Southern Andes Energy
Inc. (NYSE:SUR),
("Southern Andes" or "the Company"), is pleased to
announce the discovery of widespread uranium mineralization from preliminary
work on its Alpi-1 target in the Chacaconiza project area in the Macusani
Uranium District, Southeast Peru.
Alpi-1 Discovery
Initial results from a
comprehensive exploration program consisting of detailed mapping, hand-supported
radiometric surveys, trenching and channel sampling from a portion of the
Alpi-1 target have returned significant widespread uranium mineralization
from intensely fractured volcanic ash and ignimbrites. The mineralized
area is characterized by a radiometric anomaly striking for 1.5 kilometres
that was outlined during a regional survey completed by the Company's
predecessor company in 2006.
Apli-1 is the second
uranium discovery Southern Andes has made in the Chacaconiza project area
following the Accocucho Sur discovery in September 2010. Alpi-1 is
located approximately 6 kilometres northwest of Accocucho Sur. (Please
visit our website for detailed project location maps at www.southernandes.ca)
Commenting on the
results, Nick Tintor, President and CEO of Southern Andes Energy Inc., stated
that "The results from Alpi-1, combined with the discovery of widespread
uranium mineralization on surface at the nearby Accocucho Sur discovery
underscores the significant potential we see in this new area." Tintor
further added that "These new discoveries are priority drill targets for
our 2011 exploration program which is expected to begin early in the second
quarter."
Highlights of the limited sampling program include:
PPM (U3O8) %(U3O8) Metres
- Zone 1: Trench T-2:
1,704
.17
5.2 m
- Zone 1: Trench T-5:
430
.043
17.15 m
- Zone 1: Trench T-8:
657
.0657
14.1 m
- Zone 1: Trench
T-27:
520
.052 8.8 m
- Trench T-36:
254
.0254
17.0 m
- Zone 3: Trench
T-38:
1,031
.103 8.9 m
The Company completed an
exploration program in December 2010, in which a total of 42 trenches and
eight channels totalling 402 metres were completed to test the most prominent
portion of the radiometric anomaly. A total of 388 samples were
collected. The samples were assayed for uranium and also a suite of 34
elements. A complete list of channel and trench sampling results are
listed in the appendix at the end of this press release.
About Alpi-1 and the
Chacaconiza Project Area
Alpi-1 is one of four
large radiometric anomalies comprising the Chacaconiza project
area. Covering more than 3,700 hectares and measuring approximately 8
kilometres by 5 kilometres, Chacaconiza is the largest radiometric anomaly
identified in the Macusani Uranium District which has never been drill
tested.
The Company's geologists
tested three outcropping or sub-outcropping zones known as Zones 1 to 3 where
high radiometric readings were recorded by hand-held
scintillometres. The two most prominent zones, Zones 1 and 2, are 300
metres apart with each measuring approximately 150 metres by 100
metres. All three zones are within a much larger radiometric anomaly
measuring 700 metres by 400 metres which will be tested by drilling later
this year.
Alpi-1 is characterized
by secondary autunite uranium mineralization associated with dense, closely
spaced NW-SE and NE-SW trending sub-vertical fractures and which also occurs
as disseminations between fractures. Uranium in fractures occurs as
spots, patches and in some cases sealing 3 mm wide
fractures. Disseminated uranium mineralization is also associated with a
2 metre to 7 metre thick layer of oxidized crystal tuff.
Tupuramani Concession
The Company has also
completed a reconnaissance sampling program on its Tupuramani
concession. Turpuramani is characterized by a strong 1.5 kilometre long radiometric
anomaly on strike with the Colibri II-III uranium deposit, owned by Macusani
Yellowcake Inc., which is reported to host inferred uranium resources.
High radiometric
readings, some associated with visible secondary uranium mineralization in
outcrop, were recorded over the entire strike length of the anomaly and
assays are expected later this month.
QC/QA Protocols
Sampling consists of rock
chip samples taken over lengths varying from 0.5 metres to 2.0 metres with
each sample weighing approximately 1.5 kilograms to 3 kilograms. Assays
were performed by SGS Laboratories in Lima, Peru and CIMM Peru, both ISO/IEC
17025 accredited laboratories, using a multi-acid digestion
process. Sample preparation was completed in Juliaca, Peru. A comprehensive
Quality Control and Quality Assurance protocol has been implemented including
the insertion of two blanks, three standards and three duplicates for each
100 samples processed.
Qualified Person
Mr. Alain Vachon,
P.Geo, Southern Andes Manager - Exploration and the Company's Qualified
Person as defined by National Instrument 43-101, has reviewed and approved
the contents of this press release.
To view the map
associated with this press release, please visit the following link:
http://media3.marketwire.com/docs/SURMap112.pdf.
About Southern Andes
Energy Inc.
Southern Andes Energy
Inc. is focused on exploring and developing uranium resources to meet
the world's growing demand for clean energy. The Company is the largest
landowner in the emerging Macusani Uranium District in Peru with holdings of
more than 100,000 hectares of land. The Company also owns a 10% interest
in Macusani Yellowcake Inc., which controls two advanced stage uranium
projects in the district. Southern Andes owns a 100% interest in Caracara
Silver Inc., which has been created to advance and develop the Company's
extensive silver and zinc projects in Peru.
