ANDEAN PRECIOUS METALS REPORTS DISCOVERY OF HIGH SULFIDATION AND PORPHYRY GOLD SYSTEM IN BOLIVIA Phase II drilling confirmed that the San Pablo Project has many of the characteristics of a porphyry gold system
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ANDEAN PRECIOUS METALS REPORTS DISCOVERY OF
HIGH SULFIDATION AND PORPHYRY GOLD SYSTEM IN BOLIVIA
Phase II drilling confirmed that the San Pablo Project
has many of the characteristics of a porphyry gold system
Toronto, Ontario , September 7, 202 2 - Andean Precious Metals Corp. (TSXV:APM)
(OTCQX:ANPMF) (“Andean” or the “Company”) is pleased to report results received to date from
the Company’s phased drilling program being carried out at its wholly owned San Pablo gold project
in Bolivia.
San Pablo: Select Drilling Highlights
Phase I
• 53.80 m at 1.17 g/t Au in hole SP21-01
• 23.10 m at 0.47 g/t Au in hole SPW21-04
• 92.75 m at 0.37 g/t Au in hole SPW21-04
• 97.80 m at 0.30 g/t Au in hole SPW21-03
• 108.40 m at 0.29 g/t Au in hole SPW21-01
Phase II
• 4.50 m at 6.19 g/t Au, 67.07 g/t Ag, 0.41 % Pb and 0.47% Zn in hole SP22-03
• 2.60 m at 1.97 g/t Au, 331.23 g/t Ag, 1.78% Cu, 2.20% Pb and 4.93% Zn in hole SP22-03
• 13.70 m at 0.71 g/t Au in hole SP22-03
“We are pleased with the initial results of the exploration program at our San Pablo project. Phase
II drilling has confirmed a high sulfidation and porphyry gold system that demonstrates the potential
to host gold mineralization at these targets, which have similarities to other major gold occurrences
in Bolivia,” said Simon Griffiths, President and CEO of Andean.
Bolivia is an underexplored and highly prospective mining jurisdiction where Andean’s subsidiary,
Empresa Minera Manquiri, operates the only commercial scale oxide processing plant . Until now,
no modern-day exploration has been conducted on the San Pablo property, located in the heart of
one of the world’s oldest and most mineral rich mining jurisdictions.
The 100% owned San Pablo project, that comprises 650 hectares, is situated in the Department of
Potosí in the southern part of the prolific Bolivian tin-silver and polymetallic belts. This region hosts
several of Bolivia's largest mines, including the former Kori Kollo gold mine (Newmont) that produced
more than 5 million ounces of gold , and the Cerro Rico of Potosí (where the Company’s San
Bartolomé mine is located) , which has produced more than 2 billion ounces of silver as well as a
significant amount of tin.
Following up on the 2021 Phase I drill program of 12 core holes for a total of 3,581 m etres, in
February 2022, the Company started a second program using two drill rigs. To date it has drilled
5,573 metres in 11 core holes as part of Phase II and assays are pending for four holes. Highlights
from the Phase I (as previously published in the Company’s press release dated November 30,
2021) and Phase II drill programs are listed in Tables 1 and 2, and the hole locations are shown in
Figure 1.
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“While the Phase I drill program returned several gold intersections, t he Phase II drilling has
confirmed that the San Pablo Project has many of the characteristics of a porphyry gold system,”
explained Dr. Stewart D. Redwood, the Company’s Principal Advisor, Geology. “The system is large,
and anomalous gold occurs in every hole drilled.”
Dr. Redwood added, “ The results show an alteration profile through the upper part of a porphyry
system starting with the root of the lithocap with epithermal veins, followed by the zone of phyllic
alteration, and finally by the zone of potassic alteration in the deeper parts . The best gold grades
occur with polymetallic sulphide veinlets associated with phyllic alteration, and with epithermal veins.
The porphyry intrusions drilled so far are late syn-mineral in age, and we have yet to encounter the
pre-mineral porphyries that are expected to have bet ter grades. The other important control is
structure to give zones with a high percentage of gold-bearing sulphide veins. This was the main ore
control at the Kori Kollo mine, where gold occurred in a zone of sheeted pyrite veinlets.”
