ANDINA Minerals Inc.
TSX VENTURE : ADM

ANDINA Minerals Inc.

February 14, 2011 08:00 ET

Andina Minerals Inc. Receives Positive Pre-Feasibility Study for Its Volcan Project in Chile

TORONTO, ONTARIO--(Marketwire - Feb. 14, 2011) - Andina Minerals Inc. (TSX VENTURE:ADM) ("Andina Minerals" or the "Company") is pleased to report positive results from the pre-feasibility study for a proposed open pit mine at its 100% owned Volcan Gold project in Chile. The pre-feasibility study was compiled by Kappes Cassidy and Associates ("KCA") with the participation and contribution of experienced industry consultants. All figures are in US dollars except where noted.

Highlights of the Pre-feasibility Study ("PFS")

  • Initial Proven and Probable Mineral Reserves for the Volcan Gold Project ("Volcan") are 6.6 million ounces of gold at an average grade of 0.73 grams per tonne gold ("g/t Au") contained within 283 million tonnes of ore,
  • The PFS is based on 74% of the 8.9 million ounces of Measured and Indicated resources as reported in September 2010,
  • Average annual Au production of approximately 283,000 ounces,
  • 15 years mine life,
  • Average first 5 years cash operating costs of $584/oz Au,
  • Average life-of-mine ("LOM") cash operating costs of $615/oz Au,
  • At $1,300/oz gold, using a 5% discount rate, after-tax net present value ("NPV") of $863 million (before-tax $1.039 million) generating an internal rate of return ("IRR") of 23%,
  • Estimated capital costs of $551 million,
  • Processing throughput 55,000 tonnes per day ("tpd") of ore,
    • 11,000 tpd Milled (5,500 selected higher grade and 5,500 fines from leach feed)
    • 44,000 tpd Heap Leach Pad
  • Average gold recovery 66%,
  • Waste to ore ratio of 2.48:1 LOM,
  • Water to be supplied from Andina Water Wells and Underground Rights approximately 25 km from site (approximately 125 liters per second versus Water Rights of 247 liters per second),
  • Several opportunities to materially improve project economics were not incorporated into the PFS, including Flotation and SART ("Sulfidization, Acidification, Recycling, Thickening") technologies which are the subject of ongoing testwork and engineering.

George M. Bee, President and CEO of Andina Minerals stated: "The completion of the pre-feasibility study, is a major milestone for the Company and validates the robust economics of Volcan. The Volcan deposits rank as one of Chile's largest undeveloped gold reserves with 6.6 million ounces in the Proven and Probable category with an additional 2.3 million ounces of resources in the Measured and Indicated category and resource potential beyond. The pre-feasibility places Andina as an emerging intermediate gold producer, with a large strategic asset, having a long mine life, located within a politically stable and mining friendly jurisdiction."

"Following numerous internal scoping studies to deal with various technical challenges, our team has advanced Volcan through a pre-feasibility study as a clean and relatively simple project. The intent of the pre-feasibility study was to get a good understanding of both capital and operating costs as well as to determine a suitable project size for Andina to build and operate on a stand-alone basis.

As a result, we downsized the scale of the project and focused on a sub-set of the overall resource. This pre-feasibility study does not contemplate the use of SART nor Flotation technology. Our belief is that both technologies, following additional metallurgical work, could materially enhance project economics by increasing gold recoveries, decreasing reagent consumption and adding revenue to the project from the limited copper occurrence.

It may also very well prove economically attractive to ultimately increase the size of the proposed project. However, we believe we have developed a plan that a company the size of Andina can develop, in a jurisdiction that is extremely attractive from both a development and operational standpoint.

We are now moving directly into a feasibility study and building up our internal staffing to support development.

The feasibility study is expected to be completed in mid 2012 and it will consider all enhancement opportunities. Our current work program also includes expanding mineral resources by continuing our strategic drilling program at Ojo De Agua East ("ODAE") where we hope to add high-grade ounces to our mine plan. Other significant trade-off studies currently underway include increasing the mill throughput without significant capital costs and evaluating the effect of increasing grinding pressures in the tertiary high-pressure-grind-roll crusher ("HPGR") to increase heap leach recoveries.

