ANDINA Minerals Inc.
TSX VENTURE : ADM

ANDINA Minerals Inc.

March 27, 2008 09:46 ET

ANDINA: Volcan Project Drilling Returns 544 Metres Grading 0.88 g/t Gold

Includes Higher Grade Interval of 104 Metres Grading 2.02 g/t Gold

TORONTO, ONTARIO--(Marketwire - March 27, 2008) - ANDINA Minerals Inc. (TSX VENTURE:ADM) ("Andina") is pleased to report further drill assay results from the continuing Phase IV exploration program on its Volcan Gold Project located in Chile's Maricunga Gold Belt. Exploration activities are currently focused on infill and exploration drilling on the Dorado West deposit and the associated NW zone with the goal of both defining and expanding the limits of the gold mineralization. Drill assay results are summarized in Table 1 and a drill plan of the Dorado area is attached.

Highlights from the drill results include 544 metres grading 0.88 grams per tonne gold ("g/t Au") with a higher grade interval of 104 metres grading 2.02 g/t Au from drill hole DOA-722 in the Dorado West deposit and 206 metres grading 0.65 g/t Au from drill hole DOA-711, which extends the NW zone a further 150 metres to the north where it remains open along strike and to depth.

"Continued drilling success from the Dorado West deposit and NW zone confirm our expectations for further resource increases from the Volcan Gold Project", said Carl B. Hansen, President and CEO of Andina, "and with six drill rigs completing a program of infill and step-out drilling, investors should anticipate further drill results over the remainder of the Phase IV program which should end during May 2008. Metallurgical test work is also ongoing, with the goal of establishing basic parameters to support an economic assessment of the Volcan Gold Project. It is anticipated that this study will commence during the second half of 2008."



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Table 1 Dorado Area Drill Assay Results (March 2008)
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Hole From To Length(1) Gold(2) Target
# (metres) (metres) (metres) (g/t Au)
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DOA-699 268 412 144 0.45 Section 1200
- NW area
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including 382 404 22 0.81
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DOA-711 52 258 206 0.65 Section 1650
- NW area
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including 114 134 22 1.43
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DOA-714 574 668 94 0.57 Section 550
- West Zone
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DOA-722 22 566 544 0.88 Section 1100
- West Zone
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including 150 372 222 1.43
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including 268 372 104 2.02
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DOA-725 428 518 90 1.11 Section 700
- West Zone
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including 442 494 52 1.60
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(1) All intervals represent down-hole lengths and not true widths
(2) Assay intervals based on a 0.3 g/t cut-off grade


Summary of Dorado West Deposit Results

The results from infill drill hole DOA-722, which intersected 544 metres grading 0.88 g/t Au including a higher grade interval of 104 metres grading 2.02 g/t Au, were better than anticipated confirming the continuity of the Dorado West deposit through section 1100 and to depth. The Dorado West deposit gold mineralization is associated with minor grey banded quartz veinlets hosted in a brecciated dacitic porphyry with fine disseminated pyrite.

On section 700, drill hole DOA-725 cut 90 metres grading 1.11 g/t Au including a higher grade core zone of 52 metre grading 1.60 g/t Au, extending the western limb of the Dorado West deposit 425 metres below surface and approximately 200 metres below a 68 metre interval grading 1.24 g/t Au (DOA-601 released Jan 3, 2007).

Drill hole DOA-714, section 550, returned 94 metres grading 0.57 g/t Au establishing the western contact of the gold deposit to a depth of 600 metres. The hole traced the down dip extension of the mineralization cut in drill hole DOA-605 which ended in gold mineralization with a 76 metre interval grading 1.06 g/t Au (released Jan. 3, 2007).

Summary of NW Zone Results

Drill hole DOA-711 returned 206 metres grading 0.65 g/t Au from massive to brecciated dacitic porphyry with up to 5% fine disseminated pyrite, extending the strike potential of the NW zone 150 metres to the north. Assays are pending from further drilling which has been completed in the area of DOA-711 to define the extent and orientation of the gold mineralization, which remains open along strike in both directions and to depth.

Drill hole DOA-699 cut a broad zone of lower grade gold mineralization, returning 144 metres grading 0.45 g/t Au with a narrower section of 22 metres grading 0.81 g/t Au. The drill hole confirmed that gold grades weaken between section 1200 and 1250, before increasing again on section 1350. The drill hole cut weakly altered, locally brecciated dacitic porphyry.

Water Acquisition Update

Andina is preparing to commence pumping tests as part of its technical due diligence related to the agreement with Inversiones y Asesorias en Recursos Hidricos to acquire water rights at a total volume of 340 litres per second, located 20 kilometres from Andina's Dorado deposits. It is anticipated that the results of the pumping test will be known within the next four weeks.

Metallurgical Update

Three column tests, two grading 1.0 g/t Au and the third grading 0.3 g/t Au, are in the process of being completed by McClelland Laboratories, Inc., Nevada. Results from the test work are expected within 2 to 3 weeks. Further gold mineralization from the Dorado gold deposits is being collected for continued metallurgical testing.

NATIONAL INSTRUMENT 43-101 COMPLIANCE REPORT

Under National Instrument 43-101 ("NI 43-101") of the Canadian Securities Administrators, the independent qualified person for the Volcan Gold 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. The recently released October 2007 resource estimate was prepared by NCL Ingenieria y Construccion S.A., Santiago, Chile in conjunction with Eduardo Magri, Ph.D. in mining engineering (Witwatersrand) and a Fellow of the SAIMM with over 30 years of industry experience. A NI43-101 compliant technical report related to the October 2007 resource estimate prepared by Mr. Gonzalez is filed with SEDAR and can be found at www.sedar.com.

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 in Copiapo, Chile. RC chip samples are split 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 using two assay/ton samples (about 50 gram) with an atomic absorption spectrographic finish for a sensitivity of 5 ppb (.005 ppm) gold with atomic absorption finish. Samples which return 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%. Approximately 15% of the samples submitted to Geoanalitica comprise standard, blanks and duplicated samples ensure laboratory quality control procedures.

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 results of due diligence, conclusion of legal documentation, exploration results, the success of exploration activities generally, permitting time lines, mine development prospects, government regulation of exploration and mining operations, timing of scoping-level studies, future share issuances, and title disputes or claims. 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 results of due diligence activities, 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 Andina'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.

To view the Andina Minerals Inc. Volcan Gold Project please visit the following link:

http://media3.marketwire.com/docs/andmap0327.pdf

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 B. Hansen
    President and CEO
    (416) 203-3488
    or
    ANDINA Minerals Inc.
    Tracey M. Thom
    Vice President, Investor Relations
    (416) 203-3488
    Website: www.andinaminerals.com