Feb 17 2011
AndeanGold Ltd. (TSX VENTURE:AAU) has announced that Peru's Ministry of Energy and Mines has issued the approval voucher of the Company's Declaration of Environmental Impact Study application for its advanced-stage Urumalqui Au-Ag exploration project in Peru.
The Company is earning a 60% joint venture interest in the Project from Gitennes Exploration Inc. (See news release of April 22, 2010).
The DIA authorizes the Company to initiate a proposed Phase I infill drilling program (the "Program") on the Project. The Program will focus on infill drilling to a depth of 200 meters along the central and southeastern segments of the Urumalqui Vein, which cover 1.0 kilometre of the 1.5 kilometre Urumalqui Vein outcrop where the majority of the Project's historical drilling programs were concentrated. Based on a review of the Project's historical geological information, the Company has increased the Program from 2,000 metres to approximately 3,000 metres of diamond core infill drilling, which is intended to produce an overall drill hole spacing of approximately 50 metres over the 1.0 kilometre vein strike, to a depth of 200 metres. This level of drilling density should optimize the results of a NI 43-101 resource estimate, which the Company plans to commission upon completion of the Program.
The Company has signed water assignment agreements with several surface owners in the Project area who have water rights sufficient to support the proposed Program. The Company has applied for a water permit with the Peruvian Local Water Authority ("ALA") for the utilization of the assigned water rights. The granting of the water permit is dependent on an approved DIA, and the Company expects now to receive the water permit from ALA by the end of February 2011.
A Lima-based drilling company has been selected to complete the Program, and a drilling contract should be concluded in time to initiate the Program during March 2011.