Andean Provides Corporate Update
SALT LAKE CITY, UTAH -- (Marketwire) -- 10/07/10 -- Andean Resources (TSX: AND)(ASX: AND) is pleased to provide the following corporate update.
Friendly Transaction with Goldcorp
On September 3, 2010, Andean and Goldcorp (TSX: G)(NYSE: GG) announced an agreement whereby Goldcorp will acquire, through a scheme of arrangement under Australian law (the 'Arrangement'), all of the outstanding shares of Andean. Under the Arrangement, each Andean share will be exchanged, at the option of the holder, for (i) 0.14 Goldcorp share (the 'Share Consideration') or (ii) C$6.50 in cash, subject to a maximum cash consideration of C$1 billion. If the Andean shareholders elect, in aggregate, to receive more than C$1 billion in cash consideration, the maximum cash consideration will be pro-rated among the Andean shareholders who elected to receive cash and the balance of their Andean shares will be exchanged for Goldcorp shares.
Based on the September 2, 2010 closing price of Goldcorp shares on the TSX (the last trading day prior to the announcement of the Arrangement), the consideration offered pursuant to the Arrangement represents a 35% premium to Andean's closing price on the TSX on the same date and a 56% premium to Andean's 20-day volume weighted average trading price on the TSX as at the same date.
The scheme booklet in connection with the scheme meeting of Andean shareholders to be called to consider and approve the Arrangement is currently expected to be mailed to Andean shareholders before the end of October, with the scheme meeting expected to be held in early December. Additional details regarding the Arrangement can be found on Andean's website and by referencing Andean and Goldcorp's joint press release announcing the Arrangement dated September 3, 2010.
Drill Results Update
Andean has received drill results from 72 holes since the July 19, 2010 press release. The results listed in Tables 1 through 3 are from exploration holes drilled at the Mariana Central, San Marcos and Mariana Norte deposits. These new drill results will be incorporated into resource estimates for the deposits.
Mariana Central
The drill results largely confirms Andean's previous expectations of Mariana Central as one continuous high-grade ore shoot of about 620m that is open to depth. Exploration for new ore-shoots along strike will commence following the exploration of this current ore shoot to depth.
The core mineralization is confirmed for over 770 meters along strike, 170 meters down dip and appears to plunge 5 to 8 degrees to the west. On both the western and eastern extents, the dip of the vein flattens to approximately 45 degrees N and narrows (west) or forms multiple splays (east). New drill hole results are shown in Table 1 and depicted on a longitudinal section map (Figure 1) and on a plan view map (Figure 3).
Table 1. Recent Mariana Central drill results.
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MARIANA CENTRAL
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Hole ID East North From To Intercept m Au g/t Ag g/t
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MDD-1036 2398855 4809314 150.2 154.5 4.30 4.77 95.0
--------------------------------------------------
168 170 2.00 8.08 36.0
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MDD-1046 2398570 4809601 231.85 238.3 6.45 20.86 41.1
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MDD-1059 2398666 4809418 127.1 129.0 1.90 4.43 78.7
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MDD-1060 2398526 4809639 151.00 152.00 1.00 167.20 344.0
--------------------------------------------------
227.00 228.00 1.00 7.31 6.0
--------------------------------------------------
232.50 239.00 6.50 100.81 197.0
--------------------------------------------------
Including
--------------------------------------------------
235.50 236.00 0.50 445.20 507.00
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MDD-1064 2398710 4809525 105 109 4 10.86 116.8
--------------------------------------------------
245.7 247.55 1.85 40.35 40.2
--------------------------------------------------
251.5 253 1.5 3.66 3.5
--------------------------------------------------
256.6 257.6 1 7.12 14.0
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MDD-1065 2398412 4809611 140.8 146.75 5.95 15.32 35.5
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MDD-1069 2398420 4809682 210 224 14 18.99 124.3
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MDD-1071 2398689 4809570 287.2 296.2 9 9.40 22.1
--------------------------------------------------
315.00 315.80 0.8 10.80 62.0
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MDD-1076 2398382 4809712 223.8 231.3 7.45 59.99 165.1
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MDD-1079 2398351 4809752 240.0 242.5 2.5 3.37 17.2
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MDD-1080 2398773 4809447 231.00 239.00 8.00 68.12 1101.7
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MDD-1086 2398774 4809418 201.9 206.2 4.3 8.49 20.4
--------------------------------------------------
211.1 217.8 6.7 29.10 183.4
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MDD-1088 2398735 4809449 209.00 225.30 16.30 34.28 283.8
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MDD-1090 2398734 4809380 135 139.2 4.2 73.19 113.2
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144 145 1 52.10 76.0
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155 163.6 8.6 28.58 256.8
