Established Latin American silver producer, Andean Precious Metals (TSX-V: APM, OTCQB: ANPMF), has launched a 20,000 metre, phase one exploration campaign focused on the company’s wholly-owned Rio Blanco and San Pablo projects in Bolivia. The mulit-project exploration program is being undertaken to extend the life-of-mine at Andean's flagship San Bartolomé project to ten years. Yesterday, the company also announced that its common shares commenced trading on the OTCQB Venture Market under the symbol “ANPMF”.
“Since becoming a public company in March, our focus has been on expanding our existing resource and reserve base along with the scope and profitability of our third party ore purchasing business. We have made significant progress on both fronts and are now well positioned to advance an aggressive exploration campaign. Our portfolio of exploration assets includes two highly prospective gold projects that are within the operating envelope of San Bartolomé. We believe that the San Pablo and Rio Blanco Projects have the potential to create significant value for the shareholders of Andean, and we look forward to updating the market with drill results beginning in October.” - Simon Griffiths, President and CEO of Andean.
Phase One Exploration Program Overview
Andean Precious Metals controls a portfolio of exploration assets in Bolivia, of which the San Pablo and Rio Blanco Projects (“San Pablo” and “Rio Blanco”) are the most advanced. Both projects are located within the operating envelope of the San Bartolomé Mine, which is currently producing precious metals from six different locations in Bolivia. Rio Blanco and San Pablo are both bulk-tonnage, potentially surface-mineable targets and are being evaluated as synergistic with San Bartolomé.
The Company plans to drill 10,000 metres at Rio Blanco and 10,000 metres at San Pablo. Currently, three diamond drill rigs are contracted and active. Once all assays are received from the Phase One exploration program, the Company expects to launch a Phase Two exploration program of an additional 20,000 metres. Both phases are fully funded. Contracts have this week been signed with Quantec for Titan geophysical surveys at both properties.
The 100% owned Rio Blanco Project comprises 13,462 hectares in the department of Potosi. Rio Blanco is located on an historic Au-Sb belt that hosts some of the most prolific mining districts in Bolivia, including Caracota, Chilcobija, Sucre, Candelaria, and Rosa de Oro.
Rio Blanco is an Orogenic gold deposit hosted in a folded Ordovician sedimentary sequence composed of shales and sandstones that were affected by a low-grade metamorphism. Extensive geological mapping has been completed and 1500 samples assayed at ALS in Lima. The Phase One diamond drill program covers an initial 7km of a 22km long structural corridor along the axial plane of Rio Blanco anticline. This structural system hosts ore mineralisation in formal veins, stockworks, saddle reefs and lenticular bodies. Rio Blanco has extensive historical workings, including several placer gold deposits. Similar Au-Sb occurrences are well known around the world, such as Bendigo in Australia.
Andean’s phase one drill program has 22 diamond drill holes planned which follow an extensive program of geological mapping and trenching perpendicular to the axis of the target mineralisation.
The 100% owned San Pablo Project comprises 650 hectares in the department of Potosi. San Pablo is located at the southern end of a prolific orogenic gold belt that hosts several of Bolivia’s largest deposits including the Kori Kollo gold mine (Newmont) which produced more than 5 million ounces and the San Bernadino Gold mine which produced over 2 million ounces ounces. The Company has completed initial exploration works including geological mapping, surface sampling and an initial diamond drill programme comprising twelve holes into four discrete targets which are within close proximity of each other. DDH results are expected to be released during October.
Early work suggests gold-hosted mineralization occurs near surface in an intrusion-related gold system with narrow sheeted veins together with separate, more discrete veins. The presence of secondary biotite alteration may indicate the presence of porphyry-style mineralization on the property. The Company is planning to test for the presence of porphyry-style mineralization with its new exploration work. Quantec Geoscience's Titan 24 DCIP and magnetotelluric ("DCIP-MT") technology is being considered in a 17 line-kilometre survey. This programme is scheduled for the second half of October.
The scientific and technical content disclosed in this press release was reviewed and approved by Donald J. Birak, A Qualified Person as defined by Canadian National Instrument 43-101, Registered Member, Society for Mining, Metallurgy and Exploration (SME), Fellow, Australasian Institute of Mining and Metallurgy (AusIMM).
Source: Andean Precious Metals Corp.
