Southern Andes Energy Inc.
TSX VENTURE : SUR

Southern Andes Energy Inc.

November 15, 2010 08:30 ET

Southern Andes Energy Inc.'s New Uranium Discovery at Accocucho Sur, Peru

TORONTO, ONTARIO--(Marketwire - Nov. 15, 2010) - Southern Andes Energy Inc. (TSX VENTURE:SUR) ("Southern Andes" or "the Company") is pleased to announce the discovery of widespread uranium mineralization from preliminary work on its Chacaconiza project area in the Macusani Uranium District, Southeast Peru.

Accocucho Sur Discovery

Initial results from a comprehensive exploration program consisting of detailed mapping, hand supported radiometric surveys, trenching and channel sampling from a portion of the Accocucho Sur target, one of four targets located in the large Chacaconiza project area, have returned significant widespread uranium mineralization from intensely fractured volcanic ash flow tuffs and ignimbrites. The mineralized area is characterized by a radiometric anomaly striking for 1.5 km that was outlined during a regional survey done in 2006.

Commenting on the results, Nick Tintor, President and CEO stated that "These are excellent preliminary results from just a small part of one large radiometric anomaly that underscores the potential we see at Chacaconiza." Tintor further added that "The increase in disseminated uranium in Trench 14 is especially of significance as the majority of uranium found to date in the Macusani Uranium District is fracture controlled."

Highlights of the limited sampling program include:

  • Channel C-1: 1,114.7 ppm U3O8 across 8.35 m
  • Channel C-9: 702.5 ppm U3O8 across 6.45 m
  • Trench T-4: 634.1 ppm U3O8 across 8 m
  • Trench T-12: 1,734.5 ppm U3O8 across 2 m
  • Trench T-14: 246.8 ppm U3O8 across 48.95 m

A complete list of channel and trench sampling results are listed in the appendix at the end of this press release. Please visit our website at www.southernandes.ca for more maps of the Accocucho Sur Zone 1 and 2 and photographs of Trench 14 with a corresponding detailed assay map.

About Accocucho Sur and the Chacaconiza Project Area

Accocucho Sur is one of four large radiometric anomalies comprising the Chacaconiza project area. Covering more than 3,700 hectares and measuring approximately 7 km by 5 km, Chacaconiza is the largest and strongest radiometric anomaly identified in the Macusani Uranium District which has never been drill tested.

The area tested in Zone 1, which measures approximately 100 m by 80 m, is characterized by secondary autunite uranium mineralization occurring as fracture fillings associated with a northwest-southeast striking system. Some disseminated uranium also occurs between fractures. Mineralization remains open to the northwest along the trend of the ground radiometric anomaly.

The area tested in Zone 2 is approximately 270 m by 120 m in dimension and is characterized by three fracture sets of which the northwest-southeast striking set is the primary uranium host. This zone remains open to the northwest and to the southeast.

Zone 1 and Zone 2, are separated by approximately 400 m of ground which was not tested due to a thicker cover of residual soils. However one outcrop located between Zone 1 and 2 returned 1,360.9 ppm U3O8 across 1.55 m in C-10. This suggests that there is good potential for extensions of uranium mineralization from Zone 1 to Zone 2 under the soil cover.

A highlight of the program is Trench 14 in Zone 2, which assayed 246.8 ppm U3O8 across 48.95 m. This trench displays widespread disseminated uranium mineralization in between close spaced fracture sets. Mineralization remains open at both ends of the trench.

Alpi-1 Anomaly

Southern Andes' exploration team is also conducting prospecting work on the Alpi-1 anomaly at Chacaconiza, a large radiometric anomaly striking for more than 3 km. An area of this mineralized zone is characterized by intensely fractured red iron oxide stained ignimbrites with local visible autunite. During the reconnaissance program completed in August, these fractures returned elevated scintillometer readings ranging from 1,060 CPS(1) to 12,000 CPS across a width of 40 m.

(1) Counts per second from a hand held scintillometer

Tupuramani Concession

The Company is also planning to complete a reconnaissance of its Tupuramani concessions before year end. Tupuramani is characterized by a strong 1.5 km long radiometric anomaly on strike with the Colibri II-III deposit which is reported to host inferred uranium resources.

Following the completion of this year's reconnaissance programs, the Company will finalize a drill program budget and complete permit applications for a comprehensive drill campaign beginning in the latter part of the first quarter next year.

About Southern Andes Energy Inc.

Southern Andes Energy Inc. is focused on exploring and developing uranium resources to meet the world's growing demand for clean energy. The Company is the largest landowner in the emerging Macusani Uranium District in Peru with holdings of more than 100,000 hectares of land. The Company also owns a 10% interest in Macusani Yellowcake Inc., which controls two advanced stage uranium projects in the district. Southern Andes owns a 100% interest in Caracara Silver Inc., which has been created to advance and develop the Company's extensive silver and zinc projects in Peru.

QC/QA Protocols

Sampling consists of rock chip samples taken over lengths varying from 0.5 m to 1.5 m with each sample weighting approximately 1.5 kg to 3 kg. Assays were performed by SGS Laboratories in Lima, Peru an ISO/IEC 17025 accredited laboratory, using a multi-acid digestion process (ICM 40B). Sample preparation was completed in SGS's preparation laboratory in Juliaca, Peru. A comprehensive Quality Control and Quality Assurance protocol has been implemented including the insertion of two blanks, three standards and three duplicates for each 100 samples processed.

Mr. Alain Vachon, P.Geo, Manager – Exploration and the Company's Qualified Person as defined by National Instrument 43-101, has reviewed and approved the contents of this press release.

This news release may contain forward-looking statements that are based on Southern Andes Energy Inc.'s expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.

Appendix

Sample Width (m) ppm (U3O8)
 
T1 1.45 161
T2 2.05 301.8
T3 0.6 195
T4 8 634
T5 1.2 337
T6 2 460
T7 5.04 169
T8 0.6 5,687
T9 2 247.5
T10 7.8 296
T11 8 362.2
T12 2 1,734.50
T13 1.8 115
  6.85 139.1
T14 48.95 246.8
T15 2.85 186.3
T16 12.6 408.90
T17 3.15 525.1

 

Sample Width (m) ppm (U3O8)
 
C1 8.35 1,114.70
C2 8.6 304.8
C3 1.15 1,785.00
C4 1.9 815.2
C5 0.9 533.00
C6 1.45 1,342
C7 1.9 883.9
C8 1.35 1,760
C9 6.45 702.5
C10 1.55 1,360.90
C11 0.65 149
C12 1.7 455.8
C13 2.95 883.4
C14 3.65 126.6
C15 0.5 111
C16 0.7 3,059
C17 1.9 658
C18 0.6 2,487
C19 0.5 568
C20 0.5 689
C21 3.5 151

To view the figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/sur_11_15_2010_fig.pdf

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