SALT LAKE CITY, UTAH--(Marketwire - April 29, 2010) -THIS RELEASE IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES AND NOT AUTHORIZED FOR DISSEMINATION IN THE UNITED STATES.
Andean Resources (TSX:AND)(ASX:AND) (the "Company") is pleased to report the results for the quarter ended March 31, 2010 (the "Quarter"), covering the Company's activities at its 100% owned Cerro Negro epithermal high-grade gold project in southern Argentina.
Highlights
* Reported an initial resource for the Bajo Negro vein, which included:
o An indicated resource of 551,000 ounces of gold and 1.3 million ounces of silver, totalling 1,696,000 million tonnes, at a grade of 10.10 g/t Au and 23.4 g/t Ag (at a 3.0 g AuEq/t cut-off);
o an inferred resource of 209,000 ounces of gold and 412,000 ounces of silver, totalling 899,000 tonnes at 7.22 g/t Au and 14.3 g/t Ag (at a 3.0 g AuEq/t cut-off)
o A 27% increase in the Company's gold indicated resource base
* Continued drilling success at Mariana Norte, with high-grade results, including holes:
o MDD-1011: 9m of 15.8 g/t Au and 73 g/t Ag from 163.4m
o MDD-1015: 8.4m of 22.7 g/t Au and 57 g/t Ag from 173.6m
o MDD-1018: 13.9M of 16.2 g/t Au and 176 g/t Ag from 76.0m
* Confirmation of the Mariana Central discovery:
o MDD-1009: 3.0m of 3.5 g/t Au and 37 g/t Ag from 104m and
5.9m of 55.5 g/t Au and 200 g/t Ag from 207m
* Growth at the San Marcos discovery with over 550 meters in strike length now defined, and 150 to 200 meters dip defined, with highlighted holes including:
o SDD-1004: 12.4m of 16.5 g/t Au and 131 g/t Ag from 143.6m
o SDD-1008: 11.5m of 15.2 g/t Au and 136 g/t Ag from 103.5m
* Site infrastructure development work continued, including the commencement of the portal excavation and decline;
* BFS work nearing completion, with expected release of results at the end of June;
* Cash balances at the end of the Quarter were AU$76.7 million.
Resource Estimate
Bajo Negro
The Bajo Negro vein, discovered just over a year ago, is located adjacent to the Silica Cap hill at Cerro Negro and is within 2 kilometers of the Vein Zone deposit in the southeastern portion of the Company's property. The NI-43-101 and JORC-compliant resource estimate was completed by Mine Development Associates (MDA) of Reno, Nevada. The estimated undiluted resource within the quartz vein at a 3.0 g AuEq/t cut-off is presented in the table below:
To date, the Bajo Negro vein has been defined by drilling over a strike length of almost 1.2 kilometers and has an average true width of 3.9 meters and a known vertical extent of up to 300 meters. The Bajo Negro vein remains open along strike and to depth, with further drilling planned for later this year.
A high percentage of the inferred resource at Bajo Negro is expected to convert to the indicated category with additional drilling, especially along the diatreme contact.
Exploration Program
Mariana Norte
Mariana Norte is located about 2 kilometers south of the newly discovered San Marcos veins (see Figure 1). Mariana Norte was discovered in 2009 as a result of field mapping of the Eureka-Mariana areas and is characterized by classic banded quartz vein float surrounding an outcropping silica cap. A total of 77 samples have been collected over a northwest-trending area of 2 x 0.5 kilometers. These include 40 vein quartz float samples with banded epithermal textures and average 6.6 g/t Au and 41 g/t Ag.
Since the source of the vein material was not exposed, Andean drilled a fence of 5 reverse circulation holes every 100 meters aligned on a 225° azimuth. This fence of holes led to the discoveries of the Mariana Norte and Mariana Central vein systems.
