TORONTO, ONTARIO--(Marketwire - March 8, 2010) - ANDINA Minerals Inc. (TSX VENTURE:ADM) (the "Company") is pleased to report further results from the 2009/2010 In-Fill Drilling Programme on the Company's Volcan Gold Project in Chile. As previously reported, the 2009/2010 Drilling Programme includes 20,960 metres of in-fill drilling and this report follows the first results released on February 10th, 2010 (see February 10, 2010 Press Release).
"The key drivers to the Volcan project are grade and recovery. We are therefore very pleased and encouraged with the significant intercepts of higher grades seen in the in-fill program. These results together with those previously reported should have a positive impact in a new resource model. At the same time as we are working to enhance the resource model and the grade of the deposit, we continue to work on ways to improve gold recoveries at the Volcan Project. Current metallurgical test work programs are aimed at assessing the benefits of incorporating partial, or full, milling scenarios to the process options," said George Bee, President & CEO.
Results from the latest batch of 8 drill holes totalling 3,190 metres on the Dorado West area, are reported in the table below.
Of the 3,190 metres drilled, 28% of the meters drilled (880 metres) have a weighted average sample grade of 1.46 g/t Au. The higher than average drill results will support Andina's efforts to better model the Volcan Project's Dorado resource adding further definition and assisting in the preservation of the better grades in the resource. The full effect of the drilling on the resource model will not be known until the resource model has been re-estimated, once all drilling in the 2009/2010 drill season is completed. With the eight holes reported above there are now results for 17-holes totalling 6,795.58 meters.
The in-fill drilling program started in October 2009 is in support of further defining Andina's 9.8 million ounces of measured and indicated resources reported in the resource statement published in the autumn of 2009 (see Press Release dated September 10, 2009). This most recent drilling will also allow Andina to better estimate the grades in the resource. To date, resource modelling has been accomplished by estimating block model values within a broad mineralized boundary encompassing most of the mineralization. While this method is appropriate for the initially profiled bulk heap leach scenario, and was as detailed as could be expected given the density of the drill data available, Andina believes the approach contributed to smearing gold values, resulting in an estimate that likely overestimates mineral tonnage, reduces mineral grade but models fairly accurately the contained ounces of gold in the deposit. The new in-fill drilling serves to confirm the presence of higher grade zones within the resource and it is expected will allow more accurate modelling of these zones within the overall resource. Furthermore as Andina looks to optimize the development plan for Volcan and investigate alternatives to the initially contemplated heap leach scenario, a new resource model, which better captures the grade seen in drill holes, should offer opportunities to mine and extract the gold more efficiently. The ultimate effect of the new drilling on the resource estimate will not be known until a new resource model is completed in second half of 2010.
All assays were performed by Laboratorio Geoanalitica, Coquimbo Chile.
Qualified Person
Mr. Michael Easdon is the Qualified Person under National Instrument 43-101 responsible for preparing and reviewing technical information on the Volcan Project in the Dorado and Ojo de Agua areas and ongoing field, sampling and analytical procedures in Chile concerning the aforementioned drill results. Mr. Easdon has reviewed the contents of this press release.
Certain technical information regarding the Volcan Project required to be disclosed under Part 3 of National Instrument 43-101 is contained in the Technical Report on the Volcan Gold Project, Region III, Chile and Updated Mineral Resource Estimate for the Dorado Gold Deposits, dated October 23, 2009, prepared by Reno Pressacco, M.Sc. (A), P.Geo., Richard Gowans, P.Eng. and Sam Shoemaker, B.Sc., MAusIMM, each of Micon, and is available on SEDAR at www.sedar.com. This includes information regarding project area geology, mineralization, rock types and geological controls.
QA/QC Protocols
Andina continues to utilize Canadian Institute of Mining, Metallurgy and Petroleum ("CIMM") prescribed Quality Assurance and Quality Control ("QA/QC") protocols for all sampling and assaying of the core and reverse circulation cuttings. The Dorado drill program utilizes extensive QA/QC protocols for assaying and core sample handling that consist of the systematic insertion of blanks, standards and duplicates as well as using a secondary laboratory for regular check assaying. The core boxes are transported to Copiapo where the core is cut with a diamond saw with one-half of the core being placed in sealed bags, which are then taken to the Geoanalitica preparation facility in Copiapo for crushing and from, which the crushed sample is shipped by Geoanalitica to the Geoanalitica assay facility in Coquimbo.
Geoanalitica analyses the samples for gold, copper and molybdenum. The gold assays are performed utilizing 30 grams fire assay with an Atomic Absorption Spectroscopy ("AAS") or gravimetric finish; the copper ("Cu") and Molybdenum ("Mo") are assayed for using standard wet analytical techniques.
About Andina Minerals Inc.
Andina's primary focus is mining exploration and development in Chile. The Company's flagship property is the 100%-owned Volcan Gold Project, strategically located in the prolific Maricunga Gold Belt. In September 2009, Andina provided an updated resource estimate for Volcan including measured and indicated mineral resources of 492.5 million tonnes at an average grade of 0.62 g/t Au for 9.8 million measured and indicated ounces of contained gold and inferred mineral resources of 36.8 million tonnes at an average grade of 0.65 g/t Au for 768,000 ounces of gold.
Forward-Looking Statements
This release contains forward-looking statements, including predictions, projections and forecasts. Forward-looking statements include, but are not limited to, statements with respect to 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 the Volcan Gold Project and timing of the release of the Conceptual Design Study ("CDS") and Preliminary Economic Assessment ("PEA"), a new resource estimate often, but not always, forward-looking statements can be identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipate", "does not anticipate", or "belief", or describes a "goal", or variation 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.
Forward-looking statements are based on a number of material factors and assumptions, including, among others, the result of drilling and exploration activities, that unexpected geological conditions or formations are not located, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted.
Forward-looking statements involve 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, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. 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 statements 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 statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.