TORONTO, ONTARIO--(Marketwire - Feb. 25, 2010) - ANDINA Minerals Inc. (TSX VENTURE:ADM) (the "Company") today announced initial drilling and assay results from the strategic exploration program at the Ojo de Agua East ("ODAE") gold target, located at the Company's Volcan Gold Project in Chile. The program builds on the trenching program at Ojo de Agua East (see press release dated December 18, 2009), an area near to both Andina's original Ojo de Agua discoveries and the Dorado zones. The initial reverse circulation drilling has intersected significant gold mineralization with hole 3 intercepting 70 m at a grade of 1.2 g/t Au from a depth of 176 m. (For more details click here to view the map showing the Ojo de Agua East Exploration Results.)
"Our initial exploration drilling and assaying confirms the potential for the Ojo de Agua East to host zones of significant higher grade mineralization which would be beneficial for ongoing project development," said George Bee, President & CEO. "Based on these positive results, we are continuing to diamond drill in this zone."
The main purpose of the Company's 2009-2010 strategic exploration program is to identify higher grade mineralization in close proximity to the Dorado deposits. Lying to the west of existing Ojo de Agua discoveries on ground acquired from Barrick Gold Corporation last year, the ODAE target is located 6.5 km to the north east of the Dorado deposits and to the north of likely process facilities contemplated for the Volcan Project. ODAE complements the Dorado zones, which contain measured and indicated resources of 492.5 million tonnes at an average grade of 0.62 g/t Au for 9.8 million ounces of gold and are the focus of development studies by Andina. Andina has already identified an inferred resource of 18.6 million tonnes grading 0.85 grams per tonne (g/t) gold (Au) at a cut-off grade of 0.5 g/t (for 510,000 ounces of gold) located to the west of the Dorado Zone in the Florencia and Andrea zones.
The Company's decision to test the area utilizing Reverse Circulation ("RC") drilling was based on its positive surface geology and trenching program performed earlier in the season when a strongly gold anomalous 250 m x 600 m zone was encountered. Prior to drilling, the higher grade intervals obtained from the areas which were trench sampled at 5 m intervals were re-sampled at 1 m intervals, which work returned values of 6 g/t and 10 g/t gold. The surface expression of the mineralized trend is limited to the south and to the north west by a cover of younger rocks, such that there is the potential that mineralization extends beyond the currently known limits.
The initial drilling program consisting of 5 RC holes totalled 1,730 m was designed to target the anomalous gold found over a large surface area clustered around a central largely barren domal intrusive, which may be acting as the central heat source for the mineralization at Ojos de Agua East. Mineralization at Ojos de Agua East is broadly similar to that at the other Volcan targets but the exposures are higher in the hydrothermal system. The mineralization model suggests that the zones of potentially economic mineralization are located at the contacts of the intrusions where intrusion, hydrothermal, and phreatomagmatic breccias appear. This is the so-called "Border Dome Facies", which is often more than 100 m wide before grading into barren or lower grade gold porphyries which surround the dome.
Drilling Results from Ojo de Agua East
Hole 1 (RODAE 806) - Drilled into the south east extension of Trench 1, anomaly did not reach the target zone due to high water pressures, which were encountered at a depth of 165 m. However, a 2 m vein interval grading 4.00 g/t Au was intersected at a depth of 126 m, which is indicative of vein environments in a high level epithermal system.
Hole 2 (RODAE 807) - Located 240 m to the north east of Hole 1, returned 60 m of 0.50 g/t Au from the surface, which reflects the near surface lower grade mineralization, and which is located within the Border Dome Facies.
Hole 3 (RODAE 812) - This discovery hole was drilled from the same location as RODAE 807, but at a different azimuth. The entire interval drilled (336 m) averaged 0.52 g/t Au with the upper 84 m averaging 0.53 g/t Au and a 70 m interval averaging 1.20 g/t Au, starting at a depth of 176 m.
Hole 4 (RODAE 814) - Intercepted the essentially barren (500 m averaging 0.07 g/t Au) central sterile porphyry.
Hole 5 (RODAE 816) intercepted the low grade porphyry (averaging 0.14 g/t Au over the 414 m length of the hole) and missed the fertile Border Dome Facies.
Holes 2 and 3, in addition to the high grade trenches, have identified a new mineralized zone for Andina in the Volcan District. The target area is up to 100 m wide north west trending Dome Border Facies, which is located at the northern flank of the central ODAE Dome. The core zone within this structure extends for at least 300 m.
SUMMARY OF EXPLORATION DRILLING AT OJOS DE AGUA EAST - FEBRUARY 2010
Total Depth Drilled
HOLE Number from 0 to (Metres) g/t Au Including
RODAE - 806(1) 162 0.15 2m @ 4.00 g/t Au
RODAE - 807 318 0.18 60m @ 0.50 g/t Au
RODAE - 812 336 0.52 70m @ 1.20 g/t Au
RODAE - 814 500 Low Grade
RODAE - 816 414 0.14
(1) Abandoned before reaching target zone
All assays were performed by Laboratorio Geoanalitica, Coquimbo, Chile.
Ojo de Agua Area Qualified Person
The trenching program at the Ojo de Agua East area of the Volcan Gold Project was reviewed and the results approved by Mr. Michael Easdon, Andina's Qualified Person under National Instrument 43-101. Mr. Easdon has been responsible for preparing technical information on the Ojo de Agua area, which is disclosed in the Company's annual information form for the year ended December 31, 2008 (dated April 8, 2009). Mr. Easdon has reviewed the contents of this press release.
Mr. Easdon 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 trench and 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 does not intend to use either the chip channel (trenching) or grab samples data in any future 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 Geoanalitica sample preparation facility in Copiapo Chile, where they are crushed (chip and grab samples) and all drill hole and surface samples are then shipped by Geoanalitica to their assay facility located in Coquimbo. Geoanalitica analyzes the samples for gold, copper and molybdenum. The gold assays are performed utilizing 30 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.
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 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.
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 Ojo de Agua East commencing in February 2010. 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 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.
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