Andean Resources Ltd.

Andean Resources Ltd.

July 09, 2007 19:32 ET

Andean Reports 16.8m of 22.7 g/t Gold and 702 g/t Silver at Eureka West

PERTH, AUSTRALIA--(Marketwire - July 9, 2007) - Andean Resources Ltd ("Andean" or "the Company") (TSX:AND)(ASX:AND) is pleased to announce the latest seven drill-holes from the Eureka prospect on its 100% owned Cerro Negro property including the following highlights:

- EDD729 drilled up-dip from EDD-723 intersects 16.8m of 22.7 g/t gold and
702 g/t silver - establishing more than 100m of high-grade continuity
(greater than 20 g/t gold and 400 g/t silver)
- Eureka West Vein strike length of 650m with at least two ore shoots
- Mineralization open along strike and at depth


Further drilling by Andean Resources Limited (TSX:AND)(ASX:AND) into the Eureka West Vein continues to intersect high-grade gold and silver mineralisation. Results from the last seven drill holes from the Phase 3 program at Cerro Negro, (at an assumed underground cut-off of 2.5 g/t gold) are summarised below. Widths are intersected widths in the drill holes and true widths are less in every case.

- EDD-727: 2m of 15.2 g/t gold and 383 g/t silver from 102m

- EDD-728: 5.2m of 4.7 g/t gold and 15 g/t silver from 117m

- EDD-729: 16.8m of 22.7 g/t Au, 702 g/t Ag from 132.2m

- EDD-730: 4.4m of 12.2 g/t Au, 144 g/t Ag from 141m, plus 2.8m of 4.7 g/t
Au, 144 g/t Ag from 153.3m. Including internal waste, the total
intersection from 141 to 156 metres averages 5.2 g/T Au, 48 g/t Ag over
15 metres.

- EDD-731: 7.6m of 4.6 g/t gold and 33 g/t silver from 266m with the hole
abandoned in quartz vein

- EDD-732 and EDD733: shallow holes define the eastern and upper limits of
the main ore shoot

EDD-729 intersected the Eureka West Vein 110 meters up-dip from previously released hole EDD-723 (52m at 25.3 g/t gold and 379 g/t silver). These two holes clearly show the main ore shoot on the Eureka West Vein to be open to the west, and also show continuity of the high grades over a vertical interval of more than 100 metres. The Phase 4 drill program starting in September will test this high-grade area to the west, up-dip, and to depth.

EDD728 and EDD730 intersected the Eureka West Vein 50m east of previously released holes on section 4400E. They intersected a narrow, west-plunging, flat-dipping part of the vein which was also intersected down-plunge in EDD719 and EDD722, 50 metres west. Data on other sections suggests that the vein may steepen and widen below these intersections.

EDD731 was an intersection whose full width was not tested as the hole collapsed and had to be abandoned while still in the quartz vein. The Phase 4 drill program will re-test this hole.

EDD-727 and EDD-728 tested the up-dip extent of the main ore shoot and will support the resource estimate currently being prepared for release in September.

EDD732, and EDD733 define the eastern limit of the main ore shoot, which is at least 450 meters in strike length and open to the west and at depth.

Project Status: Data from all of the Phase 3 drilling at Vein Zone and Eureka are currently being incorporated into a new Resource estimate for release in September. Preliminary metallurgical testwork on two Eureka samples is being finalized and will be released in July.


Andean establishes continuity of the high-grade at the western extent of Eureka West

Andean Resources Limited (TSX:AND)(ASX: AND) is pleased to report that further drilling on the Eureka West Vein at the Company's 100% owned Cerro Negro epithermal gold project in Southern Argentina continues to intersect wide zones of high-grade gold and silver mineralisation.

The following table shows the results of the final holes of the Phase 3 program. These are reported at a cut-off grade of 2.5 g/t gold on the assumption of an underground mining scenario for the Eureka veins, even though the shallower intersections may be amenable to open pit mining. Coordinates tabulated below are provisional and subject to final survey by a licensed surveyor.

A drill hole map showing the detailed positioning and reported values for all the diamond drill holes reported so far at Eureka and Eureka West (including the holes covered by today's announcement), is attached.

