Jan 28. '09
Andean Resources (AND-V) has released the next set of results from its continuing 2008/2009 drill program at its 100-per-cent-owned Cerro Negro project in southern Argentina. Today's results include the following highlights:
EDD-901 drilled 50 metres to the west of EDD-887 (31 metres of 52.1 grams per tonne (g/t) Au and 568 g/t Ag) at a similar depth and intersected 32 metres of 34.6 g/t Au and 214 g/t Ag on the Eureka West veins;
721 vein extended along strike with high grades, including ERC-8135, which intersected four metres of 49.6 g/t Au and 667 g/t Ag;
New high-grade zone intersected in the Eureka Main vein, including ERC-8125 with four metres of 32 g/t Au and 844 g/t Ag;
Deep step-out drilling continues at Eureka West.
Reported widths are intersected widths, and true widths are less in every case (see the attached table for detailed drill data). Andean has assumed an underground cut-off grade of 2.5 g/t gold at Eureka for all the interval summaries reported in this release.
Eureka West veins -- step-out holes
The following four drill-holes represent the most significant step-out holes drilled beyond the existing high-grade resource blocks, which define the current mineral resource at Eureka West.
EDD-901: 32 metres of 34.6 g/t Au and 214 g/t Ag from 340 metres
17.6 metres of 41.5 g/t Au and 335 g/t Ag from 340 metres
one metre of 327.1 g/t Au and 413 g/t Ag from 364 metres
EDD-8110: 11.3 metres of 10.2 g/t Au and 252 g/t Ag from 216 metres
1.7 metres of 41.5 g/t Au and 602 g/t Ag from 223 metres
EDD-8118: 10 metres of 17.7 g/t Au and 231 g/t Ag from 243 metres
Five metres of 27.7 g/t Au and 331 g/t Ag from 248 metres
EDD-8126: Eight metres of 8.1 g/t Au and 61 g/t Ag from 381 metres
One metre of 25.9 g/t Au and 211 g/t Ag from 381 metres
EDD-901 was a deep exploration hole, drilled 50 metres to the west of EDD-887, to determine the extent of deep high-grade mineralization. The true width of this zone is about 19 metres and the intersection is at approximately 350 metres above sea level. Two further drill holes have been drilled at 50-metre step-outs to the west and intersected quartz vein. Currently, a deep drill hole is being drilled 50 metres to the east of EDD-887 at the same elevation.
EDD-8110 and EDD-8118 were drilled on the same section (200E) below previous drilling and up-dip from EDD-887.
EDD-8126 was drilled on the most westerly section (150W) where the Eureka West veins have been intersected, and about 50 metres beneath the previous drilling. See the attached long-section showing the intersection at the 350 metres above sea level.
721 vein -- extension drilling
Several new holes have been drilled into the 721 vein, which lies en echelon from the Eureka West veins. These latest results appear to have connected it to the previously announced Evita vein and have extended the high-grade ore shoot comprising the 721 vein to the east.
ERC-8131: 11 metres of 17.4 g/t Au and 33 g/t Ag from 168 metres
Two metres of 41.6 g/t Au and 56 g/t Ag from 171 metres
Three metres of 25.7 g/t Au and 72 g/t Ag from 175 metres
ERC-8135: Four metres of 49.6 g/t Au and 667 g/t Ag from 265 metres
These results are respectively above and below a previously announced intersection (five metres of 13.9 g/t Au, 77 g/t Ag) in ERC-863 and extend the resource up-dip and down-dip from that hole. The ore shoot remains open along strike to the east and to the west, as well as downplunge. Currently, the mineralization defined at the 721 vein is not included in the April, 2008, mineral resource for the Eureka West veins, which formed the basis of the PFS completed in October, 2008.
Eureka Main vein -- extension drilling
The Eureka Main vein lies approximately 150 metres to the north of the 721 vein, and to date has received limited drilling. Several new holes have been drilled into the Eureka Main vein to further delineate the ore shoot previously defined west of the Canadon del Puma and were successful in intersecting additional high-grades.
ERC-8119: Two metres of 12.8 g/t Au and 32 g/t Ag from 217 metres
ERC-8125: Four metres of 9.4 g/t Au and 262 g/t Ag from 141 metres
Four metres of 32 g/t Au and 844 g/t Ag from 157 metres
ERC-8127: 13 metres of 3.7 g/t Au and 183 g/t Ag from 135 metres
ERC-8129: Three metres of 20.2 g/t Au and 150 g/t Ag from 151 metres
EDD-8140: Six metres of 8.9 g/t Au and 61 g/t Ag from 209 metres
All of these holes are shown on the attached longitudinal section of the first ore shoot on the four-kilometre Eureka Main vein. The intersections in ERC-8125 and ERC-8129 are especially encouraging, as they demonstrate high-grade mineralization at relatively shallow depth up-dip from previously announced holes.
ERC-8125: Above eight metres of 6.9 g/t Au, 159 g/t Ag in EDD-834
ERC-8129: Above EDD-712; which intersected no significant values
As shown on the longitudinal section, the Main vein ore shoot remains open both upplunge and downplunge. Again, the mineralization defined at the Eureka Main vein is not included in the April, 2008, mineral resource, but will be included in the resource for all the Eureka veins being prepared for the June quarter of this year.
