eureka west extensions

Mar 25, 2008 10:54 ET
Andean Extends Eureka West With 14m of 18.6 g/t Gold and 159 g/t Silver
PERTH, AUSTRALIA--(Marketwire - March 25, 2008) - Andean Resources (TSX:AND)(ASX:AND) reports the results of the latest fifteen drill holes of its current drill program at its 100% owned Cerro Negro project in Southern Argentina including the following highlights:

- Eureka West Vein extended by a further 50m to the west with drill-hole ERC-812 assaying 18.6 g/t gold and 159 g/t silver over 14m

- Eureka West Vein is now at least 700m long with an estimated average true width of about 8 to 10m containing high grades in gold and silver

- High-grade infill drilling confirming continuity of mineralization at Eureka West

- Andean on schedule to complete new interim resource estimate at Eureka West deposit in Q1 '08

- Infill drilling complete and 3 drill rigs now focused on finding new mineralization

Fourteen of the holes reported in this release were drilled into the Eureka West vein, and one (ERC-772) was drilled into the 721 Vein (named after the previously released drill-hole EDD-721, which intersected the vein with 17m of 9.2 g/t gold and 69 g/t silver). 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 the interval summaries; the drill holes are categorized as either Step-out Holes or In-fill Holes relative to the boundaries of the previous resource:

Step-outs: 200m to 250m from existing resource

ERC-812, was drilled 50m west of the most westerly hole EDD-753 (reported on January 29th with 8m of 13.7 g/t gold and 505 g/t silver) with the following result:

- ERC-812: 14m of 18.6 g/t gold and 159 g/t silver from 362m

Step-outs: 0m to 200m from existing resource

The following holes were drilled up to 200 meters along strike to the west of the existing Eureka West resource:

- EDD-769: 33.5m of 21.6 g/t gold and 618 g/t silver from 279.2m

- ERC-801: 16m of 11.3 g/t gold and 188 g/t silver from 312m

- EDD-803: 20.5m of 20.7 g/t gold and 506 g/t silver from 199.6m

- ERC-806: 11m of 6.7 g/t gold and 82 g/t silver from 384m

- EDD-807: 5m of 7.6 g/t gold and 50 g/t silver from 318m

- ERC-808: 8m of 38.0 g/t gold and 696 g/t silver from 335m

- EDD-810: 16.7m of 41.9 g/t gold and pending silver assays from 292m

The details for each of the holes within the release are provided in Table 1 and are plotted on the Longitudinal Section provided and on the accompanying drill plan. In addition, all the holes are shown on the web at www.corebox.net.

Existing Resource Infill Drilling

Six holes were drilled to further upgrade the classification of mineralization within Micon International's existing Eureka West inferred resource of 3.05 million tonnes at 6.4 g/t Au and 82 g/t Ag, for 624,000 ounces of gold and 8 million ounces of silver. The results for these holes are shown below:

- ERC-768: 5m of 6.3 g/t gold and 34 g/t silver from 159m; on the eastern end of the resource

- ERC-770: 4m of 5.5 g/t gold and 28 g/t silver from 88m; on the upper-eastern end of the resource

- EDD-805: 3m of 6.5 g/t gold and 67 g/t silver from 130m; on the eastern extent of the resource

- EDD-771: 12.3m of 8.9 g/t gold and 81 g/t silver from 196.8m

- EDD-802: 18.9m of 12.5 g/t gold and 424 g/t silver from 160m

- EDD-809: 15m of 51.5 g/t gold and 1099 g/t silver from 157m; and 2m of 23.9 g/t gold and 710 g/t silver from 184m and 8m of 16 g/t gold and 91 g/t silver from 229m

Each of these holes is shown in Table 1 and plotted on the attached Longitudinal Section. Some of the intersections listed above are also shown on the attached Cross Sections (see Section 25E and 4650E).

Hole EDD-809 and previously released ERC-764 were drilled on section 125E; and EDD-810 and previously released ERC-747 were drilled on 75W. These 'twin' holes were drilled as close as possible to the previous RC holes in order to check high grade RC intersections. The grade and thickness of the mineralization intersected in the diamond holes was consistent with the tenor and thickness determined by the RC holes, given their proximity and normal variability in gold deposits.

Extension drilling into 721 Vein

Hole ERC-772 was drilled into the upper portion of the 721 Vein and intersected 6m of 5.4 g/t gold and 221 g/t silver from 43m downhole, approximately 200m up-dip from the original intersection in EDD-721. The 721 Vein is located 150m further to the east and offset to the south of the Eureka West Vein, and is not included in the current resource estimate. This result is encouraging due to the significant grade-thickness encountered this high in the epithermal system. Exploration drilling is currently continuing to test the 721 vein along strike.

Project Status

Currently, the drill program is ahead of schedule with more than 28,000m completed of the total 30,000m planned for the entire Phase 4 program. Three drill rigs are currently being focused on the following new targets in order of priority:

- Following the Eureka West Vein further to the west (along strike from hole ERC 812 reported in this release)

- Testing the recently identified parallel resistivity anomaly just north of the Eureka West Vein

- Defining two potential new ore-shoots intersected by previous drilling on the 721 Vein and on the Eureka Main Vein where five holes drilled in 2007 intersected grades permissive for underground mining

- Initial testing of resistivity and geochemical anomalies in the Mariana zone, 4 km east of Eureka West.

- Exploring the remaining 4 km of the Eureka Main Vein and other untested structures located in 2006-07.

Updated Resource Estimate

Andean and Micon International Limited are currently developing an updated Eureka West resource estimate which will incorporate the drilling completed up to and including the holes reported in this release. This updated NI 43-101 compliant resource estimate will be completed near the end of this month and released in the first half of April providing the basis for the Pre-Feasibility Study mine-plans.

Wayne Hubert, Andean's CEO, commented, "This infill drilling has confirmed the continuity of the high-grades at Eureka West - this first ore-shoot at Eureka is now 700m long with an average true width of about 8 to 10m containing high-grades in gold and silver. With so strong a hydrothermal system, I would expect to find other ore shoots at Eureka. This is now our focus with the majority of the infill drilling behind us, to extend the current ore shoot to the west and discover new ore-shoots, from a number of highly prospective new targets identified by the Andean exploration teams at Cerro Negro. Our drilling program is far ahead of schedule and we will complete the planned 30,000m next month. But as long as we are finding new ore-grade mineralization, the program will continue until the end of the drilling season in June."