VANCOUVER, B.C., July 16, 2002 (PRIMEZONE) -- Andean American Mining Corp. (TSX Venture Exchange:AAG) is pleased to provide additional results from its ongoing exploration program of the Virundo Zone within the Santa Rosa Property in southern Peru. The Santa Rosa Property is within the southern Intercordilleran Belt of the Peruvian Andes and is approximately 550 kilometres southeast of Lima. The Santa Rosa Mine is mining the Open Pit Zone, a structurally controlled epithermal deposit. The 13,440 hectare Santa Rosa Property is 100% owned by Andean American.
The Virundo Zone is located 8.5 km by road from the Open Pit Zone. The Virundo Zone is currently 2.0 km by 1.1 km in size and is defined by outcrops of favourably altered limestone to the north and east and old workings to the west. The Virundo zone is open in all directions.
Recent work is focusing on the eastern flanks of the zone. An L-shaped trench was dug immediately above a road cut that has favourable alteration in the underlying soils. This trench is approximately 650 metres northeast of the first trench sampled in Virundo - 25 metres averaging 2.33 g/t Au and 29.5 g/t Ag (previously released July 12). Throughout this area there are no outcrops over an area of 500 by 400 metres (20 hectares).
This latest trench has a total length of 10.5 metres (3.7 m and 6.8 m) and has a weighted average of 4.19 g/t gold. The trench has an average depth of only 1.5 metres. The details are as follows:
Width (m) Au (g/t) Ag (g/t) Weighted average
1.85 2.26 3.9
1.85 0.52 6.6 1.37 g/t Au
2.0 11.02 18.6
2.0 4.82 7.9
2.0 3.54 6.3
0.8 0.13 0.3 5.72 g/t Au
In addition, a two metre deep exploration pit that was dug 25 metres to the north and graded 12.6 g/t gold and 22.65 g/t silver. Both the trench and this pit have clay-rich material with fragments of recrystalized and locally decalcified limestone. Both were terminated as they bottomed out in recrystalized limestone.
Another pit, dug 25 metres to the west, only graded 0.12 g/t gold but a third pit that was dug approximately 175 metres to the west graded 0.98 g/t gold. Two other pits south of this last one graded 0.11 g/t gold and 0.06 g/t gold respectively.
All assaying is done in the Santa Rosa Mines' on-site laboratory using standard fire-assay methods. An in-house quality control program is constantly in place and representative samples are sent for third party verification each month.
Additional exploration pits and trenches have been dug further to the west and results are pending.
Due to the complete lack of exposure through this portion of the Virundo Zone, the orientation of mineralization is unknown at this time. The exploration program will continue advancing with trenches and exploration pits until such a time that access roads can be constructed through the area.
In order to address the potential variability of the gold mineralization and to ensure that samples are truly representative the following sampling practices are employed in the Santa Rosa Property. Within a trench a sample is collected not only from the bottom of the trench but from both walls as well. The maximum size for a trench sample is two metres therefore a sample actually contains the equivalent of 6 metres of material. Sampling in the exploration pits is similar as samples incorporate material from each of the four walls in addition to the floor. The company feels that this form of sampling gives the most representative results.
Andean American's objective is to create shareholder value through low cost mine development. At Santa Rosa, through higher process rates and continued process refinements the aim is to have production costs in the lowest quartile for the industry. The mine is now in commercial production and this is seen as a realistic goal as Peru is host to two of the world's lowest cost producers of gold, Yanacocha and Pierina -- both of which are high altitude heap leach operations.
To find more about Andean American Mining Corp. (TSX: AAG) visit our website at www.andeanamerican.com.
For further information, please contact John Devlin at 1-866-885-0484 and jdevlin@andeanamerican.com or the Company at (604) 681-6186 or toll free 1-888-356-4784 and email info@andeanamerican.com
On behalf of Andean American Mining Corp.,
"Ian Foreman" Ian Foreman, P.Geo. Exploration Manager
This news release may contain forward-looking statements regarding upcoming work programs and events. Actual results may differ materially from those anticipated in such statements.
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