AGCZ $0.061 Most Recent PR: Andes Gold Corp Discusses

AGCZ $0.061 Most Recent PR: Andes Gold Corp Discusses Current Mining Operations, Projections for the Future

BOCA RATON, FL, Mar 25, 2012 (MARKETWIRE via COMTEX) -- Andes Gold Corp (PINKSHEETS: AGCZ), a gold mining company with existing operations in Ecuador, today discussed the Company's current operations and projected what can be expected in the coming months.

The Company is currently mining its gold concessions located in southern Ecuador. This consists of two mines having proven gold reserves of approximately 395,000 ounces of gold. At today's prices, that represents a value of over $600 million in potential revenue based on an average price per ounce of $1650. The Company's present mining efforts extract and process approximately 50 ounces per day with an immediate goal of increasing that to 100 ounces of gold per day.

Andes Gold also recently acquired and renovated and modernized a processing mill in the area. In discussing the advantages of having its own mill, Mr. Talbot, the CEO, said, "Operating our own mill saves us having to pay to ship our ore to an outside location and then pay to have it processed. We never have to wait to have our ore processed. With a capacity of 150 tons of ore per day, we can process not only ore from our own mines, but also that of neighboring concessions. We are currently taking in third party ore and processing approximately 20 tons a day. This is a significant additional source of revenue for us as it utilizes surplus capacity at our mill. We expect to bring an additional mill online shortly as demand warrants."

Andes Gold has been assessing additional concessions in Ecuador. Preliminary results indicate that there is significant mineralization on these concessions. Once the assessment is completed, with its operational mill, the Company will be able to bring these concessions on production immediately. These new concessions are expected to increase our proven reserves significantly. Our short term goal is to produce 100 ounces of gold per day by the end of April 2012.

About Andes Gold Corporation

Andes Gold engages in mining and milling gold and silver in Ecuador. The Company is currently producing on concessions located in the cantons of Zaruma and Portovelo, province of El Oro, southern Ecuador. These concessions are producing gold and silver which is being processed in a company owned mill.