Here is the update many of you wanted.
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ANDOVER MINING CORP. PROVIDES 2012 REVIEW AND OUTLOOK FOR 2013
February 2013, Vancouver, B.C. - Andover Mining Corp. (“Andover” or the “Company”) (AOX-TSX: V) (AOVTF-United States) (R2X-Frankfurt Exchange) is pleased to provide an update for shareholders on the Company’s mining projects located in the highly prospective Ambler Mineral Belt, Alaska and the prolific East Tintic Mining District in the State of Utah. In addition, we will provide comments on the exploration and development plans for the balance of 2013.
Andover is positioned exceptionally well with three district scale projects, all of which are located within the safe and geo-politically stable jurisdictions of the United States and more specifically in the mine friendly States of Alaska and Utah. With favorable metal prices, the Company’s assets are indeed very attractive. Management continues to advance the Company's projects, which we expect will result in a steady stream of strong corporate news releases. We believe, as the projects continue to advance, that our share price will better reflect the value of our portfolio of mining properties.
Below please find a review of our 2012 exploration and development programs as well as our plans for 2013.
Ambler Mineral Belt, Alaska
In the late 1970s, Anaconda Copper Mining Company engaged Canadian Mine Services Ltd., Kilborn Engineering (B.C.) Ltd., and Swan Wooster Engineering Co. Ltd. to develop a Pre-feasibility Study on the SUN Deposit. This technical report, including its historical resource calculations, were completed prior to the creation of the National Instrument 43-101 mineral resource classification guidelines. Accordingly, the historic resource calculations are not compliant with National Instrument 43-101 and therefore should not be relied upon.
The historical resource calculations are summarized in the table below.
Tons Silver Copper Lead Zinc
Open pit 2,399,000 2.39 opt 1.93% 1.20% 4.51%
Underground 17,891,000 2.37 opt 1.91% 1.18% 4.46%
Today, Andover maintains a 20 person camp at the SUN project along with a 1,500 foot airstrip built in 2007. The camp consists of living quarters, core-logging facilities, a geological office, mess facility, showers, laundry facilities, generator and tool storage, and indoor and outdoor core storage. Below are highlights from the 2012 exploration and development program.
The $3.5 million USD 2012 work program conducted by Andover on the 100% owned SUN District located in the Ambler Mineral Belt of Alaska proved to be highly successful. Not only did the work programs yield high grade copper mineralization on the Main SUN and S.W. SUN Deposits (see news release October 18, 2012), but was highly successful in the discovery of two new massive sulfide discovery holes (see news release September 24, 2012) located approximately 8.0 kilometers and 8.5 kilometers west of the Main SUN and S.W. SUN Deposits, both of which contained VMS style mineralization.
During the 2012 work programs, designed in conjunction with the consulting firm, Mine Development Associates (“MDA”) of Reno, Nevada, Andover received impressive assay results that are being incorporated into a new National Instrument 43-101 Compliant Reserve and Resource Report for the Main SUN and S.W. SUN Deposits. This report is expected in the near term. Upon the completion by MDA of this National Instrument 43-101 Compliant Reserve and Resource Report, MDA will undertake a Preliminary Economic Assessment (PEA) for these two high grade copper rich deposits.
The VMS (volcanogenic massive sulfide) mineralization in the Main SUN and S.W. SUN Deposits has been drilled along approximately three kilometers of strike but the highly prospective meta-volcanic Ambler Schist Belt has been traced approximately another 16 kilometers on the SUN District. A total of 96 drill holes have now been drilled into the SUN and S.W. SUN Deposits.
The SUN Deposit is generally accepted to be the second largest known deposit within the mineral belt, the largest being NovaCopper’s Arctic Deposit in the central part of the belt and the smallest in size is Teck Resources’ Smucker Deposit at the western end of the belt.