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MDD-1091 2398557 4809531 130 135 5 12.20 17.8
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139.8 142 2.2 18.23 32.0
--------------------------------------------------
143.5 145.8 2.3 24.90 24.3
--------------------------------------------------
148.65 158.45 9.8 22.05 252.8
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MDD-1092 2398695 4809412 157.8 170 12.2 62.1 481.2
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MDD-1093 2398593 4809492 144 146.55 2.55 103.20 392.0
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MDD-1094 2398784 4809520 309 313 4 4.76 18.2
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MDD-1095 2398566 4809673 291 293.1 2.1 3.12 22.6
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MDD-1096 2398607 4809565 236.2 238.2 2 39.10 331.5
--------------------------------------------------
240.8 249.15 8.35 30.14 332.5
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MDD-1097 2398419 4809750 293 294.7 1.7 5.74 22.5
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MDD-1099 2398652 4809604 309.8 314.5 4.7 28.43 74.6
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MDD-1100 2398804 4809474 284.35 296.4 12.05 22.39 124.1
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MDD-1101 2398459 4809712 253.6 254.6 1 3.8 16
--------------------------------------------------
275.5 278.9 3.4 12.5 116.6
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MDD-1102 2398756 4809301 84 85 1 18.7 12
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95 96 1 5.35 103
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100.35 106.2 5.85 7.92 26.8
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116 117 1 10.5 25
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MDD-1103 2398378 4809586 98 99.1 1.1 22.2 33
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101 106.5 5.5 6.65 56.5
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San Marcos
The new drilling at San Marcos largely confirms the existing mineralization, but also extends the mineralization down-plunge to the east by approximately 100 meters.
The San Marcos vein system is interpreted as two to up to five sinuous and intertwined veins that strike east-west and dip steeply to the north on the western extents and steeply to the south on the eastern extents. The San Marcos vein is drill defined over a strike length of about 700 meters, has a true width of at least 4 to 5 meters and a known vertical extent of over 300 meters. Drilling has identified mineralization for over 600 meters along strike, 250 meters down dip, and grade x thickness contours indicates the core mineralization plunges 25 degrees E. The veins remain open at depth to the east. New drill hole results are shown in Table 2 and depicted on a long section map (Figure 2) and plan view map (Figure 4).
Table 2. Recent San Marcos drill results.
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SAN MARCOS
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Hole ID East North From To Intercept m Au ppm Ag ppm
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SDD-1017 2399497 4810830 94.55 101.55 7 12.09 186.2
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SDD-1018 2399300 4810917 236.6 240 3.4 4.23 46.3
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SDD-1019 2399398 4810827 67.6 70.8 3.2 13.25 93.8
---------------------------------------------
91.6 95 3.4 10.53 204.5
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SDD-1020 2399698 4810827 43.2 44.4 1.2 20.40 263.0
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SDD-1021 2399854 4810859 82.4 86.3 3.9 2.68 226.3
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SDD-1022 2399748 4810879 123 132 9 9.52 117.2
---------------------------------------------
133.5 142 8.5 12.09 104.6
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SDD-1024 2399798 4810889 113.00 114.00 1.00 6.16 6.0
---------------------------------------------
122.60 123.80 1.20 9.31 16.1
---------------------------------------------
132.00 133.00 1.00 4.51 7.0
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SDD-1027 2399600 4810980 277 281 4 7.66 28.2
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SDD-1028 2399900 4810693 263.2 266.0 2.8 4.60 55.3
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SDD-1029 2399850 4810713 200.5 206.36 5.86 13.36 128.8
---------------------------------------------
250.8 253 2.2 21.13 181.3
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264.9 266 1.1 15.40 4.0
---------------------------------------------
273.2 279.4 6.2 12.47 171.2
---------------------------------------------
293.9 295 1.1 33.30 4.0
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SDD-1030 2399502 4810696 113 114 1 16.90 26.0
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SDD-1031 2399298 4810832 102.40 105.25 2.85 4.67 32.5
---------------------------------------------
108.00 109.00 1.00 28.00 55.0
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SDD-1032 2399550 4810864 129.10 132.80 3.70 20.42 125.1
---------------------------------------------
Including
---------------------------------------------
132.00 132.80 0.80 71.50 214.0
---------------------------------------------
134.15 136.00 1.85 3.09 37.3
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SDD-1033 2399548 4810906 177.25 189.3 12.05 17.13 177.3
---------------------------------------------
