ANDINA Minerals Inc.

ANDINA Minerals Inc.

November 16, 2010 07:01 ET

Andina Provides Fiscal 2010 Q3 Update

TORONTO, ONTARIO--(Marketwire - Nov. 16, 2010) - Andina Minerals Inc. (TSX VENTURE:ADM) has filed its unaudited financial statements and MD&A for the third quarter of fiscal 2010 ended September 30, 2010 on SEDAR (

"Since our 2009 preliminary base case heap leach scenario was announced, our development team has made excellent progress on advancing engineering and metallurgical testing for the Volcan Gold Project ("Volcan")." said George Bee, President and CEO. "This work has allowed us to develop a conceptual design that utilizes High Pressure Grind Roll ("HPGR") techniques to feed a small mill with high grade ore, while delivering low grade ore directly to a leach pad. As a result of our greater technical understanding we now plan to publish a pre-feasibility study for Volcan in Q1 2011."

Highlights from the Q3 report include:

  • 2010 Resource Update for the Dorado deposits of Volcan. The Company reported measured and indicate mineral resources of 389.6 million tonnes at an average grade of 0.71 grams per tonne gold for 8.878 million ounces of contained gold plus inferred resources of 41.6 million tonnes at an average grade of 0.50 grams per tonne gold for 0.671 million ounces of contained gold;
  • The Company reported target parameters for the Initial Phase 1 Development Plan for Volcan based on both heap leaching of lower grade ores and milling of higher grade ores:
Target Parameters for Phase 1 Development Plan Unit Low Range High Range
Initial Ore Production Plan Ktpd 50 70
Net Gold Recovery % 60 70
Range of Net Process Cost per Ton $/t 4.00 5.00
Phase 1 Development Mine Life Years 12 14
Average Annual Gold Recovered Koz 260 330
Phase 1 Percentage of Resource % 70 80
Note: All tonnes are metric tonnes, ounces are Troy, "k" signifies thousands, "M" signifies millions, "tpd" signifies tonnes per day
  • The Company plans to publish a pre-feasibility study for the Volcan in early 2011;
  • Effective November 1, 2010, Mr. Derrick Weyrauch was appointed the Chief Financial Officer of the Company;
  • In October 2010, the Company commenced the 2010-2011 Field Season with the mobilization of its field camp and earthworks contractor; and
  • Working capital of $30.5 million and cash-on-hand of $31.4 million at September 30, 2010.

The Technical Report on the Volcan Gold Project, Region III, Chile and Updated Mineral Resource Estimate for the Dorado Gold Deposits, dated October 15, 2010, was prepared by William J. Lewis, BSc., P.Geo., Ing.Alan J. San Martin., MAusIMM, Richard Gowans, P.Eng. and Sam Shoemaker, B.Sc., MAusIMM, each of Micon International Limited ("Micon"); and each of the above persons is a "qualified person" as defined under the guidelines of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") of the Canadian Securities Administrators, and has been responsible for preparing the technical report data upon which certain scientific and technical information concerning the Company's mineral projects has been included.

Forward Looking Statements:

This press release may contain forward-looking statements within the meaning of applicable securities laws and regulations. The above statements are based on the current expectations and beliefs of Andina's management and are subject to a number of risks and uncertainties that may cause the actual results to differ materially from those described above.

Forward-looking statements included in this press release include, but are not limited to, statements with respect to the completion of the Conceptual Development Plan, Preliminary Economic Assessment and Pre-Feasibility study for the Volcan Gold Project. Often, but not always, forward-looking statements 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 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 are based on a number of material factors and assumptions, including the result of drilling and exploration activities, results of studies, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration and development work is available as scheduled and does not incur unforeseen break downs, that gold price forecasts remain materially correct, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted.

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, 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; 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 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.

About Andina Minerals Inc.

Andina's primary focus is mining exploration and development in Chile. The Company's flagship development project is the 100%-owned Volcan Gold Project, strategically located in the prolific Maricunga Gold Belt. Andina is progressing with a prefeasibility study for Volcan, targeted for completion in early 2011.

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 & CEO
    416 203 3488
    Andina Minerals Inc.
    Investor Relations
    416 203 3488