Andean Resources Ltd.
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Andean Resources Ltd.

July 07, 2008 08:30 ET

Andean Expands Eureka West Resource and Discovers a New Vein

PERTH, AUSTRALIA--(Marketwire - July 7, 2008) - Andean Resources (TSX:AND)(ASX:AND) reports the results of the latest fourteen drill holes of its recently completed Phase 4 drill program at its 100% owned Cerro Negro project in Southern Argentina including the following highlights:

- The discovery of the new Evita Vein, with results of 9m of 13.9 g/t Au

- High-grade infill drilling continues to expand resources at Eureka West

- 150m extension to the 721 Vein which remains open to depth, to the east and down-plunge.

- Andean on schedule to complete Pre-Feasibility study in September 2008

Nine of the holes reported in this release were drilled into the 721 Vein, four of the holes were drilled into the Eureka West Vein and one hole is being reported for the new vein discovery. 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 Eureka for all the interval summaries reported in this release.

Evita Vein

The Company has intersected a new vein, the Evita Vein, 190 m below the surface in the hanging wall of the Eureka West Vein at its eastern end. The intersection is interpreted as being 150m down-dip from a vein intersection in EDD-730, previously reported in July 2007, which contained anomalous silver values, but low gold (see Figure 1). This new structure requires testing up-dip, down-dip and along strike, but represents an exciting new target in close proximity to the Eureka West Vein.

- EDD-868: 9.0m of 13.7 g/t Au (Ag results pending) from 204m

Eureka West Vein

Since the April 17th News Release, which announced the high-grade resource at the Eureka West veins of 1.4 million ounces of gold and 23.7 million ounces of silver with an average grade of 12.3 g/t gold and 213 g/t silver, the following new results have been received from additional drilling:

- EDD-853: 7.0m of 84.4 g/t Au and 573 g/t Ag from 309m

- EDD-861: 17.0m of 3.7 g/t Au and 47 g/t Ag; including 6m of 6.3 g/t Au and 53 g/t Ag from 349m

- ERC-867: 12.0m of 12.6 g/t Au and 838 g/t Ag from 382m

EDD-861 and ERC-867 were targeting an area of minimal previous drilling which resulted in a gap of information in the April 2008 resource model (See Figure 2). EDD-853 intersected the vein at the most westerly section of the vein at the upper end of the resource model where lower grades were expected. The bonanza grades intersected in EDD-853 at the most westerly portion of the Eureka West vein (where drilling has intersected the vein), reflect potential up-dip and to the west on this vein. These three results from the infill drilling at the Eureka West vein should further add to the resource at the western end of the oreshoot.

721 Vein

The discovery of the 721 Vein was originally announced on June 21, 2007, when the drill hole EDD-721 intersected 17 m of 9.2 g/t gold and 69 g/t silver. Highlights of the latest drilling into the 721 Vein are shown below and reflected on the longitudinal section in Figure 3:

- EDD-855: 15.0m of 5.6 g/t Au and 13.0 g/t Ag from 41m

- EDD-858: 4.5m of 9.7 g/t Au and 104 g/t Ag from 165m

- EDD-860: 2.0m of 11.8 g/t Au and 2.0 g/t Ag from 24m

- EDD-862: 2.0m of 8.1 g/t Au and 57 g/t Ag from 190m

- EDD-866: 2.0 m of 8.1 g/t Au and 168 g/t Ag from 111m

- ERC-863: 5.0m of 13.9 g/t Au and 77 g/t Ag from 235m

EDD-855 extended the 721 Vein 50 meters to the west; while the other holes extended the vein approximately 100m further to the east. EDD-863 (5m of 13.9 g/t Au, 77 g/t Ag from 235m) is on section 4750E, 50m east of EDD-862 and EDD-866. It intersected the 721 Vein at 220 m depth and down-plunge from EDD-866. This is one of the wider and better-grade intersections of the 721 Vein and it remains open to depth and down-plunge to the east. No resource estimate has yet been developed for the 721 Vein.

Project Status

Currently, the drilling season has ended with the winter months underway in Southern Argentina. Final assays are still being awaited and will be released when received. Phase 5 drilling will re-commence in September focused initially on extending the newly discovered Evita Vein, extending the 721 Vein down-plunge and expanding the Eureka vein resources.

