Intersects 32m of 34.6 g/t Gold and 214 g/t Silver With a 50m Stepout

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Intersects 32m of 34.6 g/t Gold and 214 g/t Silver With a 50m Stepout

posted on Jan 28, 2009 12:43AM

January 27, 2009

Andean Intersects 32m of 34.6 g/t Gold and 214 g/t Silver With a 50m Stepout

PERTH, AUSTRALIA--(Marketwire - Jan. 27, 2009) - Andean Resources (TSX:AND)(ASX:AND) reports the next set of results from its ongoing 2008/09 drill program at its 100% owned Cerro Negro project in Southern Argentina. Today's results include the following highlights:

- EDD-901 drilled 50m to the west of EDD-887 (31m of 52.1 g/t Au and 568 g/t Ag) at a similar depth and intersected 32m of 34.6m Au and 214 g/t Ag on the Eureka West veins

- 721 Vein extended along strike with high grades, including ERC-8135, which intersected 4m of 49.6 g/t Au and 667 g/t Ag

- New high-grade zone intersected in the Eureka Main vein including ERC-8125 with 4m of 32.0 g/t Au and 844 g/t Ag

- Deep step-out drilling continues at Eureka West

Reported widths are intersected widths, and true widths are less in every case (see Table 1 for detailed drill data). Andean has assumed an underground cut-off grade of 2.5 g/t gold at Eureka for all the interval summaries reported in this release.

Eureka West Veins - Step-out Holes

The following four drill-holes represent the most significant step-out holes drilled beyond the existing high-grade resource blocks, which define the current Mineral Resource at Eureka West.

EDD-901:   32m of 34.6 g/t Au and 214 g/t Ag from 340m

Including: 17.6m of 41.5 g/t Au and 335 g/t Ag from 340m

and        1.0m of 327.1 g/t Au and 413 g/t Ag from 364m

EDD-8110:  11.3m of 10.2 g/t Au and 252 g/t Ag from 216m 

Including: 1.7m of 41.5 g/t Au and 602 g/t Ag from 223m

EDD-8118:  10m of 17.7 g/t Au and 231 g/t Ag from 243m

Including: 5m of 27.7 g/t Au and 331 g/t Ag from 248m

EDD-8126:  8m of 8.1 g/t Au and 61 g/t Ag from 381m

Including: 1m of 25.9 g/t Au and 211 g/t Ag from 381m

EDD-901 was a deep exploration hole, drilled 50m to the west of EDD-887, to determine the extent of deep high grade mineralization. The true width of this zone is about 19m and the intersection is at approximately 350m asl (above sea level). Two further drill holes have been drilled at 50m step-outs to the west and intersected quartz vein. Currently, a deep drill hole is being drilled 50m to the east of EDD-887 at the same elevation.

EDD-8110 and EDD-8118 were drilled on the same section (200E) below previous drilling and updip from EDD-887. See attached cross-section of 200E.

EDD-8126 was drilled on the most westerly section (150W) where the Eureka West veins have been intersected, and about 50m beneath the previous drilling. See the attached long-section showing the intersection at the 350m asl.

721 Vein - Extension Drilling

Several new holes have been drilled into the 721 Vein, which lies en-echelon from the Eureka West veins. These latest results appear to have connected it to the previously announced Evita Vein and have extended the high-grade ore shoot comprising the 721 Vein to the east:

ERC-8131:  11m of 17.4 g/t Au and 33 g/t Ag from 168m 

Including: 2m of 41.6 g/t Au and 56 g/t Ag from 171m and

           3m of 25.7 g/t Au and 72 g/t Ag from 175m 

ERC-8135:  4m of 49.6 g/t Au and 667 g/t Ag from 265m

These results are respectively above and below a previously-announced intersection (5m of 13.9 g/t Au, 77 g/t Ag) in ERC-863.and extend the resource up-dip and down-dip from that hole. The ore shoot remains open along strike to the east and to the west, as well as down-plunge. Currently, the mineralization defined at the 721 Vein is not included in the April 2008 Mineral Resource for the Eureka West veins, which formed the basis of the PFS completed in October 2008.

