold deposits are common features in high level gold environments such as the Volcan district and are characterized by higher grades than parent porphyry hosted deposits.
In addition to ODAE, Andina is also focusing its regional exploration program on other opportunities such as ODAE to generate Diatreme hosted gold targets with the objective to deliver higher grade gold sources to the Volcan Project.
Andina plans to complete definition drilling to further define the potential at ODAE at 50 m sections in the central zone and will delineate continuity towards the North.
Andina anticipates an initial resource estimate for ODAE in the 3rd quarter of 2011.
Ojo de Agua East Area Qualified Person
The trenching and drilling program at the Ojo de Agua East area of the Volcan Gold Project was reviewed and the results approved by Mr. Sergio Diaz, Andina's Qualified Person under National Instrument 43-101 and he is the Public Registered Person for Reserves and Resources N° 51, in Chile, also registered in the Colegio de Geólogos de Chile under N° 315. Mr. Diaz is responsible for preparing technical information on the Ojo de Agua East area.
QA/QC Protocols
Mr. Diaz has confirmed that Andina has utilized appropriate and accepted (per National Instruments 43-101 requirements) Quality Assurance and Quality Control ("QA/QC") protocols for the trench and drill hole sampling and assaying. Grab samples are selected pieces of rock collected to identify or confirm anomalous or potentially economic concentrations of precious metals (Au, Ag), base metals (Cu, Mo, Zn, Pb), as well as path-finder elements commonly associated with epithermal mineralization (As, Sb, Hg, Ba). Chip-channel samples are one or more continuous samples of mineralized or altered rock collected with hammer and chisel over a measured interval and may be taken from areas of outcrop or from trenches. Sample locations are determined at the time of collection with handheld GPS readings. Andina does not intend to use either the chip channel (trenching) or grab samples data in any future resource estimations. The samples that were taken in this program have been collected to confirm previously reported exploration sampling results and to further identify areas of greater interest for more detailed future exploration and drilling.
All samples are delivered by the Company's personnel to the Geoanalitica sample preparation facility in Copiapo Chile, where they are crushed (chip and grab samples) and all drill hole and surface samples are then shipped by Geoanalitica to their assay facility located in Antofagasta. Geoanalitica analyzes the samples for gold, copper and molybdenum. The gold assays are performed utilizing 30 g fire assay with an Atomic Absorption Spectroscopy ("AAS") or gravimetric finish; the Cu and Mo are assayed for using standard wet analytical techniques. Sample pulp splits are subsequently sent by Geoanalitica to the ALS-Chemex laboratory (also in Coquimbo) for multi-element Inductively Coupled Plasma ("ICP") analysis.
About Andina Minerals Inc.
Andina's primary focus is mining exploration and development in Chile. The Company's flagship development project is the 100%-owned Volcan Gold Project ("Volcan"), strategically located in the prolific Maricunga Gold Belt. In February 2011, Andina announced the results of a positive pre-feasibility study for Volcan. Initial Proven and Probable Mineral Reserves are 6.6 million ounces of gold at an average grade of 0.73 g/t gold. In addition, there remains 2.3 million of Measured and Indicated gold resources plus 1.2 million gold ounces in the Inferred category. Andina is progressing with a feasibility study for Volcan, targeted for completion in 2012.
In addition to Andina's extensive underexplored land position surrounding Volcan, the Company holds two other mineral properties located within Chile's primary mining regions.
Forward-Looking Statements
This press release contains forward-looking information within the meaning of applicable Canadian securities laws and regulations. Such information is based on the current expectations and beliefs of Andina's management and is subject to a number of risks and uncertainties that may cause the actual results to differ materially from those described above. Forward-looking information in this press release includes, but is not limited to, statements with respect to the completion of the feasibility study, exploration activities and results (including the timing of results), the timing and success of exploration activities generally, permitting timelines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcomes of any pending litigation and timing and results of future resource estimates or future economic studies, and in particular include statements with respect to the timing of the reporting of drilling results at Ojo de Agua East. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "planning", "planned", "expects", "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipate", "does not anticipate", or "belief", or describes a "goal", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
The forward-looking information contained in this press release is based on a number of material factors and assumptions, including, but not limited to, that estimates and studies are accurate, that Andina's mining operations continue in the ordinary course and as expected, that contracted parties provide goods and/or services on the agreed time frames, that the equipment necessary for exploration and development work is available as scheduled, availability of water for milling and mining, that no labour shortages or delays are incurred, that plant and equipment function as specified, Andina's ability to obtain adequate financing when and as needed, the continued favourable market for gold at prices at or above estimated levels, that no unusual geological or technical problems occur, that no unusual or unexpected events have a material adverse effect on Andina's operations or financial condition, and such other assumptions and factors as set out herein.
Forward-looking information involves known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, projection, forecast, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of gold; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the company's publicly filed documents. Although Andina has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Andina does not undertake any obligation to update or revise publicly any forward-looking information whether as a result of new information, future events or otherwise, unless required to do so by applicable laws.
