AndeanGold Announces Approval of Drilling Permit for Urumalqui Au-Ag Project, Peru
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/16/11 -- AndeanGold Ltd. ('the Company' or 'AndeanGold') (TSX VENTURE: AAU) is pleased to announce that Peru's Ministry of Energy and Mines has issued the approval voucher of the Company's Declaration of Environmental Impact Study ('DIA') application for its advanced-stage Urumalqui Au-Ag exploration project (the 'Project') in Peru. The Company is earning a 60% joint venture interest in the Project from Gitennes Exploration Inc. (See news release of April 22, 2010).
The DIA authorizes the Company to initiate a proposed Phase I infill drilling program (the 'Program') on the Project. The Program will focus on infill drilling to a depth of 200 meters along the central and southeastern segments of the Urumalqui Vein, which cover 1.0 kilometre of the 1.5 kilometre Urumalqui Vein outcrop where the majority of the Project's historical drilling programs were concentrated. Based on a review of the Project's historical geological information, the Company has increased the Program from 2,000 metres to approximately 3,000 metres of diamond core infill drilling, which is intended to produce an overall drill hole spacing of approximately 50 metres over the 1.0 kilometre vein strike, to a depth of 200 metres. This level of drilling density should optimize the results of a NI 43-101 resource estimate, which the Company plans to commission upon completion of the Program.
The Company has signed water assignment agreements with several surface owners in the Project area who have water rights sufficient to support the proposed Program. The Company has applied for a water permit with the Peruvian Local Water Authority ('ALA') for the utilization of the assigned water rights. The granting of the water permit is dependent on an approved DIA, and the Company expects now to receive the water permit from ALA by the end of February 2011.
A Lima-based drilling company has been selected to complete the Program, and a drilling contract should be concluded in time to initiate the Program during March 2011.
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
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. - Corporate Office
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 Toll Free: 1.866.684.4743 ext. 225
jim@ascentacapital.com