Eureka Main Vein - Extension Drilling

The Eureka Main Vein lies approximately 150m to the north of the 721 Vein, and to date has received limited drilling. Several new holes have been drilled into the Eureka Main vein to further delineate the ore-shoot previously defined west of the Canadon del Puma and were successful in intersecting additional high-grades including:

ERC-8119:  2m of 12.8 g/t Au and 32 g/t Ag from 217m 

ERC-8125:  4m of 9.4 g/t Au and 262 g/t Ag from 141m and
           4m of 32.0 g/t Au and 844 g/t Ag from 157m 

ERC-8127:  13m of 3.7 g/t Au and 183 g/t Ag from 135m 

ERC-8129:  3m of 20.2 g/t Au and 150 g/t Ag from 151m 

EDD-8140:  6m of 8.9 g/t Au and 61 g/t Ag from 209m

All of these holes are shown on the attached longitudinal section of the first ore shoot on the 4km Eureka Main Vein. The intersections in ERC-8125 and ERC-8129 are especially encouraging, as they demonstrate high grade mineralisation at relatively shallow depth up-dip from previously announced holes, i.e.:

- ERC-8125 - above 8m of 6.9 g/t Au, 159 g/t Ag in EDD-834

- ERC-8129 - above EDD-712; which intersected no significant values

As shown on the longitudinal section, the Main Vein ore shoot remains open both up- and down-plunge. Again, the mineralization defined at the Eureka Main Vein is not included in the April 2008 Mineral Resource, but will be included in the resource for all the Eureka veins being prepared for the June quarter of this year.

Wayne Hubert, Andean's CEO, summarized, "Overall, the Eureka area at Cerro Negro is proving to be a world class epithermal system with bonanza grades now becoming common in three of the known veins, only one of which, the Eureka West vein, currently has gold and silver resources attributable to it. These extraordinary mineralized widths and high grades are expected to significantly improve the updated Eureka resource and extend the high-grades in the mine-life, which will again improve the already robust project economics."

Next Steps

Andean's 2008/09 exploration programs continue to progress ahead of schedule. Three drills are on the property exploring the Eureka West veins to depth, extending the 721 vein, and drill-testing areas for the Bankable Feasibility Study.

Table 1: Drill Hole Data

Eureka West Vein Intersections (at a 2.5 g/t Au cut-off grade)

----------------------------------------------------------------------------
                                 Azi-
                         Elev-  muth         From     To  Width    g/t  g/t
Hole   Easting Northing ation  (true) Angle    (m)    (m)    (m)    Au   Ag
----------------------------------------------------------------------------
----------------------------------------------------------------------------
EDD-
 8110  2394090  4808172   645     45    -66   216  227.3   11.3   10.2  252
----------------------------------------------------------------------------
                    including                 223  224.7    1.7   41.5  602
----------------------------------------------------------------------------
                                            230.3    233    2.7    2.9  128
----------------------------------------------------------------------------
----------------------------------------------------------------------------
EDD-
 8118  2394095  4808174   645     45    -72   243    253     10   17.7  231
----------------------------------------------------------------------------
                    including                 248    253      5   27.7  331
----------------------------------------------------------------------------
----------------------------------------------------------------------------
EDD-
 8126  2393813  4808377   702     45    -72   381    389      8    8.1   67
----------------------------------------------------------------------------
                    including                 381    382      1   25.9  211
----------------------------------------------------------------------------
----------------------------------------------------------------------------
EDD-
 901   2394005  4808145   663     45    -65   340    372     32   34.6  214
----------------------------------------------------------------------------
                                              340  357.6   17.6   41.5  335
                    including              ---------------------------------
                                              364    365      1  327.1  413
----------------------------------------------------------------------------
----------------------------------------------------------------------------

721 Vein Intersections (at a 2.5 g/t Au cut-off grade) 

----------------------------------------------------------------------------
                                 Azi-
                         Elev-  muth         From     To  Width    g/t  g/t
Hole   Easting Northing ation  (true) Angle    (m)    (m)    (m)    Au   Ag
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ERC-
 8101  2394598  4807837   646      0    -60    26     28      2    2.6   25
----------------------------------------------------------------------------
                                              205    206      1    5.5   38
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ERC-
 8131  2394748  4807909   635    360    -60   136    137      1    4.1  103
----------------------------------------------------------------------------
                                              168    179     11   17.4   33
----------------------------------------------------------------------------
                                              171    173      2   41.6   56
                    including              ---------------------------------
                                              175    178      3   25.7   72
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ERC-
 8132  2394697  4807913   645    360    -60    96     99      3    3.0   82
----------------------------------------------------------------------------
                                              130    134      4    2.7   78
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ERC-
 8135  2394747  4807841   622    360    -67   265    269      4   49.6  667
----------------------------------------------------------------------------
                    including                 266    267      1  168.0 2234
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Eureka Main Vein Intersections (at a 2.5 g/t Au cut-off grade)

