Andean American Reports That Its Subsidiary Sinchao Metals has Commissioned a Review of Its Mineral Resources
TORONTO, ONTARIO -- (Marketwire) -- 02/09/12 -- Andean American Gold Corp. ('Andean American' or the 'Company') (TSX VENTURE: AAG)(FRANKFURT: AQN) announces that its subsidiary company, Sinchao Metals Corp. (TSX VENTURE: SMZ) ('Sinchao') announced today that it, Sinchao, has appointed Scott Wilson of Scott E. Wilson Consulting, Inc. to undertake an independent review of Sinchao's previously announced mineral resources on the Sinchao Property (the 'Property') and prepare a revised technical report on the Property.
In their respective news releases dated April 20, 2011, Andean American and Sinchao disclosed a material change to Sinchao's mineral resource estimates for the Sinchao property. This material change was caused by title defects resulting in a loss of title to portions of the previous mineral resource. The loss of title may also negatively impact Sinchao's ability to access and potentially extract portions of the previously disclosed mineral resources on its remaining mineral tenure. Under National Instrument 43-101, Sinchao was required to file, within 45 days of that date, a new technical report supporting its disclosure of the revised mineral resource. Sinchao has not yet filed the required technical report and is in default of its filing requirements. The issue with the prior technical report was brought to Sinchao's attention by the Ontario Securities Commission as part of its review of Sinchao's disclosure record which review was being conducted in connection with its application to become a reporting issuer in Ontario.
Andean American and its subsidiary, Sinchao, believe that the updated technical report will show a material reduction in the estimated inferred resources on the Sinchao Property, however it will not be possible to accurately quantify the magnitude of such reduction until Scott Wilson completes its work. Until this review is complete neither Andean American nor Sinchao can confirm what, if any, resource is contained on the Property and for this reason the mineral resource contained in the October 30, 2008 technical report should no longer be relied upon.
Sinchao anticipates that it will be in a position to file a new National Instrument 43-101 compliant technical report by mid-April, 2012.
About Sinchao
Sinchao Metals Corp. is focused on the exploration and development of the Sinchao Gold-Silver-Copper property, located in Cajamarca province in Northern Peru, 30 kilometers from Yanacocha, the largest gold mine in South America.
About Andean American
Andean American is an international mining and exploration company focused on value growth through the development of gold and copper projects in Peru and currently has two key assets: the 31,600 hectare Invicta gold-silver-copper advanced exploration stage project and 64.95% of Sinchao Metals Corp., owner of the Sinchao gold-silver-copper exploration project.
For further information about Andean American, please visit the Company's website at www.AAGgold.com or call 416 368 9500.
On behalf of Andean American Gold Corp.,
David Rae, President and Chief Executive Officer
Forward Looking Information
This news release may contain forward-looking information within the meaning of the Securities Act (Ontario) ('forward-looking statements'). Such forward-looking statements may include the Company's plans for its mineral projects, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of gold and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Financial Statements, Management Discussion and Analysis and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Contacts:
Andean American Gold Corp.
David Rae
President and Chief Executive Officer
416 368 9500
investors@aaggold.com
Andean American Gold Corp.
Linda Dorrington
Investor Relations
905 491 6852
ldorrington@aaggold.com
www.AAGgold.com