207.5 208.3 0.8 5.01 41.0
---------------------------------------------
210.3 214.6 4.3 9.12 27.3
-------------------------------------------------------------------------
SDD-1034 2399649 4810903 178.4 181.6 3.2 5.26 29.0
---------------------------------------------
190.3 200.9 10.6 6.32 68.1
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SDD-1035 2399549 4810944 254.00 258.85 4.85 5.08 25.6
---------------------------------------------
266.00 271.20 5.20 5.75 57.6
---------------------------------------------
274.35 284.00 9.65 4.87 25.6
---------------------------------------------
300.50 301.55 1.05 46.30 157.0
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SDD-1038 2399599 4810815 49 54 5 8.21 12.2
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SDD-1039 2399549 4810817 NSV
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SDD-1040 2399448 4810815 44 50 6 5.33 82.2
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SDD-1041 2399499 4810810 45.20 48.30 3.1 3.29 8.0
---------------------------------------------
71.00 72.00 1.00 12.00 17.0
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SDD-1042 2399399 4810799 26.0 32.5 6.50 7.95 40.8
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SDD-1043 2399448 4810863 148.0 159.9 11.90 10.75 103.2
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SDD-1044 2399649 4810859 108.00 114.25 6.25 9.80 69.0
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SDD-1045 2399348 4810944 279.2 283.5 4.30 3.71 16.1
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SDD-1046 2399349 4810804 49.45 53.10 3.65 9.73 16.1
---------------------------------------------
63.00 64.00 1.00 3.97 4.0
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SDD-1047 2399298 4810801 56.85 57.70 0.85 12.40 45.0
---------------------------------------------
59.4 60.8 1.40 21.82 64.0
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SDD-1048 2399746 4810979 287 293.5 6.50 13.53 184.9
---------------------------------------------
307.4 314.05 6.65 36.77 342.6
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SDD-1049 2399448 4810896 141.8 152.2 10.40 6.06 61.1
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199.7 208 8.30 6.36 58.7
---------------------------------------------
211 218.35 7.35 12.20 79.8
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Mariana Norte
Exploration drill testing of the Mariana Norte vein has identified mineralization over 750 meters along strike, up to 150 meters down dip and is found in 2 to 3 parallel to intertwined quartz vein and breccia zones. The Mariana Norte structure forms a lazy 's' shape that strikes N70 degrees W and dips 45 to 60 degrees N at the eastern and western extents. The central segment strikes N80 degrees E and dips 60 degrees N and may represent a link or structural offset of the east and west segments. Holes with important intercepts are commonly 4 to 8 meters in true width as currently understood but probably average 3 to 4 meters overall. Vein widths of up to 8 meters persist to the west but not all of the quartz and/or carbonate vein material carries precious metal values. Exploration of this system will resume late in Q4 of 2010 or early in Q1 of 2011. New drill hole results are shown in Table 3.
Table 3. Recent Mariana Norte drill results.
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MARIANA NORTE
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Hole ID East North From To Intercept m Au g/t Ag g/t
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MDD-1020 2398768 4809955 123.20 127.35 4.15 3.65 8.9
---------------------------------------------
131.90 136.00 4.10 3.79 6.6
---------------------------------------------
219.25 220.10 0.85 5.76 24.0
---------------------------------------------
244.90 246.00 1.10 3.56 8.0
-----------------------------------------------------------------------
MDD-1021 2398836 4809832 96.00 98.00 2.00 4.32 67.0
---------------------------------------------
110.60 113.00 2.40 5.08 68.2
---------------------------------------------
115.00 116.00 1.00 2.87 74.0
---------------------------------------------
117.00 118.50 1.50 3.14 48.0
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MDD-1026 2398631 135.3 138.3 3 4.37 63.3
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MDD-1029 2398644 4809886 175.00 176.00 1.00 4.65 69.0
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MDD-1031 2398533 125 127 2 5.20 51.5
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MDD-1032 2398546 4809914 163.2 168.75 5.55 7.70 84.8
---------------------------------------------
171.2 173.8 2.6 4.82 58.5
---------------------------------------------
181 182 1 5.08 2.0
-----------------------------------------------------------------------
MDD-1034 2398487 4809874 113.3 119.9 6.6 8.60 162.4
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MDD-1037 2398500 4809928 168.1 171.6 3.5 3.53 21.0
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MDD-1040 2398438 4809890 131 132.5 1.50 10.14 437.1
---------------------------------------------
Including
---------------------------------------------
132.00 132.50 0.50 16.40 1262.0
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MDD1042 2398449 4809940 158.20 158.85 0.65 4.57 15.0
---------------------------------------------
177.55 178.65 1.10 4.86 48.0
-----------------------------------------------------------------------
MDD-1045 2398390 4809902 NSV
