NEWS RELEASE
TSX-V:AAG
March 3, 2008
SEDAR
Profile # 00003879
ANDEAN AMERICAN MINING REPORTS THIRD QUARTER FINANCIAL RESULTS
VANCOUVER, BRITISH COLUMBIA-Andean American Mining Corp. (TSX.V-AAG) (FWB-AQN)(BVL-AAG)
The Board of Directors of Andean American Mining Corp. announces that
its Consolidated Interim Financial Statements and Management Discussion
and Analysis for the quarter ended December 31, 2007 have been filed with
SEDAR at www.sedar.com.
Highlights of these statements are discussed below:
- The net loss for the period was $1,054,183 or $0.016 per share compared
with a net loss of $2,998,136 or $0.049 per share in the comparable period
last year.
- Cash flow used by operations in the quarter ended December 31, 2007
before changes to non-cash working capital items was $153,743 compared
with $1,421,276 in the comparative quarter for 2006.
- Revenues for the three month period ending December 31, 2007 were $1,836,319
in 2007 compared with $1,523,064 in the comparative period in 2006. Sales
of gold and gold equivalents in the quarter were 2,336 ounces compared
to 2,219 ounces in the comparable period last year.
- As of February 25, 2008 the Company had independently acquired 37,300
hectares bringing the total to 41,500 hectares at the Invicta Property.
The 13,000 metre drill program was completed and results warranted the
initiation of an additional 10,000 metres in 2008. Wardrop Engineering
Inc. has been engaged to prepare a NI 43-101 Technical Report, expected
in March 2008, which will provide an updated resource estimate to include
drill results from the current drill program.
- At Sinchao, a 5,000 metre drill program is continuing to test the limits
and continuity of the Breccia Zone and will test the high grade zinc in
the Skarn Zone. Additional targets defined by the geophysical surveys
will be tested and an estimate of inferred resources will be compiled.
- At Santa Rosa, metal production during the quarter was 2,310 gold equivalent
ounces compared to 2,221 gold equivalent ounces for the comparative period
in fiscal 2007.
Outlook:
Gold and silver prices are showing continued strength and at the date
of this report are forecast by the major institutions to continue strengthening
of the Canadian dollar against the US dollars. The Company’s revenues
will be negatively affected by any further strengthening of the Canadian
dollar against the US dollar. Metal prices and currencies are subject
to fluctuation due to changes in global economic conditions. The Company
is experiencing rising production costs due to increasing prices for fuel,
chemicals and maintenance supplies. These rising prices, driven by the
global economic boom, are expected to continue throughout calendar 2008.
For the complete Management’s Discussion and Analysis and Financial Statements, please refer to the Company’s filings at www.sedar.com.
Mr. Andrew Gourlay, P. Geol., President of Andean American Mining Corp. is a "Qualified Person" as defined in the Canadian Securities Administrators National Instrument 43-101with the ability and authority to verify the authenticity and validity of the data herein.
On behalf of Andean American Mining Corp.,
“John Huguet”
John Huguet
Chairman & CEO
Andean American Mining Corp. (TSX.V:AAG)(FWB:AQN) is an international mining and exploration company focused on growth both organically and through acquisitions. The Company is actively pursuing new targets of potential early stage gold and silver prospects in Peru and currently has three key assets: the 16,900 hectare Invicta gold-silver-copper advanced exploration stage project; 67% of Sinchao Metals Corp., owner of the Sinchao zinc-copper-silver-gold-lead mineralization project; and the 9,000 hectare Santa Rosa property, which is a small producing open-pit mine. For further information call (604) 681-6186 or toll free: 1-888-356-4784 or visit www.andeanamerican.com
This news release may contain forward-looking information within the meaning of the Securities Act (Ontario) ("forward-looking statements"). Such forward-looking statements may include the Company's plans for its mineral projects, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of gold and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Financial Statements, Management Discussion and Analysis and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
This news release may use terms such as "inferred resources", "indicated resources", "measured resources", and "mineral resources". These terms are recognized and required by Canadian securities regulations (under National Instrument 43-101 "Standards of Disclosures for Mineral Projects"). Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, "inferred resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Estimates of Inferred Mineral Resources may not form the basis of feasibility of pre-feasibility studies, or economic studies except for a Preliminary Assessment as defined under National Instrument 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
