OroAndes Resource Corp.
TSX VENTURE : OAR

OroAndes Resource Corp.

August 25, 2011 11:52 ET

OroAndes Resource Corp.: Kilometre 26 Exploration Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 25, 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 update shareholders on the exploration program on the Kilometer 26 nickel-gold project located immediately north of the community of Fort St. James in central British Columbia. The 2011 exploration program was initiated during the third week of May. Work has entailed expanding the cut grid on the property followed by magnetometer and induced polarization surveying as well as soil sampling. Geologists spent approximately five weeks mapping the property, utilizing the cut grid and sampling new exposures (rock and rubble) of ultramafic and carbonate rock. Highlights of rock samples collected and analyzed included twenty that returned analysis ranging between 0.19% to 0.25% nickel. The geophysical survey, (approximately 36 line kilometers) has extended the strike length of the strong magnetic anomaly (believed to be serpentinite) to more than 4.5 kilometres. This anomaly is thought to be the source of much of if not all of the nickel mineralized rubble that has been located on the property. A separate magnetic feature is indicated several kilometers further to the west which likewise appears to have dispersion train of mineralized serpentinite. Approximately 600 soil samples were collected and are currently being analyzed.

The Company has now engaged the services of an international metallurgical organization, with expertise in the recovery of nickel alloy and sulphide from ultramafic rocks, to develop a testing strategy for the Kilometer 26 project. It is anticipated, if the exploration phase is successful, an operational extraction routine that could form part of a commercial process will be completed. Testing will entail using magnetic separation techniques from mineralized samples collected in the current program.

All permits are in place and diamond drilling of an initial 12 targets is anticipated to begin during September, 2011.

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.

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