Table 1. Polymetallic Mineralization in Hole SP22-03
Hole
Number
Mineralized Interval
From (m) To (m) Width (m) Au (g/t) Ag (g/t) Cu (%) Pb (%) Zn (%)
SP22-03 137.00 141.50 4.50 6.19 67.07 0.01 0.41 0.47
SP22-03 165.00 178.70 13.70 0.71 2.83 0.01 0.03 0.13
Inc. 167.20 168.60 1.40 3.18 0.82 0.03 0.01 0.02
SP22-03 192.00 194.60 2.60 1.97 331.23 1.78 2.20 4.93
Inc. 193.10 194.60 1.50 2.50 481.00 2.46 3.15 7.37
Table 2: Composited Analytical Results from the San Pablo Project
Hole No. From (m) To (m) Length (m) Au (g/t)
Phase I
SPW21-01 54.00 162.40 108.40 0.29
183.00 195.10 12.10 0.42
209.80 279.65 69.85 0.23
SPW21-03 8.80 106.60 97.80 0.30
SPW21-04 4.50 27.60 23.10 0.47
44.35 136.70 92.75 0.37
196.15 209.85 12.90 0.33
225.90 233.20 7.30 0.96
Inc. 229.00 229.30 0.30 12.15
311.10 328.35 16.05 0.34
SPWE21-03 120.65 137.00 16.35 0.33
145.90 149.70 3.80 0.50
170.55 171.30 0.75 2.45
222.05 225.00 2.95 0.92
282.10 283.15 1.05 0.37
371.00 377.00 6.00 2.04
SP21-01 210.90 264.70 53.80 1.17
Inc. 221.00 223.90 2.90 3.75
Inc. 238.60 241.15 2.55 6.23
Inc. 257.30 258.30 1.00 17.65
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Notes to Tables 1 and 2
1. All assays performed by ALS Global Inc., a certified independent analytical services provider.
2. A cut-off grade of 0.15 g/t Au was used for the compositing.
3. A maximum of 5 m of dilution (less than cut-off) was used in compositing.
4. Composited lengths are down-hole, and true widths are currently unknown.
5. Intersections >5 g/t*m and >0.3 g/t Au are reported.
6. Holes SPW21-02, 05, 06, 07, SPWE21 -01, 02, SPQ22 -01, SPW22 -10 and 11 did not r eturn any significant
intersections.
7. SP - San Pablo, SPW – Willacollito, SPQ – Quinoa, SPWE - Willacollito East.
8. According to Company protocols, three QAQC samples (blanks, standard s, duplicates) per 25 samples were
inserted into the sample stream (approximately 12% QAQC samples). Analytical results were within acceptable
limits.
9. The Qualified Person reviewed the assay composites herein and verified them against the assays from the
certified analytical services provider.
Geology and Mineralization
Gold mineralization at San Pablo is hosted by diamictites of the Silurian-aged, Cancañiri Formation
on the western limb on a major anticline over a large area of at least 2.5 km elongated northwest by
1.5 km wide , and multiphase porphyry intrusions in stocks and dykes . Early potassic alteration
affects porphyry and sediments and comprises secondary biotite, potassium feldspar and magnetite,
with quartz veinlets, and magmatic -hydrothermal breccias, accompanied by low -grade gold. The
porphyries encountered to date are syn-mineral in relative age. The pre-mineral porphyries have not
been found yet and are an important target. The roots of the lithocap occur in the peaks above about
5,000 m comprising minor veins of pyrite -covellite, or residual vuggy quartz and advanced argillic
alteration. Sericite alteration (phyllic alteration) with gold-rich polymetallic sulphides (As, Bi, Cu, Zn)
partly overprints potassic alteration or fresh rock in structurally controlled zones and veins.
SP21-02 92.15 102.80 10.65 0.39
113.50 125.75 12.25 0.33
229.50 234.50 5.00 1.92
399.85 403.55 3.70 0.53
470.80 473.90 3.10 7.39
Phase II
SPQ22-02 42.17 42.60 0.43 0.58
62.45 63.00 0.55 2.50
SPW22-08 27.65 28.15 0.50 1.31
45.45 46.85 1.40 0.74
SPW22-09 23.55 24.00 0.45 9.93
38.80 39.20 0.40 0.69
SPW22-12 54.60 56.30 1.70 0.91
SP22-03 137.00 141.50 4.50 6.19
Inc. 137.00 137.80 0.80 13.90
Inc. 138.60 140.00 1.40 8.59
165.00 178.70 13.70 0.71
192.00 194.60 2.60 1.97
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San Pablo Target
The San Pablo target is the zone around the high point of Cerro Alcandevario in the north-western
part of the concession in diamictites with porphyry dykes. This target gave the best intersection in
Phase I of 53.80 m at 1.17 g/t Au from 210.90 m (SP21-01) in a stockwork of sulfide veinlets. Hole
SP21-02 intersected several zones including 1 0.65 m at 0.39 g/t Au from 92.15 m, and 3.10 m at
7.39 g/t Au from 470.80 m.
