Andean Precious poised for silver drilling in Bolivia
Andean Precious Metals Corp. [APM-TSXV, ANPMF-OTCQB] is set to launch a 15,000-metre phase two drilling program at its San Pablo porphyry target in Bolivia.
Andean is a growth-oriented silver producer and operates the only commercial silver oxide plant in Bolovia. The company produced 5.8 million ounces of silver in equivalent ounces in 2021 from its own mineral claims, contracts with the state mining company of Bolivia and from a high margin third-party sourcing business.
All processing occurs at the San Bartolome carbon in leach oxide processing plant located beside the historic Cerro Rico Silver Mine. Cerro Rico is known as one of the world’s largest silver deposits and has been mined since the late 1500s for precious and base metals.
The company is also exploring its wholly-owned San Pablo and Rio Blanco gold projects and seeking other accretive opportunities in Bolivia and Latin America.
“Bolivia is among the most geologically prospective, under-developed jurisdiction in the world, so progressing exploration work on our portfolio of projects has been a key priority for Andean,” said Simon Griffiths, President and CEO of Andean Precious Metals.
He said a phase two exploration program will test a porphyry target at the San Pablo project that was identified in a recent geophysical survey. “We have budgeted 15,000 metres for this purpose.”
The San Pablo Project covers 650 hectares and is located in the Province of Antonio Quijarro, Department of Potosi. San Pablo is located in the southern part of the prolific Bolivian tin-silver and polymetallic belt that hosts several of Bolivia’s largest deposits, including the former Kori Kollo gold mine (Newmont Mining Corp. (NEM-NYSE)) which produced more than 4.0 million ounces, and the Cerro Rico of Potosi, which produced up to 2.0 billion ounces of silver as well as a significant amount of tin.
The company said 12 diamond drill holes were completed at San Pablo in 2021 for a total of 3,580 metres. Drilling highlights included an intersection of 53.8 metres of grade 1.17 g/t gold from a depth of 211 metres. All 12 holes encountered anomalous gold.
The 15,000-metre drill program will be launched in mid-February, using two drill rigs. Construction of drill platforms and road access is already under way.
Gold mineralization at San Pablo is related to sulphides in narrow-sheeted veins and veinlets, as well as wider discrete veins, and in sulphide-cemented breccias. Two drill targets are interpreted porphyry intrusions that are believed to be the drivers of the gold system.
Meanwhile, the company said ongoing negotiations with the local community and poor road access have delayed exploration work at the Rio Blanco project, which covers 13,462 hectares in the Province of Nor Chichas, Department of Potosi. The company said it expects to re-start exploration work there in the second half of 2022. In 2021, 10 diamond drill holes (2,154 metres) were completed at Rio Blanco.
On February 4, 2022, Andean Precious Metals shares closed at $1.82 and currently trade in a 52-week range of $2.30 and 92 cents.