Andean American Gold Corp.

Andean American Gold Corp.

February 25, 2010 15:12 ET

Andean American Announces Updated Underground Sampling Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 25, 2010) - Andean American Mining Corp. ("the Company") (TSX VENTURE:AAG)(FRANKFURT:AQN) is pleased to announce the latest results from the underground sampling of the 3400 Level Adit, at the Invicta Project in Peru. The 3400 Level Adit is approximately 3.5m by 3.5m (12 ft. diameter) and extends for a total of 1,168 metres in both the tunnel and eight crosscuts. A total of 669 samples have been collected from the eight crosscuts and access tunnels, a length of approximately 550m, which intersected massive to semi-massive sulphide style gold-silver-copper mineralization in the Atenea Structure. Mineralization exposed in the crosscuts and access tunnels ranges in width from 3.75m to 20.00m and displays excellent continuity along strike.


    Width (m) Au g/t Ag g/t Cu % Pb% Zn%
Crosscut 2SW West Wall – N 7.25 5.65 31.30 0.75 0.22 0.18
  East Wall – N 6.55 3.81 29.90 1.06 0.10 0.14
  West Wall – S 3.75 0.27 23.30 0.61 0.20 0.13
  East Wall – S 4.80 0.84 23.40 0.86 0.68 0.12
Crosscut 1SW West Wall – N 8.50 1.57 20.70 0.66 0.11 0.14
  East Wall – N 6.60 1.62 44.10 0.86 0.26 0.17
  West Wall – S 4.30 0.66 83.60 1.53 0.53 0.12
  East Wall – S 7.70 2.39 26.40 0.41 0.13 0.50
Window West Wall 20.00 3.26 42.90 0.92 1.23 0.81
  East Wall 18.25 1.87 44.20 0.90 1.00 0.71
Crosscut 1NE West Wall 16.85 1.26 51.60 1.43 2.12 1.31
  East Wall 13.99 5.54 83.90 2.16 2.50 0.77
Crosscut 2NE West Wall 13.40 2.86 86.30 1.82 4.71 0.76
  East Wall 12.10 1.24 48.80 1.85 1.47 0.93
Crosscut 3NE West Wall 10.40 5.31 75.20 1.36 0.82 1.13
  East Wall 8.80 28.67 296.00 2.32 1.11 1.53
Crosscut 4NE West Wall 9.90 2.41 46.50 1.63 0.61 1.08
  East Wall 11.00 1.19 32.60 1.16 0.93 0.75
Crosscut 315N West Wall 18.90 0.60 18.10 0.79 0.61 1.15
  East Wall 12.30 0.67 18.60 0.79 0.87 1.28

These are channel samples and true widths have not yet been determined.

The massive to semi-massive sulphide mineralization at the Atenea Structure has been intersected for over 250 metres of strike length by the underground development in the 3400 Level Adit, and has been traced for over 2,700 metres of strike length by surface mapping and diamond drilling. At least three phases of mineralization have been identified; two massive to semi-massive sulphide phases and an epithermal phase. The mineralization remains open along strike and to depth. Approximately 28,600 metres of diamond drilling and 1,200 metres of underground development have been completed on the Atenea Structure. These sampling results have not been included in the current resource estimates. Current resource estimates are from the NI 43-101 Invicta Technical Report by Victor Jaramillo, P. Geo, of Discover Geological Consultants Inc., filed on SEDAR and dated November 20, 2008. Resources at the Atenea Structure are estimated to be:

Category Tonnes Gold Silver Copper Lead Zinc
  g/t g/t % % %  
Measured 868,000 2.71 31.26 0.69 0.73 0.61
Indicated 9,867,000 1.99 14.74 0.40 0.28 0.27
M & I 10,735,000 2.05 16.08 0.43 0.32 0.30
Inferred 14,226,000 0.67 11.20 0.36 0.24 0.15

Notes to table:
1. All mineral resources have been calculated in accordance with the standards of the CIM Definition Standards in Mineral Resources and Mineral Reserves, as required by NI 43-101.

2. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by the inability to obtain required environmental and other regulatory approval, environmental or operating permits. The estimate may also be materially affected by global economic conditions such as the price of gold and silver, the price of oil and other commodities utilized in the production of gold and silver. Unknown geologic of hydrologic conditions or other unknown factors may materially affect the resource estimates.

3. The quantity and grade of reported Inferred Resources in this estimate are conceptual in nature and there has been insufficient exploration to define the Inferred Resources as an Indicated or Measured mineral resource. It is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.

The Atenea Structure is one of at least eight mineralized structures identified on the Invicta Property. The other mineralized structures have been identified by mapping, surface sampling and, in some cases, limited drill testing.

The Invicta Project is located in west central Peru approximately 250 kilometres by road northeast of Lima, at an elevation of 3,400 metres. The property covers 28,200 hectares. The Company is currently completing an optimized Feasibility Study in order to update the original Feasibility Study of June, 2009. As announced on February 17, 2010, the Company has retained Barclays Capital and WestLB as Joint Lead Arrangers for a senior debt financing. Capital costs are estimated at USD68 million and operating costs are estimated at USD28.92 per tonne.

Victor Jarmillo, P. Geo., of Discover Geological Consultants Inc. is an Independent Qualified Person as defined by National Instrument 43-101 and is responsible for the resource estimates. Mr. Andrew Gourlay, P. Geol., President of Andean American Mining Corp. is a Qualified Person as defined by National Instrument 43-101 with the ability and authority to verify the authenticity and validity of technical and scientific data. This news release has been prepared under Mr. Gourlay's supervision. All samples were prepared and analyzed by CIMM Labs in Lima, Peru, an ISO-accredited laboratory. Standard reference materials, blank and field duplicates were inserted prior to shipment from site to monitor the quality control of the analytical data.

An updated chart of these sampling results will be made available within the next week at

On behalf of Andean American Mining Corp.,

John Huguet, Chairman & CEO

Andean American Mining Corp. (TSX VENTURE:AAG)(FRANKFURT:AQN) is an international mining and exploration company focused on growth. The Company is actively pursuing new targets of potential early stage gold and silver prospects in Peru and currently has two key assets: the Invicta gold-silver-copper feasibility stage project and 59% of Sinchao Metals Corp., owner of the Sinchao zinc-copper-silver-gold-lead mineralization project.

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

This document uses the terms "measured resources", 'indicated resources' and 'inferred resources'. 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 all or any part of an inferred mineral resource will ever be upgraded to a higher category. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

SEDAR Profile # 00003879

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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