ANDINA Minerals Inc.
TSX VENTURE : ADM

ANDINA Minerals Inc.

October 22, 2007 09:00 ET

Andina Reports Increased Resource Estimate for Volcan Gold Project

TORONTO, ONTARIO--(Marketwire - Oct. 22, 2007) - ANDINA Minerals Inc. (TSX VENTURE:ADM) ("Andina") is pleased to report an updated National Instrument 43-101 compliant resource estimate for its wholly-owned Volcan Gold Project, located in Chile's prolific Maricunga Gold Belt. Compared to Andina's February 2007 resource estimate, measured and indicated resources increased 48% to 2.93 million contained ounces of gold (115.1 million tonnes grading 0.79 grams per tonne gold ("g/t Au")) while the inferred resource increased 188% to 4.20 million ounces of gold (170.3 million tonnes grading 0.77 g/t Au) at a 0.5 g/t Au cut-off.

Central to the Volcan deposits are higher grade core zones which, at a 0.7 g/t Au cut-off grade, host measured and indicated resources of 61.7 million tonnes grading 0.97 g/t Au containing 1.92 million ounces of gold with a further 83.1 million tonnes grading 0.96 g/t Au giving 2.55 million ounces of gold in the inferred resource category. A summary of the overall resource estimate by cut-off grade is provided in Table 1 below while a resource summary by deposit is provided in Table 2 attached.

The updated resource incorporates the results from 14,640 metres of drilling completed subsequent to the February 2007 resource update. Since commencing exploration in 2005, Andina has completed over 45,000 metres of drilling in Dorado area of the Volcan Gold Project.



Table 1 Volcan Gold Project Resource Update - October 2007

--------------------------------------------------------------------
Measured Indicated Measured and Indicated
Category Category Category
---------------------------------------------------------------------------
Cut-off Gold
(g/t Tonnes Grade Tonnes Grade Tonnes Grade Ounces
Au) (millions) (g/t Au) (millions) (g/t Au) (millions) (g/t Au) (000's)
---------------------------------------------------------------------------
1.0 4.1 1.23 17.0 1.23 21.1 1.23 840
0.7 12.6 0.96 49.1 0.97 61.7 0.97 1,920
0.5 23.3 0.79 91.8 0.79 115.1 0.79 2,930
0.3 41.1 0.62 181.1 0.59 222.2 0.60 4,270
---------------------------------------------------------------------------


------------------------------
Inferred
Category
----------------------------------------
Gold
Cut-off Tonnes Grade Ounces
(g/t Au) (millions) (g/t Au) (000's)
----------------------------------------
1.0 25.6 1.25 1,030
0.7 83.1 0.96 2,550
0.5 170.3 0.77 4,200
0.3 392.6 0.55 6,920
----------------------------------------

Note: Geostatistical analysis by ordinary kriging. See "Resource
Methodology and QA / QC" for details on grade capping


The resource increase was largely due to: 1) the extension of the Dorado West Zone deposit to the north where the mineralized corridor was traced over widths of up to 600 metres; and, 2) infill drilling throughout the Dorado West Zone deposit. The increased infill drill density also accounts for the establishment of the measured category resource.

Measured and indicated resources at the Dorado West Zone deposit (see Table 2) increased 75% to 82.1 million tonnes grading 0.81 g/t Au containing 2.13 million ounces of gold while the inferred resource increased 264% to 147.5 million tonnes grading 0.78 g/t Au for 3.71 million ounces of gold at a 0.5 g/t Au cut-off grade. The Dorado West Zone deposit has been traced along strike over a distance of 1,500 metres and remains open to the north.

"We are very pleased with the continuing growth of the Volcan gold resource" said Carl B. Hansen, President and CEO of Andina. "The resource increase significantly enhances the viability of the Volcan project and underpins our confidence that this is a much larger mineralization system than initially anticipated when we began our exploration in 2005. We are confident that our recently announced $15.5 million, 50,000-metre drill program will continue to expand the resource base and, further demonstrate the significant potential of the Volcan deposits."

Current Activities - Phase IV Drill Campaign Commenced

As previously announced, Andina has commenced a Phase IV, $15.5 million exploration campaign on the Volcan Gold Project. The Phase IV program will include 50,000 metres of drilling and is expected to continue through to May 2008. Approximately 32,000 metres of drilling will be directed towards increasing the size of the resource base, particularly in the area of the Dorado West Zone, as well as upgrading the confidence level of the existing resource by converting resources to the measured and indicated category. The remaining 18,000 metres of drilling will focus on exploration targets including the new Ojo de Agua gold zone drilled at the end of the last season (intersections include 104 metres grading 0.81 g/t Au) and geophysical anomalies in the Dorado and Ojo de Agua areas as well as new targets identified in the northern section of the Volcan property.

Resource Methodology and QA / QC

The resource was estimated using the ordinary kriging geostatistical analysis with 33,216 samples. Separate block models, each with unique parameters, were constructed for each of the Dorado West Zone, Dorado Central Zone and Dorado East Zone deposits. Geologically constrained wire frame envelopes were constructed to confine each block model. Kriging search parameters, reduced to 85% of the variogram established figures, were calculated for each of the deposits. A density value, based upon 367 measurements, of 2.47 tonnes/m3 was used to estimate the tonnages. The parent cell dimension for all deposits is 10 metres in all three axis directions.