Forward-looking
Statements
This news release may
contain forward-looking statements that are based on Southern Andes Energy
Inc.'s expectations, estimates and projections regarding its business and the
economic environment in which it operates. These statements are not
guarantees of future performance and involve risks and uncertainties that are
difficult to control or predict. Therefore, actual outcomes and results
may differ materially from those expressed in these forward-looking
statements and readers should not place undue reliance on such
statements. Statements speak only as of the date on which they are made,
and the Company undertakes no obligation to update them publicly to reflect
new information or the occurrence of future events or circumstances, unless
otherwise required to do so by law.
Appendix
----------------------------------------------------------------------------
ALPI 1 GEOCHEM RESULTS
----------------------------------------------------------------------------
Zone
Sampling Long
(m)
Ave U3O8 ppm
U3O8 % U3O8 lbs/s.ton
----------------------------------------------------------------------------
1
Trench-1
3,3
147,1
0,015
0,294
----------------------------------------------------------------------------
1
Channel-1
1,6
508,1
0,051
1,016
----------------------------------------------------------------------------
1
Trench-2
5,2
1704
0,170
3,408
----------------------------------------------------------------------------
1
Channel-2
1,6
1518,9
0,152
3,038
----------------------------------------------------------------------------
1
Trench-3 6,2
553,4
0,055
1,107
----------------------------------------------------------------------------
1
Trench-4
3
325,9
0,033
0,652
----------------------------------------------------------------------------
1
Trench-5
17,15
430,6
0,043
0,861
----------------------------------------------------------------------------
1
Trench-6
3,85
1691,2
0,169
3,382
----------------------------------------------------------------------------
1
Trench-7
4,15
296,1
0,030
0,592
----------------------------------------------------------------------------
1
Channel-3 3,8
565,7
0,057
1,131
----------------------------------------------------------------------------
1
Trench-8
14,10
657
0,066
1,314
----------------------------------------------------------------------------
1
Trench-9
2,05
1970,5
0,197
3,941
----------------------------------------------------------------------------
1
Channel-4
4,4
379,1
0,038
0,758
----------------------------------------------------------------------------
1
Channel-5
0,9
576
0,058
1,152
----------------------------------------------------------------------------
1
Trench-10
3
356,5
0,036
0,713
----------------------------------------------------------------------------
1
Trench-11
6,55
409,3
0,041
0,819
----------------------------------------------------------------------------
1
Trench-12
No significant values
----------------------------------------------------------------------------
1
Trench-13
1
174
0,017
0,348
----------------------------------------------------------------------------
1
Trench-14
1,3
1344,3
0,134
2,689
----------------------------------------------------------------------------
1
Trench-15
2
dec-00
0,037
0,731
----------------------------------------------------------------------------
2
Channel-6
1,85
2140
0,214
4,280
----------------------------------------------------------------------------
2
Trench-16
3,3
848,9
0,085
1,698
----------------------------------------------------------------------------
2
Trench-17 2,95
996,1
0,100
1,992
----------------------------------------------------------------------------
2
Trench-18
4,4
234,6
0,023
0,469
----------------------------------------------------------------------------
2
Trench-19
5,4
404
0,040
0,808
----------------------------------------------------------------------------
2
Trench-20
1,8
868,1
0,087
1,736
----------------------------------------------------------------------------
2
Trench-21
1,50
1098,7
0,110
2,197
----------------------------------------------------------------------------
2
Trench-22
0,7
467
0,047
0,934
----------------------------------------------------------------------------
2
Trench-23
0,8
1324
0,132
2,648
----------------------------------------------------------------------------
2
Trench-24
5,45
488
0,049
0,976
----------------------------------------------------------------------------
2
Trench-25 4,75
330,1
0,033
0,660
----------------------------------------------------------------------------
2
Trench-26
4,9
288
0,029
0,576
----------------------------------------------------------------------------
1
Trench-27
8,8
520,2
0,052
1,040
----------------------------------------------------------------------------
1
Trench-28
No significant values
----------------------------------------------------------------------------
1
Trench-29
No significant values
----------------------------------------------------------------------------
1
Trench-30 2,65
257,5
0,026
0,515
----------------------------------------------------------------------------
2
Trench-31
2,7
420,5
0,042
0,841
----------------------------------------------------------------------------
2
Trench-32
No significant values
----------------------------------------------------------------------------
2
Trench-33
2,25
2159,4
0,216
4,319
----------------------------------------------------------------------------
2
Trench-34
No significant values
----------------------------------------------------------------------------
1
Trench-35
3,68
120,5
0,012
0,241
----------------------------------------------------------------------------
Trench-36
17
254,4
0,025
0,509
----------------------------------------------------------------------------
2
Trench-42
5,1
691
0,069
1,382
----------------------------------------------------------------------------
3
Trench-37 2,25
942,8
0,094
1,886
----------------------------------------------------------------------------
3
Trench-38
8,9
1030,6
0,103
2,061
----------------------------------------------------------------------------
3
Trench-39
5,87
496,7
0,050
0,993
----------------------------------------------------------------------------
3
Channel-7
5,4
205
0,021
0,410
----------------------------------------------------------------------------
3
Trench-40
3,7
257,9
0,026
0,516
----------------------------------------------------------------------------
3
Channel-8 3,76
237,7
0,024
0,475
----------------------------------------------------------------------------
3
Trench-41
No significant values
----------------------------------------------------------------------------
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