Andean Resources Ltd.

Andean Resources Ltd.

November 22, 2009 16:46 ET

Andean Resources Ltd.: New San Marcos Discovery at Cerro Negro

PERTH, AUSTRALIA--(Marketwire - Nov. 22, 2009) - Andean Resources (TSX:AND)(ASX:AND) is pleased to report another new vein discovery from the ongoing exploration drill program at its 100% owned Cerro Negro project in Southern Argentina. Today's release includes the results of four new drill-holes at 100 meter spacing over a strike length of 300 meters and approximately 150 meters beneath the surface:

SRC-901: 22m of 8.5 g/t gold and 58 g/t silver from 181m

SRC-902: 16m of 10.3 g/t gold and 86 g/t silver from 195m

SRC-903: 7m of 8.1 g/t gold and 77 g/t silver from 189m

SRC-904: 1m of 6.8 g/t gold and 62 g/t silver from 189m

A fifth hole, SRC-905, was drilled 100m west of SRC-904 and did not intersect the vein.

The widths reported above are intersected widths, which are generally, but not always less than the true widths. Andean has assumed an underground cut-off grade of 2.5 g/t gold at San Marcos for all the interval summaries reported in this release.

The first ore-shoot at San Marcos has been intersected over a strike length of 300 meters and is open to the east and to depth. The widest intersection is SRC-901 with an intersected width of 22m and is the eastern-most hole. The vein narrows to the west with sequential holes SRC-902, SRC-903, and SRC-904, all of which obtained successively narrower intersections. Further drilling is in progress with results pending to test the extension east of SRC-901.

Wayne Hubert, Andean's President and CEO commented, "This new discovery is another testament to the highly prospective exploration potential at Cerro Negro. San Marcos is a new gold and silver discovery on the northern part of the property position. This new discovery now opens up the potential for additional discoveries along strike in a north-west direction between the Bajo Negro and San Marcos veins, as well as for parallel veins at the Mariana targets between Eureka and San Marcos. The exploration team continues to focus on adding value through the drill bit at the Cerro Negro site."

San Marcos Drill Results

E N Elev- muth From To Width Au Ag
Hole Depth (GK) (GK) ation (GK) Angle (m) (m) (m) (g/t) (g/t)
SRC- 250 2399600 4810900 TBD 180 -60 177 179 2 2.9 15
901 ---------------------------
181 203 22 8.5 58
SRC- 250 2399500 4810900 TBD 180 -60 195 211 16 10.3 86
902 ---------------------------
218 220 2 6 27
223 226 3 7 37
SRC- 228 2399400 4810900 TBD 180 -60 189 196 7 8.1 77
SRC- 258 2399300 4810875 TBD 180 -60 189 190 1 6.8 62
SRC- 250 2399199 4810852 TBD 180 -60 No vein intersected

Background to the San Marcos Discovery

San Marcos is located north of the Mariana targets (see Figure 1) with a northwest-trending breccia vein and an east-west splay off the breccia vein. The north-west trending breccia vein crops out for about 200 meters and is developed at the faulted contact between andesite and ignimbrite. The east-west vein splay is exposed over 250 meters (see Figure 2).

Pegasus Gold International had drilled an RC hole into each of these structures during the 1990's. Both holes intersected the structures, with 3 meters of 3.65 g/t Au in the east-west vein and 2 meters of 2.64 g/t Au in the breccia vein.

Sixteen rock chips were collected from the east-west vein during the September quarter with an average grade of 12.2 g/t Au and 52 g/t Ag. Six rock chip samples from the breccia vein assayed 0.2 to 1.9 ppm Au, and one additional sample assayed 121 g/t Au, 59 g/t Ag.

Next Steps

Five drill-rigs are currently drilling on the Cerro Negro property. Four rigs are focused on completing the delineation drilling at Bajo Negro, as well as geotechnical drilling at the new plant site and tailings dam areas. Currently, one drill-rig is focused on exploration drilling at the San Marcos and Mariana Norte targets.

SRC-905, SRC-906, and SRC-907 were drilled to test the north-west trending breccia vein, and encountered narrower, less well-developed quartz vein intercepts. SRC-908 was drilled as a 100m step-out to the east of SRC-901, on the east-west vein at San Marcos, and quartz vein was intersected. Assays are pending.

Once most of the drilling related to the feasibility is completed at year-end, these drill-rigs will be available to continue exploration of the San Marcos, Bajo Negro, and Mariana areas.

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.

Competent Persons Statement

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 JORC 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 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 Figures 1, 2, 3 & 4, please click on the following link:

Contact Information

  • Andean Resources Ltd.
    Krista Muhr
    Director of Investor Relations
    (647) 330-1478
    Andean Resources Ltd.
    Morrice Cordiner
    +61 (2) 9276 1245
    Cell: +61 (0) 412 270 761
    Andean Resources Ltd.
    1/1 Nairn Street, Fremantle
    Western Australia 6160
    +61 (8) 9430 9966
    +61 (8) 9430 9965 (FAX)