Pre-Feasibility Status

Andean is currently preparing the Pre-Feasibility for the Cerro Negro project and this report is still on schedule for completion in September 2008. The Pre-Feasibility will form the basis for the full Feasibility study that will commence in November of this year.

Wayne Hubert, Andean's CEO, commented, "These latest drilling results and the discovery of the Evita Vein continue to support our view that the Cerro Negro project holds tremendous geological potential for the discovery of additional veins and is one of the best undeveloped discoveries in South America."



Table 1: Drill Hole Data
721 Vein Intersections
---------------------------------------------------------------------------
Eleva- Azimuth Ang- From To Width g/t g/t
Hole Easting Northing tion (true) le (m) (m) (m) Au Ag
--------------------------------------------------------------------------
EDD-
852 2394500 4807747 631.86 360 -60 269 270 1 2.5 7.0
--------------------------------------------------------------------------
EDD-
852 2394500 4807747 631.86 360 -60 284 286 2 4 10
---------------------------------------------------------------------------
EDD-
855 2394500 4807900 661.00 360 -60 41 56 15 5.6 13
---------------------------------------------------------------------------
EDD-
857 2394600 4807700 642.00 360 -60 240 241 1 3.7 19
---------------------------------------------------------------------------
EDD-
858 2394650 4807850 660.00 360 -50 165.15 169.6 4.45 9.7 104
---------------------------------------------------------------------------
EDD-
860 2394600 4807925 640.00 360 -50 24 26 2 11.8 2
---------------------------------------------------------------------------
EDD-
862 2394700 4807850 651.00 360 -50 190 192 2 8.1 57
---------------------------------------------------------------------------
EDD-
866 2394700 4807850 651.00 360 -60 111 113 2 8.1 168
---------------------------------------------------------------------------
ERC-
863 2394750 4807830 638.00 360 -60 235 240 5 13.9 77
---------------------------------------------------------------------------

West Vein Intersections
---------------------------------------------------------------------------
Eleva- Azimuth Ang- From To Width g/t g/t
Hole Easting Northing tion (true) le (m) (m) (m) Au Ag
---------------------------------------------------------------------------
EDD-
853 2393850 4808415 701.00 45 -60 309 316 7 84.4 573
---------------------------------------------------------------------------
EDD-
861 2393820 4808347 709.00 45 -50 338 355 17 3.7 47
---------------------------------------------------------------------------
ERC-
854 2394218 4808229 633.81 45 -60 169 170 1 2.6 4
---------------------------------------------------------------------------
ERC-
867 2393790 4808315 691.00 45 -55 382 394 12 12.6 838
---------------------------------------------------------------------------

Evita Vein
---------------------------------------------------------------------------
Eleva- Azimuth Ang- From To Width g/t g/t
Hole Easting Northing tion (true) le (m) (m) (m) Au Ag
---------------------------------------------------------------------------
EDD- Pend-
868 2394450 4807800 636.00 360 -60 204 213 9.0 13.7 ing
---------------------------------------------------------------------------

(1) Intersections are drilled widths, not true widths. True widths are less
than drilled intersections and can be determined from the Eureka
cross-sections provided.

(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 on site and a 200 gram sample crushed to 85% -200 mesh is sent to Alex Stewart Argentina in Mendoza, Argentina, for gold and silver determination on a 50 gram split of the assay sample.

Gold is determined initially by fire assay with AA finish. Samples assaying more than 30 ppm gold are re-assayed using a gravimetric finish.

Silver is determined initially by ICP, 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.

Note: 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 J.O.R.C. 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: Evita Vein Discovered by EDD-868 please view the following link: http://media3.marketwire.com/docs/figure1and.pdf.

To view Figure 2: Latest Eureka West Drilling versus Resource Block Model please view the following link: http://media3.marketwire.com/docs/figure2and.pdf.

To view Figure 3: Longitudinal Section for the 721 Vein please view the following link: http://media3.marketwire.com/docs/figure3and.pdf.

To view Figure 4: Eureka Drill-Hole Map please view the following link: http://media3.marketwire.com/docs/figure4and.pdf.

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