AndeanGold Announces Encouraging Surface Channel Sampling Assay Results Urumalqui Advanced-Stage Ag-Au Project, Peru
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/29/12 -- AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE: AAU) is pleased to announce that it has received very encouraging assay results for a recently completed surface channel sampling program (the "Program") over the Urumalqui Vein on the Company's Urumalqui advanced-stage Ag - Au Project (the "Project") in Peru. The Program involved trenching the entire Urumalqui Vein (the "Vein") outcrop at 25 metre intervals, with each trench dug sufficiently deep to fully expose the Vein for channel sampling purposes. Continuous channel samples, averaging 1.0 metres and ranging from 0.50 metres to 1.8 metres, were taken utilizing a portable rock saw. In total, the Program covered 1,650 metres of the Vein outcrop, which includes the 1,000 metre SE Vein outcrop that was subject to a 5,071 metre infill drilling program completed by the Company in July 2011 (see news release dated August 9, 2011) and a 650 metre NW Vein outcrop extension where there has been only limited past drilling activity - eight widely-spaced drill holes.
A summary of the Program's trench assay results is, as follows:
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AVERAGE
OUTCROP FROM - TO WIDTH AG AU AGE AGE
(metres) (A) (metres) (g/t) (g/t) (g/t) (oz/t)
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URUMALQUI VEIN 1650 950S - 700N 2.35 77.79 2.24 190.04 6.11
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- SE SECTION 1000 950S - 050N 1.86 99.98 1.6 180.17 5.79
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- NW SECTION 650 050N - 700N 3.23 58.03 2.82 198.82 6.39
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- NW SECTION -
INCLUDING 500 050N - 550N 2.66 82.46 4.21 292.94 9.42
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AGE: Equivalent ounces of silver based on a gold to silver ratio of 50:1 and
assuming 100% recoveries.
oz/t: Ounces per metric tonne.
(A) Click here for an updated Urumalqui Vein Longitudinal Section for all drill hole and trench locations: http://www.andeangoldltd.com/i/pdf/Urumalqui_Long_NW-SES.pdf.
See table below for highlight trench assay results.
The assay results for the 550NW - 700NW section of the Vein outcrop were of lower overall tenor (approximately 1.0 g/t Au and 26.1 g/t Ag) than the more robust assay results for the initial 500 metres of the NW Vein outcrop, as noted above. In particular, the gold grade results for the 500 metre NW outcrop section were consistently higher than those for the 1,000 metre SE outcrop section and contained some of the highest gold grades reported at the Project.
Of additional interest, there was generally good correlation between the trench assay results and the underlying drill assay results, especially within the 1,000 metre SE Vein section, which was the focus of the Company's 2011 infill drilling program.
Mr. Anthony F. Ciali, President & CEO, of AndeanGold states, "We are extremely pleased with the results of the surface channel sampling program of the Urumalqui Vein, which generally exceeded our expectations. The Program was undertaken, principally, in connection with the Company's plan to produce an updated NI 43-101 mineral resource estimate for the Project, as well as to obtain additional geological data for the NW Vein outcrop for purposes of planning future drilling programs. In April 2012, the Company engaged G&T Metallurgical Services Ltd. ("G&T") of Kamloops, B.C., to carry out metallurgical test work on the Project, which is presently underway (see news release of April 12, 2012). Our objective is to incorporate the trench and metallurgical test program results in an updated NI 43-101 mineral resource estimate, reflecting probably higher contained ounces of silver and an 'Indicated' resource classification component."
Mine and Quarry Engineering Services Inc. ("MQes") of San Mateo, CA was also engaged to oversee the metallurgical testing 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)
As stated in MQes' Estimate report, "The exploration potential of 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.
AndeanGold Ltd. has the right to earn a 100% interest in the Urumalqui Project from Gitennes Exploration Inc. ("Gitennes") pursuant to an existing Option Agreement (the "60% Option") between the parties dated April 21, 2010 (see news release dated April 22, 2010) and a definitive Share Sale and Mining Agreement between the parties dated May 17, 2012, giving AndeanGold the right to acquire Gitennes' remaining 40% interest in the Project (see news release dated May 23, 2012).
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.
All of the trench samples were submitted to the independent ALS Laboratory in Lima, Peru for assaying. A total of 345 samples were submitted, inclusive of standards, blanks and duplicates in connection with the Company's QA-QC Program.
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
URUMALQUI PROJECT
HIGHLIGHT TRENCH CHANNEL SAMPLING ASSAY RESULTS - URUMALQUI VEIN
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WIDTH AU AG AGE AGE
TRENCH ID (metres) (g/t) (g/t) (g/t) (oz/t)
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SE SECTION
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TRUR-825S 0.80 1.34 499.00 565.75 18.19
TRUR-625S 1.85 1.28 404.00 467.99 15.05
TRUR-600S 1.50 2.75 180.00 317.50 10.21
TRUR-575S 1.20 3.02 224.00 375.00 12.06
TRUR-475S 1.00 5.38 78.50 368.50 11.85
TRUR-375S 1.20 0.82 188.00 229.15 7.37
TRUR-250S 2.00 1.24 293.50 355.50 11.43
TRUR-200S 3.40 5.04 241.22 493.29 15.86
TRUR-125S 2.25 2.02 197.78 298.89 9.61
TRUR-100S 4.80 1.96 176.16 274.26 8.82
TRUR-050N 2.05 4.12 25.02 230.93 7.42
TRUR-025N 1.80 4.25 18.27 230.82 7.42
NW SECTION
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TRUR-075N 2.40 12.60 81.31 711.38 22.87
TRUR-100N 4.30 2.64 75.08 206.93 6.65
TRUR-125N 1.45 3.35 63.44 230.87 7.42
TRUR-150N 5.20 5.13 62.23 318.64 10.24
TRUR-200N 3.00 3.48 58.40 232.40 7.47
TRUR-225N 2.00 3.15 59.45 216.70 6.97
TRUR-250N 3.20 3.57 200.41 378.94 12.18
TRUR-275N 2.30 6.63 63.62 394.95 12.70
TRUR-325N 1.12 18.00 415.00 1315.00 42.28
TRUR-350N 2.90 4.63 66.07 297.45 9.56
TRUR-425N 2.10 3.20 61.07 221.08 7.11
TRUR-550N 2.00 8.95 210.00 657.54 21.14
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AGE: Silver Equivalent based on a gold to silver ration of 50:1 and assuming
100% metallurgical recoveries.
oz/t: Troy ounces per metric tonne.
Click here to view the Summary Table for a complete list of all trench channel sample assay results: http://www.andeangoldltd.com/i/pdf/2012_Urumalqui_TSAR.pdf.
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.
Tony Ciali
732.940.5487
tciali@andeangoldltd.com
www.andeangoldltd.com
Ascenta Capital Partners Inc.
Jim Glass
Investor Relations
604.684.4743 ext. 225 or 1.866.684.4743 ext. 225
jim@ascentacapital.com
