News out Today
AndeanGold tests 1.06 g/t AuE average at Rio Seco
2009-04-20 10:33 ET - News Release
Mr. Anthony Ciali reports
ANDEANGOLD REPORTS POSITIVE ASSAY RESULTS FROM RIO SECO PROJECT, PERU
AndeanGold Ltd. has released positive assay results from a recently completed detailed structural and geological mapping and trenching program on the company's Rio Seco project, a gold property (approximately 3,325 hectares) with silver and copper credits, located in the department of Libertad, Peru. To date, four mineralized zones and 10 main vein systems have been identified.
The principal mineralized zone, the West zone, lies within a shear zone created by two major north-south faults and exhibits both potential open-pit stockwork targets and potential underground multiple vein targets. Within the West zone, several target areas have been identified and preliminarily explored to date.
Stockwork target
The stockwork target, comprising quartz vein stockworks, ladder vein networks and discrete veins, has an overall width of about 100 metres and the recent program has extended the strike length from 300 metres to 600 metres. In 2008, initial trenching on the more-exposed eastern side of the target area returned assay results of 1.35 grams per tonne gold and 6.42 grams per tonne silver over 18.0 metres and 1.92 grams per tonne gold and 10.24 grams per tonne silver over 30.0 metres in channel samples. (See the company's news release in Stockwatch dated Feb. 9, 2009.) The current evaluation program, including additional mapping and outcrop/trench sampling, has outlined several sizable mineralized lenses within the stockwork target containing higher concentrations of veining and better gold values.
These lenses appear to be distributed en echelon style along the stockwork trend, and the table refers to the four better-defined lenses along the eastern side, which were exposed in outcrops by the access road that runs through the project. Based on the results of the current program and the company's present geological model, there are also indications of additional mineralized lenses within the remaining 75-metre width of the stockwork target to the west which is poorly exposed and deeply weathered and, therefore, less amenable to detailed evaluation by surface work.
Based on the assay results from the 2008 and 2009 trenching programs, the four exposed lenses have a combined strike length of 580 metres, an approximate width of 25 metres, and an average indicative grade of 1.02 grams per tonne gold equivalent, based on averaging all channel and outcrop samples within each lens.
While there are several exploration targets of interest on the Rio Seco project, the company's principal interest is the timely testing and advancement of the open-pit potential of the stockwork target area, with the objective of establishing a bulk minable, heap-leach mineral resource, if economic grades are present. The results of the latest program are encouraging and support the company's decision to initiate a phase I drilling program to test the depth, strike extent and grade of the 600-by-100-metre stockwork target area. Details of the drilling program will be finalized by the end of April, following a visit to the project by the company's geological team and senior geological consultant.
The infrastructure in the project area to support an open-pit/heap-leach operation is excellent, with easy access mainly along the Pan American Highway from the city of Trujillo (more than one million in population) and a well-compacted dirt road to the project (10 kilometres east of the highway turnoff); a major power line to Trujillo running parallel to the highway; a large government-owned water channel running through the project; an industrial port located 15 kilometres to the north, along the highway; and an arid and dry desert climate, conducive to such an operation.
Multiple vein target
The southern end of the stockwork target area gives way to what has been termed the multiple vein target consisting of two overlapping and offset principal quartz-sulphide veins, having individual strike lengths of approximately 200 metres. The 2008 trenching program in this target area returned assay results of up to 13.8 grams per tonne gold, 93.7 grams per tonne silver and 0.73 per cent copper over 0.40 metre in a channel sample. Including the assay results of the current program, the assay results of the 2008 and 2009 trenching programs are shown in the table. Presently, this target area is considered to have good underground potential and will be subject to further evaluation, including drilling.
Width Average
Vein metres g/t Au g/t Ag g/t AuE % Cu
Vein 3 0.30 2.90 13.60 3.08 2.08
0.40 13.80 93.70 15.05 0.73
1.20 1.07 35.50 1.54 0.20
1.00 1.96 9.30 2.09 0.32
1.00 5.87 74.90 6.87 0.12
1.00 2.95 82.80 4.06 0.13
3.00 2.21 27.50 2.58 0.81
10.00 4.86 55.40 5.60 0.24
3.00 4.00 40.30 4.54 0.27
3.00 3.15 34.60 3.61 0.41
Vein 4 0.80 5.70 21.20 5.98 0.42
0.45 0.94 0.60 0.95 0.14
0.70 1.12 17.40 1.35 0.12
0.45 7.33 57.80 8.10 0.34
0.30 0.84 41.00 1.39 0.32
0.80 0.98 18.50 1.23 0.25
0.80 5.70 21.20 5.98 0.42
Note: AuE equals gold equivalent based on a 75:1
gold/silver price ratio.
Alessandra target
The recent program also confirmed the existence of a new mineralized target area, located 180 metres north of and along strike from the stockwork target. Based on limited work done to date, continuous channel sampling of veins in this target area returned the selected assay results shown in the table. Based on the favourable assay results to date, and the location of this target area, further evaluation work is warranted.
Width Average
metres g/t Au g/t Ag g/t AuE
0.25 6.8 67.0 7.7
0.20 8.3 24.0 8.6
0.20 39.9 78.2 40.9
0.60 8.7 18.4 8.9
Note: AuE equals gold equivalent
based on a 75:1 gold/silver price
ratio.
Over all, 10 continuous channel samples of veins from the Alessandra target returned assay results ranging from 0.34 to 39.86 grams per tonne gold over widths ranging from 0.10 to 0.60 metre.
Gabriel target
Approximately 300 metres south of the multiple vein target, an additional new mineralized target area containing several quartz veins and veinlets was discovered during the current program. This target is aligned with the major shear structure. The selected assay results were returned based on continuous channel samples.
Width Average
metres g/t Au g/t Ag g/t AuE
0.40 10.4 83.1 11.5
0.18 11.0 44.6 11.6
0.39 2.3 25.0 2.7
0.45 7.3 57.8 8.1
0.80 5.7 21.2 6.0
Note: AuE equals gold equivalent
based on a 75:1 gold/silver price
ratio.
Over all, 21 continuous channel samples of veins from the Gabriel target returned assay results ranging from 0.22 to 10.97 grams per tonne gold over widths ranging from 0.18 to four metres.
All samples from the Rio Seco project were sent to the Inspectorate laboratory in Lima, Peru, for sample preparation and assaying.
Anthony F. Ciali, president and chief executive officer, stated: "We are extremely pleased with the latest West zone results and very encouraged by the discovery of two new mineralized targets in the West zone and within the overall north-south shear zone, the strike of which is estimated at up to six kilometres within concessions held by the company. Of particular interest is the fact that the average indicative grade of 1.06 grams per tonne AuE for the areas tested in the stockwork target is
in line with our expectations for the future development of a potential open-pit heap-leach operation. At present metal prices, many open-pit heap-leach mines are in production at average grades of plus-or-minus 0.75 gram per tonne gold. Clearly, we have a lot more work to do at Rio Seco, but this is a very good start."
Dr. William F. Lindqvist, a director of the company, is the qualified person in compliance with National Instrument 43-101 with respect to this release.