Andean Resources Ltd.
TSX : AND
ASX : AND

Andean Resources Ltd.

April 16, 2008 09:38 ET

Andean Reports an Updated Mineral Resource for Eureka West

PERTH, AUSTRALIA--(Marketwire - April 16, 2008) - Andean Resources Ltd. (TSX:AND)(ASX:AND) reports an updated mineral resource estimate for the Eureka West Veins including the following highlights:

- Infill drilling confirms continuity of the high gold and silver grades

- Gold and silver grades more than doubled from the previous October 2007 resource estimate

- Total mineral resource tonnage up 15% from the prior estimate

- More than 1 million ounces of gold and 18 million ounces of silver with grades of 12.9 g/t gold and 235 g/t silver in the Indicated category together with 0.34 million ounces of gold and 4.9 million ounces of silver at a grade of 10.7 g/t gold and 157 g/t silver in the Inferred category

The Eureka West Veins are on the western end of the Company's 100% owned Cerro Negro project (approximately 250 square kilometres in size) in Santa Cruz province, southern Argentina. A mineral resource estimate at the Vein Zone, another epithermal vein system about 15 kilometres to the east of Eureka, is currently being updated and will be released when completed. To date, Andean has drill-tested two of the seven known epithermal vein occurrences on the Cerro Negro property and a mineral resource estimate is provided here for the Eureka West veins only. The CIMM- and JORC-compliant resource estimate was completed by Micon International Limited and the results are summarized in the table below:



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Category Tonnes Au g/t Contained Oz Ag g/t Contained Oz
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Indicated
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1.0 Vein 1,805,000 15.79 916,400 297.84 17,286,200
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1.1 Vein 683,000 5.18 113,800 69.87 1,534,500
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Total, Indicated 2,488,000 12.88 1,030,200 235.26 18,820,700
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Inferred
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1.0 Vein 728,000 12.80 299,600 188.31 4,408,000
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1.1 Vein 245,800 4.57 36,100 62.44 493,400
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Total, Inferred 973,800 10.72 335,700 156.53 4,901,400
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Two veins, referred to in the table above as the 1.0 and 1.1 veins, have been outlined by drilling at Eureka West. These two veins are near vertical, strike in a north-westerly direction, and are closely spaced - the 1.0 main Eureka West vein and the 1.1 vein in the footwall. The mineralization in the 1.0 Vein can be seen to be distinctly higher in both gold and silver grades and possesses a better continuity of grade when compared to the 1.1 Vein.

This estimate is based on the initial 58 drill-holes, of which 40 were core drill-holes and 18 were reverse circulation holes. High grade gold and silver values for the 1.0 and 1.1 Veins were capped at 175, 85 or 22 g/t gold and 2,800, 1,000 and 450 g/t silver for different portions of the veins, in order not to distort the grade of the deposit with the influence of the highest grade composites. The capping cut the grades of about 1% of the composites and was derived using statistical methods -- this capping resulted in about a 3 to 8% lower grade than the uncapped values, shown in the table below:



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Category Au g/t Ag g/t
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Capped No-Cap B/(W%) Capped No-Cap B/(W%)
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Indicated
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1.0 Vein 15.8 17.1 (7.6%) 298 325 (8.3%)
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1.1 Vein 5.2 5.6 (7.1%) 70 72 (3.0%)
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Total, Indicated 12.9 13.9 (7.2%) 235 256 (8.2%)
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Inferred
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1.0 Vein 12.8 13.7 (6.6%) 188 205 (8.3%)
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1.1 Vein 4.6 5.0 (8.0%) 62 65 (4.6%)
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Total, Inferred 10.7 11.5 (6.9%) 157 170 (7.6%)
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If capping was not applied to the resource, the uncapped grade would have been about 7% higher and the deposit would have contained about 7% more gold and silver ounces than what has been presented in this release.

A potential economic underground cut-off grade was estimated at 2.5 g/tonne of gold only or about 3 g/t gold equivalent and assays were composited to regular 1 meter intervals. Geologic domains were developed based on the logging of well defined, sub-vertical, quartz vein zones that are located at the contact between hanging wall andesites and footwall volcanic rocks. Gold and silver mineralization is hosted largely within the quartz vein zones and is also hosted locally within stockwork zones and brecciation in the wall rocks. The average grades for the Eureka West mineralization were estimated using the ordinary kriging method. The average densities determined for the two veins are 2.39 tonnes/ m3 for the 1.0 Vein and 2.37 tonnes/ m3 for the 1.1 Vein.

Wayne Hubert, Andean's CEO commented, "There are several exciting parts to this significant increase in the mineral resource estimate at Eureka: first, the bulk of the mineralization is contained in one ore-shoot that remains open to the west and this type of geologic system seldom has ore-shoots in isolation; second, the average silver grades are very high and when used as a byproduct, the resulting operating cash cost per ounce of gold should be low; and finally, we have yet another 4 kilometers of outcropping vein to test."

The Eureka West Mineral Resource Estimates were carried out by Reno Pressacco, P.Geo., a Senior Associate Geologist with Micon International Limited, a Qualified Person as defined by NI 43-101, and independent of Andean Resources, who has read and approved this news release. An NI 43-101 compliant Technical Report incorporating the results of the Resource Estimate will be filed on SEDAR within 45 days of the date of this release.

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. More information is available on the Company's website www.andean.com.au or call Wayne Hubert at 801-763-7671.

Note: Reno Pressacco has sufficient experience (more than 5 years) which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Reno Pressacco consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Mineral Resources is based on information compiled by Reno Pressacco, who is a Member of the APGO, which is a 'Recognised Overseas Professional Organisation' ('ROPO') included in a list promulgated by the ASX from time to time.

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