Two geological envelopes were employed in the estimation of the Dorado West Zone deposit resource: one envelope enclosing the central quartz vein-related mineralization surrounded by a second envelope enclosing the mineralization. Kriging search parameters for the internal envelope were 65 metres along a 45 degree strike, 75 metres at a dip of -70 degrees and a width of 25 meters. Using similar orientations, the search distances for the external envelope were 40 metres along strike, 120 metres down dip and 40 metres across. Samples associated with the quartz vein-related mineralization assaying greater than 6.0 g/t Au were given a value of 6.0 g/t Au. Samples located outside the quartz vein-related mineralization assaying greater than 3.5 g/t Au were given a grade of 3.5 g/t Au.

Dorado Central Zone deposit kriging search parameters were employed as follows: 70 metres along a 270 degree strike direction; 40 metres at a dip of -40 degrees; and, a width of 18 metres. A series of assay cutting factors were employed depending on the geological classification of the samples. Samples of massive porphyry with assays greater than 1.0 g/t Au were capped at 1.0 g/t Au. Brecciated, quartz vein-related samples assaying greater than 5.0 g/t Au were cut to 5.0 g/t Au. Samples of breccia without quartz veining assaying greater than 4.0 g/t Au were capped at 4.0 g/t Au.

Dorado East Zone deposit kriging search parameters were employed as follows: 110 metres along a 300 degree strike direction; 45 metres at a dip of -35 degrees; and, a 65 metre width. A series of assay cutting factors were employed depending on the classification of the samples. Samples from the mineralized halo surrounding the main East Zone assaying greater than 0.3 g/t Au were capped at 0.3 g/t Au. Samples from mineralized porphyry within the main Dorado East Zone deposit assaying greater than 1.7 g/t Au were cut to 1.7 g/t Au. Samples of monomictic and polymictic breccias within the main Dorado East Zone deposit assaying greater than 5.0 g/t Au were cut to 5.0 g/t Au.

Reverse circulation ("RC") chips and diamond drill core from Andina's Volcan Gold Project drilling campaign were collected at the drill under the direct supervision of Andina staff. Both the RC samples and drill core are appropriately tagged, secured and transported to the Andina exploration camp and then to Andina's secure sample logging and preparation site near Copiapo, Chile. RC chip samples were riffle split to obtain a 15 kilogram sample for assay purposes. Representative chips were collected from each sample for logging purposes. Drill core was logged, marked at two metre intervals for sampling and split longitudinally with a diamond drill saw. One half of the core was bagged and sample tags attached and the second half of the core was returned to the core boxes and stored in a secure storage facility. All samples were appropriately tagged and securely stored prior to shipping to Asesoria Minera Geoanalitica Ltda.'s ("Geoanalitica") laboratory in La Serena, Chile. Samples were processed and analyzed for gold using fire assay techniques with atomic absorption finish. Samples which returned gold values greater than 1.00 g/t Au were re-analyzed by Geoanalitica using fire assay techniques with a gravimetric finish. Duplicate samples were inserted at a rate of approximately 5% and standard samples inserted at a rate of approximately 5% within each sample batch to ensure laboratory quality control procedures. Duplicates, standards, and blanks amount to nearly 15% of the samples assayed. In addition, the laboratory re-analyzes approximately 10% of all samples.

A 'measured mineral resource' and an 'indicated mineral resource' is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The 'measured mineral resource' requires a higher level of confidence in, and understanding of, the geology and controls of the mineral deposit as compared to an 'indicated mineral resource'. An 'inferred mineral resource' is that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity.

It can not be assumed that the inferred mineral resources will be upgraded to an indicated mineral resource as a result of continued exploration. Furthermore, it can not be assured that measured and indicated or inferred mineral resources will be converted to a "reserve" category at such time as feasibility studies are initiated.

NATIONAL INSTRUMENT 43-101 COMPLIANCE REPORT

Under the guidelines of National Instrument 43-101 ("NI 43-101") of the Canadian Securities Administrators, the qualified person for the Volcan Gold Project is Ralph Gonzalez, a resident of Burnaby, British Columbia, Canada. Mr. Gonzalez is a professional engineer registered with the Association of Professional Engineers of the Province of Manitoba since 1977 and a Professional Geologist registered with the Association of Professional Engineers and Geoscientists in the Province of British Columbia since 1992. The October 2007 resource estimate was prepared by NCL Ingenieria y Construccion S.A., Santiago, Chile in conjunction with Eduardo Magri, Ph.D. in mining engineering (Witwatersrand) and a Fellow of the SAIMM with over 30 years of industry experience. Mr. Gonzalez is an independent qualified person as defined by NI 43-101 and has reviewed the contents of this press release. A NI43-101 compliant technical report is being prepared by Mr. Gonzalez and will be filed on the SEDAR system (www.sedar.com) within forty five days of this release.

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 timing and success of exploration activities generally, permitting time lines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcome of any pending litigation and timing of future resource estimates. 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; 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; 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 copy of Table 2, please visit the link below:

http://www.ccnmatthews.com/docs/admap1022.pdf

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • ANDINA Minerals Inc.
    Carl Hansen
    President and CEO
    (416) 203-3488
    (416) 203-3438 (FAX)
    Website: www.andinaminerals.com