Andina drills 266 m at 1.00 g/t Au,
including 56 m at 2.6 g/t Au at Ojo De Agua East
TORONTO,
May 25, 2011 - ANDINA Minerals Inc. (TSX-V: ADM) (the �Company�) today announced results from a second
set of twenty (20) drill holes completed in 2011 at the Ojo
de Agua East (�ODAE�) mineralized zone, situated at the Volcan
Project site some 6.5 kms north-east 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
holes form part of the 10,000 metre (m) Strategic
Exploration Program drilled during in the current field season. A further six
(6) holes await assay results and are expected to be released in early June.
Hole
RODAE-887D returned 1.0 grams per tonne gold (�g/t
Au�) over 266 meters (�m�), including 54 m at 2.6 g/t Au. Hole
RODAE-887D was reverse circulation pre-collared to a depth of 150 m and
followed up with a diamond drill to a total depth of 450.65 m. Our objective
to extend the known ore shoot to depth and to the South was successfully
achieved.
�Hole RODAE-887D demonstrates
down-dip continuity of increasing high-grade mineralization at ODAE and
supports our continued belief that we have intercepted a structurally
controlled mineralized system at ODAE.
With
this hole we now have several intercepts of at surface mineralization,
continuity to depth and at significantly higher average grade than the main Volcan resource grade.
ODAE
could become an important resource, in the initial years of Volcan�s operations by allowing the displacement of
low-grade fines, from the mill, to the heap leach pad and thereby replacing
low-grade mill feed with high-grade ore� stated George Bee, President and CEO of Andina. �This
hole is very encouraging as ODAE could materially improve Volcan�s
cash flow in the initial years of operation. Therefore, we are moving quickly
to process ODAE drilling results with a view to incorporating ODAE into the Volcan mine plan. We hope to release an initial resource
estimate for ODAE in Q3�.
The
ODAE zone is part of the mineral concessions acquired from Barrick Gold Corporation in 2009.
All
holes released today consisted of a combined reverse circulation pre-collar
with a diamond drill finish.
Table
1, below, present�s results for the best six (6) holes released today.
Table
1
Hole Number
|
Section
|
From - To
|
Meters
|
g/t Au
|
Including
|
RODAE-885D
|
O-23
|
372 - 476 m
|
104 m
|
0.64
|
36 m @ 1.13 g/t Au
|
RODAE-887D
|
O-21
|
56 - 322 m
|
266 m
|
1.00
|
54 m @ 2.6 g/t Au
|
RODAE-890
|
O-22
|
56 - 200 m
|
>144 m
|
0.81
|
18 m @ 1.69 g/t Au
|
|
44 m @ 1.11 g/t Au
|
RODAE-894
|
O-24
|
52 - 132 m
|
80 m
|
0.84
|
20 m @ 1.06 g/t Au
|
RODAE-896
|
O-25
|
148 - 180 m
|
32 m
|
0.60
|
8 m @ 1.11 g/t Au
|
|
10 m @ 1.08 g/t Au
|
RODAE-911D
|
O-23
|
200 - 318 m
|
118 m
|
0.84
|
46 m @ 1.22 g/t Au
|
Map
and sections showing all drill results to date from ODAE may be accessed with
the following link:
http://andinaminerals.com/find/id/29/fy
Results
to Date and Geology
Andina has concluded the current 2010/2011 field season
with a total of 10,831.7 m drilled in 33 holes. Total drilling at ODAE now
stands at 13,207.15 m in 43 drill holes.
Our
testing has confirmed a total strike length for the ODAE exploration target
of over 750 m. We estimate that the mineralized zone extends up to a width of
200 m and a depth of 400 m. Current positive results include mineralization
at the northern extension of ODAE (section 30) holes RODAE-923 and
RODAE-924), while hole RODAE-887D increased the known ore body width
significantly at the southern end of the mineralized zone. The high-grade
core of hole RODAE-887D being 54 m @ 2.6 g/t Au coincides with earlier
reported high-grade intercepts 100 - 200 m to the north at holes 851 and 853
(see section 22 and 23). (See press release dated February 15th 2011 for
geology.)
Another
important parameter, requiring additional investigation, is the presence of
an approximately 150 m deep oxidized zone at ODAE, which offers potential for
higher recoveries and lower costs in a standard heap leach process.
Andina will undertake an initial resource calculation once
results for the remaining seven (7) holes are available, expected by early
June, and will work towards an initial resource estimate for ODAE in the 3rd
quarter of 2011.
With
the success of targeting and discovering high-grade mineralization at ODAE, Andina is now considering expanding its regional
exploration program to focus on other opportunities, such as ODAE, where it
hopes to generate additional Diatreme hosted gold
targets that could deliver high-grade gold mill feed for the Volcan Project.
Table
2, below, presents the results for the twenty (20) holes from the 2010/2011
Strategic Exploration program that are released today.
