Andean Resources Ltd.
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Andean Resources Ltd.

April 15, 2010 17:05 ET

Andean Extends Three High-Grade Vein Systems

SALT LAKE CITY, UTAH--(Marketwire - April 15, 2010) -

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Andean Resources (TSX:AND)(ASX:AND) is pleased to announce results from the ongoing exploration program at its wholly owned Cerro Negro Project in Santa Cruz Province, Argentina. Discovery of the San Marcos, Mariana Norte, and Mariana Central vein systems located 4 to 6 kilometers northeast 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:

San Marcos – Confirming and extending mineralization along strike by 100 meters
   
SDD-1004: 12.4m of 16.5 g/t Au and 131 g/t Ag from 143.6m
   
SDD-1005: 6.4m of 10.7 g/t Au and 144 g/t Ag from 142.7m
   
SDD-1007: 3.65m of 12.2 g/t Au and 52 g/t Ag from 108m
   
SDD-1008: 11.45m of 15.2 g/t Au and 136 g/t Ag from 103.55m
   
SDD-1009: 8.3m of 9.6 g/t Au and 76 g/t Ag from 250m
   
SDD-1010: 8.9m of 24.5 g/t Au and 292 g/t Ag from 121m and
   
  5.3m of 12.8 g/t Au and 80 g/t Ag from 141.7m
   
SDD-1012: 6.4m of 19.8 g/t Au and > 100 g/t Ag from 226.9m and
   
  12.3m of 15.6 g/t Au and 100 g/t Ag from 256.7m
 
Holes SDD-1010 and SDD-1012 extended the mineralization in the San Marcos veins a further 100 meters to the east and could have intersected the veins at a shallower angle due to a potential change in the vein dip. The change in strike and dip are currently being confirmed by additional drilling. San Marcos remains open to the east and at depth.
Mariana Norte – New assays confirm mineralized strike length of at least 300 meters
   
MDD-1011: 9.0m of 15.8 g/t Au and 72 g/t Ag from 163.4m
   
MDD-1013: 3.0m of 9.5 g/t Au and 89 g/t Ag from 184.0m
   
MDD-1015: 8.4m of 22.7 g/t Au and 57 g/t Ag from 173.6m
   
MDD-1018: 13.9m of 16.2 g/t Au and 176 g/t Ag from 76.0m
   
Further drilling has extended these veins an additional 100 meters to the northwest; this vein system remains open along strike and to depth.
Mariana Central – Downdip extension of 110 meters
   
MDD-1009: 5.9m of 55.5 g/t Au and 199 g/t Ag from 207.3m
   
Further drilling has extended this vein system an additional 225 meters; assays are pending and the vein remains open to depth and along strike.

William Wulftange, Andean's Vice President of Exploration stated, "Cerro Negro now has at least three distinct centers of mineralization that include Bajo Negro and Vein Zone to the east, Eureka to the west and now the Mariana's and San Marcos mineral system located in the north central part of the property. The fact that all three systems have significant gold grades over broad widths is quite exciting and a very rare occurrence in the gold industry. I believe that as the exploration program continues, Andean geologists will develop a geologic link between the three deposits that will help us find additional mineral zones outside of the current known deposit areas."

San Marcos

As of mid-April 2010, Andean has completed 4,994 meters in 24 holes on the San Marcos veins located just 1.2 kilometers north of the Mariana Norte vein system. The San Marcos target is comprised of at least two sub-parallel veins that strike 290° and dip nearly vertical, as currently tested (see Figure 1). The Company has defined mineralization in the vein for at least 500 meters along strike and from 100 meters to 250 meters down dip based on assay results. Mineralization can approach 10 meters in true width, but average 4.4 meters true width based on current drill results. Initial grade times horizontal thickness long section interpretations show the mineral body plunging 20° to 30°E and open to the surface, to depth and to the east. Important intercepts are listed below.

