Andean Resources Ltd.

Andean Resources Ltd.

November 01, 2007 16:40 ET

Andean Starts Phase 4 Drilling With 27m of 24 g/t Gold and 245 g/t Silver

PERTH, AUSTRALIA--(Marketwire - Nov. 1, 2007) - Andean Resources (TSX:AND)(ASX:AND) is pleased to report the results of the first six drill holes of its Phase 4 drill program at its 100% owned Cerro Negro project in Southern Argentina with the following highlights:

- ERC-734 drilled 60m down-dip from EDD-723 intersects 27m of 24.0 g/t gold and 245 g/t silver at Eureka West

- Infill drilling confirming higher grades at Eureka West

- Step-out drilling to the west waiting on 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 and categorized the drill holes for which it has received assays as either Step-out Holes or In-fill Holes:

Step-out Holes

The objective of the step-out drilling is to define the eastern and upper limits of the mineralised ore shoot and to test for strike extensions to the west, beneath younger cover rocks.

- ERC-734: 27m of 24.0 g/t gold and 245 g/t silver from 305m

- EDD-735 - EDD737: Modest step-outs on the eastern part of the Eureka West ore shoot resulted in no significant values (see longitudinal-section attached to the release).

ERC-734, a reverse circulation step-out hole to depth, drilled 60m beneath 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 with similar grades of gold and silver mineralization.

EDD-735 and EDD-736 targeted up-dip mineralization on the eastern end of the ore-shoot and did not intersect significant mineralization as these holes determined the upper limits of the productive horizon of the epithermal system.

EDD-737 determined the eastern limit of this ore-shoot. All these holes are shown relative to the previously defined mineralization on the longitudinal section attached to this release. While these holes may have defined the eastern limit of this ore-shoot, a second ore-shoot was most likely intersected by EDD721 (17m of 9.2g/t gold and 69 g/t silver) in the Phase 3 drilling further to the east. In addition, another 4km of outcropping Eureka vein remains to be further explored in this direction.

Infill Drilling

- EDD-739: 20m of 11.8 g/t gold and 51 g/t silver from 200m

- EDD-742: 7m of 6.0 g/t gold and 99 g/t silver from 142m

These infill holes tested the vertical extent of the mineralization on section 3500E. As expected the deeper hole, EDD-739, intersected higher grades than the upper hole, EDD-742. Both holes intersected grades equal to or higher than what was previously modelled.

Project Status: To date, 16 holes have been completed on the Eureka West Vein, of which Andean has received final assays on six holes, as reported above. Of the 10 holes waiting on assays, seven were step-out holes to the west on two 50m step-out sections. All holes awaiting assays intersected quartz veining. Two core-rigs are focusing on in-fill drilling and step-out drilling on the Eureka West Vein, while the Schramm reverse circulation drill-rig is completing an infill drilling program at Vein Zone. New assays will be reported in batches as they are received.

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. Andean's website can be found at and questions can be sent to or by calling 801-763-7671.

Table 1: Drill Hole Data

Hole Inter- Sil- Eleva- Azi-
Num- From To val Gold ver tion East- North- muth Incli-
ber (m) (m) (m) (g/t) (g/t) (m asl) ing ing (true) nation
ERC- 305 332 27 24.0 245 655 2,393,9670 4,808,180 55 -60
EDD- NSR 646 2,394,380 4,808,020 55 -60
EDD- 82 86.5 4.5 2.5 66 647 2,394,140 4,808,210 45 -50
EDD- NSR 654 2,394,180 4,808,030 45 -60
EDD- 200 220 20 11.8 51 643 2,394,250 4,808,100 45 -70
EDD- 142 149 7 6.0 99 643 2,394,250 4,808,100 45 -55
(1) Intersections are drilled widths, not true widths. True widths are less
than drilled intersections.
(2) NSR equals no significant result above 2.5 g/t Au
(3) Coordinates and elevations are approximate and subject to final survey
by a licenced surveyor
(4) Coordinate system is Gauss Kruger, datum is Campo Inchauspe
(is this right)

NOTE: To view a map of the Longitudinal Section and Eureka West Cross-section, please click on the following link:

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