Andina doubles gold resources at Volcan

Andina Minerals (ADM-V) has boosted measured and indicated resources at its Volcan gold project in Chile, to 6.62 million oz. gold.

The last resource estimate was done in October 2007 and since then the company has drilled more than 28,000 metres.

Andina isn’t stopping the momentum. The company says it will start an economic study this fall to determine the viability of a large heap leach operation.

On top of that, Andina is currently working out the details for another exploration program that will start in October and will include 10 drills. As well, a 1-tonne sample of mineralized ore has been sent for process work in Germany to determine the size and potential throughput for a high pressure grinding roll system.

Measured and indicated resources are now up to 241.7 million tonnes grading 0.85 gram gold per tonne a 126% increase over last year’s estimate.

Inferred resources are lower as a result upgrades to measured and indicated. Inferred resources now stand at 95.4 million tonnes grading 0.9 gram gold per tonne for 2.76 million oz. gold down by 1.43 million oz.

Most of the growth came from Dorado West deposit where measured and indicated resources increased by 173% to 5.82 million oz. gold.

The 700-metre-wide Dorado West deposit extends from surface and is covered by only a thin layer of talus. The strike length extends 1,500 metres and is open to the north and at depth.

Andina has found additional gold mineralization along strike and in zones parallel to the main mineralization, including the northwest zone, which could be an extension of Dorado West.

Andina shares rose 9 or 2.6% to $3.52 on a trading volume of 144,000 shares.