Exploration efforts on the Mariana Norte vein system have concentrated on the northern structure defined in the January 19, 2010 press release, where hole MRC-911 intersected 7m of 12.3 g/t Au and 142 g/t Ag, and 6m of 41.8 g/t Au and 81 g/t Ag. The Company completed 3,663 meters in 18 reverse circulation pre-collar and diamond-tail holes during the Quarter. Including holes completed since the end of the Quarter, drilling has confirmed a quartz vein zone with a strike length of at least 600 meters and a dip extent of at least 150 meters. The Mariana Norte mineralization is comprised of one to three coalescing veins that strike 285° and dip 55°N to 65°N. The veins narrow and may be structurally displaced on the eastern portion of the vein. The western portion of the vein is at least 5 meters in true width and is expected to continue to the west. The complete vein trend can be traced on surface for up to 3.3 kilometers using satellite imagery and is confirmed by silicified outcrops located by the surface mapping program. The mineralized intervals correspond to banded, brecciated and crustiform quartz vein material with varying amounts of both massive, to locally banded, dark gray, fine-grained sulfide material.
The table below lists Mariana Norte results for the Quarter:
San Marcos
During the Quarter, the Company completed 18 diamond drill holes for a total of 4,099.9 meters. The vein structures are defined by quartz vein intercepts which are continuous for over 550 meters along the east-west strike and a 100 to 200 meter near vertical dip (defined with holes completed since the end of the Quarter). Drill sections are spaced at 50 or 100 meter intervals. Mineralization occurs along the entire strike extent, and the mineralization remains open to the east and locally at depth. Andean geologists believe that the vein structure may be locally displaced by faulting, as broken vein fragments are observed in SDD-1001 and SDD-1007.
The table below lists San Marcos results for the Quarter:
Mariana Central
The southern structure of the Mariana Norte discovery, known as Mariana Central, is an early stage exploration target believed to have significant potential to increase the gold resources at Cerro Negro. Including holes completed since the end of the Quarter, drilling has confirmed the presence of quartz vein material for at least 450 meters along strike and at least 110 meters down dip. The geology team has traced quartz vein float on the surface along the Mariana Central trend for over 1.2 kilometers inclusive of the current drill pattern. The quartz vein float corresponds to a lineament observed on the Quickbird satellite image. The drill definition of the Mariana Central vein will continue through the coming winter season.
The table below lists Mariana Central results for the Quarter:
Future Exploration Plans
The Company currently has five drill rigs operating on the property. Two universal reverse circulation-diamond rigs are continuing to develop the San Marcos and Mariana targets along strike and at depth, along with two dedicated diamond core rigs. A reverse circulation rig is currently drilling and developing water wells near the planned plant site and will leave the property once this work is completed. The Company plans to continue drilling through the Patagonian winter season with two of the diamond rigs, and anticipates that an additional two to three rigs will rejoin the exploration efforts once the winter season is complete by September 2010.
Bankable Feasibility Study
During the Quarter, work on the Bankable Feasibility Study (the "BFS") continued in earnest, with the Bajo Negro initial resource having been completed during the Quarter and now included in the BFS. With the success of the resource figures, Andean is confident that Bajo Negro will have a material impact on the BFS in terms of plant location, metallurgy, improved mine-life and financial returns.
*The indicated resource portion of the Bajo Negro estimate (526,000 ounces of gold and 1.3 million ounces of silver) is being used to develop the mine plan at Bajo Negro for the ongoing BFS;
*The other mine plans being prepared for the BFS include the Eureka West and Vein Zone deposits, bringing the total Indicated resources, now with the Bajo Negro deposit addition, to approximately 2.5 million ounces of gold and 21 million ounces of silver. Inferred resources at Cerro Negro would be in addition to these indicated resources;
*Metallurgical testing continued throughout the Quarter, with the Eureka and Vein Zone work now complete with the Bajo Negro testing continuing;
*Condemnation and a geotechnical assessment of the new process and tailings site was completed during the Quarter;
*Mine planning at Eureka West, which had been developed by NCL Engineering, of Santiago, Chile, includes the underground mining methods of blast hole transverse mining in the wider zones with small diameter long hole mining in the narrower zones.
*Paste backfill is no longer being considered for use in the mine due to the change in plant location and to the cost of paste backfill. Development waste from underground and gravel from borrow pits will be used as cemented and nonconsolidated backfill. Re-pulped dry tailings will be deposited in the Tailings Basin.