      SAN MARCOS        
Hole ID East North From To Intercept m True Width m Au ppm Ag ppm Geology
SDD-1004 2399498 4810862 143.60 156.00 12.40 9.2 16.52 131.0 QV+QBV+ QzVt in And
158.80 160.00 1.20 0.9 9.88 77.0 QBV
SDD-1005 2399399 4810858 133.45 135.70 2.25 1.7 4.01 18.0 HYB
142.70 149.10 6.40 4.7 10.72 143.7 QV + HYB + QzVt in AP
SDD-1006 2399401 4810936 262.75 265.20 2.45 1.6 5.27 49.2 QV + QzVt in Tuff
266.10 266.75 0.65 0.5 4.67 57.0 QzVt in Tuff
268.00 268.85 0.85 0.7 4.36 52.0 QzVt in Andesite
SDD-1007 2399600 4810846 108.00 111.65 3.65 2.2 12.24 52.4 HYB + QzVt in Andesite
SDD-1008 2399699 4810862 103.55 115.00 11.45 7.3 15.16 136.3 QV+QBV+HYB+Vt in AP
132.60 133.65 1.05 NA 5.39 3.0 QzVt in Andesite
SDD-1009 2399698 4810940 241.00 244.80 3.80 2.0 7.53 32.6 QzVt in Andesite
250.00 258.30 8.30 4.7 9.57 76.1 QV + QBV + QzVt in AP
SDD-1010 2399796 4810899 121.10 130.00 8.90 3.2 24.45 292.5 QV
141.70 147.00 5.30 1.9 12.77 80.3 QV
SDD-1012 2399798 4810940 226.90 233.30 6.40 2.7 19.81 > 100 QV
237.00 248.00 11.00 NA 3.49 PENDING mod-strong Qz Vt
256.65 269.00 12.35 3.7 15.57 > 100 QV+HYB+Qz Vt

Mariana Norte

As of mid-April 2010, Andean has completed 22 holes for a total of 4,218 meters on the Mariana Norte target. The vein as currently defined strikes 290° and dips 57°N. Assay results confirm significant mineralization for 300 meters along strike and over 150 meters to depth, and the deposit remains open in all directions. Current drill intercepts average 4.8 meters in true width. A north-south trending cross structure may displace the quartz vein to the north on the eastern end of the current drill tested area. The Mariana Norte structure and can be traced for up to 3.3 kilometers by following quartz vein float, silicified rock outcrops, and lineaments in the Quickbird satellite imagery (see Figure 2). New assay results are presented below.

      MARIANA NORTE        
Hole ID East North From To Intercept m True Width m Au ppm Ag ppm Geology
MDD-1010 2399019 4809734 106.00 107.00 1.0 0.9 3.76 3.0 QzVt in Andesite
MDD-1011 2398852 4809886 130.00 133.00 3.0 1.8 6.86 48.3 QV + QzVt in Andesite
163.40 172.40 9.0 7.5 15.79 72.5 QV + QBV
MDD-1012 2398802 4809897 101.50 103.20 1.7 1.4 4.26 8.7 QV
165.80 171.00 5.2 4.3 5.15 31.2 QV + QzVt in Andesite
MDD-1013 2398754 4809909 184.00 187.00 3.0 2.6 9.51 88.7 QV
MDD-1014 2399040 4809811 224.00 225.00 1.0 0.7 11.00 7.0 QzVt in Andesite
MDD-1015 2398950 4809863 173.60 182.00 8.4 6.4 22.68 56.8 QV
MDD-1018 2398728 4809810 76.00 89.90 13.9 11.5 16.21 176.3 QV + HYB

Mariana Central

As of mid-April 2010, Andean has completed 10 holes for a total of 1995 meters on the Mariana Central structure, located 460 meters south of Mariana Norte. Drilling has confirmed the presence of two distinct quartz veins which can be traced for over 250 meters along strike (308°) and at least 110 meters down dip (60°N). Assay results confirm the structure's economic potential to 50 meters along strike. Banded quartz vein and dark, fine-grained sulphides, commonly found containing high grade gold values have been cut in step-out holes 225 meters to the east of the known mineralization; assays are pending. New assay results are presented below.

      MARIANA CENTRAL        
Hole ID East North From To Intercept m True Width m Au ppm Ag ppm Geology
MDD-1009 2398640 4809529 104.00 107.00 3.00 2.7 3.46 37.3 QV + QzVt in Andesite
207.25 213.10 5.85 4.9 55.51 199.5 QV + HYB

MDD-1009 is a diamond drill hole that confirms the down dip extension of the mineral intercept in MDD-1005 of 3 meters of 14.58 g/t Au and 29.67 g/t Ag.

