Andean Issues Update on Santa Rosa Gold Property, Peru.Business Editors VANCOUVER, British Columbia--(BUSINESS WIRE)--May 2, 2002 Andean American Mining Corp. ("Andean" or The "Company") is pleased to provide an update on its 100% owned Santa Rosa Santa Rosa, city, Argentina Santa Rosa, city (1991 pop. 80,629), capital of La Pampa prov., central Argentina. It is a modern city and road junction surrounded by a rich agricultural and cattle-raising area. Property, Peru. The Santa Rosa Property which recently commenced commercial gold production is comprised of 13,440 hectares (32,830 acres) located approximately 550 kilometres southeast of Lima, within the Southern Intercordillian Gold Belt of the Peruvian Andeas. The Company is currently mining the high grade Santa Rosa Dome, which is one of 19 mineralized min·er·al·ize v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es v.tr. 1. To convert to a mineral substance; petrify. 2. To transform a metal into a mineral by oxidation. 3. gold anomalies identified to date. Fourteen of these occur within a 15 kilometre long by 4 kilometre wide mineralized zone that is coincident co·in·ci·dent adj. 1. Occupying the same area in space or happening at the same time: a series of coincident events. See Synonyms at contemporary. 2. with the regional Matara Fault. With 25% of the positive cash flow the Company is expecting from its mining activities at the Santa Rosa Dome, Andean American plans American plan n. Abbr. AP A system of hotel management in which a guest pays a fixed daily rate for room and meals. Noun 1. to aggressively explore these other anomalies as well as commence a "grass roots grass roots pl.n. (used with a sing. or pl. verb) 1. People or society at a local level rather than at the center of major political activity. Often used with the. 2. The groundwork or source of something. " exploration program on other areas of the Santa Rosa Property, which remains 95% unexplored. The Santa Rosa Dome The Santa Rosa Dome comprises 3 high grade surface zones within an area of interest of 700 metres by 450 meters. The first zone currently being mined is the Open Pit Zone which is a structurally controlled high grade epithermal gold-silver deposit. Current exploration and pit development has identified this zone approximately being 400 meters long by 250 meters wide and over 50 metres deep averaging over 3.0 grams per tonne (g/t) gold and over 40 g/t silver. The Northeast Zone and the North Zone are both within 200 meters of the Open Pit Zone having similar grades. All three zones remain open in all directions as well as at depth. The oxides are the focus of forseeable mining activities. However, sulfides were first encountered in quantity (15%) at 3928 elevation (of 3,240 metric tonnes - 2000 were oxides, 500 were sulfides and 740 waste). Andean American is currently mining the Santa Rosa Dome at a rate of approximately 900 tonnes per day ("tpd"). The first stage of the planned expansion to 3,250 tpd will take place next quarter, with 2,000 tpd as the production objective. With the expansion to 2,000 tpd, the Company expects to produce more than 12,000 ounces of gold quarterly with an average cash cost of less than $110.00 per ounce net of silver credits. Since 1997, the Company has completed over 14,000 meters of RC drilling in 143 RC drill holes in the southern central part of the Property on the Santa Rosa Dome. Future plans include additional RC drilling on targets listed below as well as a deeper diamond drilling Diamond Drilling is a highly specialized industry used for mineral exploration around the world. Most commonly using wireline and core bits with diamond encrusted matrix. To drill holes to max depths of twelve thousand feet, for the recovery of core used in verifying mineral program on the Santa Rosa dome. The Carelo Dome The second zone to receive detailed exploration is the Carelo Zone (see news release dated March 7, 2002), which has revealed similar geology and grades as the Open Pit Zone. The Carelo Zone has been identified with surface mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. averaging greater than 1 g/t gold within a 140 by 160 metre area which remain open in all directions. The Carelo Zone has the potential to contain a similar sized deposit as the Open Pit Zone but the ultimate tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. and grade have yet to be determined. The Carelo Dome is only 1.1 kilometres from the Property's crushing facility. Further exploration is planned to prove up a greater surface area followed by an RC drilling program in the fall. The Virundo Dome The Virundo Zone is the largest surface anomaly identified to date at the Santa Rosa Property. Approximately 2.2 km by 1.1 km, Virundo is host to a thick sequence of the Cretaceous-aged Ferrobamba limestones and has the shape of an elongated e·lon·gate tr. & intr.v. e·lon·gat·ed, e·lon·gat·ing, e·lon·gates To make or grow longer. adj. or elongated 1. Made longer; extended. 2. Having more length than width; slender. antiform. In October 2000, trenching exposed a large area of strong argillic/siciceous alteration. This area measures 1,200 metres by 900 metres and remains open in all directions. Virundo is a significant target for detailed exploration as similar mineralization to the Santa Rosa Dome has been encountered throughout the trenching, exploration pits and adit exploration program. An area of 1,200 meter by 900 meters, open in all directions identified from the fall 2000 field exploration program will be followed up in third quarter 2002. Future exploration Management has targeted 25% of future cash flow from the mining operation at Santa Rosa towards exploration. As profits are projected to increase over the coming years the exploration program will grow accordingly. The Company envisages that ultimately there will be a team dedicated solely to the exploration of the approximately 13,000 hectares of virgin land within the Santa Rosa Property. These future exploration programs will then be directed to the mineralized targets within the volcanics, sandstones/quartzites, and intrusives as well as the remaining targets within the limestones. Future exploration will be performed in a similar fashion as the current exploration, which involves the following stages that have been completed and are programmed should future results warrant: -- initial reconnaissance to prove the validity of the target -- initial widely spaced sampling to verify the potential of the target -- detailed mapping -- detailed sampling utilizing hand dug and mechanized trenching -- follow-up sampling and the delineation of the deposit -- definition and preparation of drill targets -- drilling -- calculation of resources -- in-fill drilling Andean American's objective is to create shareholder value through low cost mine development. At Santa Rosa, through higher process rates and continued process refinements the aim is to have production costs in the lowest quartile Quartile A statistical term describing a division of observations into four defined intervals based upon the values of the data and how they compare to the entire set of observations. Notes: Each quartile contains 25% of the total observations. for the industry. While the mine is still in the pilot plant phase this is seen as a realistic goal as Peru is host to two of the world's lowest cost producers of gold, Yanacocha and Pierina - both of which are high altitude Conventionally, an altitude above 10,000 meters (33,000 feet). See also altitude. heap leach operations. To find out more about Andean American Mining Corp. (CDNX CDNX See Canadian Venture Exchange (CDNX). : AAG AAG Association of American Geographers (Washington, DC) AAG Assistant Attorney General AAG Asociación Argentina de Golf AAG Anti-Aircraft Gun AAG Assistant Adjutant General AAG Australian Association of Gerontology ), visit our website at www.andeanamerican.com For further information, please contact: John Devlin at 1-866-885-0484 and jdevlin@andeanamerican.com or the Company at: (604) 681-6186 or toll free: 1-888-356-4784 and email: info@andeanamerican.com On behalf of Andean American Mining Corp., "John F. Huguet" John F. Huguet President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. This news release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding upcoming work programs and events. Actual results may differ materially from those anticipated in such statements. The TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion