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Santa Barbara Gold Mine: A 100%- owned high-grade mesothermal gold project with a 30 tonnes per day pilot plant that has treated 500 tonnes of ore, with average recoveries of 20 g/t Au; early cashflow opportunity.

BACKGROUND

The Santa Barbara Gold Mine (Santa Barbara) is comprised of approximately 320 hectares strategically located in the core of a prolific gold camp on the northern tip of the Serranía de San Lucas, which is known as the “richest gold belt” in Colombia.

Santa Barbara is a high-grade mesothermal gold project with a 30 tonnes per day pilot plant that has previously treated 500 tonnes of ore, with average recoveries of 20 g/t Au. It represents an early cashflow opportunity for Aguia expected to be by the end of 2024. Work has already commenced to upgrade the pilot plant to a continuous fully operating plant capable of processing 50 tonnes per day. The construction will take approximately 6 months at a cost of AUD $2million.

The project is 100% owned by Aguia and is surrounded by numerous active small-scale mining operations and artisanal miners, next to the Pueblito Mejia and Norosí Special Reserve Areas of Mining (ARE) with numerous active small-scale miners demonstrating the richness and gold potential of the district. The project was previously advanced by Baroyeca Gold & Silver Inc. (TSX-V.BSG) (Baroyeca) before being acquired by Andean Mining Limited in July 2023.

BULK SAMPLING

The Santa Barbara project has a gold pilot processing plant capable of processing the ore material from the veins, comprised of two stages of crushing, two stages of milling and cyanide leaching tanks. Pregnant solution from the cyanide leaching tanks is transferred to a precipitation tank and gold precipitate is obtained at the plant site for on-site smelting.

The mineralised material extracted from Vein # 1 during the years 2020 and 2021 was part of a large bulk sampling program designed under the supervision of a Qualified Person and completed by the previous operator.

The exploratory tunnel was designed to enable blasting and splitting of the vein from the waste host rock for subsequent collection and pre-concentration of higher-grade mineralized material at the mine portal. This material was then bagged, with each bag being weighed individually until an approximate 10 tonne batch was completed. Bags were randomly scrambled while stockpiling, loaded and discharged for homogenization purposes. The batch was then fed through the on-site 30 tpd pilot plant. Gold was precipitated by agitation adding zinc powder and smelted for every batch individually. Head grade assay results were cross referenced with gold pours to determine efficiency in plant recoveries as part of the metallurgical testing and to facilitate future improvements of the processing plant to increase processing capacity and recovery. These preliminary processing methods produced overall gold recovery of approximately 90% at > 98% gold purity. The 500-ton bulk sample was completed in September 2021 at the Santa Barbara project which returned mill head grades with a weighted average of >24g/t Au for Vein #1 (Santa Barbara vein).

Pilot plant equipment the Santa Barbara Gold.