Andina Minerals is also focusing on the other remaining key deliverables required to start mine development, which include the preparation of an Environmental Impact Assessments ("EIA"), Water Usage Application and securing project financing. We anticipate announcing a debt advisor in the near future to help evaluate project financing alternatives and to appoint independent bank engineers to oversee the independent review of the feasibility study."

Financial Analysis

The financial analysis for the base-case (at a gold price of $1,025/oz), which evaluates a stand-alone owner's operation, indicates an after-tax NPV, at a 5% discount rate, of $289 million (before-tax $354 million) with an IRR of 11.8% (unleveraged) and a payback period of 7.4 years.

Financial Summary  
 
Adjusted for Working Capital  
Long-term gold price per ounce $ 1,025
NPV – after tax @ 0% (millions) $ 781
NPV – after tax @ 5% (millions) $ 289
NPV – after tax @ 7.5% (millions) $ 150
Internal rate of return (after tax)   11.8%
Payback (years)   7.4
Mine Life (years)   15
 
Production    
Ore Production (000's of tonnes)   283,000
Total Material Moved (000's of tonnes)   984,000
Strip Ratio   2.48
Gold Production (000's gross oz.)   4,324
Average Annual Gold Production (000's gross oz.)   283
 
Mine and Process Costs    
Mining cost per tonne of material moved $ 1.09
 
Per tonne of Ore    
Mining Cost $ 3.78
Processing Cost   4.88
General Administrative and Other   0.75
Total $ 9.41

The financial analysis for the base-case (at a gold price of $1,300/oz), indicates an after-tax NPV, at a 5% discount rate, of $863 million (before-tax $1,039 million) with an IRR of 23% (unleveraged) and a payback period of 4.7 years.

The tables below outline key sensitivities for the after-tax NPV and IRR for the Volcan project.

      Gold Price   
  $1,000   $1,100   $1,200   $1,300   $1,400   $1,500   $1,600
IRR 10.6%   15.1%   19.1%   22.9%   26.4%   29.6%   32.7%
NPV @ 0% (millions) 693   1,045   1,395   1,744   2,091   2,438   2,784
NPV @ 5% (millions) 236   448   656   863   1,069   1,274   1,478
NPV @ 7.5% (millions) 107   276   441   605   768   929   1,090
Payback 7.9   6.3   5.3   4.7   4.2   3.8   3.5
                           
    OVERALL RECOVERY - PERCENT OF BASELINE  
  70%   80%   90%   100%   110%   120%   130%
IRR -7.6%   0.9%   6.8%   11.8%   16.2%   20.2%   24.0%
NPV @ 5% (millions) (416)   (158)   71   289   503   714   923
 
    INITIAL CAPITAL COST - PERCENT OF BASELINE  
  70%   80%   90%   100%   110%   120%   130%
IRR 26.3%   19.4%   14.9%   11.8%   9.4%   7.5%   6.0%
NPV @ 5% (millions) 521   444   367   289   212   134   57
 
    CYANIDE CONSUMPTION - PERCENT OF BASELINE  
  70%   80%   90%   100%   110%   120%   130%
IRR 13.9%   13.2%   12.5%   11.8%   11.0%   10.3%   9.5%
NPV @ 5% (millions) 387   354   322   289   256   224   191
                           
Capital Costs - LOM    
     
Summary Capital Costs   000's
   
Initial Construction Capital    
Pre-operations Mining $ 11,800
Mining   61,900
Process   251,900
Infrastructure   98,000
EPCM   33,000
Owners Costs   15,000
Contingency   75,700
Total Initial Capital $ 547,300
Sustaining Capital   249,100
Reclamation   21,600
Total Depreciable Capital $ 818,000
First Fills   3,300
Total Capital $ 821,300
               
               
Operating Statistics  
               
 
 

Units
Average First
5 years
  Average First
10 years
 
Life of Mine
 
Tonnes Milled (000's) tonnes 4,000   4,000   59,400  
Tonnes Heap (000's) tonnes 15,800   15,500   223,100  
Total Tonnes Ore (000's) tonnes 19,800   19,500   282,500  
Tonnes Waste (000's) tonnes 41,900   48,900   701,400  
Strip Ratio   2.12   2.51   2.48  
Grade Au - Milled g/t 1.08   1.06   1.09  
  - From high-grade g/t 1.51   1.47   1.50  
  - From fines g/t 0.66   0.64   0.66  
Grade Au – Heap g/t 0.62   0.61   0.63  
Grade Au – Average g/t 0.71   0.70   0.73  
Recovery Au – Milled   80%   80%   80%  
Recovery Au – Heap   59%   59%   59%  
Recovery Au – Average   65%   65%   66%  
               