*The engineering studies for the access roads continued; based on the two scenarios from the Provincial Road 39 to El Retiro (45km) and the upgrading of the access road to Perito Moreno (28km);
*The engineering studies to extend the existing power line from the National Grid are in progress, with the bidding process underway for the long lead delivery items;
*The final draft of the Environmental Impact Study was completed and the Company is now underway with the preparations to present the final document to the Mining Department of the Province of Santa Cruz;
*The final BFS document will be compiled by Ausenco in a manner similar to the Pre- Feasibility Study with contributing authors responsible for their individual sections. A complimentary 43-101 Technical Report on the BFS will be published within 45 days after the release of the BFS results.
The BFS remains on schedule to be completed by the end of June 2010.
Cerro Negro Timeline
*Drilling Campaign – Exploration will focus on expending the resource base through drill campaigns at San Marcos, Mariana Norte and Mariana Central, continuing through the winter months with two enclosed diamond rigs.
*Bankable Feasibility Study – scheduled for completion during June 2010.
*Underground Decline – portal construction began in February 2010.
Corporate
Board Changes
After the end of the Quarter, the Company announced the appointment of Chuck Winograd to the Board of Directors. Mr. Winograd is currently the President of Winograd Capital Inc., an external consulting services and private investments company. Previously, Mr. Winograd was Chief Executive Officer of RBC Capital Markets, a position he held from 2001 to 2008. Mr. Winograd holds a Master of Business Administration degree from the University of Western Ontario and is a Chartered Financial Analyst (CFA). Mr. Winograd is currently a director of RioCan Real Estate Investment Trust, Talisman Energy, RBC Dexia, Tamir Fishman (Israel), Mount Sinai Hospital, Winograd Capital Inc. and James Richardson & Sons, Limited.
Share Capital
At Quarter-end the Company's issued securities were as follows:
*470,879,534 ordinary shares
*10,237,500 unlisted options (at various strike prices between AU$0.30 and AU$1.60)
Quality Control and Assurance
The analytical results quoted in this release are derived from half drill core in the case of diamond drill holes, or from cuttings in the case of reverse circulation holes. Samples are prepared by ACME Analytical Laboratories SA (Mendoza) in Mendoza, Argentina, and assayed by the same laboratory in Santiago, Chile. Gold is determined initially by fire assay with AA finish. Samples assaying more than 10 ppm gold are re-assayed using a gravimetric finish. Silver is determined initially by AAS, and samples assaying more than 100 ppm silver are re-assayed by fire assay with gravimetric finish. Quality control of the analytical results is maintained by inserting standards, blanks, and duplicates into the sample run, approximately every twenty samples. Additional quality control is maintained by sending assay sample splits to a second laboratory from time to time. These checks are evaluated statistically at regular intervals. All analytical data are entered into a Microsoft Access database, with limited access and numerous checks to ensure integrity of the data.
Qualified Persons Statement
Steven Ristorcelli has sufficient experience (more than 5 years) which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.
Steven Ristorcelli consents to the inclusion in this quarterly report the matters related specifically to reported Bajo Negro resources. The information in this report that relates to Mineral Resources is based on information compiled by Steven Ristorcelli, who is a Member of the AIPG, which is a 'Recognised Overseas Professional Organisation' ('ROPO') included in a list promulgated by the ASX from time to time.
The information in this quarterly report that relates to exploration results is based on information provided by William H. Wulftange, Vice President of Exploration for Andean Resources, who is a Licensed Professional Geologist (#5219574- 2250) by the State of Utah and a is member (#4037018) of a Recognised Overseas Professional Organization (ROPO), the Society of Mining, Metallurgy and Exploration America. Mr. Wulftange has extensive experience relevant to the style and type of mineralization and deposits under consideration, and to the activity undertaken, to qualify as a "Qualified Person" as defined in Canadian National Instrument 43-101, as well as a "Competent Person" as defined in the JORC Code. Mr. Wulftange has reviewed and verified that the information presented in this quarterly report conforms to NI 43-101 standards and industry Best Practices and consents to the inclusion in the report of the matters based on his information in the form and the context in which it appears.
Andean Resources Ltd. is a dual listed company (TSX:AND)(ASX:AND), actively and aggressively exploring for gold resources in Argentina. The company is well positioned to become a mid-tier gold producer over the next two years as it commences production from its 100% owned Cerro Negro project. This high-grade, world-class deposit is located in the mining-friendly province of Santa Cruz, in southern Argentina, and contains a growing resource base of over 2.5 million ounces of gold. In order to expand its resource base and add to the future production profile, Andean is committed to ongoing exploration and building its resource inventory at the Cerro Negro project and, in the process, generating enhanced returns for its shareholders as a platform for future growth.