-----------------------------------------------------------------------
MDD-1048 2398402 4809942 155.50 156.20 0.70 2.71 19.0
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MDD-1055 2398461 4809986 208.40 210.55 2.15 7.31 7.2
---------------------------------------------
212.00 213.70 1.70 112.14 141.1
---------------------------------------------
Including
---------------------------------------------
212.00 212.50 0.50 268.30 261.00
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MDD-1061 2398509 4809973 212.10 215.00 2.90 92.79 162.2
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MDD-1066 2398582 4809850 120.40 122.35 1.95 7.74 17.8
---------------------------------------------
127.70 132.80 5.10 7.38 111.0
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MDD-1074 2398607 4809949 213.00 214.05 1.05 2.55 27.3
---------------------------------------------
219.05 220.00 0.95 5.45 91.2
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MDD-1070 2398593 4809900 167.95 175.4 7.45 10.87 77.8
---------------------------------------------
178.15 180 1.85 7.18 19.8
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MDD-1077 2398635 4809733 206.35 210 3.65 4.46 51.2
---------------------------------------------
215.50 216.50 1.00 6.02 20.0
---------------------------------------------
218.00 219.00 1.00 12.90 44.0
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Correction to September 3, 2010 Goldcorp Press Release
An error in reporting the resources of the Vein Zone deposit was made in the September 3, 2010, Press Release announcing the acquisition of Andean by Goldcorp. The tonnes and grade of the indicated and inferred resources of Vein Zone were incorrectly taken from an earlier resource statement, and their inclusion in the Press Release had not been reviewed or approved by Steve Ristorcelli, the Qualified Person responsible for the estimation of the resource numbers. The correct resource numbers are stated below, which are consistent with the resources reported in the Andean press release dated July 6, 2010.
------------------------------------------------------------------------
VEIN ZONE Cutoff Tonnes AuEq Au Ag Au Ag
------------------------------------------------------------------------
INDICATED 0.5 8,361,000 2.29 2.21 4.9 593,300 1,315,400
INFERRED 0.5 3,124,000 1.08 1.05 2.0 105,200 200,700
------------------------------------------------------------------------
Andean Trading and Insider Reporting
On September 30, 2010, Wayne Hubert, Chief Executive Officer of Andean, exercised 5.0 million Andean options at a strike price of $0.30 which were set to expire as of that same date. These options were granted to Mr. Hubert under his original employment contract with Andean four years ago and would have expired worthless unless exercised on September 30, 2010. The exercise of these options triggers an immediate cash withholding tax liability for Mr. Hubert in the United States. In order to pay that withholding tax liability, Mr. Hubert intends to sell approximately 2 million Andean shares in the open market. Following the disposal of these shares, Mr. Hubert will continue to hold 3.8 million Andean shares. Mr. Hubert intends to vote these 3.8 million shares in favour of the Arrangement.
Qualified Persons Statement
The information in this press release that relates to exploration results is based on information provided by William H. Wulftange, Vice President of Exploration for Andean Resources, who is a Licensed Professional Geologist (#5219574-2250) by the State of Utah and a is member (#4037018) of a Recognised Overseas Professional Organization (ROPO), the Society of Mining, Metallurgy and Exploration America. Mr. Wulftange has extensive experience relevant to the style and type of mineralization and deposits under consideration, and to the activity undertaken, to qualify as a 'Qualified Person' as defined in Canadian National Instrument 43-101, as well as a 'Competent Person' as defined in the JORC Code. Mr. Wulftange has reviewed and verified that the information presented in this press release conforms to NI 43-101 standards and industry Best Practices and consents to the inclusion in the report of the matters based on his information in the form and the context in which it appears.
The Vein Zone Mineral Resource Estimates were carried out by Steven Ristorcelli, who has sufficient experience (more than 5 years) which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Steven Ristorcelli consents to the inclusion in this press release the matters related specifically to reported Vein Zone resources. The information in this report that relates to Mineral Resources is based on information compiled by Steven Ristorcelli, who is a Member of the AIPG, which is a 'Recognised Overseas Professional Organisation' ('ROPO') included in a list promulgated by the ASX from time to time.
A.B.N. 66 064 494 319
To view Figure 1, please visit the following link:
http://media3.marketwire.com/docs/andfig1-1007.pdf
To view Figure 2, please visit the following link:
http://media3.marketwire.com/docs/andfig2-1007.pdf
To view Figure 3, please visit the following link:
http://media3.marketwire.com/docs/andfig3-1007.pdf
To view Figure 4, please visit the following link:
http://media3.marketwire.com/docs/andfig4-1007.pdf
Contacts:
Andean Resources Ltd.
Krista Muhr
Director of Investor Relations
(647) 330-1478
Email: krista.muhr@andeangold.com
Website: www.andean.com.au