Gold Production (Gross) – Milled oz. 110,200   107,700   1,653,100  
Gold Production (Gross) – Heap oz. 176,700   171,200   2,670,900  
Gold Production (Gross) – Total oz. 287,000   278,800   4,324,000  
             
Operating Costs             
             
Operating cost per tonne of Ore            
             
             
Mining Cost $ 2.87 $ 3.41 $ 3.78
Processing Cost   4.89   4.89   4.88
General Administrative and Other   0.70   0.72   0.75
Total Operating Costs $ 8.46 $ 9.02 $ 9.41
             
             
             


Cost per ounce of gold
  Average
First
5 years
  Average
First
10 years
 
Life of Mine
Mining Cost $ 198 $ 239 $ 247
Processing Cost   337   342   319
General Administrative and other   49   50   49
Total Cash Operating Costs $ 584 $ 631 $ 615
By-product credit   -   -   -
Cash Costs per ounce $ 584 $ 631 $ 615
Royalties and other taxes   2   3   6
Total Cash Costs $ 586 $ 634 $ 621
Depreciation   177   193   212
Reclamation   5   5   5
Cost per ounce $ 768 $ 832 $ 838
             
Project Base-Case Assumptions and Parameters in the Pre-feasibility Study
       
Input Cost Values      
     
Electrical Power Per kW-hr $ 0.10
Diesel Per liter $ 0.566
Lime US$ per tonne $ 150
Activated Carbon US$ per kg $ 3.00
       
Royalties and Taxes      
Mining Tax (based on Copper equivalent graduated rates using a $3.50/lbs Copper price) Average   1.19%
Royalty - private
 
US$5 for 2-4 MM ozs, 1% NSR
for ozs >4 MM
Corporate Tax     17%

Andina Minerals Reserves and Resources

The open pit mineral reserves were estimated within a detailed engineered pit design by using the Measured and Indicated resources of only the Dorado East and West deposits, therefore excluding Dorado Central. Open pit optimization was completed using the Gemcom Software Whittle 4X (version 4.3) open pit optimization program and was carried out by Sam Shoemaker, Jr., B.Sc., MAusIMM. This program uses the Lerchs-Grossmann algorithm to determine the optimal economic open pit footprint for a given mineral resource.

The block model was supplied in a Surpac format which was converted into a Vulcan block model for preparation of the Whittle block model and resulting optimization runs. Resource classifications and mineralized domains were used to develop a Whittle rock code which determined the possible routing of an individual block during optimization (process feed or waste). Because a variable metallurgical recovery was used for the Dorado West and East deposits, a recovered gold grade was also calculated. Lastly, using the recommended pit slopes of 48% to 52%, each block was flagged by its individual slope sector. Bench heights of 10 m were used for all optimization runs in all types of material.

Mineral reserves have been estimated using the pit design and production schedule developed for the pre-feasibility study by Q'Pit Inc. ("Q'Pit") and a subset of the mineral resources of the Dorado Sector deposits forming the Volcan Project. This subset contains approximately 74% of the total mineral resource contained ounces and includes only Measured and Indicated resources in the Dorado West and East deposits.

The table below summarizes the estimated Mineral Reserves for the Volcan Project:

Mineral Reserve Tonnes Grade Gold
Category (Million) (g/t Au) (Thousand Ounces)
Proven 102.2 0.748 2,458
Probable 180.4 0.713 4,135
Total 282.6 0.726 6,596
1. All quantities are rounded to the appropriate number of significant figures, consequently sums may not add due to rounding.
2. The estimate of mineral reserves may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.
3. The Volcan mineral reserve estimate is effective as of January 31, 2011.

