Andean Resources Ltd.

Andean Resources Ltd.

May 19, 2009 07:30 ET

Andean Confirms New High-Grade Vein Discovery at Bajo Negro

PERTH, AUSTRALIA--(Marketwire - May 19, 2009) - Andean Resources (TSX:AND)(ASX:AND) is pleased to report new and potentially significant results from deeper drilling completed at the recently drilled Bajo Negro vein at its 100% owned Cerro Negro gold and silver project in Southern Argentina. Today's results include the following:

- BRC-908 intersected 6m of 23.9 g/t gold and 22 g/t silver

- BRC-911 intersected 7m of 60.7 g/t gold and 90 g/t silver

- BDD-913 intersected 7.75m of 38.9 g/t gold and 45 g/t silver

- Drilling to date has tested the structure over a strike length of approximately 350m coincident with a north-west trending geophysical lineament of almost 5 km

- The results received so far show a rapid and consistent increase in the strength of mineralization with depth

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.

Bajo Negro Vein Discovery

Since the start of the year and at the completion of the infill drilling campaign at the Eureka West veins, Andean's exploration team have used one drill rig to test some of their highest priority targets on the highly prospective Cerro Negro land position. The Bajo Negro vein is located 13 kilometers east of the Eureka West veins and 2 km south-west of the Vein Zone deposit (see Figure 1).

The Bajo Negro vein, identified in 2006, displayed only sporadic surface outcrop extending over 100m in a north-westerly direction. Trenching and surface sampling resulted in a range of gold grades from anomalous to 3 g/t gold and increased the known strike length to 350m.

To-date, twelve RC holes and one core hole have been drilled along approximately 350m of strike length of the Bajo Negro vein. The mineralization remains open to the north-west, south-east and at depth. Results suggest a high grade gold zone below 750 meter elevation.

The following new intersections, taken in conjunction with previously-announced results, define the upper part of an ore shoot which is open to depth and along strike:

BRC-906: 2m of 26.1 g/t Au and 49 g/t Ag from 230m

BRC-907: 2m of 21.4 g/t Au and 35 g/t Ag from 232m

BRC-908: 6m of 23.9 g/t Au and 22 g/t Ag from 166m

BRC-909: 2m of 5.9 g/t Au and 6.5 g/t Ag from 113m

BRC-910: 5m of 5.2 g/t Au and 6 g/t Ag from 152m
And 4m of 8.5 g/t Au and 7 g/t Ag from 166m

BRC-911: 7m of 60.7 g/t Au and 90 g/t Ag from 160m

BRC-912: 8m of 8.5 g/t Au and 29 g/t Ag from 144m

BDD-913: 7.75m of 38.9 g/t Au and 45 g/t Ag from 204.5m

The first core (diamond) hole, BDD-913 supports the grade and thickness of the mineralization intersected by the reverse circulation holes. The Bajo Negro vein lies on an aeromagnetic lineament which extends NW and SE of the area currently drilled, for approximately 5 km. Geological evidence indicates that the present-day land surface has undergone minimal erosion from the surface at the time the vein was formed, suggesting the possibility of additional blind ore shoots along this trend.

The discovery of this new area of mineralization supports Andean's view that significant exploration potential remains at Cerro Negro for the discovery of additional mineralization.

Next Steps

One drill-rig will shortly be moved to Bajo Negro. Proposed exploration includes:

- Continue drilling the vein at 50 meter centers along strike and at depth to further define the extent of mineralization present at Bajo Negro;

- Drill step-out holes, with a focus on the South East, on more widely spaced fences,

- Consider a gradient array resistivity survey of 100 line kilometer to explore aeromagnetic lineaments to the North West.

Andean is also finalizing a resource estimate on its Eureka veins, (where drilling continues), for release at the end of May. Since Bajo Negro has only recently been drilled, a resource update for this zone will be provided at a later date. The Company is planning to drill through the winter months for the first time with covered skid mounted diamond rigs. Drilling updates will continue to be provided.

Table 1: Drill Hole Data

Bajo Negro Vein intersections to-date (at a 2.5 g/t Au cut-off)
Hole Easting Northing Elevation Depth From To Width Au Ag
BRC-901 2407383 4804997 903.38 205 113 116 3 5.1 13
128 130 2 7.2 92
BRC-902 2407468 4804939 896.3 220 151 153 2 4.45 10.2
BRC-903 2407465 4804938 896.35 211 184 189 5 7.29 23.8
BRC-904 2407470 4804840 889.33 150 95 97 2 17.67 24
102 106 4 4.6 6.75
111 117 6 11.77 14.33
BRC-905 2407509 4804744 882.48 150 98 99 1 10.4 21
104 111 7 8.61 16
BRC-906 2407515 4804963 893.43 245 230 232 2 26.1 49
BRC-907 2407521 4804965 893.61 269 232 234 2 21.4 35.5
237 239 2 3.24 9
BRC-908 2407497 4804857 888.8 190 166 172 6 23.93 22.14
BRC-909 2407489 4804795 886.02 150 113 115 2 5.91 6.5
BRC-910 2407535 4804760 883.31 180 152 157 5 5.17 6.2
166 170 4 8.54 7.5
BRC-911 2407558 4804717 885.49 187 160 167 7 60.7 90
BRC-912 2407411 4805011 903.8 199 144 152 8 8.5 29
BDD-913 2407540 4804873 TBD 231 204.5 212.25 7.75 38.9 45

(1) Intersections are drilled widths, not true widths.
(2) Some coordinates and elevations are approximate and subject to final
survey by a licensed surveyor.

In the above table, the Gauss Kruger coordinate system and the Campo Inchauspe datum are used to define drill hole collar positions. However on the longitudinal projection of the Eureka West Vein, the coordinate system refers to a local grid established for drilling the Eureka West Vein.

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 by ACME Analytical Laboratories SA (Mendoza) in Mendoza, Argentina, and assayed by the same laboratory in Santiago, Chile.

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.

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.


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.

To view Figure 1: Location of Prospects, please visit the following link:

To view Figure 2: Bajo Negro Drill Locations and Results, please visit the following link:

To view Figure 3: Longitudinal Projection, Bajo Negro Vein, please visit the following link:

To view Figure 4: Geologic map of the Bajo Negro Area, please visit the following link:

To view Figure 5: Cross Sections, Bajo Negro, please visit the following link:

A.C.N. 064 494 319

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