Ottawa, ON - Kings Minerals NL and Andaurex Industries Inc. (TSXV:AWX) are pleased to announce the latest drill results from further drilling of the gold rich zone in the Cerro del Gallo gold/silver deposit on the San Anton property in Guanajuato State, Mexico. Some of the more significant new intersections within this zone include 140.21m grading 0.89 g/t Au from 108.20m in hole SA-204, 214.88m grading 1.05 g/t Au from 32.00m in hole SA-205, and 70.10m grading 1.29g/t Au from surface in SA-208 (Ag and Cu assay results are pending on all these holes). Andaurex is acquiring, subject to regulatory approval, Kings Minerals 51% interest in the San Anton property through a reverse takeover transaction that will result in the formation of a new company to hold the property, San Anton Resource Corporation. The remaining 49% interest is held by Goldcorp. The gold rich zone was identified during the mineral resource estimation process carried out by Golder Associates in February, 2006 and was based on a wide spaced 100m × 100m drill pattern and a limited amount of information. The gold zone is now being drilled on a 50m × 50m pattern and this work indicates that it is increasing in both grade and width, particularly on the southern side of Cerro del Gallo. Present indications are that the gold rich zone at the south end of Cerro del Gallo has already grown to approximately 400m by 200m and may extend to depths greater than 200m. Further drilling is planned to continue to define the extent of these new, higher grade gold intersections. Gregory Bowes, President of Andaurex commented that "While a multi million ounce resource has already been outlined at Cerro Gallo in less than two years, it is still a relatively new discovery that is proving capable of generating some pleasant surprises. The deposit is still open laterally and at depth and significant opportunities exist to enhance the economics of the deposit by expanding both the gold rich and gold skarn zones and by exploring over 10km of related epithermal vein-breccia systems." He added that "these latest results will enable us to evaluate a number of development scenarios including starting up with a standard gold processing plant." The Cerro del Gallo deposit hosts measured and indicated resources of 225 million tonnes grading 0.81g/t AuEq (5.9Mozs AuEq) and inferred resources of 229 million tonnes grading 0.71g/t AuEq (5.2Mozs AuEq), both based on a 0.30g/t AuEq cut-off grade. The resource estimate is based on a total of 24,635 metres of drilling in 110 drill holes to the cut-off date of December 16, 2005. Over 56,000m of infill and expansion drilling has now been completed on the deposit and a new resource estimate will be prepared in the first quarter of 2007. Go to PDF version of the press release for a complete table of the "Cerro del Gallo Deposit Intersections at 0.30g/t Au Cut-off, >10m Intervals, >0.50g/t Au." Drilling was supervised by Graeme Rabone, an independent consultant, who is a Qualified Person under National Instrument 43-101 and has reviewed and approved the technical information in this release. HQ diamond core is assayed in 1.0 meter intervals while RC samples are assayed in 1.52 metre intervals, at SGS in Toronto, Canada. Gold is routinely assayed using a 30 gram sample, fire assay fusion and AAS finish with all gold values of less than 1.0g/t routinely re-assayed by SGS using the gravimetric method prior to batch reporting. Silver and copper values are determined on a 2 gram sample, aqua regia-hydrofluoric acid digest and AAS finish with high values checked using a different method. Standard reference material is routinely inserted into the sample stream from diamond core and RC drilling at a rate of 1 in 40 samples and sample blanks every 1 in 100 samples. Field duplicates are inserted every 1 in 50 samples. Analytical QA/QC work is done at a later time at another external laboratory on approximately 5% of selected samples containing above background metal values. Andaurex is acquiring Kings Minerals 51% interest in the San Anton property, which hosts the Cerro del Gallo gold/silver deposit, pursuant to a reverse take-over transaction with Kings Minerals which will result in the formation of a new company, San Anton Resource Corporation which will hold the property interest. Goldcorp Inc. owns the remaining 49% interest. Shareholders of Andaurex approved the transaction at a special meeting held on November 9, 2006. Closing of the transaction is subject to regulatory approval and the satisfaction of a number of other conditions including the completion of a financing of at least C$10 million. A syndicate of agents lead by Haywood Securities Inc. has been engaged to complete a private placement financing of up to 18,750,000 units at a price of C$0.80 per unit for gross proceeds of up to C$15 million. Each unit will consist of one common share and one-half of one common share purchase warrant with each whole warrant exercisable to acquire one common share at an exercise price of C$1.20 for a period of twenty-four (24) months.
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For further information please contact: Andaurex Industries Inc. / Gregory Bowes, President / Tel: (613) 729-9006 / gbowes@andaurex.com WARNING: The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Andaurex, Kings Minerals and San Anton, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the expectations of Andaurex are exploration risks detailed herein and from time to time in the filings made by Andaurex and San Anton with securities regulators. |
