OroAndes Resource Corp.
TSX VENTURE : OAR

OroAndes Resource Corp.

May 26, 2011 13:38 ET

OroAndes Announces Commencement of Kilometre 26 Work Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 26, 2011) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

OroAndes Resource Corp. (the "Company") (TSX VENTURE:OAR) is pleased to announce that it has started its 2011 summer work program on its Kilometre 26 nickel-gold project located in central British Columbia, approximately 55 kilometres northwest of the community of Fort St. James. The program, targeting bulk tonnage disseminated nickel mineralization, will include drilling an initial 12 targets that were defined by the 2010 geophysics, ground surveying and rock sampling work. The Company will also focus on completing geophysical surveying of another very promising area defined by a government geophysical survey completed in 2009. Permits to begin the work program have now been issued.

Grid establishment on the Kilometre 26 project started in 2009 and continued in 2010. A total of 26 kilometres of geophysical survey has been completed and a total of 865 soil samples and forty eight rock samples collected and analysed from which fifteen samples of mineralized serpentinite have been examined using electron microscope techniques. Examination using an electron microscope has indicated that metallic minerals present are overwhelmingly dominated by awaruite (a nickel alloy) and pentlandite (a nickel sulfide).

Work commenced at Kilometre 26 within the last few days has discovered a new area of mineralization consisting of numerous mineralized boulders and subcrops of serpentinite approximately 400 metres east of the nearest mineralization known before the current program. This discovery was made evaluating soil responses from the 2010 program. Three centres of mineralized serpentinite have now been identified.

Kilometre 26 Project now encompasses 9,819 hectares (24,263 acres). It is centred on a strong magnetic anomaly indicated on the Quest West helicopter-borne magnetic and electromagnetic survey flown for the British Columbia government (Geoscience BC) and published January, 2009. The magnetic anomaly is circular in feature and is more than five kilometres in diameter, suggesting a large ultramafic body. The Property is easily accessible by a major industrial road and logging roads, is bisected by a power line that forms part of the British Columbia power grid and is adjacent to a branch line of the Canadian National Railway.

For more detailed information visit the Company's website at www.oroandes.com.

A 60% interest in the Kilometre 26 Project is under option to OroAndes Resource Corp. from Eastfield Resources Ltd. (TSX VENTURE:ETF). OroAndes may earn its interest by spending $1,575,000 on exploration, issuing 275,000 shares and making $107,500 in payments by September 25, 2013.

J.W. (Bill) Morton P.Geo, a Qualified Person for the purposes of National instrument 43-101, has read and taken responsibility for this news release.

This news release contains certain statements that may be deemed "forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although OroAndes believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of OroAndes' management on the date the statements are made. OroAndes Resource Corp. undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change, except as required by law.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

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 news release.

Contact Information

  • OroAndes Resource Corp. - Head Office
    Sandy MacDougall
    President and Chief Executive Officer
    604-662-8186
    604-662-8170 (FAX)
    www.oroandes.com