AndeanGold Authorized to Recommence Exploration Program Curiplaya Au-Cu Project, Ecuador
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/24/12 -- AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE: AAU) is pleased to announce that the Ministry of Non-Renewable Natural Resources ("MRNNR") of Ecuador has approved the Company's application to restart exploration programs on its Curiplaya Au-Cu Project ("Project"), which is valid for the initial advance exploration phase of the Project pursuant to the new Mines Law. The Company may commence activities once it provides the Ministry of Environment with a performance bond, which is the only remaining prerequisite to the Company obtaining its environmental license. The Project is located in the "Dynasty Copper-Gold Belt" in Loja Province, southwest Ecuador, approximately 140 kilometres to the west of the city of Loja, the capital of the province. In April 2010, the Company received new mining titles to its three key Ecuadorian concessions, an important prerequisite of the new Mines Law.
Mr. Anthony F. Ciali, President & CEO states, "We are extremely pleased to have received the MRNNR's authorization to resume exploration activities on the Curiplaya Project. The Company continues to pursue similar authorization for its two other projects in Ecuador - Molleturo and San Bartolome. We look forward to following up on the Curiplaya exploration programs which had to cease in April 2008 due to the Mining Mandate issued by the Ecuador Constituent Assembly. In particular, the Company will initially focus on advancing the West Zone's epithermal breccia gold target."
The Curiplaya Project, covering approximately 3,964 hectares, contains Au-Cu and Cu-Au porphyry targets and an epithermal breccia gold target. A NI 43-101 Report on the Project was prepared by ACA Howe International in August 2006 in connection with the Company's initial listing on the TSX Venture Exchange. There is good infrastructure in the Project area with a branch of Pan American Highway running through the concessions and a power line running alongside the highway.
In 2007, AndeanGold initiated an exploration program over the Core Zone Au-Cu porphyry target entailing geological mapping, soil grid sampling, trenching, and induced polarization (IP) and ground magnetic surveys. This was followed by a diamond core drill program of approximately 7,200 metres, the results of which confirmed a large area of strong, porphyry-style hydrothermal alteration carrying widespread anomalous copper, gold and silver values. (See news release of September 19, 2007)
In 2008, exploration programs were focused on:
Limon Zone: Cu-Au porphyry target
Three soil grid anomalies were discovered based on a soil grid covering an area of 2,200 x 3,500 metres, within which a total of 417 soil samples were taken along 12 grid lines at 100-metre spacings. Two of the anomalies were related to Cu-Au porphyry mineralization and a third anomaly was related to structurally controlled skarn polymetallic mineralization.
West Zone: Epithermal breccia gold target
A 500x600metres soil grid discovered epithermal gold mineralization and a newly defined soil gold anomaly, covering 150 x 200 metres overlaying a body of gold-bearing intrusive/hydrothermal breccia some 150 meters long and 125 meters wide. Initial trenching of the soil gold anomaly returned continuous channel sample (2m intervals) assays in two trenches of (See news release of February 28, 2008):
22.0 metres grading 4.74 g/t Au and 1.31 g/t Ag
41.7 metres grading 3.70 g/t Au and 1.71 g/t Ag.
All follow up exploration work on the Limon and West Zones had to cease in April 2008 when the Ecuador Constituent Assembly issued a Mining Mandate, which provided for the suspension of exploration activities in Ecuador until a new Mines Law was enacted.
Dr. William F. Lindqvist, a director of the Company, is a Qualified Person for all technical information in this news release 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 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.
Dr. William F. Lindqvist, a director of the Company, is the Qualified Person in compliance with National Instrument 43-101 with respect to this release.
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.
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