ANDINA Minerals Inc.
TSX VENTURE : ADM

ANDINA Minerals Inc.

June 19, 2008 08:30 ET

ANDINA Minerals Inc. Announces Final Results From the Phase IV Drill Campaign

Drilling Returns 206 Metres Grading 0.86 g/t Gold Including 116 Metres Grading 1.10 g/t Gold

TORONTO, ONTARIO--(Marketwire - June 19, 2008) - ANDINA Minerals Inc. (TSX VENTURE:ADM) ("Andina") is pleased to report the final drill assay results from Phase IV 2007/08 drilling program at its wholly owned Volcan Gold Project located in the Maricunga Gold Belt. The 41,500-metre campaign was completed in May 2008 with the onset of winter in the Chilean Andes. The reported results are from Volcan's Dorado West gold deposit and Ojo de Agua area, located 4 kilometres northeast of the Dorado deposits.

Drilling in the Ojo de Agua area (see Table 1) tested both the Andrea and Florencia zones. The recent drilling in the Andrea zone redefined the trend of the mineralization, which is open along strike in both directions and to depth. At the Florencia zone, drilling has defined a gold-bearing breccia system over a strike length of 300 metres, which remains open to depth. The western extension of the Florencia zone is interpreted to be associated with a strong induced polarization (chargeability) which has been displaced 500 metres to the north.

Significant Ojo de Agua area drill intercepts include:

- 292 metres grading 0.69 grams per tonne gold ("g/t Au") including 48 metres grading 1.33 g/t Au (Florencia zone - DODA-757);

- 206 metres grading 0.86 g/t Au including 116 metres grading 1.10 g/t Au (Florencia zone - RODA-766)

- 204 metres grading 0.79 g/t Au including 80 metres grading 1.08 g/t Au and 20 metres grading 1.73 g/t Au (Andrea zone - RODA-768)

Recent Dorado West deposit infill drilling (see Table 2) successfully delineated the eastern boundary of the gold deposit in preparation for the upcoming resource estimate. Three holes targeted the NW zone which lies to the immediate north of the Dorado West deposit.

Significant Dorado drill intercepts include:

- 296 metres grading 0.72 g/t Au (West deposit - DOA-750)

- 382 metres grading 0.70 g/t Au including 142 metres grading 0.98 g/t Au (West deposit - DOA-752)

- 218 metres grading 0.67 g/t Au including 70 metres grading 1.15 g/t Au (NW zone DOA-774)

Resource Update

All drill assay results from the Phase IV program have been received and the estimation of an updated resource for the Dorado area deposits is ongoing. As a result of scheduling conflicts with the Independent Qualified Person, who under National Instrument 43-101 is required to approve the resource estimate, the release of the updated resource will be delayed until July 2008. The delay will, however, enable Andina to incorporate all the recent drill results into a final Dorado area Phase IV resource estimate.

Ojo de Agua Drilling Highlights

Drilling in the Ojo de Agua area (Table 1) focussed on further defining the Andrea and Florencia zones. See figure 1, Ojo de Agua Drill Plan, attached.

Eight drill holes targeted the Florencia zone outlining breccia-hosted gold mineralization over a strike length of approximately 300 metres with widths of approximately 100 metres. Drill hole RODA-766, drilled vertically into the centre of the Florencia zone, returned 206 metres grading 0.86 g/t Au, after cutting a 190 metre thick cap of intense alteration. Gold grades continued to improve with depth with the last 44 metres grading 1.38 g/t Au. The western strike extension of the Florencia zone is interpreted as being faulted to the north corresponding with a displaced chargeability anomaly. This target will be tested during the next drill campaign.



