AndeanGold Ltd.
TSX VENTURE : AAU

AndeanGold Ltd.

May 20, 2010 09:00 ET

AndeanGold Updates its Activities in Ecuador

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 20, 2010) - AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU) is pleased to provide an update on the Company's activities in Ecuador. The Company has been actively working with officials in the relevant Government ministries in Ecuador, seeking approvals under the new Mines Law to reactivate the Company's exploration programs. Ecuador's new Mines Law was passed in January 2009, with the related mining regulations finalized in November 2009.

In Summary, with respect to the Company's three key projects in Ecuador - Molleturo, San Bartolomé and Curiplaya (the "Concessions"):

  • The 2010 mining fees for the Concessions were timely paid in March 2010.
  • The Company has recently received the new mining titles to the Concessions, an important prerequisite of the new Mines Law.
  • The 2010 Environmental Management Plans and Audit Reports for the Concessions have been timely filed with the Ministry of Environment, and the Company is awaiting comments, if any.
  • The 2010 Annual Exploration Plans for the Concessions have been timely filed with the Ministry of Non Renewable Natural Resources.
  • The water permit filings for the Concessions have been submitted to the relevant regional offices of the National Secretary of Water (SENAGUA). These filings are at various stages of completion, as there a number of requirements which must be fulfilled.

Regarding the Concessions:

The Molleturo and San Bartolomé Projects are high-grade polymetallic properties with historic small-scale underground mining operations. The mean assay results from historical sampling of the Roman and Isabel Veins at the Molleturo Project are:

392.0 g/t Ag, 3.4 g/t Au, 0.69% Cu, 2.3% Pb and 4.24% Zn

The San Bartolomé Project is Ecuador's largest historic silver producer, with reported historic production grades of:

20 oz/t Ag, 1.15% Pb and 2.9% Zn

During the fourth quarter of 2007, a select grab sampling program was conducted at the San Bartolomé Project of mineralized waste dump vein material from the previous small-scale mining operations. The results supported San Bartolomé's reported historic high-grades, with the assays returning: (See news release of November 1, 2007)

40.9 to 71.7 oz/t Ag; 2.87 to 5.15 g/t Au, 0.84 to 4.36% Pb and 2.66 to 10.84% Zn

The Curiplaya Project is located in the "Dynasty Copper-Gold Belt" in southwest Ecuador. The Project contains two Au-Cu porphyry targets and an epithermal breccia gold target, where initial trenching of a defined soil gold anomaly (150m long by 125m wide) returned continuous channel sample (2m intervals) assays of: (See news release of February 28, 2008)

22 metres grading 4.74 g/t Au and 1.31 g/t Ag
41.7 metres grading 3.70 g/t Au and 1.71 g/t Ag

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 Au-Ag Project and Rio Seco Au 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 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 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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