Andean Resources Ltd.: Step Out Drilling Extends the Bajo Negro Vein by Another 300 Metres
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PERTH, AUSTRALIA--(Marketwire - Sept. 13, 2009) - Andean Resources (TSX: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 step-out holes drilled into the second high-grade ore shoot in the recently announced Bajo Negro vein discovery:
The widths reported are above intersected widths. The estimated horizontal width of each intersection is shown in Table 1. 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. Fifty-five holes have been drilled into the Bajo Negro vein with the majority of the holes intersecting the vein with widths and grades which could permit underground mining.
Bajo Negro Vein - Extended 300m to the North West
BDD-940, BDD-942, BDD-944, BDD-946, BDD-948 and BDD-954 were drilled into this second (NW) ore shoot, which is still open to depth. The main intersections in BDD-942, BDD-946 and BDD-948, with down-hole widths of 14-18m and grades of 10-14 g/t Au, are in the central part of this shoot. BDD-940 and BDD-948, with intersections of 4-7m at 10-11 g/t Au, intersected more peripheral parts of the shoot. The shoot is open to depth and down-plunge.
BDD-949 intersected the upper part of the shoot, with 4m of 9 g/t Au. The shoot plunges below this intersection as shown by BDD-954 and BDD-955. BDD-955 intersected the same shoot on section 550N, below the breccia contact. The high average gold grade is very strongly influenced by a single 0.5m sample which assayed 1071 g/t Au, with final Ag pending. There is coarse visible gold in this sample interval. The average of the remaining samples in this intersection (excluding the 0.5m high grade sample) is 12.9 g/T Au, with Ag also pending.
Potentially mineable widths and grades can now be inferred over a strike length of at least 950m which is reflected on the attached longitudinal section of the Bajo Negro vein. The vein remains open along strike and to depth.
Wayne Hubert, Andean's Chief Executive Officer commented, "With Bajo Negro now being almost 1km in strike length and gold grades more than 10g/t, it is becoming more difficult to ignore in the context of the ongoing Bankable Feasibility Study (BFS), which only includes Eureka and Vein Zone. Bajo Negro would materially enhance the already very attractive project economics of Cerro Negro, influence the location of the processing facility and metallurgical flowsheet. Andean is currently evaluating including Bajo Negro in the BFS."
Next Steps
Both core-rigs continue to work on expanding Bajo Negro to the north-west and to depth. Quartz vein has been intersected 50m to the north-west of holes included in this release and to depth, with assays pending. Preparations are currently well advanced for the start of the upcoming 2010 exploration season at Cerro Negro. Shortly, in mid-September, three more powerful UDR drill rigs will replace the two smaller core rigs currently being used during the Patagonian winter program. Exploration will then expand into the Mariana area where drill roads have been prepared.
Geologic explanation of the holes in this table, not part of the second NW ore shoot.
- BDD-939 and BDD-941 were drilled at the SE end of the grid on sections 450S and 500S respectively. They intersected only narrow veinlet or stockwork zones with isolated 1m intervals greater than 2.5 g/t Au.
- BDD-950, BDD-951, BDD-952 and BDD-953 intersected the post-vein rubble breccia which overlies and truncates the upper part of the vein. The intersections in BDD-950, BDD-951 and BDD-953 are from quartz boulders or rubble incorporated in the breccia near its contact. These intersections can also be seen on the longitudinal section attached.
- Holes BDD-943, BDD-945 and BDD-947 were drilled outside the Bajo Negro vein on the 'CNRC-18' target. They intersected narrow zones of quartz veining with isolated 1m intervals greater than 2.5 g/t Au.
Quality Control and Assurance
The analytical results quoted in this release are derived from half drill core in the case of diamond drill 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.
Competent Persons Statement
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. is a dual listed company (TSX:AND)(ASX:AND), actively and aggressively exploring for gold resources in Argentina. The company is well positioned to become a mid-tier gold producer over the next two years as it commences production from its 100% owned Cerro Negro project. This high-grade, world-class deposit is located in the mining-friendly province of Santa Cruz, in southern Argentina, and contains a growing resource base of over 2.5 million ounces of gold. In order to expand its resource base and add to the future production profile, Andean is committed to ongoing exploration and building its resource inventory at the Cerro Negro project and, in the process, generating enhanced returns for its shareholders as a platform for future growth.
To view the Figure 1: Cross Section 550N, Bajo Negro, please visit the following link: http://media3.marketwire.com/docs/andeanfig1.pdf
To view the Figure 2: Longitudinal projection, Bajo Negro Vein, please visit the following link: http://media3.marketwire.com/docs/andeanfig2.pdf
To view the Figure 3: Bajo Negro Drill Plan, please visit the following link: http://media3.marketwire.com/docs/andeanfig3b.pdf
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