LOS ANDES ANNOUNCES $6MILLION PRIVATE PLACEMENT TO FUND AN ADDITIONAL 15,000 METRES OF DRILLING AT VIZCACHITAS
November 2, 2007
Vancouver, BC – Los Andes Copper Ltd. ("Los Andes", or the "Company", TSX Venture Exchange: LA) is pleased to announce a non-brokered private placement of 12,000,000 units at a price of $0.50 per unit for gross proceeds of $6,000,000. The Company also reserves the right to issue up to 3,000,000 additional units for additional gross proceeds of $1,500,000. Each unit is comprised of one common share and one-half of one share purchase warrant. Each warrant will entitle the holder to acquire one additional common share of the Company at a price of $0.75 for a period of one year from the date of issuance. There will be 7% finder’s fees payable in connection with the private placement, payable in cash.
The proceeds of the private placement will be used by the Company to finance a phase two drilling program on the Vizcachitas copper-molybdenum project located in Region V, Chile; and for general working capital purposes. The recently completed 5,000 metre phase one program successfully confirmed the historical drilling carried out in the 1990s and extended the known mineralization to the south, east and west. Previously reported highlights from the program include:
138 metres grading 0.54% copper and 0.01% molybdenum (0.61% Cu equivalent*) that included a 26 metre interval grading 0.99% Cu and 0.014% Mo (1.08% Cu equivalent*) in Hole LAV-68 (News release dated October 2, 2007) and 324.5 metres grading 0.45% Cu and 0.011% Mo (0.53% Cu Equivalent*) that included a higher grade interval of 0.60% Cu and 0.013% Mo (0.69% Cu Equivalent*) over 90 metres in hole LAV-81 (news release dated October 30, 2007). (*Copper equivalent is calculated for Mo values greater than 0.01% using US$1.50/lb Cu and US$10.00/lb Mo according to the formula CuEq% =Cu% + (Mo% x 10.00/1.50) and is not adjusted for metallurgical recoveries or net smelter return which remain uncertain and are assumed to be 100%).
Plans for phase II drilling include: follow up of successful stepouts drilled in Phase I, testing the northern margin of the known mineralization, testing the depth extent of the deposit with several deep holes, continued infill drilling to increase confidence in the resource and obtaining core for metallurgical testing.
Roger Moss, President and CEO of Los Andes commented as follows: “The results from the first phase drilling program have exceeded our expectations. We plan to move the project forward on an aggressive timeline that will include a pre-feasibility study in 2008.”
Roger Moss, Ph.D., P.Geo, is the qualified person as defined by National Instrument 43-101 for the Vizcachitas Project. Logging, sampling and splitting of the drill core is conducted at the Vizcachitas site by independent consultants Geologica LTDA. under the direct supervision of geologist Ramon Fam. Samples are securely transported by Geologica staff to the SGS Laboratory in Santiago Chile and analyzed for copper and molybdenum by atomic absorption following a three acid digestion. Los Andes routinely inserts standards and blanks into the sample stream and sends 5% of sample rejects to Actlabs for check analysis.
The private placement is subject to acceptance by the TSX Venture Exchange.
The Vizcachitas Project offers potential for a low strip, open pit operation in an area of low elevation with excellent infrastructure, including water and power in central Chile. The Vizcachitas deposit occurs in the same metallogenic belt as the large copper-molybdenum porphyries Rio Blanco-Los Bronces, Los Pelambres-El Pachon and El Teniente. Based on 68 drill holes previously completed by General Minerals Corporation and Placer Dome, the project contains an indicated resource of 232 million tonnes grading 0.46% copper and 0.014% molybdenum and an inferred resource of 619 million tonnes grading 0.38% copper and 0.013% molybdenum at a 0.30% copper cutoff. At a 0.4% cutoff, indicated resources total 144 million tonnes grading 0.52% copper and 0.015% molybdenum and inferred resources total 211 million tonnes grading 0.46% copper and 0.016% molybdenum as detailed in the NI43-101 compliant technical report of A.C.A. Howe International Limited dated February 7, 2007. The technical report, as well as additional information about the Vizcachitas Project is available on our website at www.losandescopper.com.
This document contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectation implied by these forward looking statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the
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