Andeangold Announces Initiation of Metallurgical Test Program Urumalqui Advanced-Stage Ag-Au Project, Peru
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/12/12 -- AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE: AAU) is pleased to announce that it has engaged G&T Metallurgical Services Ltd. ("G&T") of Kamloops, B.C., to carry out metallurgical test work on the Company's Urumalqui advanced-stage Ag - Au Project ("Project") in Peru. Mine and Quarry Engineering Services Inc. ("MQes") of San Mateo, CA, has also been engaged to oversee the metallurgical testing program (the "Program"). MQes prepared the initial NI 43-101 compliant inferred mineral resource estimate (the "Estimate") for the Project, which was released in November 2011 (see news release dated November 15, 2011). Pursuant to the Estimate, the Project, at a 90 g/t Ag cutoff grade, contains an inferred mineral resource of:
1,945,000 tonnes at 171.01 g/t Ag (10,692,000 ounces) and 1.378 g/t Au (86,200 ounces).
The Estimate was, in part, predicated on very preliminary historical metallurgical test work data ("Data"). The objective of the Program is to expand on the Data with a view to modifying and updating the Estimate to reflect any improvement in metallurgical response, especially with respect to silver. In preparing the Estimate, MQes assumed a 65% silver recovery rate based on the available Data.
Mr. Anthony F. Ciali, President & CEO of AndeanGold, states, "We are very pleased to initiate a more detailed metallurgical testing program on the Urumalqui Project in an effort to produce an updated mineral resource estimate for the Project. Also, in this regard, we have completed a detailed surface channel sampling program over the entire 1.5 kilometre Urumalqui Vein outcrop. Assay results will be available in April 2012 and will be incorporated in the updated estimate. Our objective is to produce an updated mineral resource estimate for the Urumalqui Project, reflecting higher contained ounces of silver and an Indicated resource classification component."
G&T operates a modern, well-equipped mineral processing research and development complex and is highly regarded in the mining industry. G&T offers a wide range of metallurgical and analytical services to assist major to junior mining companies in developing milling processes or improving the efficiencies of existing processes.
Urumalqui Project
AndeanGold Ltd. has the right to earn a 100% interest in the Urumalqui Project from Gitennes Exploration Inc. ("Gitennes") pursuant to an existing 60% Option Agreement between the parties dated April 21, 2010 (see news release dated April 22, 2010), and a Memorandum of Understanding (the "MOU") wherein, pursuant to a Share Sale and Mining Agreement (the "Agreement"), AndeanGold has the right to acquire Gitennes' remaining 40% interest in the Project (see news release dated January 23, 2012). It is expected that the Agreement will be signed by the parties in April 2012.
Mineralization at the Urumalqui Project is hosted in volcanics and is comprised of several gold-silver quartz veins. Vein mineralogy and textures and associated alteration are characteristic of low-sulphidation, vein-style, epithermal mineralization. The principal target on the property, among several mineralized vein structures, is the Urumalqui Vein (the "Vein"), which is a near-vertical feature, up to 20 metres wide, containing a core of one or two banded quartz veins ranging from 0.5 to 11 metres aggregate thickness, and intervening oxidized vein breccias and altered volcanic rocks. The Vein is exposed at surface over a strike length of 1,500 metres.
As stated in MQes' Estimate report, "The exploration potential of the Urumalqui Vein is good. Exploration results show that the known Vein mineralization may continue along its trend in both strike directions and to depth along its entire known length." Six drill holes have intersected the structure 200 metres below surface, and all six were mineralized. In addition, there has been only limited exploration done on the Project's other mineralized vein structures identified to date.
The majority of Gitennes' drilling programs (2003 - 2008) was focused on the Urumalqui Vein (35 diamond core holes, 5,835 metres) and in particular, along the 1,000 metre long central and southeastern segment of the Vein (27 diamond core holes,4,884 metres) and from the surface down to about 200 metres vertical depth. In the few holes that were deeper than 200 metres, the Vein structure remained strong and mineralized. All holes appear to have been in the "boiling zone," based upon vein textures, and the potential for good mineralization at deeper levels than those tested thus far is considered to be good.
AndeanGold completed its Phase I infill drill program (the "Program") at the Project in July 2011. The Program was focused on infill drilling to a depth of 200 metres so as to provide a drill spacing of approximately 50 metres along the 1,000 metre long central and southeastern segments of the Vein. The Program comprised 31 diamond core holes for a total core length of 5,071 metres. All 31 completed holes intersected the Urumalqui Vein as predicted in cross sections prepared by the Company. Including Gitennes' related drilling results, the Program confirmed good continuity of mineralization for the subject 1,000 metre Urumalqui Vein strike, down to 200 metres below surface.
The Company is committed to advancing the Urumalqui Project to the development stage as soon as practicable, as well as actively working with the local communities related to the Project. AndeanGold has had excellent community relationships and is working on several agreed to social projects for the benefit of the communities.
Dr. William F. Lindqvist, a director of the Company, is a Qualified Person for all technical information in this news release, excluding the mineral resources, in compliance with National Instrument 43-101 and has reviewed and approved the content of this release.
About AndeanGold Ltd.:
AndeanGold Ltd. is engaged in the acquisition, exploration and potential development of primarily precious metals properties, principally in Peru and Ecuador. The focus of the Company's exploration activities is presently in advancing its Urumalqui Project, as well as pursuing mineral property acquisitions, in Peru. In Ecuador, the Company's activities have been limited to administrative and legal matters due to the Mining Mandate issued by the Ecuador Constituent Assembly on April 18, 2008. In November 2009, President Correa signed the Mining Regulations into law pursuant to the requirements of the new Mines Law, which was passed in January 2009. This was the final legal precursor to the re-initiation of exploration and mining development in Ecuador. The Company has been issued new mining titles under the new Mines law to its three key Ecuadorian projects and has filed the requisite documents with the Ministry of Non-Renewable Natural Resources and Ministry of Environment in support of the Company's request to renew exploration programs on its key projects in Ecuador. The Company is actively working with government officials to achieve this end.
Please refer to AndeanGold's website at www.andeangoldltd.com for further information on the Company's projects and activities.
On Behalf of the Board of Directors of ANDEANGOLD LTD.
Anthony F. Ciali, President, CEO and Director
Neither the 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 release.
Contacts:
AndeanGold Ltd. - Corporate Office
Tony Ciali
President, CEO and Director
732.940.5487
tciali@andeangoldltd.com
www.andeangoldltd.com
Ascenta Capital Partners Inc.
Jim Glass
Investor Relations
604.684.4743 ext. 225 or Toll free: 1.866.684.4743 ext. 225
jim@ascentacapital.com
