AndeanGold Announces Completion of Phase II Infill Drilling Program Urumalqui Advanced-Stage Ag-Au Project, Peru
Marketwired
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 17, 2013) - AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU)(AAU.V) is pleased to announce that it has completed the Phase II infill drilling program (the "Program") on its Urumalqui Advanced-Stage Ag - Au Project (the "Project") located in the Department of Libertad, Peru. The Program was completed in June 2013 and entailed 13 diamond core drill holes, amounting to 2,052.90 metres. All 13 completed holes intersected the Urumalqui Vein as predicted in cross sections prepared by the Company. The drilling was conducted by Explomin Peru S.A., based in Lima, Peru, that also completed the Company's 2011 Phase I infill drilling program on the Project.
Anthony F. Ciali, President & CEO said, "With the completion of the Phase II Program, the Company has drilled 7,123.89 cumulative metres on the Project. This is an important milestone, as the Company was required to complete 7,000 cumulative metres of drilling on the Project by July 8, 2013 in order to earn a 60% interest in the Project pursuant to the Assignment and Option Agreement (the 'Agreement') signed with Gitennes Exploration Inc. ('Gitennes') (see news release of April 22, 2010). The other two earn-in provisions of the Agreement required the Company to incur $3 million of expenses on the Project by July 8, 2014 and to issue Gitennes 80,000 common shares of the Company in installments, with the final installment of 20,000 common shares due on July 8, 2013. The Company has made the final installment payment on time, and is preparing an updated analysis of expenditures to date on the Project in support of the $3 million expense requirement."
The Program was focused on the 500 metre NW outcrop section of the Urumalqui Vein ("Vein"), where there has been only limited, wide-spaced historical drilling. The Company did not undertake any drilling on this section of the Vein during its 2011 drilling program, which was focused on infill drilling the 1,000 metre Central and SE sections of the Vein. Based on the Company's 2012 surface channel sampling of the Vein, the trench assay results for the 500 metre NW outcrop returned very encouraging results (see news release of May 29, 2012), namely:
2.66 metres average width - 82.46 g/t Ag - 4.21 g/t Au - 9.42 oz/t AGE
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.
The gold grade results for the 500 metre NW outcrop were consistently higher than those for the 1,000 metre Central and SE outcrops and contained some of the highest gold grades reported at the Project.
The Company is in the process of finalizing core logging, assay sample selections and rehabilitation of the drill sites. Assay results should be available over the coming two months.
The 2011 drilling program led to the release of a NI 43-101 Inferred Mineral Resource Estimate (the "Estimate") of (see news release of November 15, 2011):
10.692 Million Ounces Silver and 86,200 Ounces Gold
1.945 Million Tonnes at 171.01 g/t Ag and 1.378 g/t Au
In August 2012, the Company announced very positive results from a preliminary metallurgical test program on the Project, which was conducted by G&T Metallurgical Services Ltd. ("G&T") of Kamloops B.C., Canada. G&T reported up to 97% silver recovery and 96% gold recovery based on gravity and cyanidation tests (see news release of August 15, 2012). The silver and gold recoveries overall from this test work significantly exceeded the projected recovery rates in the Estimate - silver 65% and gold 85%.
The Company intends to update the Estimate based on the assay results for the Phase II drill program, as well as incorporating the results from the 2012 surface channel sampling and metallurgical test programs.
AndeanGold Ltd. has the right to earn a 100% interest in the Urumalqui Project from Gitennes pursuant to the Agreement 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.
Mr. John E. Bolaños, Vice President Exploration 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 ("MRNNR") and Ministry of Environment in support of the Company's request to renew exploration programs on its key projects in Ecuador. In September 2012, MRNNR approved the Company's application to restart exploration programs on its Curiplaya Au-Cu property.
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.
