Andina Approves US$10 Million Phase III Exploration Program for Volcan Gold Project
Monday October 2, 7:52 am ET
40,000 Metre Drilling Program Planned
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TORONTO, ONTARIO--(CCNMatthews - Oct. 2, 2006) - ANDINA Minerals Inc. (TSX VENTURE:ADM - News; "Andina" or "the Company") is pleased to report that its Board of Directors has approved a US$10 million Phase III exploration program for its Volcan Gold Project located in Chile's Maricunga Gold Belt. The Phase III program, scheduled to commence in late October 2006, will follow up on the successful results from the previous Phase II campaign which culminated in the announcement, on September 18, 2006, of a new resource estimate for Volcan comprising 43.9 million tonnes grading 1.02 grams per tonne gold ("g/t Au") for 1.44 million ounces of gold in the indicated category with a further 37.2 million tonnes grading 0.97 g/t Au for 1.16 million ounces of gold in the inferred category (see Table 1).
"The US$10 million Phase III exploration campaign represents a major acceleration in exploration activities at Volcan", stated Carl B. Hansen, President and CEO of Andina. "Based on the Phase II campaign, we believe that Volcan has the potential to host increased resource ounces and as a result of this view we have commenced metallurgical studies and, over the next few months, will be considering options for the possible development of the Volcan gold deposits."
Drilling will be the main focus of the upcoming exploration program with a combined total of 40,000 metres of diamond and reverse circulation drilling planned between October 2006 and May 2007. The drilling campaign will be divided between resource drilling, both delineation and definition, and exploration drilling. In addition to the extensive drill program, Andina is planning to complete geophysical and geochemical surveys along with extensive geological mapping and prospecting across the 5,400 hectare Volcan property.
Table 1: Volcan Gold Project - September 2006 Resource Summary
--------------------------------------------------------------- Contained
Category Cut-off Grade Tonnes Grade Gold Ounces
(g/t Au) (millions) (g/t Au) (thousands)
---------------------------------------------------------------
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Indicated 0.3 79.2 0.73 1,850
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0.5 43.9 1.02 1,440
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1.0 19.1 1.50 920---------------------------------------------------------------
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Inferred 0.3 69.3 0.68 1,520
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0.5 37.2 0.97 1,160
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1.0 16.0 1.36 700
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Resource drilling will be directed towards increasing the size of the existing resource base as well as improving the confidence level of the resources by converting inferred resources to the measured and indicated category. The exploration drilling program will initially focus on high priority targets defined during the last two exploration programs such as the large Ojo de Agua alteration zone where surface sampling returned 205 metres grading 0.67 g/t Au. Further details regarding drill targets for the upcoming season were provided in the Company's September 18, 2006 news release.
About Andina Minerals Inc.
Andina is an Americas focused exploration company, with a portfolio of precious metals exploration projects in Chile, dedicated to maximizing the value of its exploration assets through a commitment to fiscally responsible exploration.
The September 2006 resource estimate was carried out under the supervision of Michael Easdon, a Registered Professional Geologist resident in Santiago, Chile and an "Independent Qualified Person" as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI43-101"). Mr. Easdon is also the "Qualified Person" for the Volcan exploration program as defined by NI43-101. An updated NI43-101 compliant technical report is being prepared by Mr. Easdon and will be filed on the SEDAR system (www.sedar.com) within forty five days of this release.
Technical Reports titled "Technical Report on the Volcan Gold Project. Region III, Chile" dated November 2005 and "Technical Report on the Volcan Gold Project. Region III, Chile" dated April 2006 summarizing respectively the October 2005 and February 2006 resource estimates are available at www.sedar.com. Further, a summary of the work performed by the previous operators is reported within the Company's Technical Report titled "Review of Gold and Copper Exploration Potential of Mineral Properties in Chile" dated November 12, 2004 which was filed at www.sedar.com on November 24, 2004. All reports are also available on the Company's website noted below.
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 results, the future price of gold, the estimation of mineral reserves and resources, the realization of mineral reserve and resource estimates, the success of exploration activities generally, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage and the timing and possible outcome of any pending litigation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "planning", "expects" or "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "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 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; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold and copper; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, development or construction activities, 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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contact:
Carl Hansen
Andina Minerals Inc.
President and CEO
(416) 203-3488 Ext: 203
Website: www.andinaminerals.com
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Source: ANDINA Minerals Inc. |
