Andean increases total Cerro Negro mineral resource

Andean Resources has reported a 119 percent increase in its updated independent...

  Andean Resources has reported a 119 percent increase in its updated independent resource estimate for the Eureka West Veins on the company’s Cerro Negro gold project in southern Argentina, rapidly progressing Andean’s transition towards producer status.During the past six months, Andean has more than doubled drilling activities at the Eureka West Veins in order to include this deposit in the already well-progressed Pre-Feasibility Study. This latest estimate is compliant with NI 43-101 and JORC, and was carried out by independent mining consultants Micon International Ltd. The new mineral resource for Eureka West is 1.36 million ounces of gold and 23.7 million ounces of silver at an assumed underground cut-off grade of 3 g/t gold equivalent. The average gold grade has increased from 6.4 g/t in the previous resource to 12.3 g/t in the updated resource estimate. The average silver grade has also increased from 82 g/t in the previous resource to 213 g/t in the current resource. On a gold equivalent basis, the Eureka West veins contain 1.8 million ounces at an average grade of 15.8 g/t, one of the highest grade resources of this size owned by an Australian gold explorer. “Our drilling over the last six months has more than doubled the previously estimated grade of the Eureka West Veins and increased the tonnage, resulting in a significantly larger mineral resource,” Andean Managing Director, Wayne Hubert said. “We believe the Cerro Negro property has the potential to host one of the most significant gold resources established by an Australian gold explorer in recent years,” Mr Hubert said. “The new high-grade resource will have a very beneficial impact on future operating costs and projected returns, potentially making Cerro Negro one of the lowest-cost emerging mid-tier gold producers,” he said.