ANDINA Minerals Inc.

ANDINA Minerals Inc.

June 29, 2005 19:02 ET

ANDINA Minerals Inc.: Volcan Drilling Returns 146 Metres Grading 1.27 g/t Gold

TORONTO, ONTARIO--(CCNMatthews - June 29, 2005) - ANDINA Minerals Inc. (TSX VENTURE:ADM) ("Andina" or "the Company") is pleased to announce the results from the limited diamond drilling campaign on its Volcan Project located in Chile's Maricunga gold belt. Drill hole DVA-001, drilled into the Dorado East zone, returned 146 metres grading 1.27 g/t gold commencing from surface (at a 0.7 gram per tonne gold cut-off). A second interval of 24 metres grading 0.67 gram per tonne gold was cut from 262 to 286 metres. The final six metres of the drill hole, which ended at a down hole depth of 360 metres, graded 0.49 gram per tonne gold.

Drill hole DVA-001 targeted gold mineralization hosted within two parallel, subvertical hydrothermal breccias, the north and south breccias, developed within a dacitic porphyry which are separated by a zone of unbrecciated prophyry. The gold mineralization is associated with abundant sheeted dark grey quartz veinlets with minor disseminated pyrite. The drill hole was collared near the northern contact of the north breccia and drilled to the south at an angle of -66 degrees cutting 146 metres of hydrothermal breccia grading 1.27 grams per tonne gold. The true thickness of the 146 metre mineralized interval is approximately 60 metres. The final six metres of the drill hole cut the northern contact of the south breccia, however, due to severe winter storms drilling activities were halted for the season.

In addition to the diamond drill results, final assay results have been received for the last two trenches cut on the Dorado East zone. Trench E4860-A returned 1.25 grams per tonne gold over 40 metres and the northern extension of that trench, E4860-B, returned an interval grading 1.18 grams per tonne over a distance of 35 metres. The northern end of trench E4850-B ended in mineralization suggesting that the zone may be wider at this location. Assay composites from trenching were calculated based on a 0.7 gram per tonne cut-off grade. A halo of 0.5 to 0.7 gram per tonne gold mineralization, up to 35 metres wide, occurs around +0.7 gram per tonne mineralization. These two trenches extend the strike of the Dorado East zone an additional 50 metres to the east.

The strike length of the Dorado East zone is now interpreted to be approximately 400 metres and the gold mineralization remains open along strike to the east and to depth. The combined horizontal width of the two breccia units comprising the Dorado East zone is approximately 100 metres. The western extension of the gold mineralization is limited by a post-mineralization dacitic intrusion located approximately 200 metres to the west of the known western limit of the Dorado East zone.

The geology and assay results for DVA-001 are summarized within Table 1. A surface plan of the Dorado East zone, displaying the location of DVA-001, Andina's trenching results and the previous historical drilling results, is available on the Company's website at

A resource estimate, taking into account Andina's surface trenching and drilling results along with the historical drilling results, is anticipated to be complete by the end of the third quarter 2005. Commencing in October 2005, or earlier if weather allows, Andina is planning an aggressive diamond and reverse circulation drilling program in order to expand the size of the Dorado East and Central zones and to follow up on additional encouraging areas of gold mineralization identified by Andina during the Phase 1 exploration program.

Andina may earn a 100% interest in the Volcan property from local vendors by making a series of escalating payments by June 2008 and by undertaking work certain work commitments.

Under the guidelines of National Instrument 43-101, the qualified person for the Volcan exploration project is Eduardo Margi, Ph.D. in mining engineering (Witswatersrand) and a Fellow of the SAIMM with over 30 years experience.

The core collected from the diamond drill was placed into core boxes and stored on-site until the hole was completed. The core size was HQ from surface to 77 metres and NQ from 77 metre to the end of the hole. Upon completion of drill hole, 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 system complies with the requirements of the international standards ISO 9001:2000 and ISO 17025:1999.

Andina is a well financed, Americas focused exploration company with a portfolio of precious metals exploration projects in Chile and Mexico. The Company is dedicated to maximizing the value of its exploration assets through a commitment to fiscally responsible exploration.

Table 1. DVA-001 Summary Drill Log
From To Width Grade Description
(metres) (metres) (metres) (g/t gold)
0.0 146 146 1.27 Hydrothermal
phreatomagmatic breccia,
abundant dark grey,
fine banded quartz
veinlets. Minor
disseminate pyrite.
Strong quartz sericite

146 262 116 0.06 Dacite porphyry. Quartz-
sericite and chlorite-
hematite alteration.
Localized banded quartz
veinlets with trace pyrite.

262 286 24 0.67 Dacite porphyry. Quartz-
alteration with fine
banded quartz veinlets.
Fine disseminated pyrite.

286 354 68 0.20 Dacite porphyry. Quartz
-sericite and chlorite
-hematite alteration
with banded quartz
veinlets and fine
disseminated pyrite.
Chloritic alteration
is very strong from
300 to 325 m's.

354 360 6 0.49 Hydrothermal breccia
with quartz sericite
alteration similar to
0.0 to 146 m's.

360 End of Hole

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