Forward Looking Statement
This quarterly report contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that Andean Resources Limited ("Andean" or the "Company") believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", and "intend" and statements that an event or result "may", "will", "can", "should", "could", or "might" occur or be achieved and other similar expressions. These forward-looking statements reflect the current internal projections, expectations or beliefs of Andean based on information currently available to Andean. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by Andean with securities regulatory authorities, that may cause the actual results of Andean to differ materially from those discussed in the forward- looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Andean. Andean expressly disclaims any obligation to update or revise any such forward-looking statements. Not for distribution to United States newswire services and not for dissemination in the United States. The securities discussed herein have not been and will not be registered under the United States Securities Act of 1933 (the "US Securities Act"), as amended, or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S of the US Securities Act) unless an exemption from registration is available.
Bankable Feasibility Study
During the Quarter, work on the Bankable Feasibility Study (the "BFS") continued in earnest, with the Bajo Negro initial resource having been completed during the Quarter and now included in the BFS. With the success of the resource figures, Andean is confident that Bajo Negro will have a material impact on the BFS in terms of plant location, metallurgy, improved mine-life and financial returns.
*The indicated resource portion of the Bajo Negro estimate (526,000 ounces of gold and 1.3 million ounces of silver) is being used to develop the mine plan at Bajo Negro for the ongoing BFS;
*The other mine plans being prepared for the BFS include the Eureka West and Vein Zone deposits, bringing the total Indicated resources, now with the Bajo Negro deposit addition, to approximately 2.5 million ounces of gold and 21 million ounces of silver. Inferred resources at Cerro Negro would be in addition to these indicated resources;
*Metallurgical testing continued throughout the Quarter, with the Eureka and Vein Zone work now complete with the Bajo Negro testing continuing;
*Condemnation and a geotechnical assessment of the new process and tailings site was completed during the Quarter;
*Mine planning at Eureka West, which had been developed by NCL Engineering, of Santiago, Chile, includes the underground mining methods of blast hole transverse mining in the wider zones with small diameter long hole mining in the narrower zones.
*Paste backfill is no longer being considered for use in the mine due to the change in plant location and to the cost of paste backfill. Development waste from underground and gravel from borrow pits will be used as cemented and nonconsolidated backfill. Re-pulped dry tailings will be deposited in the Tailings Basin.
*The engineering studies for the access roads continued; based on the two scenarios from the Provincial Road 39 to El Retiro (45km) and the upgrading of the access road to Perito Moreno (28km);
*The engineering studies to extend the existing power line from the National Grid are in progress, with the bidding process underway for the long lead delivery items;
*The final draft of the Environmental Impact Study was completed and the Company is now underway with the preparations to present the final document to the Mining Department of the Province of Santa Cruz;
*The final BFS document will be compiled by Ausenco in a manner similar to the Pre- Feasibility Study with contributing authors responsible for their individual sections. A complimentary 43-101 Technical Report on the BFS will be published within 45 days after the release of the BFS results.
The BFS remains on schedule to be completed by the end of June 2010.
Cerro Negro Timeline
*Drilling Campaign – Exploration will focus on expending the resource base through drill campaigns at San Marcos, Mariana Norte and Mariana Central, continuing through the winter months with two enclosed diamond rigs.
*Bankable Feasibility Study – scheduled for completion during June 2010.
*Underground Decline – portal construction began in February 2010.
Corporate
Board Changes
After the end of the Quarter, the Company announced the appointment of Chuck Winograd to the Board of Directors. Mr. Winograd is currently the President of Winograd Capital Inc., an external consulting services and private investments company. Previously, Mr. Winograd was Chief Executive Officer of RBC Capital Markets, a position he held from 2001 to 2008. Mr. Winograd holds a Master of Business Administration degree from the University of Western Ontario and is a Chartered Financial Analyst (CFA). Mr. Winograd is currently a director of RioCan Real Estate Investment Trust, Talisman Energy, RBC Dexia, Tamir Fishman (Israel), Mount Sinai Hospital, Winograd Capital Inc. and James Richardson & Sons, Limited.
