ANDINA Minerals Inc. (TSX VENTURE: ADM) ("Andina") is pleased to
report an initial resource estimate from the new Ojo de Agua East
("ODAE") area of the Volcan Gold Project ("Volcan").
The ODAE resource estimate includes indicated resources of 2.71
million tonnes grading 1.55 grams per tonne gold ("g/t Au") for
contained gold of 135,000 ounces and inferred resources of 3.43
million tonnes grading 1.53 g/t Au for contained gold of 168,000
ounces, both at a 0.9 g/t Au cut-off grade.
The ODAE deposit is located in Chile's Maricunga Mineral Belt,
approximately four kilometres northeast of the proposed process
facilities for Volcan and within 1.5 kilometres of the proposed
Volcan Heap Leach Pad.
Table 1 provides further details on the ODAE resource estimate
while the accompanying sections highlight the better grade
zone.
Table 1: ODAE Indicated and Inferred Resource, Volcan Gold Project(1)(2)(3)
----------------------------------------------------------------------------
Cutoff Indicated Inferred
----------------------------------------------------------------------------
Grade Grade Tonnes Oz Grade Tonnes Oz
(g/t Au) (g/t Au) (millions) (000's) (g/t Au) (millions) (000's)
----------------------------------------------------------------------------
0.30 0.79 10.29 263 0.57 34.44 628
0.40 0.89 8.45 242 0.69 22.10 489
0.50 1.02 6.56 214 0.85 13.01 358
0.60 1.19 4.77 183 1.07 7.78 267
0.70 1.34 3.73 161 1.22 5.73 224
0.80 1.45 3.19 148 1.42 4.02 184
0.90 1.55 2.71 135 1.53 3.43 168
1.00 1.68 2.23 121 1.79 2.35 135
----------------------------------------------------------------------------
(1) All quantities are rounded to the appropriate number of significant
figures, consequently sums may not add up due to rounding.
(2) Mineral resources, which are not mineral reserves, do not have
demonstrated economic viability. The estimate of resources may be materially
affected by environmental, permitting, legal, title, taxation, socio-
political, marketing or other relevant issues.
(3) The quantity and grade of reported Inferred Resources in this estimation
are conceptual in nature and there has been insufficient exploration to
define these Inferred Resources as an Indicated Resource. It is uncertain if
further exploration will result in the upgrading of the Inferred Resources
into an Indicated or Measured Mineral Resource category.
"We are pleased to announce this initial gold resource for ODAE"
stated George Bee, President and CEO of Andina. "The ODAE discovery
is significant insofar as there is a higher grade core within ODAE
which is a discernable unit, that can be mined and add higher grade
material to the Volcan mine plan. What we see in ODAE is proof
positive that Andina's land position hosts more gold than we knew
about and the opportunity for higher grade material is now
clear".
Mr. Bee went on to say, "With this shallow higher grade
discovery at ODAE, we will assess if it is warranted to increase
Volcan's proposed throughput to accommodate additional
mineralization that could improve cash flow in the initial years of
Volcan's operations."
With the addition of the ODAE resource estimate, total Volcan
property reserves and resources are as follows:
-- Proven and Probable reserves remain unchanged at 6.6 million ounces of
gold (283 million tonnes grading 0.73 g/t Au),
-- Measured and Indicated resources increased to 2.4 million contained
ounces of gold (110 million tonnes grading 0.68 g/t Au), while,
-- Inferred resources increased to 1.35 million ounces of gold (64 million
tonnes grading 0.66 g/t Au).
A summary of the total Volcan property resource estimate is
provided in Table 2.
