ANDINA Minerals Inc.
TSX VENTURE : ADM

ANDINA Minerals Inc.

July 10, 2007 08:30 ET

Andina Minerals Inc.: Volcan Drilling Outlines Ojo de Agua Area Gold Zone Over 500 Metres

Final Phase III Dorado Area Drilling Results Reported

TORONTO, ONTARIO--(Marketwire - July 10, 2007) - ANDINA Minerals Inc. (TSX VENTURE:ADM) ("Andina") is pleased to report that exploration drilling in the Ojo de Agua area of its 100%-owned Volcan property, Region III, Chile, has confirmed the presence of a significant zone of gold mineralization, the Andrea Zone, over a strike length in excess of 500 metres (To view the Figure 1 map, please visit the following link: http://www.ccnmatthews.com/docs/andinafigure1.pdf). Drill results include 82 metres grading 0.73 grams per tonne gold ("g/t Au") from DODA-685 including a 26 metre interval grading 1.51 g/t Au. Assay results from the Andrea Zone drill program, which was designed following up results from two reconnaissance drill holes reported in February 2007, are summarized in Table 1.



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Table 1 - Summary of Ojo de Agua Assay Results
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Hole # From To Length Grade Notes
(metres) (metres) (metres) (g/t Au)
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DODA-682 38 90 52 0.75
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DODA-685 0 30 30 0.71
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104 186 82 0.73
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including 130 156 26 1.51
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DODA-688 84 124 40 0.42 Hole lost at 138 m
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RODA-630 80 108 28 0.54 Feb 20, 2007 Press Release
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including 90 102 12 0.71
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RODA-634 10 44 34 0.51 Feb 20, 2007 Press Release
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122 144 22 0.34
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144 248 104 0.81
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including 144 174 30 1.19
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1. All intervals represent downhole lengths and not true widths
2. Assay composite intervals are based upon a 0.3 g/t Au cut off
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"We are very encouraged with the exploration results from the Ojo de Agua area", said Carl B. Hansen, President and CEO of Andina. "With only minor drilling within the large Ojo de Agua alteration area, we have outlined another significant zone of gold mineralization on the Volcan property. Considering the geological similarities between Ojo de Agua and the Dorado area, where Andina has discovered three gold deposits to date, we will be reviewing plans to significantly expand our Phase IV exploration campaign in order to determine the potential of the Andrea Zone as well as follow up on other recently defined Ojo de Agua exploration targets. The Phase IV exploration program is scheduled to commence in October 2007.

Ojo de Agua Results

Both the Ojo de Agua and Dorado areas are overlain by large steam-heated alteration zones which in the case of Ojo de Agua covers an area in excess of six square kilometres. The recent Ojo de Agua drilling tested the upper levels of the Andrea Zone following up on encouraging results from two holes, RODA-634 (104 metres grading 0.81 g/t Au) and RODA-630 (28 metres grading 0.54 g/t Au), reported by Andina on February 20, 2007. The Andrea Zone displays some similarities to Volcan's Dorado area gold deposits with local brecciation and minor banded grey to black quartz veins and veinlets, however, further drilling is necessary to determine the nature of the gold mineralization.

An induced polarization geophysical survey, completed after the Ojo de Agua drilling was completed, shows that the Andrea Zone gold mineralization is spatially associated with a weak chargeability anomaly (To view the Figure 1 map, please visit the following link: http://www.ccnmatthews.com/docs/andinafigure1.pdf). Two stronger chargeability anomalies, located west of the Andrea Zone, represent significant targets to be tested during the next exploration campaign tentatively scheduled to commence during October 2007.

In addition to the Andrea Zone drilling, Andina drilled a further four exploration drill holes in the Ojo de Agua area which did not return significant results including holes DODA-687 and RODA-680 which were abandoned at relatively shallow depths due to poor ground conditions. Drill hole RODA-684, which was collared on the eastern margin a high chargeability anomaly, was drilled to the south away from the core of the anomaly and did not return any significant results.

Dorado Area Results

The final Dorado area drill holes from the 34,000-metre Phase III drilling campaign were exploration holes targeting the western margins of the Dorado West Zone gold deposit. The results (see table 2) were largely as anticipated, however, the mineralization cut from surface in drill holes DOA-686 (72 metres grading 0.42 g/t Au) and DOA-679 (58 metres grading 0.71 g/t Au) was unexpected and may represent a parallel gold zone or possibly the margins of a southerly strike extension to the NW Zone. Additional drilling is necessary to determine the extent and orientation of mineralization cut in the upper portion of these two holes.



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Table 2 - Summary of Dorado Drilling Results
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Hole # Section From To Length Grade Notes
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(metres) (metres) (metres) (g/t Au)
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DOA-677 500 126 146 20 0.52
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216 324 108 0.81
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including 252 272 20 1.68
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DOA-686 1000 0 72 72 0.42
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136 186 50 0.36
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218 250 32 0.39
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340 400 60 0.53
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DOA-679 1050 2 60 58 0.71
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including 2 26 24 1.04
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286 356 70 0.56
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400 488 88 0.71
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1. All intervals represent downhole lengths and not true widths
2. Assay composite intervals are based upon a 0.3 g/t Au cut off
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Drill hole DOA-683, collared on section 1250 to test the NW Zone between drill holes ROA-675 (Section 1150 - 186 metres grading 0.75 g/t Au) and DOA-11 (Section 1500 - 100 metres grading 1.10 g/t Au) did not return any significant intervals of gold mineralization.

Further exploration will be undertaken to determine the nature of the NW Zone in the area of DOA-683.

Current Activities

The Volcan project Phase III drilling campaign was halted on early May 2007 with the commencement of winter in the Andean mountains. With the final drill assay results reported, work has begun on an updated resource estimate incorporating the results from the Phase III campaign. It is anticipated that the new estimate will be available during the third quarter of 2007.

About Andina Minerals Inc.

Andina is an Americas-focused exploration company, with a portfolio of precious metals exploration projects in Chile, dedicated to maximizing the value of its exploration assets through a disciplined and fiscally responsible approach to exploration. The Company's flagship Volcan Gold Project is located 170 kilometres east of Copiapo, Region III, Chile.

Under the guidelines of National Instrument 43-101 ("NI43-101") of the Canadian Securities Administrators, the qualified person for the Volcan exploration 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. Mr. Gonzalez is independent to the Company as defined by NI 43-101.

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 near Copiapo, Chile. RC chip samples are riffle split twice 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 with atomic absorption finish. Samples which returned 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%. Andina also inserts standard samples within each sample batch to ensure laboratory quality control procedures.

NI43-101 compliant Technical Reports summarizing the resource estimates for the Volcan Gold Project may be found appropriately filed at www.sedar.com and also on the Company's website.

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 exploration results, the timing and success of exploration activities generally, permitting time lines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcome of any pending litigation and timing of future resource estimates. 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 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 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 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.

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
    (416) 203-3438 (FAX)
    Website: www.andinaminerals.com