Andover' land position at the 100% owned SUN District represents 230 State of Alaska 160 acre claims for a total land position of 36,800 acres at the eastern side of the Ambler Mineral Belt and 57 State of Alaska 160 acre claims for a total land position of 9,120 acres in the Smucker District to the western end of the Ambler Mineral Belt. This land position surrounds Teck Resources Limited’s Smucker Deposit. Andover has an aggregate land position of 45,920 acres in the Ambler Mineral Belt, recognized by Metals Economics Group, as one of the world’s largest undeveloped, copper dominant, polymetallic districts. Andover believes that this claim block ensures that all available prospective ground is covered at the SUN District and Smucker District by Andover’s claim block.
Road to Resources, Ambler Mineral Belt, Alaska
Alaskan Governor Sean Parnell is committed to building infrastructure to facilitate development of Alaska’s natural resources and a road to the Ambler Mining District is high on his “to-do” list. “Another roads to resources goal is to complete environmental permitting, public process and ultimately access to the Ambler Mining District and its rich mineral deposits within 5 years” commented Parnell to the Anchorage Chamber of Commerce in 2011.
The State of Alaska Department of Transportation and Public Facilities has studied potential transportation corridors connecting the Ambler Mining District to Alaska’s contiguous infrastructure. Final Reports on the Ambler Mining District Access titled Summary Report, Design Criteria Memorandum, Corridor Development Memorandum, Baseline Cost Memorandum, Geotechnical Memorandum, and Environmental Overview Memorandum were all published in September 2011.
The opening paragraph in the September 2011 Summary Report states the following. "The Ambler Mining District Access project will identify, design, and construct a transportation corridor from the Ambler mineral belt to either a port location on the west coast of Alaska or the surface transportation system in Alaska’s Interior. Both road and rail options are being evaluated. The selected corridor is intended to provide surface transportation access to state lands and facilitate exploration and development of mineral resources along the Ambler mining belt.”
During the fiscal year ended December 31, 2012, the State of Alaska commissioned and developed plans to provide transportation into the Ambler Mineral District and, through village consultations, chose the appropriate route. Given that the 2013 State Budget includes a line item for Permitting of the Ambler Mineral Belt access corridor in the amount of $8.5 million, it is evident that progress continues. During times of constrained budgetary processes, we are extremely pleased with this budget allocation of the full requested amount.
This work will certainly continue to expand global interest in this mineral rich belt and Andover’s intent is to move the SUN and the S.W. SUN Deposits forward with a new National Instrument 43-101 Resource Calculation and subsequently have MDA complete a PEA on the deposits.
East Tintic Mining District, Utah
Chief Consolidated Mining Company (approximately 83.5% owned by Andover) entered the East Tintic Mining District more than 100 years ago. Chief’s land holdings in the district consist of approximately 16,000 acres (65 Square Kilometers) of mostly patented and prolific ground which includes many past producing historic mineral deposits, two recently producing mines, the Trixie and Burgin, and a permitted and bonded mill, all of which represent potential revenue opportunities. Significantly, Chief owns the majority of this land outright, including surface and mineral rights, which gives it access to the highly sought after commodity of water. Below is a more detailed description of the multiple projects we have in the East Tintic Mining District.
Rio Tinto/ Kennecott Joint Venture / Big Hill Project, Utah
On August 23, 2010 Chief and Kennecott signed agreements whereby Kennecott can earn a 55% interest in Chief’s Big Hill Project by funding all project costs to the completion of a Feasibility Study. Chief is fully carried on a 45% interest.
The Big Hill porphyry target is located in the central part of the East Tintic Mining District and is approximately 43 miles southeast of Rio Tinto’s Bingham Canyon Mine. Bingham Canyon is recognized as one of the world’s largest open pit copper mines.
The Big Hill porphyry target is a stockwork of quartz veinlets that occupy the core zone of the Big Hill target area with a lithocap superimposed on the stockwork, a process known as telescoping. Lithocaps usually define the shallow parts of porphyry copper systems above the main Cu-Au/Mo zone.
Since signing the joint venture agreement with Chief on August 20, 2010, Kennecott has completed a systematic and multifaceted exploration program in the Tintic District. This exploration program includes ground based magnetotelluric and IP surveys, airborne magnetic surveys and extensive mapping and sampling programs. This work led to the delineation of several deep porphyry copper drill targets, two of which were drilled to completion in 2012.