The current target structure at Mariana Central can be traced to the southeast and northwest for a total of at least 1.3 kilometers by following banded quartz vein float and linear trends in the Quickbird satellite imagery.

Andean geologists believe that the Mariana Central and Mariana Norte structures may merge to the west as evidenced by brecciated and silicified outcrops found approximately 600 meters to the west of both veins.

Bajo Negro

Due to lab backlogs, some results from the Bajo Negro vein were delayed until mid-January 2010. All of these previously unreported assay results, with the exception of BDD-1004, are incorporated into the initial resource estimate, which was released on March 23, 2010.

      BAJO NEGRO      
Hole ID East North From To Intercept m Au ppm Ag ppm Geology
BDD-9116 2407619 4804661 221.20 222.20 1.00 44.30 39.0 QBV
BDD-9121 2407648 4804762 320.00 323.10 3.10 4.62 11.8 QV
BDD-9126 2407472 4804879 141.40 150.40 9.00 13.95 42.4 QV+QBV+HYB+Vt in WI
BDD-9127 2407582 4804835 237.05 242.55 5.50 17.63 22.1 QV+QBV+HYB+Vt in WI
BDD-9128 2407338 4805141 238.80 250.95 12.15 15.93 50.1 QV + QBV + Vt in WI
BDD-9129 2407291 4805035 72.00 77.10 5.10 27.35 84.3 QV + Vt in WI
BDD-9130 2407447 4804722 40.40 40.90 0.50 7.69 16.0 QBV
BDD-9132 2407571 4804917 275.10 276.75 1.65 5.77 15.3 QV + HYB
BDD-9133 2407261 4805130 177.00 183.00 6.00 17.86 76.0 QBV
194.00 196.00 2.00 29.30 71.5 Qz Vt in Ignimbrite
BDD-9134 2407391 4805058 196.45 208.85 12.40 6.79 15.7 QV
BDD-9135 2407322 4805022 93.00 109.70 16.70 5.99 47.5 QV + QBV + Vt in WI
BDD-9136 2407532 4804841 184.65 191.10 6.45 25.64 36.8 QV + QBV + HYB
BDD-9137 2407366 4805177 336.00 346.40 10.40 7.94 27.2 QV + Vt in WI
BDD-9138 2407592 4804709 214.00 217.00 3.00 15.03 17.1 QV
BDD-9139 2407507 4804778 154.00 158.60 4.60 14.50 30.3 QBV
BDD-1001 2407581 4804892 325.50 327.00 1.50 6.50 7.6 QBV + QzVt in LT
BDD-1002 2407282 4805197 349.10 357.15 8.05 5.82 18.9 QV+QBV+ QzVt in WI
BDD-1004 2407339 4804692 219.00 227.00 8.00 14.72 15.5 QV+QBV+HYB+Vt in WI

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 3.2 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.

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. 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 is member (#4037018) of a Recognised Overseas Professional Organization (ROPO), the Society of Mining, Metallurgy and Exploration America. 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 press release conforms to NI 43-101 standards and industry Best Practices and consents to the inclusion in the report of the matters based on his information in the form and the context in which it appears.

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 (collectively, "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. 

This release is not authorized for distribution to United States newswire services and not authorized 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, as amended (the "Securities Act"), or the securities laws of any state and may not be offered or sold in the United States or to United States persons (as defined in Regulation S of the Securities Act) unless an exemption from registration is available.

To view Figure 1: San Marcos Long Section, please visit the following link: http://media3.marketwire.com/docs/ANDfig2a.pdf.

To view Figure 2: Quickbird Image showing Mariana Norte 3.3 kilometer trend, please visit the following link: http://media3.marketwire.com/docs/ANDfig2b.pdf.

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
    krista.muhr@andeangold.com
    or
    Andean Resources Limited
    200 Civic Center Drive
    Suite 200
    Sandy, UT 84070
    USA
    www.AndeanGold.com