AndeanGold Ltd.
TSX VENTURE : AAU
LMA : AAU

AndeanGold Ltd.

September 19, 2013 07:30 ET

AndeanGold Reports Positive Assay Results, Phase II Infill Drilling Program

Urumalqui Advanced-Stage Ag - Au Project, Peru

9.8 oz/t AGE over 9.21 metres

11.0 oz/t AGE over 2.28 metres

13.0 oz/t AGE over 3.38 metres

15.2 oz/t AGE over 2.88 metres

10.5 oz/t AGE over 3.12 metres

8.2 oz/t AGE over 3.32 metres

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 19, 2013) - AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU)(LMA:AAU) is pleased to announce that it has received the assay results from the Phase II infill drilling program (the "Program") on its advanced-stage Ag-Au Urumalqui exploration project (the "Project") in the Department of Libertad Peru. The Program was focused on the 500 metre NW outcrop section ("NW Section") of the Urumalqui Vein (the "Vein") where there has been only limited, wide-spaced historical drilling. The Company did not undertake any drilling on this section of the Vein during its 2011 Phase I infill drilling program, which was focused on infill drilling the 1,000 metre Central and SE sections of the Vein. The assay results for the Program are as follows:



DRILL
HOLE
DEPTH
BELOW
SURFACE
(metres)


FROM
(metres)


TO
(metres)


INTERVAL
(metres)

TRUE
WIDTH
(metres)


AU
(g/t)


AG
(g/t)



AG EQUIVALENT
(g/t) (oz/t)
PGUR-32 155.03 201.23 205.80 4.57 3.66 0.83 81.10 122.53 3.9
INCLUDING
202.63 204.80 2.17 1.74 1.40 135.48 205.42 6.6
PGUR-33 140.38 188.96 199.53 10.57 9.03 0.35 55.70 73.27 2.4
INCLUDING
192.47 195.16 2.69 2.30 0.62 87.49 118.65 3.8
PGUR-34 42.70 58.71 69.60 10.89 9.21 3.53 128.74 305.18 9.8
INCLUDING
60.61 67.08 6.47 5.47 5.67 173.67 456.99 14.7
INCLUDING
60.61 62.90 2.29 1.93 6.70 261.23 596.34 19.2
INCLUDING
64.15 67.08 2.93 2.48 7.06 119.85 472.87 15.2
PGUR-35 129.82 172.00 176.35 4.35 3.74 3.12 105.76 261.79 8.4
INCLUDING
173.70 176.35 2.65 2.28 4.21 132.61 343.05 11.0
PGUR-36 39.15 55.00 58.90 3.90 3.38 3.48 230.72 404.67 13.0
INCLUDING
55.60 58.05 2.45 2.12 4.93 283.50 529.76 17.0
PGUR-37 83.45 108.40 111.40 3.00 2.88 3.83 279.86 471.28 15.2
INCLUDING
108.90 110.40 1.50 1.44 5.88 394.73 688.70 22.1
PGUR-38 128.71 163.05 167.94 4.89 4.13 0.81 70.29 110.65 3.6
INCLUDING
163.93 165.47 1.54 1.30 1.59 80.89 160.27 5.2
PGUR-39 68.55 88.53 93.85 5.32 4.50 2.37 139.78 258.24 8.3
INCLUDING
89.23 92.92 3.69 3.12 3.19 167.31 326.64 10.5
PGUR-40 51.22 74.00 78.50 4.50 3.32 3.92 58.52 254.68 8.2
PGUR-41 186.39 190.15 195.93 5.78 3.22 0.52 17.42 43.34 1.4
PGUR-42 165.46 214.63 216.66 2.03 1.63 2.44 120.40 242.17 7.8
PGUR-43 45.17 47.27 58.62 11.35 8.61 0.85 28.93 71.39 2.3
INCLUDING
53.42 56.05 2.63 2.00 1.87 35.77 129.39 4.2
PGUR-44 87.83 103.19 110.95 7.76 6.04 0.58 25.95 55.16 1.8

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 assay results from, the Phase II infill drilling program at the Urumalqui Project. The drilling results correlate well with the assay results for the NW Section from the 2012 surface channel sampling program (See news release of March 29, 2012), which reflected overall higher gold grades than those reported for the 1,000 metre Central and East sections of the Vein. The majority of the drill holes (8) returned assays in the range 6.6 oz/t - 15.2 oz/t AG Equivalent over good widths. Importantly, the 8 drill holes were concentrated along an approximate 350 metre strike length and to a depth of up to 150 metres below surface. This appears to be the third high-grade ore shoot discovered to date along the 1.5 km strike of the Urumalqui Vein. The encouraging NW section drilling results bode well for future updates to the Project's mineral resource estimate since there were only limited, wide-spaced historical drilling data available for the NW Section when the Project's NI 43-101 Mineral Resource Estimate was announced in 2011 (See new release of November 15, 2011)."

(Click here to view the longitudinal section of the NW Section)

The Program comprised 13 diamond core drill holes, amounting to 2,052.90 metres and bringing the total metres drilled in Phase I and II to approximately 7,124 metres. All of the 13 completed holes intersected the Urumalqui Vein as predicted in cross sections prepared by the Company, providing strong support for the continuity of mineralization along the strike and down dip. Based on the Phase II results, the NW Section dips sub-vertically to -74° southwesterly, and the Vein's true width ranged from 1.63 metres - 9.21 metres. The NW Section and the Central and East Sections (2011 Phase I Infill Drill Program - 5,072 metres) have similar geological characteristics, namely, quartz vein banded-druzy-colloform-crustiform textures, lattice-bladed quartz texture on surface, traces of fine disseminated pyrite and occasional occurrence of fine grey sulphosalts; jarosite and goethite coatings also occur, especially in fractures. The mineralogical observations indicate that the NW Section drilling intercepts are located in the oxidation zone

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 ALS Chemex Lab in Lima Peru with each batch of samples, and a check assay program on a proportion of sample pulps and rejects with a second independent laboratory in Lima, Peru. The check assays for the Program are in progress. The results of the QA/QC program to date have been satisfactory.

Mr. John E. Bolaños, Vice President Exploration of the Company, is the Qualified Person for all technical information in this news release in compliance with National Instrument 43-101 and has reviewed and approved the content of this release.

AndeanGold Ltd. has the right to earn a 100% interest in the Urumalqui Project from Gitennes Exploration Inc. ("Gitennes") pursuant to an Option Agreement (the "60% Option") between the parties dated April 21, 2010 (see news release dated April 22, 2010) and a Share Sale and Mining Agreement dated May 17, 2012 (the "Agreement") which provides the Company with the right to acquire Gitennes' 40% interest in the Project (see news release of May 22, 2012). Gitennes and the Company signed an amendment (the "Amendment") to the Agreement, dated September 16, 2013, which revises the payment terms of the Agreement's September 17, 2013 installment payment, which required the Company to pay and issue Gitennes $200,000 cash and 143,000 common shares (the "Shares"), respectively. Pursuant to the Amendment, the Company paid and issued Gitennes $10,000 cash and 143,000 Shares, respectively, on September 17, 2013 and will be required to pay Gitennes $50,000 cash by September 30, 2013 and $150,000 cash by December 31, 2013. The timing and amount of the Agreement's remaining installment payments were not affected by the Amendment.

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 ("MRNNR") and Ministry of Environment in support of the Company's request to renew exploration programs on its key projects in Ecuador. In September 2012, MRNNR approved the Company's application to restart exploration programs on its Curiplaya Au-Cu property.

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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