Table 2: Total Volcan Gold Project Resource - Dorado, Ojo de Agua and ODAE
-------------------------------------------------
Cutoff Tonnes Grade Gold Ounces
(g/t Au) (millions) (g/t Au) (000's)
--------------------------------------------------------------------------
Proven - Dorado
Deposits(1) Variable(7) 102.2 0.75 2,458
Probable - Dorado
Deposits(1) Variable(7) 180.4 0.71 4,135
--------------------------------------------------------------------------
Proven and Probable -
Total 282.6 0.73 6,596
--------------------------------------------------------------------------
Measured - Dorado
Deposits(2) Variable(7) 3.7 0.43 51
Indicated - Dorado
Deposits(2) Variable(7) 103.4 0.67 2,231
Indicated - ODAE(3) 0.9 2.7 1.55 135
--------------------------------------------------------------------------
Measured & Indicated -
Total 109.8 0.68 2,417
--------------------------------------------------------------------------
Inferred - Dorado
Deposits(2) Variable(7) 41.6 0.50 671
Inferred - Ojo de Agua(4) 0.5 18.6 0.85 510
Inferred - ODAE(3) 0.9 3.4 1.53 168
--------------------------------------------------------------------------
Inferred - Total 63.6 0.66 1,349
--------------------------------------------------------------------------
(1) See National Instrument 43-101 "Technical Report on the Results of the
Pre-Feasibility Study on the Dorado Deposits, Volcan Gold Project Region
III, Chile", dated January 31, 2011, at http://www.sedar.com/.
(2) See National Instrument 43-101 "Technical Report on the Volcan Gold
Project Region III, Chile and Updated Mineral Resource Estimate for the
Dorado Gold Deposits", dated October 15, 2010, at http://www.sedar.com/. Of
the total estimated measured and indicated resources of 8.9 million
contained ounces of gold (October 2010 Technical Report), 6.6 million ounces
were later converted to estimated proven and probable mineral reserves in
the January 2011 NI43-101 Technical Report, see Note 1.
(3) See National Instrument 43-101 "Technical Report on the Ojo de Agua Este
(OdAE) Sector of the Volcan Gold Project Region III Chile", dated September
9, 2011, at http://www.sedar.com/
(4) See Press Release "Andina Establishes Resource at Volcan Gold Project's
Ojo de Agua Area" dated October 6, 2008.
(5) All quantities are rounded to the appropriate number of significant
figures, consequently sums may not add due to rounding.
(6) 'Proven and Probable Reserves are based on a processing plan that
includes a Mill and a Heap Leach. The Mill cut-off grade used is 1.25 g/t
Au, while the Heap Leach cut-off grade is 0.34 g/t Au
(7) Due to the variable metallurgical recovery used in the determination of
the potential profitability of any given block within the block-model, an
iterative approach was required to determine cut-off grade(s) for Volcan's
Dorado (East, West and Central) deposits. Cut-off grades were determined for
each deposit that considered the full operating costs for both milling and
heap leach operations. Mill cut-off grades are 1.10 g/t Au, while Heap Leach
cut-off grades are 0.34 through 0.68 g/t Au. For purposes of the mineral
resource estimate, a gold price of US$950/oz Au was selected.
Geology and Exploration Drilling
ODAE is a structurally controlled gold target. Gold
mineralization in the zone has been traced by drilling over a
north-south strike length to approximately 750 m. The central
higher grade zone is interpreted as a deep rooted sub-circular
diatreme the core of which 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 dilatational zone and secondary north-west structures
to develop. The best grades are located at the core of the diatreme
and which extends to a total depth 400 m and which appears to be
open at depth. Outside the diatreme, the total width of the
structural corridor is in the order of 50 m.
The higher gold grades obtained at ODAE in comparison with the
main deposits of Volcan, are characteristic of this Diatreme type
of gold deposit.
Andina is currently reviewing the 2011/12 exploration campaign
in order to assess an infill drilling program to achieve a 50 m by
50 m grid in order to enhance the resource categorization.
Resource Estimation Methodology
The ODAE resource estimation is based on 38 drill holes totaling
12,730.65 m of combined reverse circulation and diamond drilling.
The drilling was performed on a 50 m by 100 m grid to an
approximate depth of 500 m.
The resource was estimated using a block-model methodology.
Drill hole assays were composited from (typically) two metre assay
intervals to generate composite intervals for each drill hole which
correspond to the appropriate cut-off grades which range from 0.3
to 1.0 g/t Au. Only drill intervals six metres long or greater, or
greater than an approximate three metre true width, at or above the
appropriate cut-off grade were included in the resource estimate.
The maximum vertical projection was 100 meters as supported by the
geology. The resource blocks were projected one half the distance
between sections, or 25 metres northwest and southeast. A density
of 2.34 tonnes per cubic metre was used, based on 77 density
measurements on core drill samples.
