Andean Resources Ltd.
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Andean Resources Ltd.

November 19, 2007 10:00 ET

Andean Reports High-Grade Step-Out Drilling at Eureka West

PERTH, AUSTRALIA--(Marketwire - Nov. 19, 2007) - Andean Resources (TSX:AND)(ASX:AND) reports the results of the latest six drill holes of its Phase 4 drill program at its 100% owned Cerro Negro project in Southern Argentina with the following highlights:

- ERC-743 drilled 50m to the west of Phase 3 drilling intersects 21m of 15.3 g/t gold and 298 g/t silver

- ERC-747 drilled 100m to the west of Phase 3 drilling intersects 25m of 27.5 g/t gold and 849 g/t silver

- Infill drilling producing higher grades at Eureka West than was previously modelled

- Vein Zone infill drilling intersects 56m of 9.0 g/t gold

- Additional step-out drilling to the west awaiting assays

The reported widths are intersected widths and true widths are less in every case; all the drill data associated with this release can be found in Table 1. Andean has assumed an underground cut-off of 2.5 g/t gold at Eureka and 0.7 g/t gold for Vein Zone infill drilling; the drill holes for which assays have been received are categorized as either Step-out Holes or In-fill Holes:

Step-out Holes

The objective of the step-out drilling at Eureka West is to define the limits of this the first mineralised ore shoot to be delineated within the Eureka vein system. The results are shown below:



- ERC-743: 21m of 15.3 g/t gold and 298 g/t silver from 308m and
7m of 25.9 g/t gold and 129 g/t silver from 349m
- ERC-747: 3m of 127.9 g/t gold and 1,152 g/t silver from 267m and
25m of 27.5 g/t gold and 849 g/t silver from 277m and
3m of 4.5 g/t gold and 271 g/t silver from 313m and
5m of 16.7 g/t gold and 308 g/t silver from 327m


ERC-743, a reverse circulation step-out hole, drilled 50m to the west of EDD-723 (52m of 25 g/t gold and 379 g/t silver), intersected the westerly plunging high-grade ore shoot on the Eureka West Vein.

ERC-747, a reverse circulation step-out hole, drilled 100m to the west of EDD-723 also intersected the high-grade westerly plunging ore shoot.

The shoot remains open down-plunge to the west. Both these holes are shown on the longitudinal section of the Eureka West vein attached to this release.

Infill Drilling



- EDD-746: 32m of 15.4 g/t gold and 311 g/t silver from 168m and
7m of 7.8 g/t gold and 249 g/t silver from 225m


This infill hole at Eureka West was drilled on section 00E, in between EDD723 (52m of 25.3 g/t Au and 379 Ag) and EDD-729 (16.8m of 22.7 g/t Au and 702 g/t Ag). This drill-hole intersected gold and silver grades that were higher than what was expected in the resource model.

Vein Zone Infill Drilling



VRC-770: 27m of 7.5 g/t gold from 160m
VRC-771: 5m of 1.6 g/t gold from 63m
VRC-772: 6m of 3.6g/t gold from 63m and
56m of 9.0 g/t gold from 93m


While VRC-771 defines the updip extent of the mineralization VRC-770 and VRC-772 intersected zones that were consistent with or higher than what was expected in the resource model. The purpose of the Vein Zone infill drill program is to upgrade portions of the inferred resource to the measured and indicated category for inclusion in the Pre-Feasibility Study that is underway.

Wayne Hubert, Andean's CEO, commented, "I am delighted with the early success of the Cerro Negro exploration team in continuing to find high quality ounces at a low finding cost - all credit to the Andean team. To date, the continuity of this high-grade ore shoot at Eureka appears remarkable, which should have positive implications for our Pre-Feasibility Study currently underway. These results are consistent with our long-term plans, to first build a solid foundation at Cerro Negro, from which we can grow a low cost intermediate size gold company."

Project Status

Currently, three drill rigs are focused on expanding and improving the confidence of the existing mineral resource at Cerro Negro. One core rig, a UDR 1000, is focused on extending the Eureka West vein to the west, which is becoming increasingly more difficult with topography (a hill) as well as increasingly deep post-vein cover working against the drilling effort. Another core rig, a UDR 200, is focused on infill drilling the Eureka West vein and obtaining metallurgical samples. With the Vein Zone infill drill program now complete, the Schramm reverse circulation rig can now focus on other targets to expand the resource base at Cerro Negro. New assays will be reported in batches as they are received.



