ANDINA Minerals Inc.

ANDINA Minerals Inc.

October 27, 2005 18:06 ET

ANDINA Establishes Volcan Gold Project Resource Estimate

TORONTO, ONTARIO--(CCNMatthews - Oct. 27, 2005) - ANDINA Minerals Inc. (TSX VENTURE:ADM) ("Andina" or "the Company") is pleased to report the completion of an initial resource estimate from the Company's Volcan Gold Project, located 170 kilometres east of Copiapo, Chile in the centre of the Maricunga gold belt.

Andina has estimated that the East Zone presently contains 12.3 million tonnes grading 1.04 grams per tonne gold giving 411,700 ounces of gold in the inferred category at a cut-off grade of 0.5 grams per tonne. This is the first resource figure published from the East Zone and was estimated from a combination of both Andina and historical diamond and reverse circulation drill hole data. The Company's independent geological consultant audited the resource estimate and confirmed that the estimation has been reasonably and conservatively performed. A NI43-101 compliant technical report will be filed within 30 days of this release.

The resource estimate, at various cut-off grades, is summarized below:

Table 1: 2005 East Zone Inferred Resource Summary
Cut-off Grade Tonnes Grade Contained
(Au g/t) (Au g/t) Gold Ounces
0.2 25,860,000 0.66 549,700
0.5 12,300,000 1.04 411,700
1.0 4,760,000 1.59 243,300

"The establishment of a resource estimate for our Volcan Gold Project is an exciting development for Andina," said Carl Hansen, President and CEO of Andina. "In less than one year, we have gone from exploration firm with a portfolio of grassroots exploration projects to a company with more than 400,000 ounces identified. With this benchmark firmly established, we are now focused on significantly increasing our resource base at Volcan and, to this end, have recently commenced a CDN$2.3 million exploration campaign to be completed by the end of this year."

The focus of the resource estimate was the East Zone where gold mineralization has been identified by surface trenching and drilling over a strike length of 400 metres. The structural controlled mineralization is hosted within two parallel, sub-vertical hydrothermal breccias, the North and South Breccias, developed within a dacitic porphyry and is associated with abundant sheeted dark grey quartz veinlets with minor disseminated pyrite. The gold mineralization remains open to depth and along strike although the strike extent is anticipated to be limited. Approximately 3,500 metres of drilling (reverse circulation and diamond) has been planned to infill and expand the known inferred resources. Long sections of the East Zone mineralization are provided on the Company's web site (

Central Zone Drilling Program Commenced

Andina has identified a number of significant targets which will be drilled during the ongoing exploration program. The most advanced target is the Central Zone, which was outlined on surface by three trenches (see Table 2 for channel sampling results) cut approximately perpendicular to the strike of the mineralized zone over a strike length of 400 metres. The zone is open in both directions and to depth. A 2,750 metre drill program has commenced on the Central Zone to determine the extent of the mineralization in preparation for a resource estimate.

Table 2: Central Zone Channel Sampling Results
Trench Grade Distance
(Au g/t) (meters)
TR-C 3860 2.02 50
TR-C 3770 1.04 100
TR-C 3550 1.08 25

High Priority Targets - Dorado Area

In addition to the East and Central Zones, a number of high priority areas will be targeted during the present exploration campaign. A map of the location of these targets is available on the Andina website.

The NW Zone (historically referred to as the Cerro Dorado Oeste Zone) was drilled by Cameco in the mid-1990 with two diamond drill holes spaced approximately 175 metres apart. DVC-16, the northern most drill hole, cut 1.05 grams per tonne gold over 30 metres whereas the DVC-17 returned 0.68 grams per tonne gold over 30 metres. Approximately 1,000 metres of trenching and channel sampling will be conducted followed by drilling if results warrant.

Approximately 400 metres west-northwest of the Central Zone lies the West Zone where road building by the previous operators exposed a large alteration zone, approximately 400 by 200 metres, with elevated (+0.20 g/t) gold values. This zone, which has yet to be systematically sampled, will be the focus of a 2,000 metre surface trenching and channel sampling program to be followed by drilling if the results warrant.

East Zone Resource Estimate Methodology

The resource estimate was based upon 12 diamond drill holes (2,287.5 metres) and 13 reverse circulation drill holes (1,952 metres) drilled by Cameco during the mid-1990's and a single 339.6 metre diamond drill hole drilled by Andina earlier this year. The resource was estimated using the polygonal sectional method on cross sections developed at 50 metres intervals over a strike length of 400 metres. Both surface trenching and drilling results were used to define the boundaries of the East Zone resource.

Drill hole assays were composited from (typically) two metre assay intervals to generate composite intervals for each drill hole which corresponded to the appropriate 0.2, 0.5 and 1.0 gram per tonne cut-off grades. 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 downward projection was 100 meters, although typically only when supported by drill hole intersections on adjacent sections. The resource blocks were projected 1/2 the distance between sections, or 25 meters east and west, and in occasional cases were projected an additional 25 meters towards a section where the drilling in an adjacent section suggested that it was reasonable to expect continuity of the mineralization.

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 can not be assumed that the Inferred Mineral Resources will be upgraded to an Indicated Resource as a result of continued exploration. Furthermore, it can not be assured that Inferred Mineral Resources will be converted to a "Reserves" category at such time as feasibility studies are initiated.

About Andina Minerals Inc.

Andina is an Americas focused exploration company with a portfolio of precious metals exploration projects in Chile and Mexico which is dedicated to maximizing the value of its exploration assets through a commitment to fiscally responsible exploration. The Company is earning a 100% interest in the Volcan project by undertaking certain work commitment and making a series of escalating payment end in 2008.

Michael Easdon, a Register Professional Geologist of Santiago, Chile and an "Independent Qualified Person" as defined by National Instrument 43-101 of the Canadian Securities Administrators audited and confirmed the resource estimate presented in this press release. A NI43-101 compliant technical report is being prepared by Mr. Easdon and will be appropriately filed by the Company within thirty days of this release.

Under the guidelines of National Instrument 43-101, the qualified person for the Volcan exploration project is Eduardo Margi, Ph.D. in mining engineering (Witwatersrand) and a Fellow of the SAIMM with over 30 years of industry experience. Mr. Margi has approved the exploration program and established the quality control program to ensure the accuracy of the collection and analysis of samples.

The core collected from Andina's Phase 1 diamond drill campaign was placed into core boxes and stored on-site until drilling was completed. Upon completion of drilling, the core was transported to a secure location in Copiapo, Chile where it 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. The bagged samples were stored in a secure location prior to being taken by truck to the ALS Chemex laboratory in La Serena. Samples were processed and analyzed for gold using fire assay techniques with atomic absorption finish and, in Canada, for 32 element trace element analysis using ICP. Samples which returned gold values greater than 1.00 gram per tonne were re-analyzed by ALS Chemex using fire assay techniques with a gravimetric finish. Duplicate samples were inserted at a rate of approximately 2%. The ALS Chemex quality assurance/quality control system complies with the requirements of the international standards ISO 9001:2000 and ISO 17025:1999.

A summary of the work performed by the previous operators, including a discussion of the quality assurance and quality control of the previous drilling programs, is reported within the Company's Technical Report titled "Review of Gold and Copper Exploration Potential of Mineral Properties in Chile" dated November 12, 2004 which was filed at on November 24, 2004.

The statements herein that are not historical facts are forward-looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected.

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 Ext: 203
    (416) 203-3438 (FAX)