Volcan Development
Andina's development strategy for the Volcan Gold Project is initially to build a core team of consultants, augmented as required by internal expertise. The Company started the planning and development task by appointing Micon International Limited as lead consultant in March 2009. As the development team has expanded, Andina has retained contractors and consultants that have established track records, experience in South America and have worked with development scenarios similar to Andina's.
The development team's primary activity in 2009 was advancing the Conceptual Development Study (CDS) and Preliminary Economic Assessment (PEA), delivery targeted for early 2010. The CDP and PEA will better define timelines, mining methods, process, mine design and expenditures at a conceptual level. Collection of baseline environmental data commenced in April 2009 with the view to begin the permitting process in 2010, based on the results from the CDS and PEA.
Volcan development is expected to be relatively simple and low cost. Andina has already acquired sufficient water rights for development and operation of a mine. Volcan is located in relatively close proximity to power and the provincial road network. The local area has an experienced mining workforce and well-established mining suppliers for equipment and services.
Andina's development planning for the Volcan Gold Project is being done with the goal of becoming a model for responsible mining, by establishing strong local and government relationships and adhering to best practices in health, safety and environmental management.