Andean Precious Metals Corp. (TSXV: APM) ("Andean" or the "Company"), a Latin-American focused, precious metals production and exploration company, today reported its operational and financial results for the second quarter ended June 30, 2021. All amounts are expressed in U.S. dollars unless indicated otherwise.
Q2 2021 Highlights
"Our strong financial results continue to enhance Andean's treasury position whilst maintaining a clean capital structure. During such time as we review sector diversification opportunities, we shall build on our strong cash position, which is rather unique among junior producers. For the second half of 2021, we will continue to advance our exploration program and the evaluation of the tailings reprocessing opportunity at the San Bartolomé plant." - Luis da Silva, President and CEO of Andean Precious Metals.
Andean Precious Metals Q2 2021 Earnings Call - August 25, 2021
Revenue for the second quarter of 2021 was $38.0 million compared to $12.6 million in the second quarter of 2020. Revenue growth was driven by a year-over-year increase in silver equivalent sales volumes of 92% to 1.4 million silver equivalent ounces and higher realized prices of $26.71 per ounce of silver in the second quarter of 2021 compared with $17.00 per ounce of silver for the second quarter of 2020. Cost of sales, including direct costs and mining royalty taxes, were $24.4 million compared to $7.6 million in the second quarter of 2020, corresponding to the increase in sales. As a result, income from mine operations increased to $11.3 million from $2.9 million in the first quarter of 2020.
General and administrative costs increased to $2.2 million compared to $1.2 million in the second quarter of 2020. The significant components of these expenses include the costs of salaries and office administration, management fees, and community relations expenses. Deferred income taxes of $7.1 million were recorded during the second quarter of fiscal 2021, relative to none during the second quarter of fiscal 2020. Overall, the net income for the second quarter of 2021 totaled $3.9 million.
2021 Outlook Update and Guidance
The Company produced 2.9 million silver equivalent ounces from its operations during the first half of 2021 from its mineral reserves and its third-party ore sourcing business. During the remainder of 2021, the Company will focus mining production at the Santa Rita Pallacos area. Mining will also continue at the Company's high-grade mine waste stockpile areas. In July 2021, production commenced at the Monserrat mine waste stockpile area, which contains higher grade material than the Company's Pallacos areas.
The Company has commenced sonic drilling of the tailings facility which will inform a mineral resource estimate followed by a technical study on the economic viability of reprocessing approximately 10 million tonnes contained in its tailings facilities. Manquiri's production records suggest potentially economic quantities of recoverable silver and tin exists in the tailings.
The Company continues to expand its third-party ore sourcing business from locations outside Cerro Rico. As the San Bartolomé operation contains the only large-scale commercial oxide plant in the country, the Company is leveraging this advantage with its strong working capital position and actively reviewing additional purchasing opportunities throughout Bolivia. The Company currently purchases ore from 32 out of approximately 1,700 mining cooperatives within Bolivia.
In addition to Andean's production profile and ore sourcing business, the Company also has an active exploration program for two highly prospective properties that Andean owns: Rio Blanco and San Pablo.
At Rio Blanco, Andean began a diamond drilling campaign comprising 22 holes over 5,500 metres with three drill rigs in July 2021. The Company also advanced reconnaissance geological work including trenching totaling 1,500 metres replicating the historic work performed in 1998. This work programme is intended to supplement the drilling campaign.
At San Pablo, Andean completed the first phase of a 10,000 metre diamond drilling campaign, drilling 12 holes totaling 3,580 metres at varying depths in May 2021 with multiple gold bearing zones encountered. The Company also seeks to complete ground-based geophysical surveys in its second phase. The Company expects to release results on the first phase in due course.
About Andean Precious Metals Corp.
Andean Precious Metals (TSXV: APM) is a Canadian, growth-focused silver producer operating in Bolivia. The Company produced 5.9M silver equivalent ounces in 2020 at an all-in sustaining cost of $14.75 USD per ounce from its own mineral claims, contracts with the state mining company of Bolivia (COMIBOL), and from a high margin third-party ore sourcing business. All processing takes place at the Company's 1.65M tonne per year San Bartolomé plant which has the capacity to produce silver doré bars. Andean Precious Metals is committed to fostering safe, sustainable and responsible operations. For more information, please visit www.andeanpm.com.
Source: Andean Precious Metals Corp.