Business & Finance
Business and Finance
Business and Finance
Fri, July 16, 2010
Thu, July 15, 2010 Southern Andes Energy Inc. to Begin Uranium Exploration in August
TORONTO, ONTARIO--(Marketwire - July 15, 2010) - Southern Andes Energy Inc. ("Southern Andes" or "the Company") (TSX VENTURE:SUR) is planning to begin a uranium exploration program on its Macusani Plateau area properties in Peru in late August.
Uranium Field Program
Southern Andes is the largest land owner in the emerging Macusani Plateau uranium district in southern Peru, holding a 100% interest in more than 122,000 hectares of ground. Exploration programs conducted by a previous joint venture partner focused on drill testing several radiometric anomalies in the Macusani East project area. This work was successful in outlining near surface mineralization on four targets.
Southern Andes will focus on examining some of the largest and strongest radiometric anomalies in the district which to date have not been drill tested.
Chachaconiza Target Area
The Company plans to start a reconnaissance field program in late August which will test the large Chachaconiza radiometric anomaly located 29 km west of Macusani and 175 km north west of Juliaca, Peru. This anomaly, located near the multi million ounce Corani Silver deposit owned by Bear Creek, is on the flank of a large volcanic caldera interpreted from satellite imagery. Covering more than 3,700 hectares and measuring approximately 7 km by 5 km, Chachaconiza is the largest radiometric anomaly identified in the Macusani Plateau area and which has never been drill tested.
This large radiometric anomaly has been subdivided into four specific target areas which will be examined in this year's exploration program.
Chahuaña Target Area
The Chahuaña target area is located in the Macusani West project area approximately 40 km west of Macusani. This area was the subject of a reconnaissance geological mapping and sampling program conducted in 2008. Results from this work outlined two large radiometric anomalies known as Chahuaña North and South with dimensions of 600 metres by 800 metres and 400 metres by 600 metres respectively.
Importantly, more than 48% of all samples taken from these two target areas returned uranium values in excess of 100 ppm or 0.206 pounds uranium per short ton.
The Company also believes the resource potential from the Chahuaña project could be substantially larger as both anomalous areas are separated by an area of higher relief.
This year's program is designed to advance Chachaconiza first followed by Chahuaña likely next year. Work will include:
- Closed spaced grid radiometric surveys to better define areas of high radioactivity on the ground prior to drill testing.
- Detailed geological mapping.
- Detailed pitting and sampling to better delineate the boundaries and geometry of the radiometric anomaly on surface.
Silver-Zinc-Lead Projects
Southern Andes also controls two important silver-zinc-lead projects in Peru known as Princesa and Pilunani. Located 220 km north of Juliaca, Princesa hosts NI 43-101 inferred resources of 4.6 million tonnes grading 90.88 grams silver per tonne, 1.69% zinc and 1.66% lead or a total of 28.7 million silver equivalent ounces (1).
Potential to increase both open pit and underground accessible resources at Princesa and Pilunani is considered to be excellent.
The Company is contemplating spinning these assets out into a new company focused on developing advanced stage silver-zinc projects in Peru.
| (1) | Silver equivalence is based on the current spot bid price for silver of US$18.23 per ounce and the spot bid price per pound for zinc and lead of US$0.827 and US$0.815 respectively and as published by Kitco at [ www.kitco.com ]. |
Operating Initiatives
Since closing of the private placement by Homeland Uranium Inc., on May 14, 2010, the Company has undertaken a number of initiatives leading to the commencement of operations in Peru. These include:
Rehiring of key personal in Peru, led by Arnaldo Leon, Southern Andes General Manager in Lima. Mr. Leon, a highly respected mining engineer in Peru, is a graduate of the Colorado School of Mines.
Alain Vachon, P. Geo., QP and Manager – Uranium Exploration, will be responsible for managing all of Southern Andes uranium exploration activities. Mr. Vachon has 13 years of mineral exploration experience working in the Andes in a variety of geological settings.
About Southern Andes Energy Inc.
Southern Andes Energy Inc. is focused on exploring and developing uranium resources to meet the world's growing demand for clean energy. The Company is the largest landowner in the emerging Macusani Plateau uranium district in Peru with holdings of more than 122,000 hectares of land. The Company also owns a 12% interest in Macusani Yellowcake Inc., which controls two advanced stage uranium deposits in the district.
Mr. Alain Vachon, P. Geo., the Company's Qualified Person as defined by National Instrument 43-101, has reviewed and approved the contents of this press release.
This news release may contain forward-looking statements that are based on Southern Andes Energy Inc.'s expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
