Xiana Announces Exploration Success at New Near Term Production Area of Mina San Andres
Vancouver, September 26, 2019 - Xiana Mining Inc. (TSXV: XIA) ("Xiana" or the "Company") is pleased to announce an exploration success at the San Andres production development tunnel at Minera Altos de Punitaqui ("MAP").
The 4.5-metre by 4.5-metre development tunnel at our San Andres project intersected well mineralised copper sulphide mineralisation after 324 metres of ramp development. Continuation of this ramp to the south and to depth will generate sulphide feed material that can be directly dispatched to our central 3,600-tonne-per-day milling complex situated 25 km to the south. The San Andres body is recognised as the upper section of the Cinabrio mine that is currently in active production. The top of the Cinabrio body was offset 600 metres to the west by a low angle fault.
Development of Mina San Andres has been at the core of Xiana's strategy since acquiring MAP in November 2018 and aims to add to the production base through organic growth within our own properties.
The mineralised material at San Andres is hosted in a sub-vertical stratabound sedimentary sequence within a volcanic package of andesites and volcaniclastics. Mineralisation is well contained within this sedimentary package. The results come following 6 months of detailed mapping and structural evaluation of the Punitaqui district that has allowed Xiana to develop a comprehensive geological model of the geochemical and structural evolution of these deposits in the Punitaqui district.
The Cinabrio orebody has been in production for 9 years and is predominantly comprised of Cu-Ag mineralisation. We are currently encountering Cu-Au mineralisation associated with potassic alteration lower down in the system. The lower parts of the Cinabrio orebody will be subject to a 5,000-metre underground drill program to further test the extent of the Cu-Au mineralisation.
A 10,000-metre drill program will commence in October 2019 from surface platforms on the extensions of the deposit to the south of the ramp development at San Andres. This is in conjunction with the resource drilling that has already commenced at Cinabrio earlier this year in relation to the legacy blocks.
Figure 1: Isometric view of mining blocks and projections at the San Andres-Cinabrio Projects. Note: Total drilling to 2018 includes drilling under previous ownership.
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/1474/48180_03a4927114fda900_002full.jpg
Carlos Ballon, Chairman & CEO, commented, "We are extremely encouraged by this exploration success at Mina San Andres. The development and commencement of production at San Andres in the near-to-medium term will add to MAP's production profile and enhance cash flow potential through organic expansion. We continue to believe in the district wide potential of MAP and the positive results from San Andres are a testament to the high-quality geological model developed by the team that now provides a pathway towards detailed drilling and exploration. We continue to deliver on our strategy of transitioning Xiana to a mid-tier copper producer in the medium term."
San Andres QA/QC
During 2017, 2,606.52 metres of NQ diamond drill holes were completed in 7 holes, SAS-17-01 to SAS-17-07. These were assayed at the in-house laboratory that is not ISO17025 certified. A total of 360 primary samples and 67 control samples are being dispatched to ALS laboratories in Chile.
Qualified Person
The technical information contained in this news release has been reviewed and approved by Robert Baxter (FAusIMM), a Director of Xiana Mining Inc. and a qualified person as defined by National Instrument 43-101. Mr. Baxter is not independent of the Company.
About Xiana Mining Inc.
Xiana Mining is a TSX Venture Exchange listed mining company focused on its producing operations and development properties in Region IV, Chile. Xiana acquired 100% ownership of Minera Altos de Punitaqui ("MAP") from Glencore plc in November 2018. MAP is comprised of four producing copper-gold mines, a 3,600 tpd concentrator and associated infrastructure.
Since the closing of the acquisition, Xiana has advanced an optimisation plan aimed at reducing costs, extending mine life and improving profitability.
MAP owns a total land package of 11,838 hectares in Region IV comprised of exploration and exploitation concessions. Xiana is focussed on proving up the district-scale potential of MAP's properties that will continue to provide sustainable feed for the concentrator and provide sustainable and increased production growth in the medium term at low cash costs.
Xiana is also engaged in the ongoing evaluation of producing and development stage mineral resource opportunities on an ongoing basis. The Company's common shares are listed on the TSX Venture Exchange under the symbol XIA. For more information about the company please visit www.xianamining.com
ON BEHALF OF THE BOARD OF DIRECTORS OF
XIANA MINING INC.
Carlos Ballon
Carlos Ballon, Chairman & CEO
For further information please contact:
Tony Drescher (Chief Financial Officer)
Telephone: +1 (604) 685-1017
E-mail: ajd@harbourpacific.com
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.
Forward Looking Statements
This press release may contain forward looking statements within the meaning of applicable Canadian securities legislation, including without limitation statements concerning future plans and objectives or expected results. Although Xiana believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Xiana can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors. There is no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward looking statements. Accordingly, readers should not place undue reliance on forward looking statements. The forward-looking statements contained in this press release are made as of the date hereof and Xiana undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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