TORONTO, ONTARIO--(MARKET WIRE)--May 25, 2009 -- ANDINA Minerals Inc. (CDNX:
ADM.V -
News) ("Andina") today announced the results of its limited 2009 Volcan drill program totalling approximately 6,000 metres, which concluded at the end of April. Analysis of these results is ongoing in preparation for release of a resource update under the direction of Micon International Ltd., expected in the latter half of July 2009.
"While the final effect of the new drill information is not currently available pending the resource update, it is very encouraging that in Dorado East and West we are encountering higher grade mineralization close to surface, which we believe will have a positive impact on the early stages of the conceptual mine plan," said George Bee, President & CEO.
Volcan Drill Results
The 2009 program included a total of approximately 3,900 metres of diamond drilling and 2200 metres of reverse circulation (RC) drilling in Dorado West, Central and East deposits. The focus of the program was on in-fill drilling to lend confidence to the Company's understanding of the Volcan resource ahead of the preparation of the Conceptual Development Plan. The latter holes in the program also had the purpose of providing fresh samples for the second phase of metallurgical testing. Currently all assays have been received from the 2009 drill program and the customary QA/QC checks are being scrutinized prior to entry into the database. The following table provides a breakdown of the drilling in the various Dorado deposits.
-----------------------------------------------------------Table 1: Dorado Metres Drilled Breakdown - May 2009-----------------------------------------------------------Drilling Dorado West Dorado Central Dorado East-----------------------------------------------------------Diamond Drilling (m) 1955.15 1372.4 534.30-----------------------------------------------------------RC Drilling (m) 2200.0-----------------------------------------------------------Total Drilling (m) 4155.15 1372.4 534.30-----------------------------------------------------------
Table 2 summarizes the significant drill intercepts for each of the three areas of mineralization. To access a map showing drill hole locations, click here.
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Table 2: Dorado Area Drill Assay Results - May 2009
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Drill Hole Dorado From To (metres) Length Grade
Deposit (metres) (metres) (Au g/t)
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DEA788 East 0 158 158 1.40(i)
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DEA 789 East 96 190 94 1.10
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DCA 785 Central 34 104 70 1.10
178 200 22 1.22
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DCA 786 Central 10 166 156 0.86
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DOA 776 West 0 156 156 0.93(i)
644 730 86 1.41
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DOA 779 West 120 278 158 0.55
328 408 80 0.96
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(i) These intercepts show grades better than average
resource grade from surface.
Water Resource Development Program
A series of eight exploratory water wells targeting underground aquifers were drilled in the Rio Astaburuaga water exploration concession, which was granted to Andina by the Chilean water authority (DGA or Direccion National de Aguas). All of the eight wells encountered water; three of the more promising wells were re-drilled to a larger diameter and pump tests were conducted. The results of two of the holes suggests that the wells tap into a structurally-fed water resource that will support a limited but consistent water supply as follows:
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Table 3: Rio Astaburuaga Water Exploration Results - May 2009
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Well Well Depth Water Depth Max. Flow Rate
(metres) (metres - from (litres/sec)
surface)
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PB 2 150 2.36 18.0
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PB 3 150 0.86 21.0
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While the flow rates were relatively modest, Andina will continue with the process to secure the water rights since management expects that once the system is fully drilled off and provided that Andina is awarded the rights, it should be accretive to the Company. Andina already holds sufficient water rights to develop the Volcan project but the Astaburuaga water would be of strategic value as the company continues with its exploration and resource development program building on the Volcan gold discovery.
Sulphur Resource Update
In November 2008, the Company announced positive sulphur metallurgical and channel sampling results from the Cerro Azufre sulphur deposit as well as the intention to perform limited drilling and collect samples for further metallurgical tests in order to better determine the potential of this deposit. While Andina's primary focus remained on the Volcan gold resources, sulphur represented an additional opportunity for the Company and accordingly a limited sulphur exploration program was undertaken as part of the 2009 drilling season.
The limited exploration program did not produce any material results; however, it will assist with understanding this important resource. The 2009 program included developing better road access to the sulphur deposit and drilling three RC holes. While the results of surface mapping along the drill roads were in line with historic grades of up to 40% sulphur, the drilling methodology did not prove optimal for properly ascertaining the true nature and extent of the deposit.
While current markets for sulphur are depressed, this provides Andina with the opportunity to better assess the economic viability of the deposit prior to the next upturn in sulphuric acid prices. During the upcoming field season beginning this fall, Andina will review plans to complete additional drilling on the Cerro Azufre deposit using techniques that will better preserve the sulphur in the samples.