Table 1: Drill Hole Data

----------------------------------------------
Hole From To Interval Gold Silver
number (m) (m) (m) (g/t) (g/t)
----------------------------------------------
ERC-743 308 329 21 15.3 298
----------------------------------
349 356 7 25.9 129
----------------------------------------------
EDD-746 168 200 32 15.4 311
----------------------------------
225 232 7 7.8 249
----------------------------------------------
ERC-747 267 270 3 127.9 1152
----------------------------------
277 302 25 27.5 849
----------------------------------
313 316 3 4.5 271
----------------------------------
327 332 5 16.7 308
----------------------------------------------
VRC-770 59 61 2 0.8
----------------------------------
155 157 2 1.0
----------------------------------
162 189 27 7.5
----------------------------------------------
VRC-771 62 67 5 1.6
----------------------------------
86 89 3 1.2
----------------------------------------------
VRC-772 63 69 56 3.6
----------------------------------
93 149 56 9.0
----------------------------------
162 164 2 1.2
----------------------------------
194 198 4 0.9
----------------------------------------------

------------------------------------------------------------------
Hole Elevation Azimuth
number (m asl) Easting Northing (True) Inclination Prospect
------------------------------------------------------------------
ERC-743 665 2393959 4808238 45 -60 Eureka
------------------------------------------------------------------
EDD-746 662 2394048 4808259 45 -70
------------------------------------------------------------------
ERC-747 675 2393923 4808273 45 -60
------------------------------------------------------------------
VRC-770 786 2408675 4806595 180 -80 Vein Zone
------------------------------------------------------------------
VRC-771 806 2408600 4806450 180 -65
------------------------------------------------------------------
VRC-772 826 2408650 4806575 180 -60
------------------------------------------------------------------

(1) Intersections are drilled widths, not true widths. True widths are less
than drilled intersections and can be determined from the Eureka cross-
sections provided
(2) Coordinates and elevations are approximate and subject to final survey
by a licensed surveyor
(3) The intersection 93-149m in VRC-772 includes 1m at 236.4 g/t Au
(103-104m), and the 6m interval 102-108m averages 55.3 g/t Au


In the above table, the Gauss Kruger coordinate system and the Campo Inchauspe datum are used to define drill hole collar positions. However on the longitudinal projection and cross sections shown below, the coordinate system refers to a local grid established for drilling the Eureka West Vein. The north direction for this grid is oriented 045 degrees True, and the origin, (00E, 00N) is at 2,393,888E, 4,808, 238N. The longitudinal projection therefore looks 045 degrees True and the cross sections look 315 degrees True.

Longitudinal Projection Showing projected drillhole intersections on the Eureka West Vein

A map of the Eureka West Prospect, Longitudinal Projection, Intercept Grades & Inferred Resource is available at the following web link: http://www.ccnmatthews.com/docs/andeanigir.pdf

A map of the Eureka West Prospect, Cross Section 00EW Mineralised Intersections is available at the following web link: http://www.ccnmatthews.com/docs/andean00ew.pdf

A map of the Eureka West Prospect, Cross Section 50E Mineralised Intersections is available at the following web link: http://www.ccnmatthews.com/docs/andean50e.pdf

A map of the Eureka West Prospect, Cross Section 100E Mineralised Intersections is available at the following web link: http://www.ccnmatthews.com/docs/andean100e.pdf

Note: The information in this Report that relates to exploration results is based on information provided by David Shatwell who is a Fellow of the Australian Institute of Geoscientists.

Mr Shatwell has extensive experience relevant to the style and type of mineralisation and deposits under consideration, and to the activity undertaken, to qualify as a Competent Person as defined in the 2004 Edition of the "Australian Code for Reporting of Mineral Resources and Ore Reserves" (the J.O.R.C. Code). Mr Shatwell consents to the inclusion in this Report on his work in the form and context in which it appears.

Andean Resources Ltd. is an Australian and Toronto listed gold explorer searching for precious metals in the Andes, with four large property positions in the Patagonia.

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