AndeanGold Ltd.
TSX VENTURE : AAU

AndeanGold Ltd.

April 20, 2009 09:00 ET

AndeanGold Reports Positive Assay Results from Rio Seco Project, Peru

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 20, 2009) - AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU) is pleased to report positive assay results from a recently completed detailed structural and geological mapping and trenching program (the "Program") on the Company's Rio Seco Project (the "Project"), a gold property (approximately 3,325 hectares) with silver and copper credits, located in the Department of Libertad, Peru. To date, four mineralized zones and ten main vein systems have been identified.

The principal mineralized zone, the West Zone, lies within a shear zone created by two major N-S faults and exhibits both potential open pit stockwork targets and potential underground multiple vein targets. Within the West Zone, several target areas have been identified and preliminarily explored to date, as follows:

Stockwork Target

The stockwork target, comprising quartz vein stockworks, ladder vein networks and discrete veins, has an overall width of about 100m and the recent Program has extended the strike length from 300m to 600m. In 2008, initial trenching on the more exposed eastern side of the target area returned assay results of 1.35 g/t gold and 6.42 g/t silver over 18.0 metres and 1.92 g/t gold and 10.24 g/t silver over 30.0 metres in channel samples. (See news release of February 9, 2009) The current evaluation Program, including additional mapping and outcrop/trench sampling, has outlined several sizeable mineralized lenses within the stockwork target containing higher concentrations of veining and better gold values. These lenses appear to be distributed en echelon style along the stockwork trend, and the table below refers to the four better defined lenses along the eastern side, which were exposed in outcrops by the access road that runs through the Project. Based on the results of the current Program and the Company's present geological model, there are also indications of additional mineralized lenses within the remaining 75m width of the stockwork target to the west which is poorly exposed and deeply weathered and, therefore, less amenable to detailed evaluation by surface work.

Based on the assay results from the 2008 and 2009 trenching programs, the four exposed lenses have a combined strike length of 580m, an approximate width of 25m, and an average indicative grade of 1.02 g/t AUE, based on averaging all channel and outcrop samples within each lens, as detailed below:



----------------------------------------------------
STRIKE WIDTH AVERAGE AVERAGE AVERAGE
LENS METRES METRES G/T AU G/T AG G/T AUE
----------------------------------------------------

1 120 25 1.04 7.3 1.14

2 200 25 0.86 5.09 0,93

3 110 25 0.58 1.83 0.62

4 150 25 1.34 5.10 1.40
----------------------------------------------------
TOTAL 580 25 0.96 4.83 1.02
----------------------------------------------------
----------------------------------------------------

Note: AUE equals Gold equivalent based on a 75:1 gold/silver price ratio.


While there are several exploration targets of interest on the Rio Seco Project, the Company's principal interest is the timely testing and advancement of the open pit potential of the stockwork target area, with the objective of establishing a bulk mineable, heap leach mineral resource, if economic grades are present. The results of the latest Program are encouraging and support the Company's decision to initiate a Phase I drilling program to test the depth, strike extent and grade of the 600x100m stockwork target area. Details of the drilling program will be finalized by end April, following a visit to the Project by the Company's geological team and senior geological consultant.

The infrastructure in the Project area to support an open pit / heap leach operation is excellent, with easy access mainly along the Pan American Highway from the city of Trujillo (plus 1 million in population) and a well-compacted dirt road to the Project (10 kilometres east of the highway turnoff); a major power line to Trujillo running parallel to the highway; a large government owned water channel running through the Project; an industrial port located 15 kilometres to the north, along the highway; and an arid and dry dessert climate, conducive to such an operation.

Multiple Vein Target

The southern end of the stockwork target area gives way to what has been termed the Multiple Vein Target consisting of two overlapping and offset principal quartz-sulfide veins, having individual strike lengths of approximately 200m. The 2008 trenching program in this target area returned assay results of up to 13.8 g/t Au, 93.7 g/t Ag and 0.73% Cu over 0.40m in a channel sample. Including the assay results of the current Program, the assay results of the 2008 and 2009 trenching programs are shown in the table below. Presently, this target area is considered to have good underground potential and will be subject to further evaluation, including drilling.