These holes were followed up in Phase II by holes SP22-03 (lost at 207 m), SP22-03 BIS (re-drilled)
and SP22-04, with assays pending for the latter two. SP22-03 returned 4.50 m at 6.19 g/t Au, 67.07
g/t Ag, 0.41 % Pb and 0.47% Zn from 137.00 m in veinlets of specularite, pyrite, arsenopyrite and
quartz; 13.70 m at 0.71 g/t Au from 165.00 m in veinlets of pyrite-arsenopyrite; and 2.60 m at 1.97
g/t Au, 331 .23 g/t Ag, 1.78% Cu, 2.20% Pb and 4.93% Zn f rom 192.00 m in a pyrite-covellite-
enargite-sphalerite vein. This is the first hole to return significant silver and base metal grades which
are interpreted to be epithermal mineralization in the root of the lithocap. Please see cross section
in Figure 2.
Willacollito Target
The Willacollito target is a ridge at lower elevation east of the San Pablo target in diamictite with
seven Phase I holes (SPW22-01 to 07). They returned several long intersections in sulfide veinlets
including 108.40 m at 0.29 g/t Au from 183.00 m (SPW21 -01), 69.85 m at 0.23 g/t Au from 209.80
m (SPW21-01), 97.80 m at 0.30 g/t Au from 8.80 m (SPW21 -03), and 92.75 m at 0.37 g/t Au from
44.35 m (SPW21-04).
Five holes were drilled in Willacollito in Phase II (SPW22-08 to 12) of which two were lost before
reaching the target depth. They intersected diamictites and altered porphyries with gold in veins
such as 0.45 m at 9.93 g/t Au (SPW22-09) and 0.50 m at 1.31 g/t Au (SPW22 -08), and with
anomalous gold zones below cut-off grade; the low grades are believed to be due to the relatively
late age porphyries post-dating the main gold stage. The pre -mineral porphyries have not been
intersected yet.
Willacollito East Target
The Willacollito East target is east of Willacollito in diamictite with porphyries and breccias. One hole
is under way (SPWE22-04) in Phase II to drill deeper below the Phase I holes (SPWE21-01 to 03).
Two Phase I holes intersected a magmatic-hydrothermal breccia body ~130 m true width (SPWE21-
01 and 03). Hole SPWE21-03 returned 16.35 m at 0.33 g/t Au from 120.65 m, and 6.00 m at 2.04
g/t Au from 371.00 m in breccia.
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Quinoa Target
Cerro Quinoa is a diamictite ridge in the southeastern part of the concession. Two holes drilled in
Phase II (SPQ22-01, 02) were both lost due to high pressure artesian water. They cut diamictites
with pyrite veinlets with gold grades up to 0.55 m at 2.50 g/t Au (SPQ22-02).
Ongoing Exploration Program
Andean has recently acquired the Jiwaki II property (200 hectares) on the northern continuation of
the San Pablo target. T he Company has field crews carrying out geological mapping and channel
sampling on the newly acquired concession. In addition, Fractal Geophysics company of La Paz has
started a 100 line-kilometre ground magnetic and induced polarisation (IP) geophysical survey. It is
expected that the drilling will resume in October to complete the remaining approximately 1,000 m
of the program.
Analyses and Qualified Person
All samples were prepared by ALS Global at their laboratory in Oruro, Bolivia and the pulps were
analysed at ALS Global at their laboratory in El Callao, Peru. ALS Global is an independent, certified,
commercial analytical service company, per ISO/IEC 17025:2017 and ISO 9001:2015. Gold was
assayed by a 30-gram fire assay with atomic adsorption spectroscopy (“AAS”) finish and multi -
element values were derived from four acid digestion and inductively coupled plasma mass
spectrometry (“ICP -MS”). Blanks, standards and duplicates were routinely inserted for quality
assurance and quality control (“QAQC”) per Company protocol.
The scientific and technical content disclosed in this press release was reviewed and approved by
Donald J. Birak, Senior Consulting Geologist to the Company, 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).
About Andean Precious Metals Corp.
Andean Precious Metals is a Canadian headquartered, growth-focused silver producer that owns
and operates the San Bartolomé project located in the department of Potosí, Bolivia. San Bartolomé
has been operating continuously since 2008, producing an average of over five million ounces of
silver equivalents per year. The Company is also exploring its wholly owned San Pablo gold projects
and seeking other accretive opportunities in Bolivia and Latin America. Andean is committed to
fostering safe, sustainable and responsible operations. For more information, please visit
www.andeanpm.com.
Company Contact North America Europe
Trish Moran
VP Investor Relations
T: +1 416 564 4290
Anna Speyer
NATIONAL Capital Markets
T: +1 416-848-1376
Charles Vivian
Tavistock
T: +44 20 7920 3150
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Figures
Figure 1: Geological map of the San Pablo project showing drill hole locations
Figure 2: Cross section of drill hole SP22-03 BIS at San Pablo target