Andean Resources Ltd.
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Andean Resources Ltd.

August 10, 2009 09:01 ET

Andean Resources Ltd.: Step-Out Drilling Extends Bajo Negro Vein by Another 125 Metres

FREMANTLE, WESTERN AUSTRALIA--(Marketwire - Aug. 10, 2009) - Andean Resources (TSX:AND)(ASX:AND) is pleased to report further encouraging results from its ongoing drilling program at its 100% owned Cerro Negro project in Southern Argentina. Today's results include the following highlights from the recently announced Bajo Negro discovery:

- BDD-925 intersected 9.4m of 22.1 g/t Au and 42 g/t Ag

- BDD-932 intersected 15.4m of 12.0 g/t Au and 28 g/t Ag

- BDD-935 intersected 5.8m of 34.8 g/t Au and 29 g/t Ag

- BDD-937 intersected 9.6m of 22.1 g/t Au and 30 g/t Ag

- Drilling to date has tested the structure over a strike length of approximately 800m

- For the first time in the Company's history, Andean is continuing to drill through the winter season, with 2 drill rigs remaining at the Bajo Negro vein

- Drilling to the North-West continues to intercept quartz vein, with assays pending

Reported widths are intersected widths, and true widths are less in every case (see Table 1 for detailed drill data). Andean has assumed an underground cut-off grade of 2.5 g/t gold at Bajo Negro for all the interval summaries reported in this release.

The confirmation of the Bajo Negro vein discovery, located 13 kilometres east of the Eureka West veins and 2 kilometres southwest of the Vein Zone deposit, was announced on May 19, 2009. The thirty-five holes for which results have been received intersected the Bajo Negro vein with widths and grades which could permit underground mining. Potentially mineable widths and grades can now be inferred over a strike length of at least 650m and vertical extent of at least 150m. Including intersections for which assays are pending, the Bajo Negro vein has now been intersected over a length of 800m. The vein remains open along strike and to depth.

Bajo Negro - Extended 75m to the north-west

Four holes were drilled to the north of and below previous drilling to extend the Bajo Negro vein to the north-west and to depth with the following results:



BDD-932: 1.65m of 6.7 g/t Au and 23 g/t Ag from 196m
And 15.4m of 12.0 g/t Au and 28 g/t Ag from 214m

BDD-933: 1.75m of 9.6 g/t Au and 21 g/t Ag from 270.4m
And 1m of 21.3 g/t Au and 43 g/t Ag from 277m
And 0.9m of 28.4 g/t Au and 22 g/t Ag from 289m

BDD-935: 5.8m of 34.8 g/t Au and 29 g/t Ag from 142m
And 9.75m of 14.2 g/t Au and 38 g/t Ag from 183m

BDD-937: 9.6m of 22.1 g/t Au and 30 g/t Ag from 267m
And 5.7m of 17.7 g/t Au and 20 g/t Ag from 285m


These drill-holes are shown on the attached longitudinal section of the Bajo Negro vein. BDD-932, BDD-935 and BDD-937 are very encouraging intersections, because they show that not only is another high grade shoot developing to the north-west, but there are two splits with potentially economic widths and grades. The existence of this new shoot was suggested by previously-announced hole BRC-912 (8m of 8.5 g/t Au).

It is also encouraging that recent drilling continues to intersect good widths of quartz vein to the north-west with assays pending.

Bajo Negro - Extended 50m to the south-east

Two diamond core holes were drilled 50m to the south-east (see longitudinal section attached) to extend the Bajo Negro vein beyond existing drilling with the following results:



BDD-936: 2.6m of 5.6 g/t Au and 7 g/t Ag from 180m

BDD-938: 3m of 17.0 g/t Au and 13 g/t Ag from 197m


The vein has a true width of less than 3m in these holes, although the grade in BDD-938 continues to be high. The decreased width is correlated with a change in the strike of the vein to WNW, whereas the higher grade zone strikes NNW.

Bajo Negro - Further definition within previously defined strike length

Eleven drill holes were drilled within the previously defined 550 meters of strike length in order to further extend the zones to depth and determine the continuity within the vein.

Seven holes were drilled to extend the zones to depth including:



BDD-921: 5.4m of 7.8 g/t Au and 12 g/t Ag from
BDD-922: 2.45m of 4.8 g/t Au and 9 g/t Ag from
BDD-925: 9.4m of 22.1 g/t Au and 42 g/t Ag from
BDD-926: No value over 2.5 g/t Au cut-off
BDD-927: 5.3m of 7.2 g/t Au and 14 g/t Ag from
BDD-928: 2.8m of 8.2 g/t Au and 20 g/t Ag from
BDD-934: 4.65m of 9.0 g/t Au and 20 g/t Ag from
And 3.05m of 15.8 g/t Au and 11 g/t Ag from


The Bajo Negro vein appears to be narrowing locally at depth in this sector, but still remains open to depth with most of the holes intersecting grades and widths supportive of underground mining.

The remaining four drill-holes (BDD-920, BDD-921, BDD-923, and BDD-930) established continuity of underground mining grades and widths on 50m sections within the previously defined strike length. See the longitudinal section provided and Table 1 for all of the results.

Dave Shatwell, Andean's Chief Exploration Geologist at Cerro Negro, commented, "The mineralization is open in both directions, but is especially promising to the north-west, where the vein is branching into several splays, with two of these splays containing high gold grades. Approximately 150m further north-west, silicified outcrops are interpreted as a silica cap to the mineralization. Ore shoots appear to be strongly structurally controlled by jogs in the strike of the vein."