----------------------------------------------------------------------------
                                 Azi-
                         Elev-  muth         From     To  Width    g/t  g/t
Hole   Easting Northing ation  (true) Angle    (m)    (m)    (m)    Au   Ag
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ERC-
 8119  2394948  4807945   601    360    -65   177    178      1    2.5  226
----------------------------------------------------------------------------
                                              204    205      1    3.5   10
----------------------------------------------------------------------------
                                              217    219      2   12.8   32
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ERC-
 8121  2394919  4808002   609    360    -60   113    118      5    3.1  107
----------------------------------------------------------------------------
                                              146    150      4    3.3   77
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ERC-
 8123  2394795  4808054   645    360    -60    39     40      1    4.9   29
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ERC-
 8125  2394848  4808023   633    360    -60   103    105      2    3.5  155
----------------------------------------------------------------------------
                                              141    145      4    9.4  262
----------------------------------------------------------------------------
                    including                 143    144      1   24.2  784
----------------------------------------------------------------------------
                                              157    161      4   32.0  844
----------------------------------------------------------------------------
                                              158    161      3   41.1 1108
                    including              ---------------------------------
                                              159    160      1   62.6 2156
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ERC-
 8127  2394768  4808018   646    360    -60   112    113      1    5.5   76
----------------------------------------------------------------------------
                                              135    148     13    3.7  183
----------------------------------------------------------------------------
                    including                 145    146      1    9.9  235
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ERC-
 8129  2394997  4807994   576    360    -55   151    154      3   20.2  150
----------------------------------------------------------------------------
                    including                 151    153      2   28.5  221
----------------------------------------------------------------------------
----------------------------------------------------------------------------
EDD-
 8140  2394771  4808014   646    360    -67   209    215      6    8.9   61
----------------------------------------------------------------------------
                    including                 209    212      3   12.7   99
----------------------------------------------------------------------------
(1) Intersections are drilled widths, not true widths. True widths are less
    than drilled intersections and can be determined from the Eureka cross-
    sections provided
(2) Some coordinates and elevations are approximate and subject to final
    survey by a licensed surveyor

In the above table, the Gauss Kruger coordinate system and the Campo Inchauspe datum are used to define drill hole collar positions. However on the longitudinal projection of the Eureka West Vein, the coordinate system refers to a local grid established for drilling the Eureka West Vein.

Quality Control and Assurance

The analytical results quoted in this release are derived from half drill core in the case of diamond drill holes, or from cuttings in the case of reverse circulation holes. Samples are prepared and assayed by ACME Analytical Laboratories SA (Mendoza) in Mendoza, Argentina.

Gold is determined initially by fire assay with AA finish. Samples assaying more than 10 ppm gold are re-assayed using a gravimetric finish.

Silver is determined initially by AAS, and samples assaying more than 100 ppm silver are re-assayed by fire assay with gravimetric finish.

Quality control of the analytical results is maintained by inserting standards, blanks, and duplicates into the sample run, approximately every twenty samples. Additional quality control is maintained by sending assay sample splits to a second laboratory from time to time. These checks are evaluated statistically at regular intervals.

All analytical data are entered into a Microsoft Access database, with limited access and numerous checks to ensure integrity of the data.

Note: The information in this Report that relates to exploration results is based on information provided by David Shatwell who is a Fellow of the Australian Institute of Geoscientists. Mr Shatwell has extensive experience relevant to the style and type of mineralisation and deposits under consideration, and to the activity undertaken, to qualify as a Competent Person as defined in the 2004 Edition of the "Australian Code for Reporting of Mineral Resources and Ore Reserves" (the JORC Code). Mr Shatwell consents to the inclusion in this Report on his work in the form and context in which it appears.

Andean Resources Ltd (www.andean.com.au) is an Australian and Toronto listed gold explorer searching for precious metals in the Andes, with four large property positions in the Patagonia.

Figure 1 is available at the following link: http://media3.marketwire.com/docs/an... .

Figure 2 is available at the following link: http://media3.marketwire.com/docs/an... .

Figure 3 is available at the following link: http://media3.marketwire.com/docs/an... .

Figure 4 is available at the following link: http://media3.marketwire.com/docs/an... .

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