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 ASX; AND
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Company Statement
Andean Resources is a dual listed public company (ASX:AND) (TSX:AND) focused on finding precious metal resources, starting in the Andes with its 100% owned Cerro Negro epithermal gold deposit, which was acquired from Oroplata Limited in June 2004.
The project, which is located in the southern Argentinean province of Santa Cruz at an elevation of approx 800m above sea level, contains a gold resource of about 3.2 million ounces and 25 million ounces of silver (as of March 2010). Andean believes Santa Cruz is under-explored for precious metals and provides significant exploration potential within a mining friendly province in Argentina. In order to expand its precious metals resources base, Andean will continue to aggressively explore this virgin terrain in order to meet the increasing global demand for precious metals.
Current Operations
PROJECTS:
Cerro Negro Gold Project
Cerro Negro is an advanced stage gold exploration project on the low level Patagonian plains in the southern Argentinean province of Santa Cruz. Project infrastructure is excellent with access to the property via 54 km of bitumen and 80 km of gravel roads from the nearest provincial town of Las Heras (110km NE) which provides the local on-shore oil fields located in Santa Cruz with basic manufacturing and service facilities. The main regional centre of Comodoro Rivadavia (pop. 140,000) has port and airport facilities and is situated 160km north east of Las Heras. As of March 2010, the project contains a JORC and NI 43-101 compliant resource of 3.2 million ounces of gold and 25 million ounces of silver.
Andean is currently completing a Bankable Feasibility study (expected in June 2010) and plans to be in production by mid-2012. It is anticipated that average annual production will be approximately 250,000 ounces of gold, with cash costs less than $200 per ounce. The move to production will be done in parallel with the on-going exploration program.
Eureka Vein
The Eureka West Veins are on the western end of the Company’s 100% owned Cerro Negro project (approximately 250 square kilometres in size) in Santa Cruz province, southern Argentina. Based on all the infill and exploration drilling completed at Eureka up to April 14, 2009, Andean released an updated resource estimate on June 9, 2009 with the following highlights:
Updated independent Resource Estimate for Eureka Veins delivers:
• a 38% increase in the Indicated gold Resource to 1.4M oz Au; and
• a 20% increase in the global gold Resource at Eureka
Bajo Negro
The Bajo Negro vein, discovered less than a year ago, is located adjacent to the Silica Cap hill at Cerro Negro and is within 2 kilometers of the Vein Zone deposit in the south eastern portion of the Company’s property. Since then, Andean has drilled 117 holes in the vein, of which 105 were diamond core holes and 12 were reverse circulation holes. To-date, the Bajo Negro vein has been defined by drilling over a strike length of almost 1.2 kilometers and has an average true width of 3.9 meters and a known vertical extent of up to 300 meters. The vein remains open along strike and at depth.
At a 3.0g/t Au cutoff the Bajo Negro resource included 1,695,000 tonnes at an average grade of 10.10 g/t Au and 23.4 g/t Ag, totaling 551,000 ounces of gold and 1.3 million ounces of silver.
Discovery of Mariana Norte and Mariana Central
Discovery of the Mariana Norte, and Mariana Central vein systems located 4 to 6 kilometers northeast of the Eureka deposit has lead to a focused drill program that is defining the shape and extent of these potential ore bodies.
San Marcos
As of mid-April 2010, Andean has completed 4,994 meters in 24 holes on the San Marcos veins located just 1.2 kilometers north of the Mariana Norte vein system. The San Marcos target is comprised of at least two sub-parallel veins that strike 290° and dip nearly vertical, as currently tested. The Company has defined mineralization in the vein for at least 500 meters along strike and from 100 meters to 250 meters down dip based on assay results. Mineralization can approach 10 meters in true width, but average 4.4 meters true width based on current drill results. Initial grade times horizontal thickness long section interpretations show the mineral body plunging 20° to 30°E and open to the surface, to depth and to the east.
Vein Zone
The Vein Zone estimate is based on 100 holes which have intersected this zone to date. Assuming an open-pit scenario and using a cut-off grade of 1.0 g/t Au, Micon has estimated an indicated resource of 4.6 million tonnes with an average grade of 3.7 g/t gold, or 554,000 ounces of gold; in addition Micon has estimated an additional inferred Resource of 4.3 million tonnes with an average grade of 2.7 g/t gold for 367,000 ounces of gold. Silver grades at Vein Zone were not considered economically significant and consequently were not incorporated in the resource at this time.