In addition to the 6.6 million ounces of gold Proven and Probable Mineral Reserves, there remains 2.3 million of Measured and Indicated gold resources plus 671,000 of Inferred gold resources as reported in the September 16, 2010 Resource Update. The remaining resource can be incorporated into the mine plan at a later date as conditions warrant, and are in no way compromised or sterile by the Phase 1 Development Plan.

The pre-feasibility study and resource model database includes drilling data from Andina Minerals 2005 through 2010 drilling campaigns up to the cut-off date of May 4, 2010. It includes a total of 119,207 metres of drilling in 311 holes for an average depth of 383 metres.

Mining and Production

The pit design completed by Q'Pit resulted in a mine plan containing 283 million tonnes grading 0.73 g/t gold. Total gold production over a 15 year mine life is estimated to be 4.3 million ounces, averaging 283 thousand ounces per year. The life-of-mine waste to ore ratio is estimated at 2.48 to 1. Summary of the annual mine production plan is outlined below.




Years
 

Ore Milled
(kt)
  Ore to
Heap
Leach
(kt)
 
Mill avg
Grade
(g/t)
  Heap
Leach
grade
(g/t)
 

Mill Prod'n
(oz)
  Heap
Leach
Prod'n
(oz)
 
Total Gold
Produced
(oz)
 

Waste
(kt)
 


Strip Ratio
1   3,960   15,840   1.10   0.63   112,244   142,649   254,894   19,913   1.01
2   3,960   15,840   1.16   0.68   118,458   196,482   314,940   35,571   1.80
3   3,960   15,840   1.07   0.60   108,985   183,905   292,890   45,969   2.32
4   3,960   15,840   1.11   0.68   113,467   194,062   307,529   46,973   2.37
5   3,960   15,840   0.96   0.51   97,883   166,623   264,506   61,272   3.09
6   3,960   15,627   0.78   0.49   79,447   144,536   223,983   57,935   2.96
7   3,960   13,853   0.87   0.53   88,614   138,481   227,095   57,215   3.21
8   3,960   15,129   1.12   0.62   113,670   160,324   273,994   55,991   2.93
9   3,960   15,840   1.18   0.64   119,782   183,596   303,378   55,078   2.78
10   3,960   15,840   1.22   0.71   124,161   200,909   325,070   53,322   2.69
11   3,960   15,840   1.22   0.74   123,754   213,668   337,422   51,610   2.61
12   3,960   15,840   1.25   0.76   127,726   220,821   348,547   54,156   2.74
13   3,960   9,263   0.84   0.43   85,049   142,303   227,352   53,883   4.07
14   3,960   15,114   1.10   0.65   111,735   131,978   243,714   39,620   2.08
15   3,960   11,577   1.26   0.73   128,134   170,255   298,388   9,869   0.64
16   -   -   -   -   -   80,266   80,266   -   -
Total   59,400   223,123           1,653,109   2,670,859   4,323,968   698,377    

Conventional open pit mining methods will be used to mine the two Dorado deposits of Volcan. The operation is designed to use industry-proven mining practices and equipment. Mining will be accomplished using a combination of 9.25" and 12.25" blasthole drills, loading units consisting of 34-m3 shovels (PC8000 class) and 24-m3 front-end-loaders, and CAT 797-class haul trucks (320-t) as the primary mining equipment. These production units will be supported by D10 and D11 size dozers, 40-m3 water trucks and CAT 16G size graders. It is assumed that management of explosives will be done by a contractor.

The open pit design incorporates 10 metre high benches with a 32 metre wide main haul road at a maximum grade of 10%. The mine production daily rate, including waste, is estimated at an average of 182,000 tonnes per day. Waste dumps are in close proximity to the open pit and therefore account for below industry average mining costs.

Cut-off grades selected for mine planning were as follows:

  • Heap leach cut-off grade: 0.350 g/t Au. 
  • Mill feed cut-off grade: 1.25 g/t Au.

Metallurgy, Processing, and Infrastructure

Mining will take place at a rate of 55,000 ore tonnes per day. Ore will be delivered to a primary crusher near the pit. The crushed ore discharged from the primary crusher will be transported via an overland conveying system to the plant site located approximately 6 km away. The ore will pass through secondary crushing and on to tertiary crushing which will be accomplished with high-pressure-grinding-rolls ("HPGR"). Ten percent of Ore being the highest grade ore of the day will be campaigned on a daily basis through the crushing circuit and directed to the mill and agitated leach system. The fines (designated as the finest 10% portion by weight) from the remaining lower grade ore will be removed with an air sweep system and will also be directed to the mill. The mill will consist of a single stage ball mill followed by a carbon-in-leach circuit to treat a total of 11,000 t/d of the combined high grade and crusher fines. Mill tailings will be thickened to a paste and deposited in a geomembrane lined facility.