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Table 1 Ojo de Agua Drill Assay Results - June 2008
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Gold(2)
From To Length(1) (g/t
Hole # (metres) (metres) (metres) Au) Notes
---------------------------------------------------------------------------
RODA-756 242 290 48 0.51 Florencia zone
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350 400 50 0.71
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including 358 388 30 0.90
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DODA-757 318 610 292 0.69 Florencia zone
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including 402 594 192 0.88
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including 508 556 48 1.33
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RODA-758 no significant results Exploration - Florencia
zone area
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RODA-761 no significant results Florencia zone; drilled
through projected fault
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RODA-762 326 374 48 0.80 Florencia zone
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RODA-764 216 270 54 0.72 Florencia zone
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including 236 262 26 1.13 Florencia zone
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382 400 18 1.00 ends in mineralization at
400 m
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RODA-766 194 400 206 0.86 Florencia zone; drilled
at -90 deg.
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including 284 400 116 1.10
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including 356 400 44 1.38 ends in at 400 m, with
2.76 g/t Au
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DODA-767 no significant results Florencia zone
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RODA-768 90 296 204 0.79 Andrea zone
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including 180 260 80 1.08
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including 186 206 20 1.73
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RODA-770 130 200 70 0.83 Andrea zone
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including 130 170 40 1.04
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286 302 16 1.65 ends in mineralization at
302 m
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RODA-772 176 312 136 0.47 Andrea zone
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(1) All intervals represent down-hole lengths and not true widths; holes
drilled at -60 degrees unless otherwise noted
(2) Assay intervals based on a 0.3 g/t cut-off grade


Three drill holes were collared into the Andrea zone following up results from drill hole DODA-721 which returned 66 metres grading 1.94 g/t Au (press release dated March 26, 2008). Drill holes RODA-768 and RODA-770, fifty metre step-out holes collared southeast and northwest of DODA-721, respectively, confirmed the presence of higher grade gold mineralization over significant widths. RODA-768 returned 0.79 g/t Au over 204 metres including 80 metres grading 1.08 g/t Au with a higher grade core of 20 metres at 1.73 g/t Au. RODA-770 returned 70 metres grading 0.83 g/t Au with a 40 metre core zone grading 1.04 g/t Au. RODA-770 also intersected a new zone of mineralization grading 1.65 g/t Au over the final 16 metres of the hole. Results from the recent, tighter spaced drilling have resulted in a new interpretation of the strike of the Andrea zone from northwest-southeast to almost north-south. As a result, the Andrea zone is open along strike in both directions and to depth.

Dorado Drilling Highlights



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Table 2 Dorado Area Drill Assay Results - June 2008
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Gold(2)
From To Length(1) (g/t
Hole # (metres) (metres) (metres) Au) Section Notes
----------------------------------------------------------------------------
ROA-748 258 320 62 0.51 1300 infill, defining
eastern contact
----------------------------------------------------------------------------
DOA-750 0 138 138 0.57 950 infill; cut
across West
deposit
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202 498 296 0.72
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including 212 406 194 0.88
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248 272 24 1.12
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ROA-751 56 164 108 0.64 1050 infill, defining
eastern contact
----------------------------------------------------------------------------
including 92 148 56 0.82
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DOA-752 20 402 382 0.70 1100 infill, defining
eastern contact
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including 152 218 116 0.79
----------------------------------------------------------------------------
and 258 400 142 0.98
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including 298 320 22 1.24
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ROA-753 54 118 64 0.37 infill, defining
1000 eastern contact
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204 324 120 0.47
----------------------------------------------------------------------------
386 400 14 1.22 end of hole -
1.7 g/t Au
----------------------------------------------------------------------------
DOA-754 0 106 106 0.79 infill, defining
1200 eastern contact
----------------------------------------------------------------------------
378 401 23 0.56
----------------------------------------------------------------------------
DOA-759 196 318 122 0.34 1650 NW zone, testing
depth extension
----------------------------------------------------------------------------
DOA-760 3 172 169 0.74 1150 infill, defining
eastern contact
----------------------------------------------------------------------------
200 338 138 0.52
----------------------------------------------------------------------------
376 434 58 0.41
----------------------------------------------------------------------------
DOA-763 348 438 90 0.80 500 infill, defining
eastern contact
----------------------------------------------------------------------------
DOA-771 196 250 54 0.50 1000 infill, defining
eastern contact
----------------------------------------------------------------------------
DOA-773 no significant results 1400 NW zone; hole
lost at 113
metres
----------------------------------------------------------------------------
ROA-774 0 218 218 0.67 1400 NW zone
extension
----------------------------------------------------------------------------
including 0 70 70 1.15
----------------------------------------------------------------------------
(1) All intervals represent down-hole lengths and not true widths; holes
drilled at -60 degrees
(2) Assay intervals based on a 0.3 g/t cut-off grade


The recent Dorado West deposit infill drilling (see Table 2) successfully extended the mineralization between sections while delineating the eastern boundary of the deposit. Results were generally as anticipated. Three holes targeted the NW zone with ROA-774, collared on section 1400, returning 218 metres grading 0.67 g/t Au including a 70 metre interval grading 1.15 g/t Au starting at surface. The drill hole traced the NW zone approximately 180 metres vertically above a 150 metre interval grading 1.22 g/t Au (DOA-743, press release dated May 1, 2008). On section 1400, the northeast-southwest striking NW zone extension is approximately 150 metres wide and remains open to the southwest. Unfortunately, hole DOA-773, also collared on section 1400, was lost at a depth of 113 metres compared to the target depth of 500 metres.