Hole From To Int- Gold Silver Elev- East- North- Azi- Inc- Depth
Num- (m) (m) er- (g/t) (g/t) ation ing ing muth lin- (m)
ber val (m asl) ati-
(m) on
727 103 105 2 15.2 383 637 2394185 4808175 360 -60 195
728 90 92 2 3.0 8 646 2394450 4808000 360 -60 196
And 117 122.2 5.2 4.7 15
729 132.2 149 16.8 22.7 702 654 2394100 4808225 360 -60 170
Incl 139 149 10 32.2 672
730 141 145.4 4.4 12.2 144 645 2394450 4807950 360 -60 165.5
And 153.3 156 2.8 4.7 11
waste 141 156 15 5.2 48
731 266 273.6 7.6 4.6 33 646 2394300 4808000 360 -60 273.6
732 NSR 656 2394550 4807975 360 -60 149.2
733 NSR 651 2394550 4807900 360 -60 122
(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) EOH equals end of hole

Commentary on Results

The results from these final Phase 3 drill holes at the Eureka prospect are most encouraging for several reasons:

- The holes appear to confirm a west- plunging, high-grade shoot of gold-
silver mineralisation in the Eureka West Vein, consistent with
previously-announced results. This is shown on the long-section attached
to this release and on the Company's website . In
addition, EDD-729 indicates vertical continuity of the high-grade
(greater than 20 g/t Au, 400 g/t Ag) over at least 110m., and Andean now
considers that EDD-729 and EDD-723 almost certainly intersected the same
(Eureka West) vein. A cross-section at 4100E showing both these drill
holes is also attached. The western limit of this high grade part of the
vein has not yet been defined.
- The shoot intersected by holes announced to date has a strike length of
at least 450 metres and is open to the west and to the east. Although
some previously-announced holes indicate a structural bottoming of part
of the shoot, this is believed to be due to local flattening of the vein,
rather than the bottom of the hydrothermal system. Shallow drilling
detailed in this announcement indicates that the shoot becomes narrower
and lower grade towards the surface, consistent with outcrop observations
and earlier interpretations based on vein textures.
- Hole EDD-721, drilled into a resistivity anomaly approximately 250 metres
east of the mineralised shoot referred to above, intersected 17m of 9.2
g/t gold, 69 g/t silver. This may represent a second shoot on the West
Vein, in which case the total length of the West Vein would be at least
650 metres. While no drilling has demonstrated continuity between the
EDD-721 intersection and the main shoot as yet, both occur on the same
contact between andesite and fragmental rocks, suggesting that .EDD-721
also intersected the Eureka West Vein. In the current interpretation, the
two shoots appear to be separated by a westerly-plunging jog in which the
vein flattens and becomes narrower and lower grade.
- Significant silver grades continue to be encountered (for example;
EDD - 729, EDD-723) when compared to Vein Zone (which has low silver
values), which could provide a meaningful by-product and reduced cash
cost in any future mining operation at Cerro Negro.
- Good exploration potential exists along strike of the entire 4 kilometre
outcropping Eureka vein system. To date, less than 1 km of the
outcropping 4 km identifiable from surface, has been tested. Recent
outcrop mapping over this part of the vein suggests that the favourable
volcanic sequence which hosts mineralisation in the western part of the
Eureka system may be present further east at depths of less than 100

Project Status

Andean's planned Phase 3 drilling program is now complete, with 33 holes drilled at Eureka for 8,002 metres. The emphasis has been on exploring the West Vein, and 25 holes (5,777 metres) have been drilled on this previously-untested structure. The remaining holes have been drilled on the Main Vein, partly below holes drilled by previous explorers.

Andean is currently compiling all of the data relating to its Phase 3 exploration program at Eureka and Vein Zone. As part of this process, Micon International, from Canada, has been engaged to prepare a NI-43-101 compliant resource estimate for the Eureka West Vein, and to update the existing JORC compliant resource at Vein Zone. It is anticipated that the results of this new resource study will be available in the September 2007.

Concurrent with this resource work, the Company is also now gearing up its activities in relation to the preparation of a pre-feasibility study on possible future mining options at Cerro Negro based on the treatment of gold and silver resources from both Eureka and Vein Zone. An engineering team is currently being assembled to undertake this work.

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. is an Australian based company, exploring for gold and silver resources in the Andes. Andean is listed on the Australian Stock Exchange under the ticker symbol AND, and more recently has been listed on the Toronto Stock Exchange under the ticker symbol AND.

Caution Regarding Forward Looking Statements: The forward-looking statements made in this news release are based on management's assumptions and judgments regarding future events and results. Such forward-looking statements, including but not limited to those with respect to the prices of gold and silver, resource and reserve estimates and estimated future production, involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual market prices of gold and silver, the actual results of current exploration, the actual results of future mining, processing and development activities and changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's filed documents. There can be no assurance that the mineralization that has been discovered and that is referred to in this news release will prove to be economic.

For an overview of the Eureka Prospect Drilling and Geology, visit the following hyperlink:

For a longitudinal projection map of the Eureka West Prospect, visit the following hyperlink:

For a map of a cross-section of the geology of the Eureka West Prospect, visit the following hyperlink:

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