The remainder of the crushed ore, after fines removal, will be conveyed to a conventional leach pad and stacked in 10 meter lifts with a radial stacker at a rate of 44,000 t/d. A total of fifteen 10 meter lifts are planned for a maximum heap height of 150 meters in the deepest part of the heap. In both the agitated leach and the heap leach systems the gold will be dissolved with a dilute cyanide solution and adsorbed onto activated carbon. The gold will be stripped from the activated carbon via a standard Zadra pressure elution system and smelted to produce doré bars on site.

HPGR was selected for tertiary crushing as it has demonstrated the ability to generate a higher percentage of fine particles compared to other types of crushers. Gold recovery for agitated leach processing is estimated to be 80%, and for the heap leach processing to be 59%. Cyanide consumption is estimated to be 1.2 kg/t for heap leaching and 0.9 kg/t for milling. Lime (CaO) consumption is estimated to be 1.0 kg/t for milling and 4.0 kg/t (as (Ca(OH)2) for heap leaching.

The plant design criteria are based on metallurgical tests conducted at various laboratories, including McClelland Laboratories and Kappes, Cassiday & Associates.

The pre-feasibility study proposes to construct, at a cost of $25 million, a 110 (kV) transmission line for the power usage at the mine site using a new 131 kilometer connection to the power grid. Water will be supplied via a buried pipeline from a well field located approximately 25 km from the project at a cost of $13 million. The Company will also construct a tailings impoundment facility to accommodate tails from the milling operation. The current design capacity for the conventional Heap Leach is approximately 234 million tonnes, while the pre-feasibility proposes processing only 223 million tonnes in the Heap Leach Pad. The surface facilities include a permanent camp and other supporting infrastructure.

Operating Costs

Operating cash costs over the life of the project are projected to average $615/oz. Total operating costs (including royalty) are anticipated to average $621/oz.

The following table summarizes the life-of-mine operating costs.

    $000's   $/oz Gold   $/t milled
Mining Cost $ 1,068,000 $ 247 $ 3.78
Processing Cost   1,380,000   319   4.88
General Administrative and other   211,000   49   0.75
    subtotal $ 2,659,000 $ 615 $ 9.41
By-product credit   -   -    
Royalties and other taxes   26,000   6    
  Total $ 2,685,000 $ 621    

Capital Costs Estimates

The pre-feasibility study is based on capital pricing as of the fourth quarter of 2010. The Company has not yet entered into commitments for long-lead items and as such, the level of accuracy of the capital costs estimates varies between 10% and 18%. Quotations were received for mobile equipment and therefore, a 10% contingency was applied, while all other items received an 18% contingency. Total remaining pre-production construction costs are estimated at $551 million. Sustaining capital expenditures over the operation's mine life are estimated to total $249 million, of which nearly 52% is in the first five years mainly for mining fleet and Heap Leach Pad expansion. Provisions for mine closure amount to $22 million or $5 per ounce.

The cost breakdown for pre-production capital expenditures, assuming an owner operator scenario, is shown below.

Construction Capital Costs to   000's
Completion    
 
Initial Construction Capital    
Pre-operations Mining $ 11,800
Mining   61,900
Process   251,900
Infrastructure   98,000
EPCM   33,000
Owners Costs   15,000
Contingency   75,700
Total Initial Capital $ 547,300
Sustaining Capital   249,100
Reclamation   21,600
Total Depreciable Capital $ 818,000
First Fills   3,300
Total Capital $ 821,300

Moving Forward and Timeline

The Company has already begun to advance the project towards completion of a feasibility study and the permitting process is currently underway to support an early 2012 EIA submission and final approvals could be received as soon as early 2013 assuming a fast track program. The main construction period is estimated at 18-24 months followed by plant commissioning estimated to commence in early 2015.