Drill hole DOA-759, collared on section 1650, cut a weak zone of mineralization, 122 metres grading 0.34 g/t Au, however, at the down-hole target depth of 500 metres, the NW zone extension was not intersected.

Sulphur Mineralization

A program of surface mapping, trenching and sampling confirmed the presence of an undulating blanket of native sulphur mineralization on the slopes of Cerro Azufre (Sulphur Mountain) on the Volcan Gold Property. Assay results are pending.

A sixty kilogram sample of native sulphur mineralization was shipped to Advanced Mineral Technology Laboratory, Ontario, Canada, for the purpose of investigative metallurgical testing. Metallurgical testwork will begin in late June 2008 with the goal of determining the most effective method of producing a high-grade sulphur concentrate as well as the quality of the concentrate.

As noted in Andina's technical report, "Review of Gold and Copper Exploration Potential of Minerals Properties in Chile" dated November 12, 2004, a reserve estimate of 4.7 million tonnes grading 40% sulphur was published by the Chilean government organization Centro de Investigaciones Metalurgicas y Mineras of Santiago in the "Boletin Minero" based on a Corporacion de Fomento de la Produccion report dated 1987. The reserve estimate is a historical estimate for National Instrument 43-101 reporting purposes, but is not a reserve as defined by CIM categories. Andina has no reason to believe that this historical reserve estimate is not reliable. There are no more recent reserve or resource estimates available to Andina.

Annual & Special Meeting of Shareholders

Andina will hold its Annual and Special Meeting of Shareholders today at 4:30 pm. The meeting will take place at 330 Bay Street, 3rd Floor Conference Centre, Toronto, Ontario.

NATIONAL INSTRUMENT 43-101 COMPLIANCE REPORT

Under National Instrument 43-101 ("NI 43-101") of the Canadian Securities Administrators, the independent 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 recently released October 2007 Volcan 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. A NI43-101 compliant technical report related to the October 2007 resource estimate prepared by Mr. Gonzalez is filed with SEDAR and can be found at www.sedar.com.

Reverse circulation ("RC") chips and diamond drill core from Andina's Volcan drilling campaign are 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 in Copiapo, Chile. RC chip samples are split to obtain a 15 kilogram sample for assay purposes. Representative chips are collected from each sample for logging purposes. Drill core is logged, marked at two metre intervals for sampling and split longitudinally with a diamond drill saw. One half of the core is bagged and sample tags attached and the second half of the core is returned to the core boxes. All samples were appropriately tagged and securely stored prior to shipping to Asesoria Minera Geoanalitica Ltda.'s ("Geoanalitica") laboratory in La Serena, Chile.

Samples are processed and analyzed for gold using fire assay techniques using two assay/ton samples (about 50 gram) with an atomic absorption spectrographic finish for a sensitivity of 5 ppb (.005 ppm) gold with atomic absorption finish. Samples which return gold values greater than 1.00 g/t Au are re-analyzed by Geoanalitica using fire assay techniques with a gravimetric finish. Duplicate samples are inserted at a rate of approximately 5%. Approximately 15% of the samples submitted to Geoanalitica comprise standard, blanks and duplicated samples ensure laboratory quality control procedures.

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 results of due diligence, conclusion of legal documentation, exploration results, the success of exploration activities generally, permitting time lines, mine development prospects, government regulation of exploration and mining operations, timing of scoping-level studies, future share issuances, and title disputes or claims. 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 results of due diligence activities, 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 Andina'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 map of the Volcan Gold Project, please visit the following link: http://media3.marketwire.com/docs/Volcan-Gold.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 B. Hansen
    President and CEO
    (416) 203-3488
    (416) 203-3438 (FAX)
    or
    ANDINA Minerals Inc.
    Tracey M. Thom
    Vice President, Investor Relations
    (416) 203-3488
    (416) 203-3438 (FAX)
    Website: www.andinaminerals.com