VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/07/11 -- AndeanGold Ltd. (TSX VENTURE: AAU) -
21.4 oz/t AGE over 1.75 metres
13.1 oz/t AGE over 2.08 metres
16.0 oz/t AGE over 2.80 metres
27.1 oz/t AGE over 1.48 metres
AndeanGold Ltd. ("the Company" or "AndeanGold") is pleased to announce that it has received the assay results for the latest nine drill holes from the Phase I infill drilling program (the "Program") on the Urumalqui Epithermal Vein (the "Vein") at its advanced-stage Au-Ag Urumalqui exploration project (the "Project") in Peru. The assay results are as follows:
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DEPTH INTER- TRUE
BELOW FROM TO VAL WIDTH AG
DRILL SURFACE (met- (met- (met- (met- AU AG EQUIVALENT
HOLE (metres) res) res) res) res) (g/t) (g/t) (g/t) (oz/t)
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PGUR
#12 53.20 64.20 68.20 4.00 2.79 1.32 377.11 443.15 14.2
INCLUDING
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65.20 67.70 2.50 1.75 1.78 577.00 666.09 21.4
PGUR
#13 112.92 115.00 121.47 6.47 2.73 2.56 205.19 333.03 10.7
INCLUDING
---------
115.73 120.67 4.94 2.08 3.10 250.88 405.96 13.1
PGUR
#14 152.72 172.17 176.00 3.83 2.50 0.20 163.91 173.94 5.6
INCLUDING
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172.17 175.20 3.03 1.98 0.24 195.63 207.47 6.7
PGUR
#15 46.94 53.98 58.93 4.95 3.16 0.83 179.55 221.27 7.1
INCLUDING
---------
54.98 58.40 3.42 2.18 0.92 239.84 285.80 9.2
PGUR
#16 82.01 100.61 105.97 5.36 3.63 1.37 329.23 397.51 12.8
INCLUDING
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100.61 104.74 4.13 2.80 1.68 412.33 496.20 16.0
PGUR
#17 144.82 151.90 166.00 14.10 6.83 0.86 203.27 246.34 7.9
INCLUDING
---------
154.85 160.20 5.35 2.60 0.29 286.79 301.07 9.7
INCLUDING
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162.11 166.00 3.89 1.88 2.63 244.51 376.13 12.1
PGUR
#18 122.79 128.95 138.40 9.45 4.57 1.68 325.13 409.02 13.2
INCLUDING
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131.30 134.35 3.05 1.48 0.63 812.30 843.86 27.1
PGUR
#19 45.62 60.10 61.60 1.50 1.17 0.39 158.27 178.00 5.7
PGUR
#20 84.81 90.00 93.70 3.70 1.93 0.87 331.00 374.30 12.0
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AG EQUIVALENT - Based on a silver to gold ratio of 50:1 and assuming 100%
metallurgical recoveries.
oz/t - Troy ounces per metric tonne.
Mr. Anthony F. Ciali, President & CEO of AndeanGold states, "We are very pleased with the latest assays from the Urumalqui infill drill program, which are in line with the overall assay results for the first nine reported drill holes. However, of particular note, the assay results for drill holes PGUR #12 and PGUR #18 are among the best achieved to date in the Program, especially with respect to Ag assays, with intervals of: PGUR #12 - 1.75 metres true width at 1.78 g/t Au, 577.0 g/t Ag, 666.1 g/t AGE (21.4 oz/t) and PGUR #18 - 1.48 metres true width at 0.63 g/t Au, 812.3 g/t Ag, 843.9 g/t AGE (27.1 oz/t). The overall drilling performance is in line with the Company's expectations, and the Program continues to proceed on schedule."
The latest holes were drilled along strike over an approximate 200 metre interval to the west of the Company's previously announced eleven drill holes (see news releases of May 13 and 24, 2011 and June 7, 2011). Including Gitennes Exploration Inc.'s historic holes, drilled to the west, east and between AndeanGold's twenty reported drill holes in the Program to date, good continuity of mineralization has now been confirmed for approximately 800 metres of the 1,000 metre Vein strike. (See updated Urumalqui Vein Longitudinal Section attached)
The original Program envisaged up to 23 diamond core holes and up to 4,000 metres of drilling. In order to provide additional infill drilling in some key areas, the program was revised to include 31 diamond core holes, representing up to 5,100 metres. All 31 holes have now been completed for 5,071 metres, and all 31 completed holes have intersected the Urumalqui Vein as predicted in cross sections prepared by the Company. Core samples for the first 28 completed holes have been shipped to the Inspectorate Lab in Lima for assaying, of which the gold and silver intercepts for the first 20 holes have been released to date.
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 long Urumalqui Vein outcrop where the majority of the Project's historical drilling was concentrated. This level of drilling density should be sufficient for the preparation of a NI 43-101 resource estimate, which the Company plans to commission upon completion, and subject to the results, of the Program.
AndeanGold was pleased with the statements from the newly elected government in Peru confirming that the current economic model in Peru will be maintained. The Company is committed to advancing the Urumalqui Project to the development stage as soon as practicable, as well as actively working with the local communities related to the Project. AndeanGold has had excellent community relationships and is working on several agreed to social projects for the benefit of the communities.
Quality Assurance / Quality Control:
AndeanGold has in place a detailed QA/QC program consistent with Canadian Securities Administrators National Instrument 43-101 and using best industry practices. The program includes chain of custody of samples; standards and blanks submitted to the independent Inspectorate Lab in Lima Peru with each batch of samples, and a check assay program on a proportion of sample pulps with a second independent laboratory. The results of the QA/QC program to date have been satisfactory.
Dr. William F. Lindqvist, a director of the Company, is the Qualified Person in compliance with National Instrument 43-101 with respect to this release.
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.
To view the map associated with this press release, please click on the following link: http://media3.marketwire.com/docs/u76.pdf
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.
Contacts:
AndeanGold Ltd. - Corporate Office
Tony Ciali
732.940.5487
tciali@andeangoldltd.com
www.andeangoldltd.com
Ascenta Capital Partners Inc.
Jim Glass
Investor Relations
604.684.4743 ext. 225 or Toll Free: 1.866.684.4743 ext. 225
jim@ascentacapital.com
