ANDINA Minerals Inc.

ANDINA Minerals Inc.

September 12, 2011 07:00 ET

Andina Establishes a New Resource at the Ojo de Agua East Area of the Volcan Gold Project

TORONTO, ONTARIO--(Marketwire - Sept. 12, 2011) - ANDINA Minerals Inc. (TSX VENTURE:ADM) ("Andina") is pleased to report an initial resource estimate from the new Ojo de Agua East ("ODAE") area of the Volcan Gold Project ("Volcan").

The ODAE resource estimate includes indicated resources of 2.71 million tonnes grading 1.55 grams per tonne gold ("g/t Au") for contained gold of 135,000 ounces and inferred resources of 3.43 million tonnes grading 1.53 g/t Au for contained gold of 168,000 ounces, both at a 0.9 g/t Au cut-off grade.

The ODAE deposit is located in Chile's Maricunga Mineral Belt, approximately four kilometres northeast of the proposed process facilities for Volcan and within 1.5 kilometres of the proposed Volcan Heap Leach Pad.

Table 1 provides further details on the ODAE resource estimate while the accompanying sections highlight the better grade zone.

Table 1: ODAE Indicated and Inferred Resource, Volcan Gold Project1,2,3
Cutoff Indicated Inferred
Grade Grade Tonnes Oz Grade Tonnes Oz
(g/t Au) (g/t Au) (millions) (000´s) (g/t Au) (millions) (000´s)
0.30 0.79 10.29 263 0.57 34.44 628
0.40 0.89 8.45 242 0.69 22.10 489
0.50 1.02 6.56 214 0.85 13.01 358
0.60 1.19 4.77 183 1.07 7.78 267
0.70 1.34 3.73 161 1.22 5.73 224
0.80 1.45 3.19 148 1.42 4.02 184
0.90 1.55 2.71 135 1.53 3.43 168
1.00 1.68 2.23 121 1.79 2.35 135
1 All quantities are rounded to the appropriate number of significant figures, consequently sums may not add up due to rounding.
2 Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The estimate of resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.
3 The quantity and grade of reported Inferred Resources in this estimation are conceptual in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated Resource. It is uncertain if further exploration will result in the upgrading of the Inferred Resources into an Indicated or Measured Mineral Resource category.

"We are pleased to announce this initial gold resource for ODAE" stated George Bee, President and CEO of Andina. "The ODAE discovery is significant insofar as there is a higher grade core within ODAE which is a discernable unit, that can be mined and add higher grade material to the Volcan mine plan. What we see in ODAE is proof positive that Andina's land position hosts more gold than we knew about and the opportunity for higher grade material is now clear".

Mr. Bee went on to say, "With this shallow higher grade discovery at ODAE, we will assess if it is warranted to increase Volcan's proposed throughput to accommodate additional mineralization that could improve cash flow in the initial years of Volcan's operations."

With the addition of the ODAE resource estimate, total Volcan property reserves and resources are as follows:

  • Proven and Probable reserves remain unchanged at 6.6 million ounces of gold (283 million tonnes grading 0.73 g/t Au),
  • Measured and Indicated resources increased to 2.4 million contained ounces of gold (110 million tonnes grading 0.68 g/t Au), while,
  • Inferred resources increased to 1.35 million ounces of gold (64 million tonnes grading 0.66 g/t Au).

A summary of the total Volcan property resource estimate is provided in Table 2.

