Andean Resources Ltd.

Andean Resources Ltd.

March 01, 2010 07:09 ET

Andean Continues to Expand New High-Grade Discoveries

FREMANTLE, WESTERN AUSTRALIA--(Marketwire - March 1, 2010) - Andean Resources (TSX:AND)(ASX:AND) is pleased to announce results from the on-going exploration program at its wholly owned Cerro Negro Project in Santa Cruz Province, Argentina. Discovery of the San Marcos and Mariana vein systems located 4 to 6 kilometers NE of the Eureka deposit has lead to a focused drill program that is defining the shape and extent of these potential ore bodies. 

Highlights include:

  Extended Mariana Norte mineralization by 100m along strike with:
    MDD-1006: 2.2m of 11.3 g/t Au and 47 g/t Ag from 132.8m and
      7m of 8.1 g/t Au and 96 g/t Ag from 157.2m
    MDD-1007: 4.7m of 6.8 g/t Au and 184 g/t Ag from 131.3m and
      6.9m of 17.1 g/t Au and 320 g/t Ag from 138.6m and
      3.6m of 10.1 g/t Au and 145 g/t Ag from 148.5m
    MDD-1008: 8.9m of 10.6 g/t Au and 139 g/t Ag from 126.1m
  Extended Mariana Central mineralization by 50m along strike with:
    MRC-1005: 3.4m of 14.6 g/t Au and 29.7 g/t Ag from 87m
  Extended San Marcos mineralization by 50m to depth with:
    SDD-1002: 6.7m of 5.0 g/t Au and 28 g/t Ag from 260m and
      3.4m of 17.3 g/t Au and 126 g/t Ag from 275.4m

William Wulftange, Andean's Vice President of Exploration stated, "The ongoing discoveries at Cerro Negro are proving that this property is one of the most important gold districts found to date in the Deseado Massif region of southern Argentina. The geological team at Cerro Negro is doing an outstanding job in discovering, expanding and defining the vast economic potential of the property. These new veins will extend the mine-life well beyond the feasibility study parameters and provide the foundation for future growth of the company."

Mariana Norte

Exploration efforts at the Mariana Norte targets have concentrated on the northern structure defined in the January 19, 2010 press release, where hole MRC-911 intersected 7m of 12.3 g/t Au and 142 g/t Ag, and 6m of 41.8 g/t Au and 81 g/t Ag. Since that market update, Andean has drilled 11 diamond drill holes into the vein and has received assay results for 3 of the 11 holes. Drilling has confirmed quartz vein over a strike length of 330 meters and 135 meters down dip, while assays have only been received for 3 new holes confirming economic grades over 100m in strike length. The Mariana Norte potential ore zone is comprised of one to three coalescing veins that strike N75°W and dip 55°N to 65°N. The vein remains open along strike and at depth; it can be traced on surface for up to 3.3 kilometers using satellite imagery and confirmation of silicified outcrops by the surface mapping program. The mineralized intervals correspond to banded, brecciated and crustiform quartz vein material with varying amounts of massive to locally banded, dark gray, fine grained sulfide material.

MDD-1006 4809832 2398927 132.8 135 2.2 1.8 11.3 47
    also 157.2 164.2 7 5.1 8.1 96
MDD-1007 4809808 2398978 131.3 136 4.7 3.4 6.8 184
    also 138.6 145.5 6.9 5.1 17.1 320
    and 148.45 152 3.55 2.7 10.1 145
MDD-1008 4809782 2399021 126.1 135 8.9 7 10.6 139
Restated from January 19, 2010 Press Release with True Widths
MRC-909 4809774 2398850 96 101 5 4.3 12.8 104
MRC-911 4809830 2398922 131 138 7 6.2 12.3 142
    also 141 147 6 5.2 41.8 81

Mariana Central

The southern structure of the Mariana Norte discovery is awaiting further drill testing and will be referred to as Mariana Central in future information releases. MRC-1005 was drilled 50m to the east to better understand the geometry of the zone and returned the following results:

MDD-1005 4809454 2398553 87 90 3 14.58 29.7

Once the geotechnical drilling for the Feasibility Study is complete in early March, 2010, the rig will continue to outline this structure.

San Marcos

Since the announcement of the San Marcos discovery in late 2009, Andean has completed 12 diamond drill holes for a total of 2503.8 meters. The vein structure is defined for over 400 meters along an east-west strike and is nearly vertical. Potential ore zones are found along the entire strike extent and extend 100 to 200 meters down dip. The deposit is open to the east and locally at depth. Andean geologists believe that the vein structure may be locally displaced by faulting, as broken vein fragments are observed in SDD-1001 and SDD-1007. Sufficient drill data has been collected to calculate the true widths of previously released holes and they are included in the table below.

