Ann: Bajo Negro Drilling Update , page-2

More great results from another section of the Cerro Negro Tenement.

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Andean Resources Ltd.: Step-Out Drilling Extends Bajo Negro Vein by Another 125 Metres


9:02 AM ET, August 10, 2009


FREMANTLE, WESTERN AUSTRALIA, Aug 10, 2009 (MARKETWIRE via COMTEX) -- Andean Resources (AND)(ASX: AND) is pleased to report further encouraging results from its ongoing drilling program at its 100% owned Cerro Negro project in Southern Argentina. Today's results include the following highlights from the recently announced Bajo Negro discovery:

- BDD-925 intersected 9.4m of 22.1 g/t Au and 42 g/t Ag

- BDD-932 intersected 15.4m of 12.0 g/t Au and 28 g/t Ag

- BDD-935 intersected 5.8m of 34.8 g/t Au and 29 g/t Ag

- BDD-937 intersected 9.6m of 22.1 g/t Au and 30 g/t Ag

- Drilling to date has tested the structure over a strike length of approximately 800m

- For the first time in the Company's history, Andean is continuing to drill through the winter season, with 2 drill rigs remaining at the Bajo Negro vein

- Drilling to the North-West continues to intercept quartz vein, with assays pending

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 Bajo Negro for all the interval summaries reported in this release.

The confirmation of the Bajo Negro vein discovery, located 13 kilometres east of the Eureka West veins and 2 kilometres southwest of the Vein Zone deposit, was announced on May 19, 2009. The thirty-five holes for which results have been received intersected the Bajo Negro vein with widths and grades which could permit underground mining. Potentially mineable widths and grades can now be inferred over a strike length of at least 650m and vertical extent of at least 150m. Including intersections for which assays are pending, the Bajo Negro vein has now been intersected over a length of 800m. The vein remains open along strike and to depth.

Bajo Negro - Extended 75m to the north-west

Four holes were drilled to the north of and below previous drilling to extend the Bajo Negro vein to the north-west and to depth with the following results:

BDD-932: 1.65m of 6.7 g/t Au and 23 g/t Ag from 196mAnd 15.4m of 12.0 g/t Au and 28 g/t Ag from 214mBDD-933: 1.75m of 9.6 g/t Au and 21 g/t Ag from 270.4mAnd 1m of 21.3 g/t Au and 43 g/t Ag from 277mAnd 0.9m of 28.4 g/t Au and 22 g/t Ag from 289mBDD-935: 5.8m of 34.8 g/t Au and 29 g/t Ag from 142mAnd 9.75m of 14.2 g/t Au and 38 g/t Ag from 183mBDD-937: 9.6m of 22.1 g/t Au and 30 g/t Ag from 267mAnd 5.7m of 17.7 g/t Au and 20 g/t Ag from 285m
These drill-holes are shown on the attached longitudinal section of the Bajo Negro vein. BDD-932, BDD-935 and BDD-937 are very encouraging intersections, because they show that not only is another high grade shoot developing to the north-west, but there are two splits with potentially economic widths and grades. The existence of this new shoot was suggested by previously-announced hole BRC-912 (8m of 8.5 g/t Au).

It is also encouraging that recent drilling continues to intersect good widths of quartz vein to the north-west with assays pending.

Bajo Negro - Extended 50m to the south-east

Two diamond core holes were drilled 50m to the south-east (see longitudinal section attached) to extend the Bajo Negro vein beyond existing drilling with the following results:

BDD-936: 2.6m of 5.6 g/t Au and 7 g/t Ag from 180mBDD-938: 3m of 17.0 g/t Au and 13 g/t Ag from 197m
The vein has a true width of less than 3m in these holes, although the grade in BDD-938 continues to be high. The decreased width is correlated with a change in the strike of the vein to WNW, whereas the higher grade zone strikes NNW.

Bajo Negro - Further definition within previously defined strike length

Eleven drill holes were drilled within the previously defined 550 meters of strike length in order to further extend the zones to depth and determine the continuity within the vein.

Seven holes were drilled to extend the zones to depth including:

BDD-921: 5.4m of 7.8 g/t Au and 12 g/t Ag fromBDD-922: 2.45m of 4.8 g/t Au and 9 g/t Ag fromBDD-925: 9.4m of 22.1 g/t Au and 42 g/t Ag fromBDD-926: No value over 2.5 g/t Au cut-offBDD-927: 5.3m of 7.2 g/t Au and 14 g/t Ag fromBDD-928: 2.8m of 8.2 g/t Au and 20 g/t Ag fromBDD-934: 4.65m of 9.0 g/t Au and 20 g/t Ag fromAnd 3.05m of 15.8 g/t Au and 11 g/t Ag from
The Bajo Negro vein appears to be narrowing locally at depth in this sector, but still remains open to depth with most of the holes intersecting grades and widths supportive of underground mining.

The remaining four drill-holes (BDD-920, BDD-921, BDD-923, and BDD-930) established continuity of underground mining grades and widths on 50m sections within the previously defined strike length. See the longitudinal section provided and Table 1 for all of the results.

Dave Shatwell, Andean's Chief Exploration Geologist at Cerro Negro, commented, "The mineralization is open in both directions, but is especially promising to the north-west, where the vein is branching into several splays, with two of these splays containing high gold grades. Approximately 150m further north-west, silicified outcrops are interpreted as a silica cap to the mineralization. Ore shoots appear to be strongly structurally controlled by jogs in the strike of the vein."

Next Steps

Both core-rigs continue to work on expanding Bajo Negro to the north-west. Quartz vein continues to be intersected 150m to the north-west of holes included in this release, with assays awaited. Drilling updates will continue to be provided through the Patagonian winter months. In September, additional rigs will be added to continue the exploration drilling of Mariana Sur, Mariana Norte, Silica Cap and Eureka.

Cheers