Table 2: Total Volcan Gold Project Resource – Dorado, Ojo de Agua and ODAE
Cutoff Tonnes Grade Gold Ounces
(g/t Au) (millions) (g/t Au) (000's)
Proven - Dorado Deposits1 Variable7 102.2 0.75 2,458
Probable - Dorado Deposits1 Variable7 180.4 0.71 4,135
Proven and Probable - Total 282.6 0.73 6,596
Measured - Dorado Deposits2 Variable7 3.7 0.43 51
Indicated - Dorado Deposits2 Variable7 103.4 0.67 2,231
Indicated - ODAE3 0.9 2.7 1.55 135
Measured & Indicated - Total 109.8 0.68 2,417
Inferred - Dorado Deposits2 Variable7 41.6 0.50 671
Inferred - Ojo de Agua4 0.5 18.6 0.85 510
Inferred - ODAE3 0.9 3.4 1.53 168
Inferred - Total 63.6 0.66 1,349
1 See National Instrument 43-101 "Technical Report on the Results of the Pre-Feasibility Study on the Dorado Deposits, Volcan Gold Project Region III, Chile", dated January 31, 2011, at
2 See National Instrument 43-101 "Technical Report on the Volcan Gold Project Region III, Chile and Updated Mineral Resource Estimate for the Dorado Gold Deposits", dated October 15, 2010, at Of the total estimated measured and indicated resources of 8.9 million contained ounces of gold (October 2010 Technical Report), 6.6 million ounces were later converted to estimated proven and probable mineral reserves in the January 2011 NI43-101 Technical Report, see Note 1.
3 See National Instrument 43-101 "Technical Report on the Ojo de Agua Este (OdAE) Sector of the Volcan Gold Project Region III Chile", dated September 9, 2011, at
4 See Press Release "Andina Establishes Resource at Volcan Gold Project's Ojo de Agua Area" dated October 6, 2008.
5 All quantities are rounded to the appropriate number of significant figures, consequently sums may not add due to rounding.
6 'Proven and Probable Reserves are based on a processing plan that includes a Mill and a Heap Leach. The Mill cut-off grade used is 1.25 g/t Au, while the Heap Leach cut-off grade is 0.34 g/t Au
7 Due to the variable metallurgical recovery used in the determination of the potential profitability of any given block within the block-model, an iterative approach was required to determine cut- off grade(s) for Volcan's Dorado (East, West and Central) deposits. Cut-off grades were determined for each deposit that considered the full operating costs for both milling and heap leach operations. Mill cut-off grades are 1.10 g/t Au, while Heap Leach cut-off grades are 0.34 through 0.68 g/t Au. For purposes of the mineral resource estimate, a gold price of US$950/oz Au was selected.

Geology and Exploration Drilling

ODAE is a structurally controlled gold target. Gold mineralization in the zone has been traced by drilling over a north-south strike length to approximately 750 m. The central higher grade zone is interpreted as a deep rooted sub-circular diatreme the core of which is located around holes RODAE-853 and RODAE-861.

This diatreme is characterized by phreatomagmatic breccias, indicating near surface explosive events. Its dimensions are approximately 200 m by 150 m and it appears to have used the north-south dilatational zone and secondary north-west structures to develop. The best grades are located at the core of the diatreme and which extends to a total depth 400 m and which appears to be open at depth. Outside the diatreme, the total width of the structural corridor is in the order of 50 m.

The higher gold grades obtained at ODAE in comparison with the main deposits of Volcan, are characteristic of this Diatreme type of gold deposit.

Andina is currently reviewing the 2011/12 exploration campaign in order to assess an infill drilling program to achieve a 50 m by 50 m grid in order to enhance the resource categorization.

Resource Estimation Methodology

The ODAE resource estimation is based on 38 drill holes totaling 12,730.65 m of combined reverse circulation and diamond drilling. The drilling was performed on a 50 m by 100 m grid to an approximate depth of 500 m.

The resource was estimated using a block-model methodology. Drill hole assays were composited from (typically) two metre assay intervals to generate composite intervals for each drill hole which correspond to the appropriate cut-off grades which range from 0.3 to 1.0 g/t Au. Only drill intervals six metres long or greater, or greater than an approximate three metre true width, at or above the appropriate cut-off grade were included in the resource estimate. The maximum vertical projection was 100 meters as supported by the geology. The resource blocks were projected one half the distance between sections, or 25 metres northwest and southeast. A density of 2.34 tonnes per cubic metre was used, based on 77 density measurements on core drill samples.

Inferred resources are based on data which is not sufficiently closely spaced, or of sufficient quantity, that the geological and grade continuity can be reasonably assured with a sufficiently high level of confidence to allow the resources to be classified with a higher degree of certainty. It cannot be assumed that the Inferred Mineral Resources will be upgraded to an Indicated Resource as a result of continued exploration. Additionally, it cannot be assumed that the Indicated Mineral Resources will be upgraded to a Measured Resource as a result of continued exploration.

Furthermore, it cannot it 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.

Map and sections showing all drill results to date from ODAE may be found at the end of this press release.

Quality Assurance / Quality Control Program

Mr. Michael Easdon, a "qualified person" as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101"), 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 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 did not use either the chip channel (trenching) or grab samples data in the 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 Asesoria Minera Geoanalitica Limitada ("Geoanalitica") sample preparation facility in Copiapo Chile, where they are crushed (chip and grab samples) and which are then shipped by Geoanalitica to their assay facility located in Antofagasta. Geoanalitica analyzes the samples for gold, copper and molybdenum. The gold assays are performed utilizing 50 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.

