Andean Resources Ltd.
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Andean Resources Ltd.

December 18, 2008 21:19 ET

Andean Intersects 31m of 52.1 g/t Gold and 568 g/t Silver in a Deep Geotechnical Hole at Cerro Negro

FREMANTLE, WESTERN AUSTRALIA--(Marketwire - Dec. 18, 2008) - Andean Resources (TSX:AND)(ASX:AND) reports the second set of results from its recently commenced 2008/09 drill program at its 100% owned Cerro Negro project in Southern Argentina including the following highlights:

- EDD-887, drilled more than 50m below the base of the current Eureka West Resource intersects 31m of 52.1 g/t gold and 568 g/t silver

- Contour exploration (incremental step-outs) continue to extend mineralization at Eureka West

- Infill drilling at Eureka West continues to confirm structural and grade continuity, supportive of further upgrading of inferred resources

- Eureka West remains open at depth and to the west

All 10 holes reported in this release were drilled into the Eureka West veins. 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.

Eureka West Vein - Step-out Holes

Andean continues to drill test the high-grade Eureka West Vein in order to better define the top and bottom limits of the structure which hosts the Eureka West mineral resource. The highlights of the recent drill results include:



- EDD-887: 31m of 52.1 g/t Au and 568 g/t Ag from 334m

Including: 23.7 m of 65.1 g/t Au and 712 g/t Ag from 334m

- ERC-889: 2m of 11.4 g/t Au and 185 g/t Ag from 212m and

12m of 6.1 g/t Au and 87 g/t Ag from 218m

Including: 6m of 8.2 g/t Au and 110 g/t Ag from 218m

- ERC-890: 1m of 44.0 g/t Au and 53 g/t Ag from 194m

- ERC-891: 6m of 20.8 g/t Au and 105 g/t Ag from 5m

- ERC-893: 5m of 7.5 g/t Au and 159 g/t Ag from 131m and

16m of 5.6 g/t Au and 69 g/t Ag from 165m

- ERC-895: 7m of 12.8 g/t Au and 258 g/t Ag from 289m


EDD-887 was drilled as a geotechnical hole to test rock quality in the hanging wall andesite ahead of designing the underground decline. The Eureka West vein was intersected at the 300m elevation, the deepest drill intersection on the vein to date, and returned the 31m high-grade intersection in the 1.0 split. This same hole then encountered a 6m intersection of 6.0 g/t Au and 99 g/t Ag corresponding to the 1.1 split. Since this was a geotechnical hole, the intersection was oblique to the vein (see the attached cross-section), and the estimated true thickness of the intersection is about 6m.

EDD-889: The hole tests the up-dip extent of both splits. The 1.0 split here is eroded, and the two intersections of 2m of 11.4 g/t Au 185 g/t Ag and 12m intersection of 6.1 g/t Au and 87 g/t Ag corresponds to the 1.1 split.

ERC-890: This hole tests the upper limit of the vein below the La Matilde Formation with intersections of 1m of 44.0 g/t Au and 53 g/t Ag in the hanging wall and 5m of 3.0 g/t Au and 37 g/t Ag in the footwall.

ERC-891: Shallow hole testing the upper limit of the vein beneath the Eureka West vein (1.0 split) outcrop which assayed 6m of 20.8 g/t Au and 105 g/t Ag.

ERC-893: Tests the upper part of the vein beneath the La Matilde Formation. The first intersection (5m of 7.5 g/t Au and 159 g/t Ag) is the 1.0 split, probably partly eroded and the second intersection (16m of 5.6 g/t Au and 69 g/t Ag) is the 1.1 split.

ERC-895: Up-dip hole which intersects near the old paleo-surface, with 7m of 12.8 g/t Au and 258 g/t Ag, and may not add materially to the resource.

