Results from Chile bolster Andina

Results from the latest round of drilling at Andina Minerals (ADM-V) Volcan Gold project in Chile inspired a rally in the Toronto-based company’s share price on May 2.

The company’s shares shot up roughly 17% or 52 to $3.64 on 743,000 shares traded the day after results from its wholly owned Volcan project in Chile’s Maricunga gold belt were released. The company has roughly 68 million shares outstanding.

Highlight intersects from phase four of drilling which focused on the Dorado West deposit and NW Zone included:

• Hole 741 — 176 metres grading 1.01 grams per tonne gold and 256 metres grading 1.04 grams gold per tonne.
• Hole 730 — – 210 metres grading 0.88 grams per tonne including 54 metres grading 2.16 grams gold.
• Hole 743 — 150 metres grading 1.22 grams gold.

Andina describes the setting hosting both Dorado West and NW Zone as a “corridor of gold mineralization” that extends over 1.4 km with widths up to 700 metres.

Four of the six holes drilled at Dorado West were infill holes collared to define and extend the continuity of the gold mineralization which it says, it was successful in doing.

That success is based on one hole placed between two previously drilled holes that sat 300 metres apart. The new hole returned 210 metres grading 0.88 grams leading Andina to hypothesize a continuity of gold mineralization vertically between the two drill holes.

Drilling also hit what the company is describing as a low-grade gold halo surrounding Dorado West. The hole returned 112 metre interval grading 0.37 grams gold and ended with 48 metres grading 1.25 grams gold.

The company plans to begin an economic assessment of the Dorado deposits in the second half of this year.

As for the NW Zone Andina says the east northeast trending extension remains open along strike in both directions and to depth.

The company also announced that it has finished drilling 5,100 metres at the Ojo de Agua area which sits 4 km northeast of the Dorado area. Results from that drill program are still pending.

Currently measured and indicated resources at the project stand at 2.93 million ounces of gold from 115.1 million tonnes grading 0.79 grams per tonne gold with another 4.2 million ounces in the inferred category from 170.3 million tonnes grading 0.77 grams gold.