Andina Minerals (ADM:TSXV)
Why the Lofty Targets for Andina Minerals??
-->Haywood Securities has a $5.05 Target
-->Canaccord Adams has a $7.00 Target
Essentials
Price: $3.31
Market Cap: 200.5 Million
Shares Outstanding: 60.6 Million
Shares Outstanding Fully Diluted: 78 Million
Cash: $30 Million
Long Term Debt: 0
Crown Jewel
-->Volcan Project in Chile’s Maricunga Gold Belt
--> Volcan is located approximately 23 km north of the Refugio mine (Kinross), 20 km
southwest of Marte-Lobo (Teck/AngloGold), 10 km south-southeast of La Pepa project
(Meridian), 60 km south of the La Coipa mine (Kinross/Goldcorp) and 60 km north of
the Cerro Casale project (Arizona Star/Kinross)
-->As of their technical update in February 2007, the resource, above 0.5 g/t cut-off, stands at 3.44 million oz grading 0.99 g/t (Figure 3). At a lower cut-off grade (0.3 g/t), the resource totals 4.9 million ounces grading 0.74 g/t. At a higher cut-off grade (1 g/t), the resource totals 1.99 million ounces grading 1.54 g/t.
--> On May 22nd 2007, Andina reported further drill results from its Volcan Gold Project including a 668 metre interval grading 0.81g/t gold. According to Andrew Kaip of Haywood Securities, the assay results from the 6 holes show “porphyry like dimensions while the potential for high grade gold continues to exist.” When talking of the results, Carl B. Hansen, President and CEO of Andina Minerals Inc. says “We are very pleased with these drill results which firmly establish the upside potential of the Dorado West Zone gold deposit”. “Whereas earlier drilling tested the margins of the West Zone extension, the majority of these drill holes were collared to test of the core of the deposit returning significant intervals of higher grade gold mineralization, including 238 metres grading 1.36 g/t Au and 200 metres grading 1.15 g/t Au. The gold mineralization in this area is also wider than previously interpreted with true widths varying from 200 metres to in excess of 325 metres. The West Zone remains open along strike to the northeast and to depth and represents one of our primary targets for continued resource growth on the Volcan property.”
Andina Minerals also has other projects and for information on them visit their official website
Management
Carl B. Hansen, President and CEO, DirectorMr. Hansen is a geologist with almost 20 years experience in the exploration and mining industry. He has held various exploration, operation and head office positions with junior exploration to senior mining companies including INCO and TVX Gold. In December 2003, Mr. Hansen and a group of international mining professionals, formed Andina Minerals Inc., to explore for gold, silver and copper in the Americas. In December 2004, Andina merged with CastleRock Resources Inc. to become a publicly traded company listed on the TSX-Venture exchange.
T. Sean Harvey, ChairmanMr. Harvey has over 10 years investment banking and merchant banking experience, primarily focused on the basic industry (mining) sector and for the last 5 years has held senior executive and board positions with various mining companies. Mr. Harvey was recently the President and CEO of Orvana Minerals Corp. Previously, he was President and CEO of TVX Gold at the time of its sale to Kinross Gold in 2003 and, subsequent to that, was President and CEO of Atlantico Gold, a private company involved in the development of the Amapari Project in Brazil, that was sold to Wheaton River Minerals Ltd. (presently Goldcorp).
Eduardo Rosselot, DirectorMr. Rosselot is a mining engineer with almost 20 years of mining industry experience having worked for major mining Companies, consulting companies and contracting companies. Recently, Mr. Rosselot was employed by Orvana Minerals Corporation as V.P. Business Development and Special Projects. Prior to that Mr. Rosselot held senior mining engineering positions with a number of gold and base metal mining companies including, from 1996 to 2003, TVX Gold Inc. where he was Technical Services Superintendent at TVX Hellas.
Most of the management came out of TVX Gold which was bought out by Kinross. The team is experienced with Chile since most of TVX’s staff was based out of Chile, and with each other making for a very competent unit. Not only is the team familiar with the geology of Chile, they can also utilize their contacts to get things done making for a very sweet situation.
What Makes Andina Minerals So Attractive??
**Potential M/A target: As drilling continues to expand the resource base at Volcan, it is highly likely that one or more of the senior companies like AngloGold, Kinross, Goldcorp, Meridian that have mines/projects nearby will look to ingest Andina to increase their existing reserves and enhance synergies.
**Potential for market to Revalue: Andina is currently valued at US$54 per ounce (based on the current 3.44 million ounces resource) whereas a number of other juniors are valued at an average of US$87 per ounce.
**Drilling continues to expand Resource: As their current drilling season draws to a close at the end of May, Canaccord Adams analyst Steven Butler expects drilling to add “between 0.6-1.0 million oz of resource based on strike and in-fill and depth extensions to the current resource defined in the Dorado West Zone.”
Wolf Stone Call: Keep an eye on Andina Minerals, as not many people know about it and only 3 analysts cover it. As news about this story gets out, expect Andina’s price to move noticeably higher. Subscribe to this feed • Add to del.icio.us • Stumble It! • Discuss on Newsvine
Posted by Arjun Rudra at 12:08 SOUNDS LIKE KINROSS WILL TAKE A RUN AT ANDINA. James |