Opportunities to improve project economics in 2011

The feasibility study will look to improve the economics of the project by evaluating:

  • Potential for Flotation and Sulphide Revenue Streams
    • Copper concentrate, gold in pyrite, beneficial effect of copper removal
    • Increasing minable resource by inclusion of Dorado Central
  • Reduce cyanide consumption through SART and adding copper revenue
  • Increased gold recovery
    • Higher HPGR grinding pressure; optimize mill recovery of high-grade
  • Plant stream optimization (%mill vs. %leach)
    • Stress test on split to the mill. Ideally mill gets larger up to practical limits
  • Additional high-grade feed ore – Ojo de Agua East potential
  • Operation size (increase mining and process)
    • A larger scale operation pulls revenue forward, reduces G&A, reduces unit cost
  • Value Engineering
    • Earthworks, borrow sources, local supply and fabrication, site facilities locations
  • Synergies with nearby operations
    • Power line, water, road infrastructure, limestone

In the 2010/2011 Field Season, additional development drilling is expected to be added for the feasibility study plus 10,000 metres of strategic exploration drilling at ODAE, both of which could positively impact the mineral resources and thus provide additional flexibility to the mine plan and potential improvements in the project economics.

Qualified Persons for Pre-feasibility Study

The pre-feasibility study was prepared by leading independent industry consultants. An overall review of the study was conducted by Micon International who provided sign-off as Qualified Persons (QP) under National Instrument 43-101, with the collaboration of Andina technical personnel and contributing consultants.

The Qualified Persons ("QPs") employed by Micon who prepared the January 31, 2011 NI 43-101 Technical Report are:

  • William J. Lewis, B.Sc., P.Geo., Senior Geologist.

  • Ing. Alan J. San Martin, MAusIMM, Mineral Resource Modeller.

  • Richard Gowans, P.Eng., President and Principal Metallurgist.

  • Sam Shoemaker, B.Sc., MAusIMM, Senior Mining Engineer.

The QPs have reviewed and approved the content of this news release.

The following consultants participated in the Study:

       
Kappes, Cassidy and Associates Hatch Ingenieros y Coinsultores Ltda.
       
Amtel Ltd. Pipeline Systems Inc.
       
Micon International Limited Golder Associates
       
Q'Pit Inc. Electronet Consultores
       
BGC Engineering Inc. Vector Peru S.A.C.
       
Alquimia Conceptos S.A. RMD Ingenieria

The independent NI 43-101 compliant Technical Report will be filed on SEDAR later today and will be available on the Company's website.

Webcast and Conference Call

At 10 am EST, the Company will host a Webcast, where senior management will present a short video presentation illustrating the Volcan project and providing key metrics for the project. At the conclusion of the webcast, management and several of the Company's consultants will be available to answer questions via a conference call.

Webcast details are as follows:

• To view and listen on-line, go to http://gowebcasting.com/2194 or to http://www.andinaminerals.com

Following the Webcast, senior management will host a Question & Answer conference call.

To participate in the Question & Answer session:

• Call toll free 1-800-355-4959 in Canada and the United States or for local and international calls dial 416-695-7848. An operator will direct participants to the call.

Please note that the audio component of the Webcast will NOT be broadcast by telephone. Participants wishing to contribute questions are encouraged to dial into the Question & Answer session prior to the end of the Webcast. During the Webcast audio will not be broadcast by telephone.

Forward-Looking Information

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 and environmental impact assessments for the Volcan Gold Project, future mining parameters (including assumed capital construction costs, operating costs, sustaining capital costs, processing rates, strip ratio's, mineral grades and recovery rates, mining costs, construction costs, mill process costs, recovery rates for leach processing, recovery rates for mill processing, and pit slopes, future gold prices (including those used to calculate Andina's mineral resources and reserves), expected results from metallurgical testing, future recovered ounces of gold based on pit optimizations, strip ratios, and target parameters of the feasibility study. 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Andina Minerals Inc.
    George M. Bee
    President and CEO
    (416) 203-3488
    or
    Andina Minerals Inc.
    Derrick Weyrauch
    Chief Financial Officer
    (416) 203-3488
    or
    Andina Minerals Inc.
    56 Temperance Street, Suite 300
    Toronto, Ontario
    M5H 3V5