Table
2
Hole Nr.
|
Section
|
From - To
|
Mts
|
Grs/t Au
|
Including
|
RODAE-885D
|
O-23
|
190 - 200 m
|
10 m
|
0.54
|
2 m @ 1.54 g/t Au
|
RODAE-885D
|
O-23
|
372 - 476 m
|
104 m
|
0.64
|
36 m @ 1.13 g/t Au
|
RODAE-887D
|
O-21
|
56 - 322 m
|
266 m
|
1.00
|
54 m @ 2.6 g/t Au
|
RODAE-888D
|
O-24
|
102 - 104 m
|
2 m
|
2.13
|
|
RODAE-888D
|
O-24
|
154 - 280 m
|
126 m
|
0.54
|
|
RODAE-890
|
O-22
|
56 - 200 m
|
>144 m
|
0.81
|
18 m @ 1.69 g/t Au
|
|
44 m @ 1.11 g/t Au
|
RODAE-893
|
O-24
|
|
|
|
Abandoned
|
RODAE-894
|
O-24
|
52 - 132 m
|
80 m
|
0.84
|
20 m @ 1.06 g/t Au
|
RODAE-896
|
O-25
|
62- 68 m
|
6 m
|
0.69
|
|
RODAE-896
|
O-25
|
94 - 108 m
|
14 m
|
0.36
|
|
RODAE-896
|
O-25
|
148 - 180 m
|
32 m
|
0.60
|
8 m @ 1.11 g/t Au
|
RODAE-896
|
O-25
|
280 - 312 m
|
32 m
|
0.45
|
2 m @ 1.4 g/t Au
|
RODAE-896
|
O-25
|
148 - 180 m
|
32 m
|
0.60
|
10 m @ 1.08 g/t Au
|
RODAE-896
|
O-25
|
280 - 312 m
|
32 m
|
0.45
|
2 m @ 1.40 g/t Au
|
RODAE-908
|
O-26
|
270 - 282 m
|
12 m
|
0.35
|
|
RODAE-909
|
O-20
|
38 - 82 m
|
44 m
|
0.45
|
|
RODAE-909
|
O-20
|
112 - 136 m
|
24 m
|
0.43
|
|
RODAE-909D
|
O-20
|
178 - 190 m
|
12 m
|
0.29
|
|
RODAE-910
|
O-23
|
60 - 64 m
|
4 m
|
0.14
|
4 m @ 1.4 % Cu,
pre-collar
|
RODAE-910
|
O-23
|
112 - 116 m
|
4 m
|
2.63
|
|
RODAE-911
|
O-23
|
56 - 60 m
|
4 m
|
0.09
|
4 m @ 0.6 % Cu
|
RODAE-911
|
O-23
|
112 - 114 m
|
2 m
|
3.65
|
|
RODAE-911D
|
O-23
|
148 - 150 m
|
2 m
|
2.91
|
|
RODAE-911D
|
O-23
|
200 - 318 m
|
118 m
|
0.84
|
46 m @ 1.22 g/t Au
|
RODAE-912
|
O-25
|
0 - 36 m
|
36 m
|
0.49
|
|
RODAE-912
|
O-25
|
62 - 68 m
|
6 m
|
1.32
|
|
RODAE-912
|
O-25
|
244 274 m
|
30 m
|
0.58
|
4 m @ 1.97 g/t Au
|
RODAE-913
|
O-21
|
46 - 52 m
|
6 m
|
0.81
|
|
RODAE-913
|
O-21
|
70 - 98 m
|
28 m
|
0.65
|
4 m @ 1.25 g/t Au
|
RODAE-913
|
O-21
|
118 - 136 m
|
18 m
|
0.74
|
2 m @ 1.93 g/t Au
|
RODAE-913
|
O-21
|
162 - 186 m
|
24 m
|
0.56
|
4 m @ 1.36 g/t Au
|
RODAE-914
|
O-21
|
6 - 12 m
|
6 m
|
0.63
|
|
RODAE-914
|
O-21
|
28 - 54 m
|
26 m
|
0.69
|
2 m @ 4.0 g/t Au
|
RODAE-916
|
O-21
|
202 - 242 m
|
40 m
|
0.31
|
|
RODAE-919
|
O-23
|
70 - 86 m
|
16 m
|
0.51
|
2 m @ 1.33 g/t Au
|
RODAE-921
|
O-30
|
38 - 42
|
> 4 m
|
0.43
|
Repeated by 924
|
RODAE-922
|
O-30
|
-
|
-
|
-
|
Pre-collar hole
|
RODAE-923
|
O-30
|
364 - 388 m
|
24 m
|
0.60
|
2 m @ 2.56 g/t Au
|
RODAE-924
|
O-30
|
186 - 236 m
|
50 m
|
0.20
|
2 m @ 0.76 g/t Au
|
Total:
|
5,671.4 m (20
drill holes)
|
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 D�az, 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 Ge�logos de Chile under N� 315. Mr. D�az
is responsible for preparing technical information on the Ojo
de Agua East area.
QA/QC Protocols
Mr. D�az 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 contained in 283 million tonnes
of ore. In addition, there remains 2.3 million ounces of Measured and
Indicated gold resources at an average grade of 0.66 g/t contained in 107
million tonnes of ore plus 1.2 million gold ounces
in the Inferred category. Andina is progressing
with a feasibility study for Volcan, targeted for
completion in the first half of 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.
For further information please
contact:
George M. Bee
President & CEO
416 203 3488
Derrick Weyrauch
Chief Financial Officer
416 203 3488
Or visit the Company�s website at www.andinaminerals.com.
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.
Andina Minerals Inc.
56 Temperance Street, 3rd Floor, Toronto, ON, Canada M5H 3V5
Tel: 416 203 3488 Fax: 416 203 3438
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