Share Capital
At Quarter-end the Company's issued securities were as follows:
*470,879,534 ordinary shares
*10,237,500 unlisted options (at various strike prices between AU$0.30 and AU$1.60)
Quality Control and Assurance
The analytical results quoted in this release are derived from half drill core in the case of diamond drill holes, or from cuttings in the case of reverse circulation holes. Samples are prepared by ACME Analytical Laboratories SA (Mendoza) in Mendoza, Argentina, and assayed by the same laboratory in Santiago, Chile. Gold is determined initially by fire assay with AA finish. Samples assaying more than 10 ppm gold are re-assayed using a gravimetric finish. Silver is determined initially by AAS, and samples assaying more than 100 ppm silver are re-assayed by fire assay with gravimetric finish. Quality control of the analytical results is maintained by inserting standards, blanks, and duplicates into the sample run, approximately every twenty samples. Additional quality control is maintained by sending assay sample splits to a second laboratory from time to time. These checks are evaluated statistically at regular intervals. All analytical data are entered into a Microsoft Access database, with limited access and numerous checks to ensure integrity of the data.
Qualified Persons Statement
Steven Ristorcelli has sufficient experience (more than 5 years) which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.
Steven Ristorcelli consents to the inclusion in this quarterly report the matters related specifically to reported Bajo Negro resources. The information in this report that relates to Mineral Resources is based on information compiled by Steven Ristorcelli, who is a Member of the AIPG, which is a 'Recognised Overseas Professional Organisation' ('ROPO') included in a list promulgated by the ASX from time to time.
The information in this quarterly report that relates to exploration results is based on information provided by William H. Wulftange, Vice President of Exploration for Andean Resources, who is a Licensed Professional Geologist (#5219574- 2250) by the State of Utah and a is member (#4037018) of a Recognised Overseas Professional Organization (ROPO), the Society of Mining, Metallurgy and Exploration America. Mr. Wulftange has extensive experience relevant to the style and type of mineralization and deposits under consideration, and to the activity undertaken, to qualify as a "Qualified Person" as defined in Canadian National Instrument 43-101, as well as a "Competent Person" as defined in the JORC Code. Mr. Wulftange has reviewed and verified that the information presented in this quarterly report conforms to NI 43-101 standards and industry Best Practices and consents to the inclusion in the report of the matters based on his information in the form and the context in which it appears.
Andean Resources Ltd. is a dual listed company (TSX:AND)(ASX:AND), actively and aggressively exploring for gold resources in Argentina. The company is well positioned to become a mid-tier gold producer over the next two years as it commences production from its 100% owned Cerro Negro project. This high-grade, world-class deposit is located in the mining-friendly province of Santa Cruz, in southern Argentina, and contains a growing resource base of over 2.5 million ounces of gold. In order to expand its resource base and add to the future production profile, Andean is committed to ongoing exploration and building its resource inventory at the Cerro Negro project and, in the process, generating enhanced returns for its shareholders as a platform for future growth.
Forward Looking Statement
This quarterly report contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that Andean Resources Limited ("Andean" or the "Company") believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", and "intend" and statements that an event or result "may", "will", "can", "should", "could", or "might" occur or be achieved and other similar expressions. These forward-looking statements reflect the current internal projections, expectations or beliefs of Andean based on information currently available to Andean. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by Andean with securities regulatory authorities, that may cause the actual results of Andean to differ materially from those discussed in the forward- looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Andean. Andean expressly disclaims any obligation to update or revise any such forward-looking statements. Not for distribution to United States newswire services and not for dissemination in the United States. The securities discussed herein have not been and will not be registered under the United States Securities Act of 1933 (the "US Securities Act"), as amended, or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S of the US Securities Act) unless an exemption from registration is available.
ABN: 064 494 319
For more information, please contact
Andean Resources Limited
Krista Muhr
Director of Investor Relations
In North America: 1.647.330.1478
In Australia: +61 (0) 448.886.460
krista.muhr@andeangold.com
or
Andean Resources Limited
200 Civic Center Drive
Suite 200
Sandy, UT 84070
USA
www.AndeanGold.com
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