Strategy
Andean's prime business objective is to build long-term value for its shareholders. The Company believes the best way to build value is to find more gold at historical finding costs of less than $15 per ounce. Within the gold industry, which is struggling to replace the same quality and quantity of reserves that it is currently mining, it becomes Andean's quest to find higher quality gold resources starting in the Andes. This brings us to our rapidly expanding Cerro Negro property, located in the foothills of the Andes and in the province of Santa Cruz, Argentina.
Santa Cruz lies within the largest rhyolite dome fields in the world, the Deseado Massif, which has provided the heat and mineral engine to build world-class high-grade vein systems. Andean believes that Santa Cruz remains one of the largest under-explored vein districts in the Americas - our Eureka vein system, outcropping 3 to 4 stories high, was never historically mined. In addition, Santa Cruz, being as remote as it is, has proven to be a mining friendly province with two existing precious metals mines (Cerro Vanguardia and Martha) and two mines permitted and in construction.
Andean's strategy is to first build competitive advantage, infrastructure and quality resources at its Cerro Negro property in Santa Cruz. Second, the Company will continue its expansion into Santa Cruz following the recent acquisition of three properties: Las Mellizas, Esperanza, and San Augustin. Third, the Company will, following the initial exploration phase, continue to build a management team to finance, construct, and operate our Santa Cruz operations. And finally, Andean will expand into other under-explored mining friendly environments and build a quality mid-cap gold producer. Quality mid-cap gold producers and exploration companies will provide the lifeblood of sustainability for the gold industry into the future.