Wayne Hubert, Andean's chief executive officer, summarized: "Over all, the Eureka area at Cerro Negro is proving to be a world-class epithermal system with bonanza grades now becoming common in three of the known veins, only one of which, the Eureka West vein, currently has gold and silver resources attributable to it. These extraordinary mineralized widths and high grades are expected to significantly improve the updated Eureka resource and extend the high grades in the mine life, which will again improve the already-robust project economics."
Next steps
Andean's 2008/2009 exploration programs continue to progress ahead of schedule. Three drills are on the property exploring the Eureka West veins to depth, extending the 721 vein, and drill-testing areas for the bankable feasibility study.
DRILL HOLE DATA
Azi-
Elev- muth From To Width Au Ag
Hole Easting Northing ation (true) Angle (m) (m) (m) g/t g/t
Eureka West vein intersections
(at a 2.5 g/t Au cut-off grade)
EDD-
8110 2394090 4808172 645 45 -66 216 227.3 11.3 10.2 252
including 223 224.7 1.7 41.5 602
230.3 233 2.7 2.9 128
EDD-
8118 2394095 4808174 645 45 -72 243 253 10 17.7 231
including 248 253 5 27.7 331
EDD-
8126 2393813 4808377 702 45 -72 381 389 8 8.1 67
including 381 382 1 25.9 211
EDD-
901 2394005 4808145 663 45 -65 340 372 32 34.6 214
340 357.6 17.6 41.5 335
including 364 365 1 327.1 413
721 vein intersections
(at a 2.5 g/t Au cut-off grade)
ERC-
8101 2394598 4807837 646 0 -60 26 28 2 2.6 25
205 206 1 5.5 38
ERC-
8131 2394748 4807909 635 360 -60 136 137 1 4.1 103
168 179 11 17.4 33
171 173 2 41.6 56
including 175 178 3 25.7 72
ERC-
8132 2394697 4807913 645 360 -60 96 99 3 3.0 82
130 134 4 2.7 78
ERC-
8135 2394747 4807841 622 360 -67 265 269 4 49.6 667
including 266 267 1 168.0 2,234
Eureka Main vein intersections
(at a 2.5 g/t Au cut-off grade)
ERC-
8119 2394948 4807945 601 360 -65 177 178 1 2.5 226
204 205 1 3.5 10
217 219 2 12.8 32
ERC-
8121 2394919 4808002 609 360 -60 113 118 5 3.1 107
146 150 4 3.3 77
ERC-
8123 2394795 4808054 645 360 -60 39 40 1 4.9 29
ERC-
8125 2394848 4808023 633 360 -60 103 105 2 3.5 155
141 145 4 9.4 262
including 143 144 1 24.2 784
157 161 4 32.0 844
158 161 3 41.1 1,108
including 159 160 1 62.6 2,156
ERC-
8127 2394768 4808018 646 360 -60 112 113 1 5.5 76
135 148 13 3.7 183
including 145 146 1 9.9 235
ERC-
8129 2394997 4807994 576 360 -55 151 154 3 20.2 150
including 151 153 2 28.5 221
EDD-
8140 2394771 4808014 646 360 -67 209 215 6 8.9 61
including 209 212 3 12.7 99
(1) Intersections are drilled widths, not true widths. True widths are less
than drilled intersections and can be determined from the Eureka
cross-sections provided.
(2) Some co-ordinates and elevations are approximate and subject to final
survey by a licensed surveyor
In the attached table, the Gauss Kruger co-ordinate system and the Campo Inchauspe datum are used to define drill-hole collar positions. However, on the longitudinal projection of the Eureka West vein, the co-ordinate system refers to a local grid established for drilling the Eureka West vein.
Quality control and assurance
The analytical results quoted in this release are derived from half drill core in the case of diamond drill holes, or from cuttings in the case of reverse-circulation holes. Samples are prepared and assayed by Acme Analytical Laboratories SA (Mendoza) in Mendoza, Argentina.
Gold is determined initially by fire assay with AA finish. Samples assaying more than 10 parts per million gold are reassayed using a gravimetric finish.
Silver is determined initially by AAS, and samples assaying more than 100 parts per million silver are reassayed by fire assay with gravimetric finish.
Quality control of the analytical results is maintained by inserting standards, blanks and duplicates into the sample run, approximately every 20 samples. Additional quality control is maintained by sending assay sample splits to a second laboratory from time to time. These checks are evaluated statistically at regular intervals.
All analytical data are entered into a Microsoft Access database, with limited access and numerous checks to ensure integrity of the data.
Note
The information in this report that relates to exploration results is based on information provided by David Shatwell who is a fellow of the Australian Institute of Geoscientists. Mr Shatwell has extensive experience relevant to the style and type of mineralization and deposits under consideration, and to the activity undertaken, to qualify as a competent person as defined in the 2004 edition of the Australian Code for reporting of mineral resources and ore reserves (the Jorc code). Mr. Shatwell consents to the inclusion in this report on his work in the form and context in which it appears. |
