AndeanGold Ltd.
TSX VENTURE : AAU

AndeanGold Ltd.

August 10, 2011 09:00 ET

AndeanGold Reports Final Positive Assay Results, Urumalqui Au-Ag Project, Peru

9.8 oz/t AGE over 3.15 metres

15.4 oz/t AGE over 2.14 metres

10.8 oz/t AGE over 3.04 metres

10.8 oz/t AGE over 11.71 metres

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 10, 2011) - AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU) is pleased to announce that it has received the assay results for the final eleven drill holes from the Phase I infill drilling program (the "Program") on the Urumalqui Epithermal Vein (the "Vein") at its advanced-stage Au-Ag Urumalqui exploration project (the "Project") in Peru. The assay results are as follows:



DRILL
HOLE
DEPTH
BELOW
SURFACE
(metres)


FROM
(metres)


TO
(metres)


INTER-VAL
(metres)

TRUE
WIDTH
(metres)


AU
(g/t)


AG
(g/t)


AG EQUIVALENT
(g/t) (oz/t)
PGUR #21 87.96 106.98 110.00 3.02 2.46 0.48 78.00 102.00 3.3
PGUR #22 28.21 35.60 39.49 3.89 3.15 2.48 181.80 305.60 9.8
PGUR #23 40.33 55.41 58.90 3.49 2.85 0.63 72.83 104.35 3.4
PGUR #24 88.32 121.28 124.00 2.72 2.14 3.84 287.88 479.73 15.4
INCLUDING
122.53 124.00 1.47 1.16 6.80 414.90 754.73 24.3
PGUR #25 82.41 127.00 130.70 3.70 3.04 0.49 310.62 335.03 10.8
PGUR #26 80.34 109.10 114.00 4.90 3.83 1.03 76.22 127.84 4.1
PGUR #27 205.12 233.83 238.21 4.38 2.90 0.55 180.36 207.65 6.7
INCLUDING
235.80 237.55 1.75 1.16 0.96 218.43 266.29 8.6
PGUR #28 193.41 223.93 226.80 2.87 1.94 0.21 114.91 125.26 4.0
INCLUDING
223.93 225.85 1.92 1.30 0.29 159.72 174.10 5.6
PGUR #29 218.97 225.80 235.34 9.54 3.58 0.38 48.95 68.13 2.2
PGUR #30 50.37 70.76 76.40 5.64 4.62 0.90 116.71 161.81 5.2
PGUR #31 39.67 63.90 77.70 13.80 11.71 2.35 218.86 336.27 10.8
INCLUDING
75.30 77.70 2.40 2.04 1.00 633.56 683.44 22.0
AG EQUIVALENT - Based on a silver to gold ratio of 50:1 and assuming 100% metallurgical recoveries
oz/t - Troy ounces per metric tonne

Mr. Anthony F. Ciali, President & CEO of AndeanGold states, "We are very pleased with the success of, and assays results from, the Company's recently completed Urumalqui infill drill program. The Company's overall assay results were in line with Gitennes' historical overall assay results from the Phase I target area. The following assay results from the final drill holes are noteworthy: PGUR #24 - 2.14 metres true width at 3.84 g/t Au, 287.88 g/t Ag, 479.73 g/t AGE (15.4 oz/t) and PGUR #31 - 11.71 metres true width at 2.35 g/t Au, 218.86 g/t Ag, 336.27 g/t AGE (10.8 oz/t). PGUR #24 included a 0.89 metre drill interval running 7.12 g/t Au and 346.0 g/t Ag. The 7.12 g/t Au assay is the highest drill hole gold assay result reported at the Urumalqui Project. Also, the 11.71 metres true width in PGUR #31 is the thickest mineralized interval drilled at the Urumalqui Project."

The latest holes were drilled principally along strike over an approximate 200 metre interval, covering the western portion of the Urumalqui Vein. In addition, three holes were drilled to a vertical depth of approximately 200 metres below surface, and four shallow holes were drilled in the eastern portion of the target area to infill an area near the historical underground exploration workings.

To view the updated Urumalqui Vein Longitudinal Section please visit the following link: http://media3.marketwire.com/docs/aauFig01.pdf.

The original Program envisaged up to 23 diamond core holes and up to 4,000 metres of drilling. In order to provide additional infill drilling in some key areas, the program was revised to include 31 diamond core holes, representing up to 5,100 metres. All 31 holes have now been completed for 5,071 metres, and all 31 completed holes have intersected the Urumalqui Vein as predicted in cross sections prepared by the Company.

The Program was focused on infill drilling to a depth of 200 meters so as to provide a drill spacing of approximately 50 metres along the central and southeastern segments of the Urumalqui Vein, which cover 1.0 kilometre of the 1.5 kilometre long Urumalqui Vein outcrop where the majority of the Project's historical drilling was concentrated. This level of drilling density should be sufficient for the preparation of a NI 43-101 resource estimate, which the Company is in the process of commissioning.

AndeanGold is very pleased with President Humala's recent appointments of free-market oriented individuals to key ministries of his administration thereby supporting his statements that the current economic model in Peru will be maintained. The Company is committed to advancing the Urumalqui Project to the development stage as soon as practicable, as well as actively working with the local communities related to the Project. AndeanGold has had excellent community relationships and is working on several agreed to social projects for the benefit of the communities.

Quality Assurance / Quality Control:

AndeanGold has in place a detailed QA/QC program consistent with Canadian Securities Administrators National Instrument 43-101 and using best industry practices. The program includes chain of custody of samples; standards and blanks submitted to the independent Inspectorate Lab in Lima Peru with each batch of samples, and a check assay program on a proportion of sample pulps with a second independent laboratory. The results of the QA/QC program to date have been satisfactory.

Dr. William F. Lindqvist, a director of the Company, is the Qualified Person in compliance with National Instrument 43-101 with respect to this release.

About AndeanGold Ltd.:

AndeanGold Ltd. is engaged in the acquisition, exploration and potential development of primarily precious metals properties, principally in Peru and Ecuador. The focus of the Company's exploration activities is presently in advancing its Urumalqui Project, as well as pursuing mineral property acquisitions, in Peru. In Ecuador, the Company's activities have been limited to administrative and legal matters due to the Mining Mandate issued by the Ecuador Constituent Assembly on April 18, 2008. In November 2009, President Correa signed the Mining Regulations into law pursuant to the requirements of the new Mines Law, which was passed in January 2009. This was the final legal precursor to the re-initiation of exploration and mining development in Ecuador. The Company has been issued new mining titles under the new Mines law to its three key Ecuadorian projects and has filed the requisite documents with the Ministry of Non-Renewable Natural Resources and Ministry of Environment in support of the Company's request to renew exploration programs on its key projects in Ecuador. The Company is actively working with government officials to achieve this end.

Please refer to AndeanGold's website at www.andeangoldltd.com for further information on the Company's projects and activities.

On Behalf of the Board of Directors of ANDEANGOLD LTD.

Anthony F. Ciali, President, CEO and Director

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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