TORONTO, ONTARIO, Jun. 8, 2010 (Marketwire) -- ANDINA Minerals Inc. (TSX VENTURE:ADM) (the "Company") is pleased to announce the results of two additional drill holes from the mineralized zone at Ojos de Agua East (ODAE), situated at the Volcan Project site some 6.5 kms from the known Dorado zone. These drill holes follow on from the recent discovery hole, Hole RODAE 812 which intercepted 1.2g/t over 70m within a broader zone of 0.52g/t over 336m. (See Press Release dated February 25, 2010). The Company originally planned to drill four additional holes but the program was cut short by early winter storms. The ODAE Zone is part of the mineral exploration concessions acquired from Barrick Gold Corporation in 2009 (see press release dated May 21, 2009). Results of the two drill holes are as follows:
-- Hole RODAE 850D which returned 70m of 0.56g/t including 18m of 1.71g/t
-- Hole RODAE 851 which returned 122m of 1.45g/t including 32m at 3.25g/t
George Bee, President and CEO of Andina said, "Based on the original discovery hole and these two most recent drill results we believe we have intercepted a broad based structurally controlled mineralized system at ODAE with significantly higher than average grades than the main Volcan deposit. This could have a very positive impact on the development strategy and economics for Volcan, and could complement the higher grade results from the most recent drilling at the main Dorado zone (See Press Release dated 07 June, 2010).
The early onset of winter forced us to prematurely end the drill program at ODAE but we look forward to a detailed review of drilling to date and planning for next season's exploration drilling program. We also believe that the Volcan property sits atop a very large mineralizing system and we believe that as our geological team continue to drill and explore the concessions we will continue to gain a better understanding of the extent of the mineralized bodies and structural controls, thereby enhancing the potential to find additional ODAE mineralised systems.
We have spent most of our time focussing on the exploration and development scenario for our Dorado discoveries which occupy only about 5% of our exploration concessions, so this recent discovery confirms our belief that Dorado is just the start. I want to compliment our geologists for their hard work in identifying these higher grade zones to complement Volcan development."
Mineralized intercepts can be viewed in photographs of core available on the Andina web-site.
Hole Nr. Section From - To Mts Grs/t Au Including
Not greater greater than 18 m
RODAE-850D Designated 38 - 167 than 70 0.56 @1.71 g/t Au
RODAE-851 Designated 166 - 288 122 1.45 32 m @3.25 g/t Au
NB. Intervals represent down-hole distances and not true widths
GEOLOGY OF THE OJO DE AGUA ESTE MINERAL ZONE
As indicated in Table 1, Drill hole RODAE 851 intercepted the gold mineralization over a 122 m interval grading 1.45 g/t and includes 32 m grading 3.25 g/t Au. Drill hole RODAE 850D intercepted an interval of 18 m (open) grading 1.71 g/t Au (0.68 to 3.97 g/t Au) at the bottom of a +70 m interval averaging 0.56 g/t Au.
Hole RODAE 851 intercepted a consistent interval with values ranging from 3 to 6 g/t Au. The highest grade obtained to date (12.5 g/t Au over 2m in this hole) together with values obtained (1 to 3.5 g/t Au) in holes RODAE 850 + 812, in addition to the generally higher grades obtained from the trenching at ODAE, are in contrast to the results originally obtained at the Dorado zone. This suggests the potential for defining a significantly higher grade resource at Ojo de Agua East.
Epithermal features are evident within the zone and which consist of near surface steam heated alteration including colloidal textures through to quartz-alunite-pyrite high sulphidation alteration at deeper levels. This alteration style overprints relict magnetite-quartz chlorite alteration related to one or more prior gold porphyry events.
A higher grade gold mineralized zone, which is open along strike, is considered to be defined over a strike length of 400 m and ranges in width from approx. 10 m to 45 m, and averaging approximately 30 m. This higher grade core is contained within a lower grade (+ 0.5 g/t Au) envelope, averaging 110 m in width. The drill indicated depth extent is 200 m but the vertical continuation remains open pending further drilling. The principal mineralized structural zone trends north south. The structural zone can be traced along trenches which have been excavated at surface for another 150 m to the north of the core zone (refer to Figure 1) after which it disappears below a paleo-sinter which suggests that the mineralizing hydrothermal system may continue for at least another 1000 m.
Additional gold potential at ODAE may be discovered within subsets of parallel mineralized structures through further exploration (and for which structural and geochemical indications already exist).
The 2010-2011 exploration season starting in Q4 2010 will focus on this new opportunity at ODAE along with Andina's other objectives.
Ojo de Agua East Area Qualified Person
The trenching and drilling 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 pathfinder 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 parametres 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.
To view a photo associated with this press release, please visit the following link:
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