SDD-1001 4810857 2399600 NSR          
SDD-1002 4810937 2399598 260.25 266.9 6.65 3.6 5.01 27.6
    also 275.4 278.8 3.4 1.9 17.34 126
SDD-1003 4810939 2399500 269.55 271.1 1.55 1 4.21 53.3
    also 276.3 278.4 2.1 1.3 4.75 26.6
Restated from November 22, 2009 Press Release with True Widths
SRC-901 4810900 2399598 182 195 13 7.7 9.64 73.2
    also 199 203 4 2.5 11.58 59.5
SRC-902 4810901 2399497 195 211 16 10.9 10.26 86.4
SRC-903 4810902 2399399 189 196 7 5.2 8.08 76.6
SRC-904 4810875 2399297 189 190 1 0.8 6.8 62

Future Plans

The Company currently has four drill rigs operating on the property. Two universal reverse circulation-diamond rigs will continue to develop the San Marcos and Mariana targets along strike and at depth. A reverse circulation drill rig is drilling the final holes of the plant site condemnation program, and a core rig is completing the final geotech holes surrounding the Vein Zone and Bajo Negro deposits; all rigs will join the exploration efforts at Mariana Norte once the geotechnical work is complete.

Quality Control and Assurance

The analytical results quoted in this release are derived from half drill core in the case of diamond drill holes. Samples are prepared and assayed by ACME Analytical Laboratories SA (Mendoza) in Mendoza, Argentina. Gold is determined initially by fire assay with AA finish. Samples assaying more than 10 ppm gold are re-assayed using a gravimetric finish. Silver is determined initially by AAS, and samples assaying more than 100 ppm silver are re-assayed by fire assay with gravimetric finish. Quality control of the analytical results is maintained by inserting standards, blanks, and duplicates into the sample run, approximately every twenty samples. Additional quality control is maintained by sending assay sample splits to a second laboratory from time to time. These checks are evaluated statistically at regular intervals. All analytical data are entered into a Microsoft Access database, with limited access and numerous checks to ensure integrity of the data.

Qualified Persons Statement

The information in this press release that relates to exploration results is based on information provided by William H. Wulftange, Vice President of Exploration for Andean Resources, who is a Licensed Professional Geologist (#5219574-2250) by the State of Utah and a Registered Member (#4037018) of the Society of Mining, Metallurgy and Exploration. Mr. Wulftange has extensive experience relevant to the style and type of mineralization and deposits under consideration, and to the activity undertaken, to qualify as a "Qualified Person" as defined in Canadian National Instrument 43-101, as well as a "Competent Person" as defined in the JORC Code. Mr. Wulftange has reviewed and verified that the information presented in this release conforms to NI 43-101 standards and industry Best Practices.

Forward Looking Statement

This press release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that Andean Resources Limited, including its subsidiaries and affiliated entities, ("Andean" or the "Company") believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", and "intend" and statements that an event or result "may", "will", "can", "should", "could", or "might" occur or be achieved and other similar expressions. These forward-looking statements reflect the current internal projections, expectations or beliefs of Andean based on information currently available to Andean. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by Andean with securities regulatory authorities, that may cause the actual results of Andean to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Andean. Andean expressly disclaims any obligation to update or revise any such forward-looking statements. Not for distribution to United States newswire services and not for dissemination in the United States. The securities discussed herein have not been and will not be registered under the United States Securities Act of 1933 (the "US Securities Act"), as amended, or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S of the US Securities Act) unless an exemption from registration is available.

Andean Resources Ltd. is a dual listed company (TSX:AND)(ASX:AND), actively and aggressively exploring for gold resources in Argentina. The company is well positioned to become a mid-tier gold producer over the next two years as it commences production from its 100% owned Cerro Negro project. This high-grade, world-class deposit is located in the mining-friendly province of Santa Cruz, in southern Argentina, and contains a growing resource base of over 2.5 million ounces of gold. In order to expand its resource base and add to the future production profile, Andean is committed to ongoing exploration and building its resource inventory at the Cerro Negro project and, in the process, generating enhanced returns for its shareholders as a platform for future growth.

To view Figure 1: Mariana Norte Drill Hole Locations, please visit the following link:

To view Figure 2: San Marcos Drill Hole Locations, please visit the following link:

To view Figure 3: Image of San Marcos Core, please visit the following link:

ABN 064 494 319

Contact Information

  • Andean Resources Limited
    Krista Muhr
    Director of Investor Relations
    In North America: +1.647.330.1478
    In Australia: +61 (0) 448.886.460
    Andean Resources Limited
    1/1 Nairn Street, Fremantle
    Western Australia 6160
    + 61 (8) 9430.9966
    + 61 (8) 9430.9965 (FAX)