AndeanGold Ltd.
TSX VENTURE : AAU

AndeanGold Ltd.

November 17, 2009 14:04 ET

AndeanGold Reports Phase 1 Drill Results on Rio Seco Project, Peru

VANCOUVER, BRITISH COLUMBIA--(Marketwire – Nov. 17, 2009) – AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU) is pleased to report on the Phase 1 Drilling Program (the "Program) on the Company's Rio Seco Project (the "Project") in Peru. The Program entailed the drilling of eleven (11) reverse circulation holes, for a total of 1,398 metres. All holes were successfully drilled as planned. The holes ranged from 100 m to 156 m in inclined length and from 84 m to 141 m vertically from surface. The Program was designed to test the depth, strike extent and grade of the 600x100 m stockwork target to an average depth of approximately 100m, as a follow up to the encouraging assay results from the 2008 and 2009 trenching programs (See news releases of April 20, 2009 and May 12, 2009), which identified the stockwork target area as a potential open pit, bulk mineable, heap leach mineral resource, if economic grades were present.

Highlighted drill hole intercepts included the following:

DRILLFROMTOINTERVALAUAGAUE
HOLE(metres)(metres)(metres)G/TG/TG/T
RSDH013852141.3322.691.68
  Including444844.1464.755.13
 12212420.5912.100.78
       
RSDH020660.407.200.51
       
RSDH03830220.6211.220.79
  Including818101.0210.461.18
  Including242840.5628.701.00
       
RSDH04101441.122.701.16
 5474200.595.530.67
  Including565821.906.402.00
  Including667480.809.600.95
       
RSDH05824161.0213.491.22
       
RSDH06014141.157.171.26
  Including81243.7219.754.02
       
RSDH07263040.8218.751.10
       
RSDH08404441.259.501.39
       
RSDH09110124140.5315.200.77
       
RSDH10242840.393.250.44
       
NOTE:AUE=Gold Equivalent based on a silver to gold price ratio of 65:1 and assuming 100% metallurgical recoveries.
 RSDH11 did not contain any significant intercepts.  

The trenching programs outlined several sizeable mineralized lenses within the stockwork target containing higher concentrations of veining and better gold values. These lenses appeared to be distributed en echelon style along the stockwork trend, with four better defined lenses identified along the eastern side, which were exposed in outcrops by the access road that runs through the Project and which is where the majority of the trenching programs took place. Based on the trenching results and the Company's related geological model, there were also indications of additional mineralized lenses within the remaining 75m width of the stockwork target to the west which is poorly exposed and deeply weathered and, therefore, less amenable to detailed evaluation by surface work. Based on the assay results from the 2008 and 2009 trenching programs, the four exposed lenses had a combined strike length of 580m, an approximate width of 25m, and an average indicative grade of 1.02 g/t AUE, based on averaging all channel and outcrop samples within each lens.

The Phase 1 drill collars were located along the western side of the access road, where the majority of the trenching had taken place. In general, the holes were drilled along the N-S strike of the exposed mineralized lenses (RSDH01, 02, 04, 05 and 10), to the west in order to test for the inferred parallel mineralized lenses under the hill (principally, RSDH03 and 06) or a combination thereof. 

While the majority of the drill holes intersected the veins as projected from the surface mapping and the average AUE grades of the veins in the drill holes were similar to the trench assays (+/- 1.0 g/t AUE), the assay results for the areas surrounding the veins were below the trench assay results. The assays for these holes were all of low grade. Based on the drilling results, it appears that the mineralized lenses are primarily confined to the 580 x 25m area along the access road that was previously mapped and trenched. The Phase 1 drilling results do not support a potential bulk mineable target to the west.

FUTURE EXPLORATION / DEVELOPMENT PROGRAMS:

Given the location of the Phase 1 drill collars and direction of the drill holes, there were no drilling tests of the exposed mineralized lenses over the full eastern extension of the shear zone. The Company is analyzing whether to conduct a limited drill program to test the full eastern extent of the 580 x 25m mineralized area.

