ANDEAN PRECIOUS METALS PROVIDES UPDATE FOLLOWING FIRE AT GOLDEN QUEEN’S SECONDARY CRUSHER CIRCUIT Repair schedule is well defined to re-establish normal course production; mitigation solutions implemented to minimize production losses
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ANDEAN PRECIOUS METALS PROVIDES UPDATE FOLLOWING
FIRE AT GOLDEN QUEEN’S SECONDARY CRUSHER CIRCUIT
Repair schedule is well defined to re-establish normal course production;
mitigation solutions implemented to minimize production losses
(All amounts are in U.S. dollars unless otherwise stated)
TORONTO, Ontario, January 8, 2024 – Andean Precious Metals Corp. (TSX-V: APM, OTCQX:
ANPMF) (“Andean” or the “Company”) today provided an update on the previously reported fire
at its Golden Queen operation in California.
The fire, which was reported on December 13, 2023, at approximately 9:00 p.m. (Pacific Time),
occurred within the secondary crusher circuit perimeter and more specifically in the screen deck
area. The fire was mostly contained and under control within the following hour . Crisis
management procedures were activated. Everyone was evacuated from the fire area to a safe
location and first responders promptly contacted.
“The Company extends its thanks to the first responders who contained the fire and helped to
protect our employees and contractors,” said Alberto Morales, Executive Chairman and Chief
Executive Officer of Andean.
Mr. Morales continued, “There were no injuries thanks to well -executed emergency protocols.
We commend our team for their quick response the night of the fire as well as their ongoing
efforts to ensure business continuity. While we expect lower production in the first quarter,
Golden Queen’s full-year production is not anticipated to be materially affected by the fire. Our
2024 guidance will be outlined at the end of March when we announce our 2023 financial and
operating results.”
Golden Queen’s Operations Continue
The secondary crusher circuit will be out of service for approximately two months, while mining
operations continue. The ore stockpiled will be subsequently processed to fully utilize the
crushing circuit’s capacity thereby mitigating anticipated lower production during the first quarter
of 2024. In the interim, the leaching pad and Merrill Crowe plant are operating at reduced
processing recovery levels due to ore placement on the leach pad that is temporarily halted. To
mitigate production losses, the Company has installed a portable crusher that should support
60% of normal operating set point.
Cost Estimate
The Company has received approval from the insurance broker to proceed with the repairs. The
preliminary cost estimate in the range of $3.0-$3.4 million includes costs to repair the crusher
circuit as well as expenses associated with rental equipment required until normal operations
are resumed.
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Caution Regarding Forward-Looking Statements
Certain statements and information in this release constitute "forward-looking statements" within
the meaning of applicable U.S. securities laws and "forward -looking information" within the
meaning of applicable Canadian securities laws, which we refer to collectively as "forward -
looking statements". Forwa rd-looking statements are statements and information regarding
possible events, conditions or results of operations that are based upon assumptions about
future economic conditions and courses of action. All statements and information other than
statements of historical fact may be forward-looking statements. In some cases, forward-looking
statements can be identified by the use of words such as "seek", "expect", "anticipate", "budget",
"plan", "estimate", "continue", "forecast", "intend", "believe", "predict", "potential", "target", "may",
"could", "would", "might", "will" and similar words or phrases (including negative variations)
suggesting future outcomes or statements regarding an outlook.
Forward-looking statements in this release include, but are not limited to, statements and
information regarding: the impact of the fire, the downtime of the secondary crusher and the
timing of operation of the portable crusher , the ability of the Company to continue mining and
leach operations at Golden Queen and the Company’s expectation that production for 2024 will
not be materially affected. Forward-looking statements are necessarily based on estimates and
assumptions, while considered reasonable by the Company as at the date of this press release
in light of management's experience and perception of current conditions and expected
developments, are inherently subject to significant business, economic and competitive
uncertainties and risks. Such forward -looking statements are based on a number of material
factors and assumptions, including, but not limited to: the Company’s ability to carry on mining
and leach operations while the fire investigation proceeds; the Company’s ability to recover
About Andean Precious Metals Corp.
Andean is a growing precious metals producer focused on expanding into top-tier jurisdictions in
the Americas. The Company owns and operates the San Bartolomé processing facility in Potosí,
Bolivia and the Soledad Mountain mine in Kern County, California, and is well-funded to act on
future growth opportunities. Andean’s leadership team is committed to creating value; fostering
safe, sustainable and responsible operations; and achieving our ambition to be a multi-asset,
mid-tier precious metals producer.
For more information, please contact:
Trish Moran
VP Investor Relations
T: +1 416 564 4290
Neither the TSX Venture Exchange, Inc. nor its Regulation Services Provider (as that term is defined in policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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under applicable insurance policies; that there is no material adverse change affecting the
Company or its properties; that contracted parties provide goods or services in a timely manner;
that no unusual geological or technical problems occur; that plant and equipment function as
anticipated and that there is no material adverse change in either the price of silver or costs
associated with production or recovery. Known and unknown risks, uncertainties and other
factors which may cause actual results, performance or achievements, or industry r esults, to
differ materially from those anticipated in such forward -looking statements set out herein. The
Company believes the expectations reflected in such forward -looking statements are
reasonable, but no assurance can be given that these expectations will prove to be correct, and
you are cautioned not to place undue reliance on forward-looking statements contained herein.
Some of the risks and other factors which could cause actual results to differ materially from
those expressed in the forward-looking statements contained in this release include, but are not
limited to: risks and uncertainties relating to the interpretation of drill results, the geology, grade
and continuity of mineral deposits and conclusions of economic evaluations; results of initial
feasibility, pre -feasibility and feasibility studies, and the possibility that future exploration,
development or mining results will not be consistent with the Company's expectations; risks
relating to possible variations in reserves, resources, grade, planned mining dilution and ore loss,
or recovery rates and changes in project parameters as plans continue to be refined; mining and
development risks, including risks related to accidents, equipment breakdowns, labour disputes
(including work stoppages and strikes) or other unanticipated difficulties with or interruptions in
exploration and development, including risks relat ing to permitting; the potential for delays in
exploration or development activities or the completion of feasibility studies; risks related to the
inherent uncertainty of production and cost estimates and the potential for unexpected costs and
expenses; r isks related to commodity prices and foreign exchange rate fluctuations; the
uncertainty of profitability based upon the cyclical nature of the industry in which the Company
operates; risks related to failure to obtain adequate financing on a timely basis and on acceptable
terms or delays in obtaining governmental or local community approvals or in the completion of
development or construction activities; risks related to environmental regulation and liability;
political, legal and regulatory risks associat ed with mining and exploration; risks related to the
uncertain global economic environment; and other factors contained in the section entitled "Risk
Factors" in the Company's Management Discussion and Analysis for the period ended
September 30, 2023 dated November 29, 2023.
Many of these uncertainties and contingencies can affect our actual results and could cause
actual results to differ materially from those expressed or implied in any forward -looking
statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements
are not guarantees of future performance. All forward -looking statements made in this press
release are qualified by these cautionary statements. Specific reference is made to the Risk
Factors section in the Company's most recent MD&A on file with Canadian provincial securities
regulatory authorities for a more detailed discussion of some of the factors underlying forward -
looking statements and the risks that may affect the Company's ability to achieve the
expectations set forth in the forward-looking statements contained in this press release. The
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Company disclaims any intention or obligation to update or revise any forward -looking
statements whether as a result of new information, future events or otherwise, except as required
by applicable law.