Eureka West Vein - Infill Holes

Several new and encouraging infill holes have been drilled aimed at upgrading the inferred resource at the Eureka West veins of 336,000 oz of gold into the indicated status. The results were as follows:



ERC-888: 17m of 14.1 g/t Au and 372 g/t Ag from 136m

ERC-892: 5m of 8.5 g/t Au and 33 g/t Ag from 229m and

3m of 9.9 g/t Au and 110 g/t Ag from 243m

EDD-896: 12.3m of 8.9 g/t Au and 116 g/t Ag from 172.7m

Including: 6m of 14.0 g/t Au and 153 g/t Ag from 177m

ERC-897: 15m of 6.1 g/t Au and 40 g/t Ag from 186m

Including: 4m of 9.4 g/t Au and 63 g/t Ag from 192m


These results appear to support an upgrading of the inferred resource and are shown on the Longitudinal Section presented in this release.

Wayne Hubert, Andean's CEO, summarized, "Our deepest hole on the project, EDD-887 intersects the Eureka West vein with a true width of about 6m and grades of almost 2 ounces per ton of gold and 18 ounces per ton of silver showing the vein is open to depth in an area of no previous drilling. This rock is worth almost $2000 per ton at today's prices. The third rig we have just brought in will allow us to immediately begin extending the resource to depth."

Next Steps

Andean's 2008/09 programs continue to progress ahead of schedule with approximately 40 further holes having been drilled and awaiting assays.

In addition to the previously mentioned infill holes, three deep drill-holes have been drilled into the Eureka SE extension searching for the next ore shoot. Several holes have also been drilled to test a potential connection between the 721 vein and the Evita vein. Andean will continue to update the market in the New Year as these results become available.

Table 1: Drill Hole Data

Eureka West Vein Intersections (at a 2.5 g/t Au cut-off grade)



----------------------------------------------------------------------------
Hole Easting Northing Elevation Azimuth Angle From To Width g/t g/t
(true) (m) (m) (m) Au Ag
----------------------------------------------------------------------------
EDD-887 2394091 4808175 645 45 -80 334 365 31 52.1 568
----------------------------------------------------------------------------
334 357.7 23.7 65.1 712
------- including ---------------------------
362 365 3 23.1 237
----------------------------------------------------------------------------
385 391 6 6.0 99
----------------------------------------------------------------------------
ERC-888 2394078 4808201 647 45 -50 136 153 17 14.1 372
----------------------------------------------------------------------------
including 146 152 6 21.3 739
----------------------------------------------------------------------------
196 208 12 3.1 38
----------------------------------------------------------------------------
ERC-889 2393958 4808313 676.80 45 -50 212 214 2 11.4 185
----------------------------------------------------------------------------
218 230 12 6.1 87
----------------------------------------------------------------------------
including 218 224 6 8.2 110
----------------------------------------------------------------------------
ERC-890 2394003 4808323 673 45 -50 194 195 1 44.0 53
----------------------------------------------------------------------------
226 231 5 3.0 37
----------------------------------------------------------------------------
ERC-891 2394227 4808192 635 45 -50 5 11 6 20.8 105
----------------------------------------------------------------------------
ERC-892 2394241 4808031 649 43 -57 228 246 18 5.4 42
----------------------------------------------------------------------------
229 234 5 8.5 33
------- including ---------------------------
243 246 3 9.9 110
----------------------------------------------------------------------------
ERC-893 2394012 4808263 666 44 -51 131 136 5 7.5 159
----------------------------------------------------------------------------
165 181 16 5.6 69
----------------------------------------------------------------------------
ERC-895 2393890 4808380 692 44 -59 289 296 7 12.8 258
----------------------------------------------------------------------------
EDD-896 2394250 4808081 644 44 -62 172.7 185 12.3 8.9 116
----------------------------------------------------------------------------
including 177 183 6 14.0 153
----------------------------------------------------------------------------
ERC-897 2394283 4808052 644 44 -61 186 201 15 6.1 40
----------------------------------------------------------------------------
including 192 196 4 9.4 63
----------------------------------------------------------------------------

(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 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.

Note: The information in this Report that relates to exploration results is based on information provided by John Clifford who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Clifford 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 Clifford 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, please visit the following link: http://media3.marketwire.com/docs/and1218a.pdf

To view figure 2, please visit the following link: http://media3.marketwire.com/docs/and1218b.pdf

To view figure 3, please visit the following link: http://media3.marketwire.com/docs/and1218c.pdf

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