ANDINA Minerals Inc.
TSX VENTURE : ADM

ANDINA Minerals Inc.

May 25, 2009 20:33 ET

Andina Reports 2009 Volcan Drill Results; Provides Water and Sulphur Exploration Update

TORONTO, ONTARIO--(Marketwire - May 25, 2009) - ANDINA Minerals Inc. (TSX VENTURE:ADM) ("Andina") today announced the results of its limited 2009 Volcan drill program totalling approximately 6,000 metres, which concluded at the end of April. Analysis of these results is ongoing in preparation for release of a resource update under the direction of Micon International Ltd., expected in the latter half of July 2009.

"While the final effect of the new drill information is not currently available pending the resource update, it is very encouraging that in Dorado East and West we are encountering higher grade mineralization close to surface, which we believe will have a positive impact on the early stages of the conceptual mine plan," said George Bee, President & CEO.

Volcan Drill Results

The 2009 program included a total of approximately 3,900 metres of diamond drilling and 2200 metres of reverse circulation (RC) drilling in Dorado West, Central and East deposits. The focus of the program was on in-fill drilling to lend confidence to the Company's understanding of the Volcan resource ahead of the preparation of the Conceptual Development Plan. The latter holes in the program also had the purpose of providing fresh samples for the second phase of metallurgical testing. Currently all assays have been received from the 2009 drill program and the customary QA/QC checks are being scrutinized prior to entry into the database. The following table provides a breakdown of the drilling in the various Dorado deposits.


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Table 1: Dorado Metres Drilled Breakdown - May 2009
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Drilling             Dorado West Dorado Central Dorado East
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Diamond Drilling (m)     1955.15         1372.4      534.30
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RC Drilling (m)           2200.0
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Total Drilling (m)       4155.15         1372.4      534.30
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Table 2 summarizes the significant drill intercepts for each of the three areas of mineralization. To access a map showing drill hole locations, click here.


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Table 2: Dorado Area Drill Assay Results - May 2009
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Drill Hole  Dorado    From  To (metres)  Length    Grade
           Deposit (metres)             (metres) (Au g/t)
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DEA788        East       0         158      158   1.40(i)
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DEA 789       East      96         190       94     1.10
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DCA 785    Central      34         104       70     1.10
                       178         200       22     1.22
---------------------------------------------------------
DCA 786    Central      10         166      156     0.86
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DOA 776       West       0         156      156   0.93(i)
                       644         730       86     1.41
---------------------------------------------------------
DOA 779       West     120         278      158     0.55
                       328         408       80     0.96
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(i) These intercepts show grades better than average
    resource grade from surface.

Water Resource Development Program

A series of eight exploratory water wells targeting underground aquifers were drilled in the Rio Astaburuaga water exploration concession, which was granted to Andina by the Chilean water authority (DGA or Direccion National de Aguas). All of the eight wells encountered water; three of the more promising wells were re-drilled to a larger diameter and pump tests were conducted. The results of two of the holes suggests that the wells tap into a structurally-fed water resource that will support a limited but consistent water supply as follows:


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Table 3: Rio Astaburuaga Water Exploration Results - May 2009
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Well      Well Depth          Water Depth       Max. Flow Rate
             (metres)      (metres - from          (litres/sec)
                                  surface)
---------------------------------------------------------------
PB 2             150                 2.36                 18.0
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PB 3             150                 0.86                 21.0
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While the flow rates were relatively modest, Andina will continue with the process to secure the water rights since management expects that once the system is fully drilled off and provided that Andina is awarded the rights, it should be accretive to the Company. Andina already holds sufficient water rights to develop the Volcan project but the Astaburuaga water would be of strategic value as the company continues with its exploration and resource development program building on the Volcan gold discovery.

Sulphur Resource Update

In November 2008, the Company announced positive sulphur metallurgical and channel sampling results from the Cerro Azufre sulphur deposit as well as the intention to perform limited drilling and collect samples for further metallurgical tests in order to better determine the potential of this deposit. While Andina's primary focus remained on the Volcan gold resources, sulphur represented an additional opportunity for the Company and accordingly a limited sulphur exploration program was undertaken as part of the 2009 drilling season.

The limited exploration program did not produce any material results; however, it will assist with understanding this important resource. The 2009 program included developing better road access to the sulphur deposit and drilling three RC holes. While the results of surface mapping along the drill roads were in line with historic grades of up to 40% sulphur, the drilling methodology did not prove optimal for properly ascertaining the true nature and extent of the deposit.

While current markets for sulphur are depressed, this provides Andina with the opportunity to better assess the economic viability of the deposit prior to the next upturn in sulphuric acid prices. During the upcoming field season beginning this fall, Andina will review plans to complete additional drilling on the Cerro Azufre deposit using techniques that will better preserve the sulphur in the samples.

National Instrument 43-101 Compliance

Under NI 43-101 of the Canadian Securities Administrators, the qualified person for the Volcan Gold Project is Michael Easdon, a resident of Santiago, Chile. Mr. Easdon is a Professional Geologist registered with the State of Oregon, USA. The July 2008 resource estimate was prepared by Maptek Sudamerica, Vina del Mar, Chile in conjunction with Andina staff and Eduardo Magri, Ph.D. in mining engineering (Witwatersrand) and a fellow of the SAIMM with over 30 years of industry experience. Mr. Easdon is an independent qualified person as defined by NI 43-101 and has reviewed the contents of this press release. A NI 43-101 compliant technical report was prepared and can be found on SEDAR system (www.sedar.com)

Quality Assurance / Quality Control Program

Reverse circulation ("RC") chips and diamond drill core from Andina's Volcan Gold Project drilling campaign were 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 at Copiapo, Chile. RC chip samples were riffle split to obtain a 15 kilogram sample for assay purposes. Representative chips were collected from each sample for logging purposes. Drill core 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 at the second half of the core was returned to the core boxes and stored in a secure storage facility. All samples were appropriately tagged and securely stored prior to shipping to Asesoria Minera Geoanalitica Ltda.'s ("Geoanalitica") laboratory in La Serena, Chile. Samples were 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 were re-analyzed by Geoanalitica using fire assay techniques with a gravimetric finish. Duplicate samples were inserted at a rate of approximately 5% and standard samples inserted at a rate of approximately 5% within each sample batch to ensure laboratory quality control procedures. Duplicates, standards, and blanks amount to nearly 15% of the samples assayed. In addition, the laboratory re-analyzes approximately 10% of all samples.

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. In July 2008, Andina provided an updated resource estimate for Volcan, resulting in a 126% increase to measured and indicated resources to 6.62 million contained ounces of gold (241.7 million tonnes grading 0.85 grams per tonne gold ("g/t Au")) and inferred resources of 3.26 million ounces of gold (114.0 million tonnes grading 0.89 g/t Au) at a 0.5 g/t Au cut-off. Andina is progressing with a Conceptual Development Plan and a Preliminary Economic Assessment for Volcan, targeted for completion in Q4 2009.

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 outcomes of any pending litigation and timing and results of future resource estimates or future economic studies and in particular include statements with respect to the commencement and completion of the Conceptual Development Plan and Preliminary Economic Assessment for the Volcan Project. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "planning", "planned", "expects" or "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, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, 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, 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; 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.

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
    or
    Andina Minerals Inc.
    Marla Gale
    Director of Investor Relations
    416 203 3488
    www.andinaminerals.com