----------------------------------------------------
WIDTH AVERAGE
VEIN METRES G/T AU G/T AG G/T AUE % CU
----------------------------------------------------

VEIN 3 0.30 2.90 13.60 3.08 2.08
0.40 13.80 93.70 15.05 0.73
1.20 1.07 35.50 1.54 0.20
1.00 1.96 9.30 2.09 0.32
1.00 5.87 74.90 6.87 0.12
1.00 2.95 82.80 4.06 0.13
3.00 2.21 27.50 2.58 0.81
10.00 4.86 55.40 5.60 0.24
3.00 4.00 40.30 4.54 0.27
3.00 3.15 34.60 3.61 0.41

VEIN 4 0.80 5.70 21.20 5.98 0.42
0.45 0.94 0.60 0.95 0.14
0.70 1.12 17.40 1.35 0.12
0.45 7.33 57.80 8.10 0.34
0.30 0.84 41.00 1.39 0.32
0.80 0.98 18.50 1.23 0.25
0.80 5.70 21.20 5.98 0.42
----------------------------------------------------

Note: AUE equals Gold equivalent based on a 75:1 gold/silver price ratio.


Alessandra Target

The recent Program also confirmed the existence of a new mineralized target area, located 180m north of and along strike from the stockwork target. Based on limited work done to date, continuous channel sampling of veins in this target area returned the selected assay results shown in the table below. Based on the favorable assay results to date, and the location of this target area, further evaluation work is warranted.



------------------------------------
WIDTH AVERAGE
METRES G/T AU G/T AG G/T AUE
------------------------------------

0.25 6.8 67.0 7.7
0.20 8.3 24.0 8.6
0.20 39.9 78.2 40.9
0.60 8.7 18.4 8.9
------------------------------------

Note: AUE equals Gold equivalent based on a 75:1 gold/silver price ratio.


Overall, 10 continuous channel samples of veins from the Alessandra target returned assay results ranging from 0.34 - 39.86 g/t Au over widths ranging from 0.10 - 0.60m.

Gabriel Target

Approximately 300m south of the multiple vein target, an additional new mineralized target area containing several quartz veins and veinlets was discovered during the current Program. This target is aligned with the major shear structure. The following selected assay results were returned based on continuous channel samples:



-----------------------------------
WIDTH AVERAGE
METRES G/T AU G/T AG G/T AUE
-----------------------------------

0.40 10.4 83.1 11.5
0.18 11.0 44.6 11.6
0.39 2.3 25.0 2.7
0.45 7.3 57.8 8.1
0.80 5.7 21.2 6.0
-----------------------------------

Note: AUE equals Gold equivalent based on a 75:1 gold/silver price ratio.


Overall, 21 continuous channel samples of veins from the Gabriel target returned assay results ranging from 0.22 - 10.97 g/t Au over widths ranging from 0.18 - 4.00m.

All samples from the Rio Seco Project were sent to the Inspectorate laboratory in Lima, Peru for sample preparation and assaying.

Mr. Anthony F. Ciali, President and CEO, stated, "We are extremely pleased with the latest West Zone results and very encouraged by the discovery of two new mineralized targets in the West Zone and within the overall N-S shear zone, the strike of which is estimated at up to 6 kilometres within concessions held by the Company. Of particular interest is the fact that the average indicative grade of 1.06 g/t AUE for the areas tested in the stockwork target is in line with our expectations for the future development of a potential open pit, heap leach operation. At present metal prices, many open pit, heap leach mines are in production at average grades of +/-0.75 g/t Au. Clearly, we have a lot more work to do at Rio Seco, but this is a very good start."

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 in Peru, Colombia and Ecuador. The focus of the Company's exploration activities is presently in Peru and Colombia, where the Company is pursuing mineral property acquisitions and has signed several exclusivity and confidentiality agreements with various concessionaires. 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, which, among other provisions, provided for the suspension of exploration activities in Ecuador for a period of 180 days. Ecuador recently passed a new Mines Law, which replaces the Mining Mandate, and is working on developing regulations and finalizing terms and conditions of future mining operations. The Company looks forward to working with government officials to 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.

Contact Information