Inferred resources are based on data which is not sufficiently
closely spaced, or of sufficient quantity, that the geological and
grade continuity can be reasonably assured with a sufficiently high
level of confidence to allow the resources to be classified with a
higher degree of certainty. It cannot be assumed that the Inferred
Mineral Resources will be upgraded to an Indicated Resource as a
result of continued exploration. Additionally, it cannot be assumed
that the Indicated Mineral Resources will be upgraded to a Measured
Resource as a result of continued exploration.
Furthermore, it cannot it be assured that measured and indicated
or inferred mineral resources will be converted to a "reserve"
category at such time as feasibility studies are initiated.
Map and sections showing all drill results to date from ODAE may
be found at the end of this press release.
Quality Assurance / Quality Control Program
Mr. Michael Easdon, a "qualified person" as defined by National
Instrument 43-101 - Standards of Disclosure for Mineral Projects of
the Canadian Securities Administrators ("NI 43-101"), 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 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 did not use either the chip channel (trenching) or
grab samples data in the 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
Asesoria Minera Geoanalitica Limitada ("Geoanalitica") sample
preparation facility in Copiapo Chile, where they are crushed (chip
and grab samples) and which 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 50 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.
Volcan Gold Project Resource Technical Reports
The resource parameters for the Volcan ODAE area deposit may be
found in the NI 43-101 compliant technical report titled "Technical
Report on the Ojo de Agua Este (OdAE) Sector of the Volcan Gold
Project Region III Chile" dated September 9, 2011, prepared by
independent qualified persons Michael Easdon, Oregon Reg. Prof.
Geologist and Sergio Diaz, Prof. Reg. Geologist (Chile), and filed
on September 12, 2011 with the applicable Canadian securities
regulatory authorities on the System for Electronic Document
Analysis and Retrieval (SEDAR) at www.sedar.com.
The reserve parameters for the Dorado deposits of Volcan may be
found in the NI 43-101 compliant technical report entitled "Results
of the Pre-feasibility study on the Dorado Deposits, Volcan Gold
Project Region III, Chile" dated January 31, 2011, prepared by
qualified persons from Micon International and filed with the
applicable Canadian securities regulatory authorities on the System
for Electronic Document Analysis and Retrieval (SEDAR) at
www.sedar.com.
The resource parameters for the Dorado deposits of Volcan may be
found in the NI 43-101 compliant technical report titled "Technical
Report on the Volcan Gold Project Region III, Chile and Updated
Mineral Resource Estimate for the Dorado Gold Deposits", dated
October 15, 2010 and filed with the applicable Canadian securities
regulatory authorities on the System for Electronic Document
Analysis and Retrieval (SEDAR) at www.sedar.com.
NI 43-101 COMPLIANCE
Under the guidelines of NI 43-101, the qualified person for the
ODAE resource estimate is Mr. Michael Easdon, a resident of
Santiago, Chile. Mr. Easdon, Professional Geologist registered with
the State of Oregon, USA, has confirmed the ODAE deposit resource
estimate presented in this press release. Mr. Easdon is an
independent qualified person as defined by NI 43-101.
Dr. Eduardo Magri, mining engineering (Witwatersrand) and a
Fellow of the SAIMM with over 30 years of industry experience, and
Mr. Joled Nur of SRK Consulting Chile, a mining engineer, prepared
the ODAE resource estimation.
The technical information in this news release has been prepared
in accordance with requirements set out in NI 43-101 and reviewed
by Mr. Easdon.
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 remain 2.4 million ounces of Measured and Indicated gold
resources at an average grade of 0.68 g/t contained in 110 million
tonnes of ore plus 1.35 million gold ounces in the Inferred
category contained in 64 million tonnes of ore at an average grade
of 0.66 g/t Au.
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.
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, and timing and results of future resource estimates or
future economic studies. 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.
To view the Geological Sections and maps associated with this
release, please visit the following link:
http://media3.marketwire.com/docs/adm912figures.pdf.
Contacts: ANDINA Minerals Inc. George M. Bee President & CEO
416 203 3488 ANDINA Minerals Inc. Derrick Weyrauch Chief Financial
Officer 416 203 3488 www.andinaminerals.com
Andina Minerals Inc. (TSXV:ADM)
Historical Stock Chart
From May 2024 to Jun 2024
Andina Minerals Inc. (TSXV:ADM)
Historical Stock Chart
From Jun 2023 to Jun 2024