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The Volcan Gold Project is located in Chile’s Region III
approximately 170 kilometres east of Copiapo and 23 kilometres northeast
of Kinross’ Maricunga gold mine (formerly known as the Refugio mine).
The property is centrally located in the Maricunga Gold Belt which hosts
a number of precious metals deposits which, aside from Maricunga and
Volcan, include the La Coipa mine (Kinross), the Cerro Casale deposit
(Kinross/Barrick), and the Marte-Lobo deposit (TeckCominco/Anglo) (click
here for a map of the Maricunga Gold Belt).
Andina Minerals is in the midst of its fourth phase of exploration on
the Volcan Gold Project, a $15.5 million, 50,000 metre drill program
along with geological mapping, prospecting and geophysics. The majority
of the drilling will be dedicated to increasing the resource-base in the
Dorado area of the property although a portion of the drilling will
directed to more grassroots targets, expanding our activities to other
areas of the property such at the Ojo de Agua area, four kilometres
northeast of the Dorado area.
In October 2007, Andina provided an updated resource estimate which
incorporated approximately 15,000 metres of drill data resulting in a
48% increase to measured and indicated resources to 2.93 million
contained ounces of gold (115.1 million tonnes grading 0.79 grams per
tonne gold (“g/t Au”)) and a 188% increase to the inferred resource to
4.20 million ounces of gold (170.3 million tonnes grading 0.77 g/t Au)
at a 0.5 g/t Au cut-off. A summary of the resource estimate is provided
in the table below.
In November 2007, Andina released the results of preliminary
metallurgical testing which returned recoveries from 57% (at 0.45 g/t)
to 77% (at 1.17 g/t) for an average projected recovery of 67% at a
resource grade of 0.78 g/t gold. This confirms the heap leach potential
of the project and is similar to recoveries at the Maricunga mine.
For a more detailed summary
click here.
Andina has accelerated and completed all payments to the vendors of
the property and now owns 100% in the Volcan Gold Project.
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