In a report dated March 2, 2011, Kennecott states “Similar to the Bingham porphyry deposit, the project area is surrounded by base metal vein and replacement deposits with dominate Pb-Zn mineralization to the north and high-sulphidation Au-Cu fissures to the southwest.”
Kennecott is a subsidiary of the second largest mining company in the world, Rio Tinto, and has expended more than $5.0 million to date on the Big Hill project. During 2012 Kennecott completed 2 deep drill holes, the purpose of which was to test anomalies found during the 2011 exploration activities. Kennecott continues to plan their exploration activities and once the details have been finalized, Kennecott will inform Chief and Andover of their plans for the Big Hill Project. Chief and Andover will in turn, report the details to our shareholders.
Andover feels that considering the extent of alteration and the magnitude of silver, lead and zinc mineralization in the district, this undiscovered porphyry system may have the potential to rival some of the world’s largest, copper deposits.
Proposed Joint Venture with Enirgi to develop and mine the Burgin Mine Complex, Utah
As announced on October 22, 2012, Chief has agreed in principle to enter into an Earn-In and Joint Venture Agreement with the Enirgi Group Corporation (Enirgi) to develop, permit and mine the Burgin Mine Complex deposits (Silver-Lead-Zinc limestone replacement deposits) located on part of Chief’s land holdings in the East Tintic Mining District, Utah.
The Burgin Mine Complex deposits include the historic Burgin Mine, the Burgin Extension Deposit, the historic Trixie Mine and the ‘Ball Park’ mineralized system. All are located within the immediate vicinity of, and within easy access to, the Burgin Mill and Processing complex, which will also be part of the Joint Venture Agreement. The mines, deposits and mill complex are located entirely on 100% Chief owned private lands. A National Instrument 43-101 Technical Report, dated July 29, 2011, and a Preliminary Economic Analysis (PEA), dated December 02, 2011 have been completed on the Burgin Extension Deposit by Mine Development Associates of Reno, Nevada, and are available at Andover’s website. www.andovermining.com
Under the proposed terms of the Joint Venture Agreement, Enirgi would develop the project through prefeasibility study, feasibility study and into production by providing the capital to complete the studies and arrange the project financing for the mine and facilities development. Enirgi would earn 51% in the Burgin Complex and Chief would retain 49%.
The proposed JV continues to advance and as contracts and specific plans are completed by Energi and Chief, Andover will report on these activities to its shareholders.
Management Addition – Chief Operating Officer (“COO”)
Andover conducted an extensive search for a new COO and found an excellent person to fill this role in January 2012, appointing Mr. Kent Turner as the Company’s Chief Operating Officer.
Mr. Turner has been actively involved in all phases of the mineral exploration business for more than 30 years. Mr. Turner spent much of his professional career with Cominco American (Teck Resources Ltd.). Mr. Turner has worked on many successful exploration and development projects. These include making significant contributions to the discovery and development of several major gold, copper and zinc deposits. Examples include the Paalaaq and Anarraq zinc-lead deposits in the Red Dog District, (Alaska), the Pebble Copper Deposit (Alaska), Kinsley Gold Deposit (Nevada), Pogo Gold Deposit (Alaska), Summitville Gold Deposit (Colorado) and the Jerrit Canyon Gold Deposits (Nevada).
Board of Directors Addition
Mr. Jerry Booth was appointed to the Company’s Board of Directors in early 2012. Mr. Booth has more than 40 years of experience in mineral and natural gas exploration after graduating with a BSc. in Geology from Washington State University.
Jerry Booth has been through the process of an Alaska State funded road and port project to Teck’s Red Dog Mine and his knowledge and experience will be very valuable as the Ambler District and the Road to Resources Project driven by Alaska Governor, Sean Parnell moves forward.
Thank you from Andover’s Chairman and CEO
Your management team has taken a fiscally conservative approach to the advancement of our projects and has spent a great deal of time and effort exploring all developmental options in these difficult market conditions.
“I personally would like to thank you for being shareholders and look forward to building our Company together.”
Feasibility Studies on the mentioned properties have not been completed nor is there any certainty that any proposed operations will be viable.