The resource estimate was based on three major geologic domains: the Main quartz vein, the lower quartz vein and a broad envelope of quartz stockwork. Mineralization was restricted within these domains and statistics were developed for each of these zones separately. Individual one meter composites were capped at 35 g/t Au within the Quartz Vein domain, and the composites within the Stockwork domain were capped at 10g/t Au.
Mariana Sur
Epithermal quartz fissure veins occur within the southwestern portion of the Mariana Sur prospect area, developed over a presently recognized 200 m wide by 700 m long, northwest-trending structural corridor, about 3km east of the Eureka vein system. These en-echelon veins represent high-level, structurally controlled mineralization within the Eureka-Mariana volcanic-hosted, low sulfidation, epithermal system. The veins display massive, brecciated and locally banded structures, range up to two meters in thickness on the surface, and are hosted within andesitic volcanic breccias.
REGIONAL EXPLORATION
Andean has been proactive in expanding its regional interest in Santa Cruz province and holds options to purchase 100% interests in 3 prospective gold exploration licences, namely, Las Mellizas, La Esperanza and San Augustin. At Las Mellizas, which is located approx. 120km south east of Cerro Negro, exploration by previous explorers Rio Tinto and IAM Gold was successful in delineating several epithermal vein structures (some with "bonanza grades ) over 900 meters of strike and to a depth of 150 meters.
Andean did not significantly advance these properties due to the need to define resources on other targets especially the Eureka West, Bajo Negro and Vein Zone.
Las Melliza
Reconnaissance by Andean Resources has confirmed high-grade values within the T12 structure with up to 526.15g/t Au and >200g/t Ag being reported from a surface sample.
It is interpreted that these results suggest that that the vein structure pinches and swells along strike and down-dip. Five other vein structures were also drill-tested, but often by only one drill-hole each, and generally returned anomalous but not high-grade results.
Due to the focus on investigating the potential for bulk-tonnage mineralization, areas with potential for high-grade mineralised structures have not been explored in detail by the work to-date. The potential within these structures is for shoots of high-grade gold mineralization exploitable by underground methods.
La Esperanza
Initial exploration by Pegasus Gold proved sufficiently encouraging for them to drill 17 reverse circulation holes (506m). In 1998 the property was joint ventured to IAMGold who completed further mapping, geochemical sampling, trenching (>5,000m) and 23 core drill holes (4,153m). The results of this work has identified what has been described as a classic epithermal system centred on the Cerro Guanaco domal feature, and with the Cerro Tornillo breccias, the T7 Vein and Veta Sur vein structures representing different levels within the epithermal system.
San Augustin
Work has identified the presence of a weakly mineralized epithermal system with low-grade gold values hosted by both quartz veins and quartz stock works. These results have lowered the property for receiving extensive funding in 2007. It is noted however that the work to-date has been focused over only a part of the tenement block. Interpretation of satellite imagery suggests the presence of vein structures outside of that area. These potential structural trends need to be prospected in the future.
Geographical Spread
Argentina
Board of Directors and Key Management
| Louis Gignac | (Chairman) |
| Wayne Hubert | (Managing Director) |
| Charles Winograd | (Non Executive Director) |
| Ian Hume | (Non Executive Director) |
| Barry Bolitho | (Non Executive Director) |
| Richard Lorson | (Non Executive Director) |
| Chuck Wonograd | (Non Executive Director) |
| Richard Leclerc | (VP Operations) |
| Christopher Van Tienhoven | (Country Manager, Argentina) |
| William Wulftange | (VP Exploration) |
| Krista Muhr | (Director, Investor Relations) |
Company Address200 Civic Center Drive #200
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Capital462.4 million ordinary shares
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Major Shareholders
| The Sentient Group – 21% |
| Goodman & Company – 8% |
Related News
24/02/10 - Andean Resources Closes In On The Completion Of A Bankable Feasibility Study On Its Cerro Negro Gold Project In ArgentinaMost Recent Statement
30/07/10 - Quarterly Activities and Cashflow Report23/07/10 - Agreement with a Syndicate of underwriters
22/07/10 - Placement
22/07/10 - Trading Halt
20/07/10 - Progress Report - Mariana Central
07/07/10 - Positive Feasibility Study Results for Cerro Negro Project