AndeanGold Ltd.
TSX VENTURE : AAU

AndeanGold Ltd.

May 06, 2011 09:00 ET

AndeanGold Updates Phase I Infill Drilling Program at Urumalqui Au-Ag Project, Peru

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 6, 2011) - AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU) is pleased to provide an update on the Phase I infill drilling program (the "Program") at its advanced-staged Au-Ag Urumalqui exploration project (the "Project") in Peru. The contract driller, Explomin Del Peru S.A.C. ("Explomin"), commenced the Program on March 29, 2011.

The planned Program comprises up to 23 diamond core drill holes and 3,000 to 4,000 metres of drilling. To date, 10 holes have been completed for 1,918 metres. Core samples for the first 7 completed holes have been shipped to the Inspectorate Lab in Lima for assaying. The Company expects to shortly release initial assay results, and thereafter, assay results will be released on a periodic basis.

All completed holes intersected the Urumalqui Vein ("Vein") as predicted in the cross sections prepared by the Company, providing initial support for the continuity of the strike and dip of the Vein over the 1,000 metre strike length planned to be drilled in the Program. To date, Explomin has achieved an average daily drilling rate of 61 metres, and core recoveries per hole have averaged 93% within the Vein and 96% for the entire hole. Overall, the drilling results to date are in line with the Company's expectations, and the Program is proceeding on schedule.

The Program is 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 Urumalqui Vein outcrop where the majority of the Project's historical drilling programs were concentrated. This level of drilling density should optimize the results of a NI 43-101 resource estimate, which the Company plans to commission upon completion of the Program.

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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