Andean Resources Ltd.

Andean Resources Ltd.

January 19, 2010 17:00 ET

Andean Resources: New High-Grade Mariana Norte Discoveries at Cerro Negro

FREMANTLE, WESTERN AUSTRALIA--(Marketwire - Jan. 19, 2010) - Andean Resources (TSX:AND)(ASX:AND) is pleased to report further encouraging results from the ongoing drilling program at its 100% owned Cerro Negro project in southern Argentina. Today's results include new high-grade discoveries at Mariana Norte and an update on the recently announced San Marcos discovery.

Mariana Norte is located about 2 km southwest of the newly discovered San Marcos veins (see Figure 1). Mariana Norte was discovered in 2009 as a result of field mapping of the Eureka-Mariana areas and is characterized by classic banded quartz vein float surrounding an outcropping silica cap. A total of 77 samples have been collected over a northwest-trending area of 2 x 0.5 kilometres. These include 40 vein quartz float samples with banded epithermal textures and average 6.6 g/t gold and 41 g/t silver.

Since the potential source of the vein was not exposed, Andean drilled a fence of 5 reverse circulation holes in a southeast direction, every 100 meters, in order to determine the location of the targeted vein. These 5 drill holes discovered at least 3 veins beneath the surface:

MRC 905: 4m of 10.9 g/t gold and 6 g/t silver from 80m
MRC-906: 7m of 18.5 g/t gold and 87 g/t silver from 186m and;
  18m of 20.6 g/t gold and 33 g/t silver from 205m
MRC-909: 6m of 11.0 g/t gold and 90 g/t silver from 77m
MRC-911: 7m of 12.3 g/t gold and 142 g/t silver from 131m and;
  6m of 41.8 g/t gold and 81 g/t silver from 141m and;
  2m of 15.1 g/t gold and 30 g/t silver from 153m

This fence of holes is shown on the plan view map (see Figure 2). The cross section showing the three veins from this fence of drill-holes is presented in Figure 3.

The widths reported above are intersected widths. True widths are not known at this time and will be reported once additional drilling provides more information. Andean has assumed an underground cut-off grade of 2.5 g/t gold at Mariana Norte for all the interval summaries reported in this release.

A second fence of RC holes is in progress 250 meters to the southeast and parallel to the first fence. This second fence of holes focused on the area beneath mapped quartz vein float that occurs directly southeast of holes MRC-907 and MRC-908, where no significant mineralization was intersected. MRC-912 and MRC-913 both intersected mineralized quartz veins in narrow intercepts which are listed below.

Hole ID Depth East North Azimuth Angle From To Intercept m Au ppm Ag ppm
MRC-905 250 2398517 4809495 230 55 80 84 4 10.93 5.50
87 92 5 3.28 7.80
95 97 2 2.63 93.50
MRC-906 250 2398601 4809564 230 55 117 118 1 4.98 49.00
186 193 7 18.45 87.14
201 202 1 4.82 18.00
205 223 18 20.60 33.36
MRC-907 258 2398690 4809636 230 55 NSV
MRC-908 250 2398770 4809706 230 55 NSV
MRC-909 232 2398852 4809774 230 55 77 79 2 2.97 11.50
96 102 6 10.97 90.17
MRC-911 255 2398922 4809831 230 55 131 138 7 12.26 141.90
141 147 6 41.84 80.70
153 155 2 15.11 29.50
MRC-912 250 2398963 4809531 230 55 99 100 1 9.30 103.00
MRC-913 250 2399011 4809582 230 55 220 221 1 2.82 16.00

San Marcos

On November 23, 2009 Andean announced the discovery of the new San Marcos veins. Andean drilled a further step-out hole, SRC-908, a 100m step-out to the east and intersected the following:

SRC-908: 3m of 13.7 g/t gold and 9 g/t silver from 183m

With this drill hole, the east-west vein at San Marcos remains open to the east, and further drilling on this vein is warranted. The northwest vein at San Marcos will also remain a target for exploration drilling.

Wayne Hubert, Andean's Chief Executive Officer commented, "Two months ago, we discovered new veins at San Marcos; today, we are announcing the discovery of three new veins at Mariana Norte. Cerro Negro is proving to be one of the most exciting high-grade precious metal districts in the Americas."

Next Steps

Four drill rigs are currently drilling on the Cerro Negro property. Since October, about 70 infill holes have been drilled at Bajo Negro confirming the existing mineralization. A resource update at Bajo Negro is planned for late March, and this resource update will provide the basis for the mine plans at Bajo Negro in the Feasibility Study, which is on schedule to be completed by the end of June of this year.

Currently 2 drill rigs are focused on condemnation and geotechnical drilling of the processing facility, and the remaining two rigs are focused on exploration drilling.

The contract to complete the underground development work at Eureka is in the process of being finalized with an Argentinean joint venture formed by the Argentinean Company Constructora Sudamericana and the experienced South American Contractor Mas Errazuriz. Mobilization should be initiated in the next weeks.

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 Fellow of the Society of Economic Geologists. 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. Mr. Wulftange has reviewed and verified that the information presented in this release conforms to NI 43-101 standards and industry Best Practices.

Figure 1: Mariana Norte Location is available at the following web link:

Figure 2: Plan view map of the Mariana Norte area is available at the following web link:

Figure 3: Mariana Norte Cross Section is available at the following web link:

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.

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)