Andean American Gold Corp.

Andean American Gold Corp.

July 18, 2005 14:40 ET

Andean Acquires Sinchao Lands from Barrick

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 18, 2005) - The Board of Directors of Andean American Mining Corp. (TSX VENTURE:AAG) is pleased to announce the acquisition from ABX-PERU (a subsidiary of Barrick ABX-Z) of three new titles totaling 21 hectares (51 acres). The transaction is an outright purchase by the Peruvian subsidiary of Andean. The company has paid cash and agreed to a 3% NSR and additional small cash payments over the next 180 days.

ABX-Peru has held these lands since 1995. The title transfers have taken place and are now confirmed by the land registry office as good titles belonging to the company. It is believed the vendorÆs original acquisition cost was greater than 2 million U.S. While small in land area these properties are contiguous with the existing Sinchao land titles and petitions, which have demonstrated strong mineralization from surface and to depths of greater than 700 meters.

Andean American has also filed an environmental stabilization plan with the Ministry of Energy and Mines which include these 3 new titles. Andean is currently negotiating a community agreement with the community of Tingo to allow up to a 24 hole drill program to proceed this year for the entire Sinchao Project. The company is not committed to the drill program at this time but awaits full community agreement.

The company considers this acquisition as strategic in that, this allows the Mines Registry Office to move forward on the granting of titles to Valle de Sinchao number 2 and number 4. Titles which Andean has now waited 7 years to receive.

In 2004 the Valle de Sinchao number 1 and 3 were granted as good titles on the same legal and technical basis which applies to numbers 2 and 4.

The company has been advised the Mines Registry Office has been looking for other clear title land to attach these titles to. Hopefully these outstanding matters can now be acted upon.

Andean American, producing, profitable, expanding and exploring.

On behalf of Andean American Mining Corp.,

John Huguet, President & CEO

This news release may contain forward-looking statements regarding upcoming work programs and events. Actual results may differ materially from those anticipated in such statements.

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

Contact Information

  • Andean American Mining Corp.
    John Huguet
    (604) 681-6186 or Toll Free: 1-888-356-4784
    Andean American Mining Corp.
    Hai Van Le
    (604) 681-6186 or Toll Free: 1-888-356-4784