RE: Results
Andina drills 104 m of 2.21 g/t Au at Ojo de Agua East
2011-02-15 17:24 ET - News Release
Mr. George Bee reports
ANDINA DRILLS 104 M AT 2.21 G/T AU, INCLUDING 30 M AT 3.98 G/T AU AT OJO DE AGUA EAST
Andina Minerals Inc. has released results from the first six completed drill holes in 2011 at the Ojo de Agua East mineralized zone, situated at the Volcan project site about 6.5 kilometres from the known Dorado zone and approximately four km to the north of the proposed mill and heap leach pad in the Volcan phase 1 development plan. These completed holes are from the 10,000-metre strategic exploration program in the current field season.
The ODAE zone is part of the mineral concessions acquired from Barrick Gold Corp. in 2009.
Four of the six completed holes consist of combined reverse circulation precollars with a diamond drill finish (see attached table).
DRILLING RESULTSHole No. From-to Intersection g/t Au IncludingRODAE-853 288-392 m 104 m 2.20 30 m of 3.98 g/t AuRODAE-854 172-194 m 22 m 0.250 2 m of 1.01 g/t AuRODAE-855 172-174 m 2 m 0.329136-152 m 16 m 0.505 2 m of 1.57 g/t AuRODAE-856318-444 m 126 m 0.389 2 m of 1.05 g/t Au166-186 m 20 m 0.264RODAE-857254-262 m 8 m 0.327180-198 m 18 m 0.407RODAE-861 226-260 m 36 m 0.438290-434 m 144 m 0.510 4 m of 1.06 g/t Au
Hole RODAE-853 returned 2.2 grams per tonne gold over 104 metres, including 30 m at 3.98 g/t Au. Hole RODAE-853 was precollared to a depth of 132 m and followed up with a diamond drill to a total depth of 539.15 m. The objective was to intercept the downdip continuity of hole RODAE-851, which intercepted 122 m of 1.45 g/t Au in the previous 2009/2010 field season (see Stockwatch press release of June 8, 2010). The results extend the ore shoot an additional 100 m, to a depth of 300 m, and increase the grade of the zone.
Along what was considered to be a northerly strike continuity of the known mineralized zone, Andina tested at 100-metre intervals, and this resulted in hole RODAE-861 intercepting 144 m at 0.51 g/t Au and hole RODAE-856 intercepting 38 m at 0.464 g/t Au, while hole RODAE-854 to the south did not intercept mineralization. Hole RODAE-857, a reverse circulation hole collared into the northeastern 100-part-per-billion geochemical halo, with the objective to test for oxidized ore, did not return positive results.
An important limit, requiring additional investigation, is the presence of an approximately 150-metre-deep oxidized zone at ODAE.
"Hole RODAE-853 demonstrates downdip continuity of increasing high-grade mineralization at ODAE and supports our belief that we have intercepted a structurally controlled mineralized system at ODAE with significantly higher-average grades than the main Volcan deposits. This could meaningfully impact Volcan's development plan and economics as we prepare a feasibility study for Volcan during 2011," stated George Bee, president and chief executive officer of Andina. "This additional result provides an excellent opportunity to supplement our existing mill feed with higher grade than is contemplated in our phase 1 development plan."
Results to date and geology
Andina has drilled 13 successful holes to date into the structural gold target at ODAE. Its north-south-trending corridor has now been traced over 750 m; of which 500 m are drill indicated, while another 250 m can be inferred from new trench results cutting the corridor. These trenches show 100 m of 54 parts per billion gold, a strong indicator for continuity of ODAE toward a northerly direction.
The central higher-grade zone, however, is interpreted as a deep-rooted subcircular diatreme, whose central core is located around holes RODAE-853 and RODAE-861.
This diatreme is characterized by phreatomagmatic breccias, indicating near-surface explosive events. Its dimensions are approximately 200 m by 150 m, and it appears to have used the north-south dilational zone and secondary north-west structures to develop. Best grades are located at its core, and its total depth may well extend to greater depth. Total width of the structural corridor outside the diatreme is in the order of 50 m.
Diatreme-hosted gold deposits are common features in high-level gold environments, such as the Volcan district, and are characterized by higher grades than parent porphyry-hosted deposits.
In addition to ODAE, Andina is also focusing its regional exploration program on other opportunities, such as ODAE, to generate diatreme-hosted gold targets with the objective to deliver higher-grade gold sources to the Volcan project.
Andina plans to complete definition drilling to define further the potential at ODAE at 50-metre sections in the Central zone and will delineate continuity toward the north.
Andina anticipates an initial resource estimate for ODAE in the third quarter of 2011.
Ojo de Agua East area qualified person
The trenching and drilling program at the Ojo de Agua East area of the Volcan gold project was reviewed and the results approved by Sergio Diaz, Andina's qualified person under National Instrument 43-101, and he is the public registered person for reserves and resources No. 51 in Chile, also registered in the Colegio de Geologos de Chile under No. 315. Mr. Diaz is responsible for preparing technical information on the Ojo de Agua East area.
Quality assurance/quality control protocols
Mr. Diaz has confirmed that Andina has utilized appropriate and accepted (per National Instruments 43-101 requirements) quality assurance and quality control protocols for the trench and drill hole sampling and assaying. Grab samples are selected pieces of rock collected to identify or confirm anomalous or potentially economic concentrations of precious metals (gold and silver) and base metals (copper, molybdenum, zinc and lead), as well as pathfinder elements commonly associated with epithermal mineralization (arsenic, antimony, mercury and barium). Chip channel samples are one or more continuous samples of mineralized or altered rock collected with hammer and chisel over a measured interval and may be taken from areas of outcrop or from trenches. Sample locations are determined at the time of collection with hand-held GPS readings. Andina does not intend to use either the chip channel (trenching) or grab samples data in any future resource estimations. The samples that were taken in this program have been collected to confirm previously reported exploration sampling results and to identify further areas of greater interest for more detailed future exploration and drilling.
All samples are delivered by the company's personnel to the Geoanalitica sample preparation facility in Copiapo, Chile, where they are crushed (chip and grab samples), and all drill hole and surface samples are then shipped by Geoanalitica to its assay facility located in Antofagasta. Geoanalitica analyzes the samples for gold, copper and molybdenum. The gold assays are performed utilizing 30-gram fire assay with an atomic absorption spectroscopy or gravimetric finish; the Cu and Mo are assayed for using standard wet analytical techniques. Sample pulp splits are subsequently sent by Geoanalitica to the ALS-Chemex laboratory (also in Coquimbo) for multielement inductively coupled plasma analysis.
We seek Safe Harbor.