The Company also intends to further review the underground mining potential of the Project's vein targets and whether they might support a series of small-scale mines with a centralized processing plant. To date, four mineralized zones and ten main vein systems have been identified. The principal mineralized zone is the West Zone, which lies within a shear zone created by two major N-S faults. In addition to the stockwork target, the West Zone also contains several vein targets, which exhibit underground mining potential (See Rio Seco Project Map, http://www.andeangoldltd.com/s/RioSeco.asp).

VEIN TARGETS:

The vein targets are located south of the stockwork target and along the strike of the shear zone. A multiple vein target ("MVT"), located contiguous with and south of the stockwork target, contains numerous past artisanal mine workings, and the Company has sampled both old adits (5 to 160m in length) and surface outcrops. The two principal vein structures that occur in the MVT, Vein 3 and Vein 4, both have an approximate strike length to date of 200m. Overall, the weighted average assay results for the 31 Vein 3 channel samples were:

4.81 g/t Au, 41.7 g/t Ag, 0.51% Cu

These results were over widths ranging from 0.30 – 10.00m, with an average width of 1.94m.

The weighted average assay results for the 54 channel samples taken from Vein 4 were of a lower tenor than Vein 3, as follows:

1.16 g/t Au, 14.4 g/t Ag, 0.21% Cu

These results were over widths ranging from 0.11 – 3.00m, with an average width of 0.90m 

Approximately 300m south of the MVT, an additional new mineralized target area, Gabriel, containing several quartz veins and veinlets, was discovered during the 2009 mapping and trenching programs. This target is also aligned with the major shear structure. Overall, 21 continuous channel samples of veins from the Gabriel target returned assay results ranging from:

0.22 – 10.97 g/t Au over widths ranging from 0.18 – 4.00m

A second mineralized zone, the South Zone, is located to the south of the Gabriel target and along the southern portion of the shear zone. To date, two gold-bearing veins have been identified with strike lengths of approximately 300 metres, and the Company has only conducted limited sampling of the veins with assays results from 4 continuous channel samples ranging from:

13.90 – 33.76 g/t Au, 3.0 – 13.10 g/t Ag over widths ranging from 0.10 – 0.20m

Quality Assurance / Quality Control:

AndeanGold has put in place a detailed QA/QC program consistent with Canadian Securities Administrators National Instrument 43-101 and using best industry practices. The program includes chain of custody of samples, and standards and blanks submitted to the independent Inspectorate Lab in Lima Peru with each batch of samples. The results of the QA/QC program to date have been satisfactory.

Dr. William F. Lindqvist, a director of AndeanGold, is the Qualified Person in compliance with National Instrument 43-101 with respect to this release.

About AndeanGold Ltd.:

AndeanGold Ltd. is engaged in the acquisition, exploration and potential development of primarily precious metals properties, principally in Peru and Ecuador. The focus of the Company's exploration activities is presently in advancing its Rio Seco Project, as well as pursuing mineral property acquisitions, in Peru. In Ecuador, the Company's activities have been limited to administrative and legal matters due to the Mining Mandate issued by the Ecuador Constituent Assembly on April 18, 2008. On November 4, 2009, President Correa signed the Mining Regulations into law pursuant to the requirements of the new Mines Law, which was passed in January 2009. This was the final legal precursor to the re-initiation of exploration and mining development in Ecuador. The Company has filed the requisite documents with the Ministry of Non-Renewable Natural Resources in support of the Company's request to renew exploration programs on its key projects in Ecuador. The Company looks forward to working with government officials to this end.

Please refer to AndeanGold's website at www.andeangoldltd.com for further information on the Company's projects and activities.

On Behalf of the Board of Directors of ANDEANGOLD LTD.

Anthony F. Ciali, President, CEO and Director

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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