Next Steps

Both core-rigs continue to work on expanding Bajo Negro to the north-west. Quartz vein continues to be intersected 150m to the north-west of holes included in this release, with assays awaited. Drilling updates will continue to be provided through the Patagonian winter months. In September, additional rigs will be added to continue the exploration drilling of Mariana Sur, Mariana Norte, Silica Cap and Eureka.



Table 1: Bajo Negro Drill Hole Data
----------------------------------------------------------------------------
Hole Section Easting Northing Elevation Azimuth Angle
(GK)
----------------------------------------------------------------------------
BDD-920 50N 2407534.51 4804924.25 891.55 245 -60
----------------------------------------------------------------------------
BDD-921 250S 2407646.97 4804647.57 897.88 245 -60
----------------------------------------------------------------------------
BDD-922 50N 2407560.96 4804938.71 894.04 245 -65
----------------------------------------------------------------------------
BDD-923 200S 2407560.58 4804662.44 888.07 245 -60
----------------------------------------------------------------------------
BDD-925 200S 2407607 4804682 906.83 245 -60
----------------------------------------------------------------------------
BDD-926 100N 2407540 4804982 910.44 245 -65
----------------------------------------------------------------------------
BDD-927 200S 2407607 4804683 906.68 245 -70
----------------------------------------------------------------------------
BDD-928 150N 2407484 4805012 912.82 245 -70
----------------------------------------------------------------------------
BDD-929 300S 2407665 4804600 TBD 245 -60
----------------------------------------------------------------------------
BDD-930 150N 2407484 4805011 912.73 245 -60
----------------------------------------------------------------------------
BDD-932 200N 2407440 4805046 TBD 245 -60
----------------------------------------------------------------------------
BDD-933 200N 2407440 4805046 TBD 245 -70
----------------------------------------------------------------------------
BDD-934 300S 2407665 4804600 TBD 245 -70
----------------------------------------------------------------------------
BDD-935 250N 2407370 4805069 TBD 245 -60
Incl.
----------
BDD-935
Incl.
----------------------------------------------------------------------------
BDD-936 400S 2407738 4804523 TBD 245 -48
----------------------------------------------------------------------------
BDD-937 250N 2407439 4805097 TBD 245 -60
Incl.
----------
BDD-937
Incl.
----------------------------------------------------------------------------
BDD-938 400S 2407738 4804523 TBD 245 -60
----------------------------------------------------------------------------


----------------------------------------------------------------------------
Hole Depth From To Width g/t Au g/t Ag
(m)
----------------------------------------------------------------------------
BDD-920 251 224.1 227.4 3.30 7.60 15.00
----------------------------------------------------------------------------
BDD-921 251.1 228 233.4 5.40 7.80 12.00
----------------------------------------------------------------------------
BDD-922 301.1 281.4 283.85 2.45 4.80 9.00
----------------------------------------------------------------------------
BDD-923 179.1 138.3 144.75 6.45 5.00 18.00
----------------------------------------------------------------------------
BDD-925 242.1 197.6 207 9.40 22.10 42.00
----------------------------------------------------------------------------
BDD-926 310 284 285 1.00 1.59 6.00
----------------------------------------------------------------------------
BDD-927 270.55 241.7 247 5.30 7.20 14.00
----------------------------------------------------------------------------
BDD-928 302 272 274.8 2.80 8.20 20.00
----------------------------------------------------------------------------
BDD-929 220 197.7 201 3.30 5.80 24.00
----------------------------------------------------------------------------
BDD-930 272 237.25 243 5.75 6.10 20.00
----------------------------------------------------------------------------
BDD-932 260 195.95 197.6 1.65 6.70 23.00
--------------------------------------------------------
214.25 229.65 15.40 12.00 28.00
----------------------------------------------------------------------------
BDD-933 311 270.4 272.15 1.75 9.60 21.00
--------------------------------------------------------
277 278 1.00 21.30 43.00
--------------------------------------------------------
288.9 298.8 0.90 28.40 22.00
----------------------------------------------------------------------------
BDD-934 267 236.6 241.25 4.65 9.00 20.00
--------------------------------------------------------
245.45 248.5 3.05 15.80 11.00
----------------------------------------------------------------------------
BDD-935 218.8 142 147.8 5.8 34.8 29
Incl. --------------------------------------------------------
145 147 2.0 81.0 83
------- --------------------------------------------------------
BDD-935 183.1 192.85 9.75 14.2 38
Incl. --------------------------------------------------------
183.1 187 3.90 25-5 55
----------------------------------------------------------------------------
BDD-936 205.1 180.1 182.7 2.60 5.60 7.00
----------------------------------------------------------------------------
BDD-937 310 266.75 276.35 9.6 22.1 30
Incl. --------------------------------------------------------
272 274 2-0 61.3 69
------- --------------------------------------------------------
BDD-937 285.05 290.75 5.70 17.7 20
Incl. --------------------------------------------------------
289.95 290.75 0.80 66.9 41
----------------------------------------------------------------------------
BDD-938 225.1 197 200 3.00 17.0 13
----------------------------------------------------------------------------
(Note: BDD-924 and BDD-931 were abandoned)


Quality Control and Assurance

The analytical results quoted in this release are derived from half drill core in the case of diamond drill holes, or from cuttings in the case of reverse circulation 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 (www.andean.com.au) is an Australian and Toronto listed gold explorer searching for precious metals in the Andes, with four large property positions in the Patagonia.

To view Figure 1: Longitudinal projection, Bajo Negro Vein, please visit the following link: http://media3.marketwire.com/docs/andefig1.pdf

To view Figure 2: Bajo Negro Drill Plan, please visit the following link: http://media3.marketwire.com/docs/andefig2.pdf

Andean Resources Limited is listed on the ASX & TSX with the symbol "AND".

A.C.N. 064 494 319

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