Andina Achieves Major Milestone by Submitting Environmental Impact Assessment to Apply for Construction and Operating Permits
TORONTO, ONTARIO, Jul 17, 2012 (MARKETWIRE via COMTEX) -- ANDINA Minerals Inc. CA:ADM +7.25%("Andina" or the "Company") today announced that it has submitted an Environmental Impact Assessment ("EIA") for the Volcan Gold Project ("Volcan") to the Chilean environmental authority, SEA ("Servicio de Evaluation Ambiental"), who will evaluate the submission via SEIA (Sistema de Evaluacion de Impacto Ambiental).
George Bee, President and CEO stated, "Submission of the EIA is a major milestone for Andina as we get the Volcan project "shovel ready."
"The EIA submission follows the pre-feasibility study Andina completed in February 2011, which demonstrated robust economics for the Volcan project, particularly at current prevailing gold prices. As previously announced, Andina is progressing, in parallel to the EIA process, with a feasibility study for Volcan targeted for completion during the first quarter of 2013. We have made great advances in engineering and metallurgy and over the next few months we are going to continue to work on optimizing the project via sourcing of quotes from multiple suppliers, potentially collaborating with others in the Maricunga region, and considering staging opportunities at Volcan."
"Having completed much of the heavy lifting with our permitting application submitted and feasibility nearing completion, Andina's cash burn is being reduced to a minimum and while we would like to capitalize on our significant exploration potential, we intend to be very careful to avoid unnecessary dilution to our shareholders."
The EIA process, under Chilean law, requires the state to provide, within 40 days of submission, notification of any major deficiencies with the EIA including but not limited to, observations, comments, requests for clarification and / or modifications, following which the Company will be required to formally respond.
The Company expects that, although under Chilean law the permitting process could take as little as 180 days to complete, the actual time to complete the entire process could be in the order of 12 to 18 months. Once permits of this nature are granted, the Company has a 5 year period to start construction of the project.
About Andina Minerals Inc.
Andina's primary focus is mining exploration and development in Chile. The Company's flagship development project is the 100%-owned Volcan Gold Project, strategically located in the prolific Maricunga Gold Belt.
In February 2011, Andina announced the results of a positive pre-feasibility study for Volcan. Initial Proven and Probable Mineral Reserves are 6.6 million ounces of gold at an average grade of 0.73 g/t contained in 283 million tonnes of ore. In addition, there remains 2.4 million ounces of Measured and Indicated gold resources at an average grade of 0.68 g/t contained in 110 million tonnes of ore plus 1.5 million ounces of gold in the Inferred category contained in 73 million tonnes of ore at an average grade of 0.65 g/t Au.
Andina is progressing with a feasibility study for Volcan, now targeted for completion in the first quarter of 2013. In accordance with the requirements of Chilean law, the EIA is available for public review and includes estimates of metrics related to the Volcan project. The project metrics included in the EIA are management estimates and may vary from those published by Andina in the February 2011 pre-feasibility study. The variances can be ascribed to changes in the project scope and adjustments for cost changes seen in the intervening 18-month since the prefeasibility study was published. A NI 43-101 study to be completed by a third party consulting engineer will accompany the final and official metrics associated with the Volcan project once the feasibility study is completed. In the interim the metrics used as part of the EIA submission are management estimates only and indicative solely for the purpose of completing the EIA in compliance with Chilean law.
In addition to Andina's extensive underexplored land position surrounding Volcan, the Company holds two other mineral properties located within Chile's primary mining regions.
To read the entire news release follow the link below:
July 17, 2012 (Source:Marketwire)
Disclosure: Andina Minerals is a Vulture Bargain Candidate of Interest (VBCI). Members of the GGR team are actively accumulating and hold long positions in ADM.V.