Volcan Gold Project Resource Technical Reports

The resource parameters for the Volcan ODAE area deposit may be found in the NI 43-101 compliant technical report titled "Technical Report on the Ojo de Agua Este (OdAE) Sector of the Volcan Gold Project Region III Chile" dated September 9, 2011, prepared by independent qualified persons Michael Easdon, Oregon Reg. Prof. Geologist and Sergio Diaz, Prof. Reg. Geologist (Chile), and filed on September 12, 2011 with the applicable Canadian securities regulatory authorities on the System for Electronic Document Analysis and Retrieval (SEDAR) at

The reserve parameters for the Dorado deposits of Volcan may be found in the NI 43-101 compliant technical report entitled "Results of the Pre-feasibility study on the Dorado Deposits, Volcan Gold Project Region III, Chile" dated January 31, 2011, prepared by qualified persons from Micon International and filed with the applicable Canadian securities regulatory authorities on the System for Electronic Document Analysis and Retrieval (SEDAR) at

The resource parameters for the Dorado deposits of Volcan may be found in the NI 43-101 compliant technical report titled "Technical Report on the Volcan Gold Project Region III, Chile and Updated Mineral Resource Estimate for the Dorado Gold Deposits", dated October 15, 2010 and filed with the applicable Canadian securities regulatory authorities on the System for Electronic Document Analysis and Retrieval (SEDAR) at


Under the guidelines of NI 43-101, the qualified person for the ODAE resource estimate is Mr. Michael Easdon, a resident of Santiago, Chile. Mr. Easdon, Professional Geologist registered with the State of Oregon, USA, has confirmed the ODAE deposit resource estimate presented in this press release. Mr. Easdon is an independent qualified person as defined by NI 43-101.

Dr. Eduardo Magri, mining engineering (Witwatersrand) and a Fellow of the SAIMM with over 30 years of industry experience, and Mr. Joled Nur of SRK Consulting Chile, a mining engineer, prepared the ODAE resource estimation.

The technical information in this news release has been prepared in accordance with requirements set out in NI 43-101 and reviewed by Mr. Easdon.

About Andina Minerals Inc.

Andina's primary focus is mining exploration and development in Chile. The Company's flagship development project is the 100%-owned Volcan Gold Project ("Volcan"), strategically located in the prolific Maricunga Gold Belt.

In February 2011, Andina announced the results of a positive pre-feasibility study for Volcan. Initial Proven and Probable Mineral Reserves are 6.6 million ounces of gold at an average grade of 0.73 g/t contained in 283 million tonnes of ore. In addition, there remain 2.4 million ounces of Measured and Indicated gold resources at an average grade of 0.68 g/t contained in 110 million tonnes of ore plus 1.35 million gold ounces in the Inferred category contained in 64 million tonnes of ore at an average grade of 0.66 g/t Au.

Andina is progressing with a feasibility study for Volcan, targeted for completion in the first half of 2012.

In addition to Andina's extensive underexplored land position surrounding Volcan, the Company holds two other mineral properties located within Chile's primary mining regions.

Forward-Looking Statements

This press release contains forward-looking information within the meaning of applicable Canadian securities laws and regulations. Such information is based on the current expectations and beliefs of Andina's management and is subject to a number of risks and uncertainties that may cause the actual results to differ materially from those described above. Forward-looking information in this press release includes, but is not limited to, statements with respect to the completion of the feasibility study, exploration activities and results (including the timing of results), the timing and success of exploration activities generally, and timing and results of future resource estimates or future economic studies. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "planning", "planned", "expects", "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipate", "does not anticipate", or "belief", or describes a "goal", or variations 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.

The forward-looking information contained in this press release is based on a number of material factors and assumptions, including, but not limited to, that estimates and studies are accurate, that Andina's mining operations continue in the ordinary course and as expected, that contracted parties provide goods and/or services on the agreed time frames, that the equipment necessary for exploration and development work is available as scheduled, availability of water for milling and mining, that no labour shortages or delays are incurred, that plant and equipment function as specified, Andina's ability to obtain adequate financing when and as needed, the continued favourable market for gold at prices at or above estimated levels, that no unusual geological or technical problems occur, that no unusual or unexpected events have a material adverse effect on Andina's operations or financial condition, and such other assumptions and factors as set out herein.

Forward-looking information involves 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, projection, forecast, performance or achievements expressed or implied by the forward-looking information. 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 information 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 information. Andina does not undertake any obligation to update or revise publicly any forward-looking information whether as a result of new information, future events or otherwise, unless required to do so by applicable laws.

To view the Geological Sections and maps associated with this release, please visit the following link:

Contact Information

  • ANDINA Minerals Inc.
    George M. Bee
    President & CEO
    416 203 3488

    ANDINA Minerals Inc.
    Derrick Weyrauch
    Chief Financial Officer
    416 203 3488