VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/17/13 -- AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE: AAU)(LMA: AAU) is pleased to announce that it has completed the Phase II infill drilling program (the "Program") on its Urumalqui Advanced-Stage Ag - Au Project (the "Project") located in the Department of Libertad, Peru. The Program was completed in June 2013 and entailed 13 diamond core drill holes, amounting to 2,052.90 metres. All 13 completed holes intersected the Urumalqui Vein as predicted in cross sections prepared by the Company. The drilling was conducted by Explomin Peru S.A., based in Lima, Peru, that also completed the Company's 2011 Phase I infill drilling program on the Project.
Anthony F. Ciali, President & CEO said, "With the completion of the Phase II Program, the Company has drilled 7,123.89 cumulative metres on the Project. This is an important milestone, as the Company was required to complete 7,000 cumulative metres of drilling on the Project by July 8, 2013 in order to earn a 60% interest in the Project pursuant to the Assignment and Option Agreement (the 'Agreement') signed with Gitennes Exploration Inc. ('Gitennes') (see news release of April 22, 2010). The other two earn-in provisions of the Agreement required the Company to incur $3 million of expenses on the Project by July 8, 2014 and to issue Gitennes 80,000 common shares of the Company in installments, with the final installment of 20,000 common shares due on July 8, 2013. The Company has made the final installment payment on time, and is preparing an updated analysis of expenditures to date on the Project in support of the $3 million expense requirement."
The Program was focused on the 500 metre NW outcrop section of the Urumalqui Vein ("Vein"), where there has been only limited, wide-spaced historical drilling. The Company did not undertake any drilling on this section of the Vein during its 2011 drilling program, which was focused on infill drilling the 1,000 metre Central and SE sections of the Vein. Based on the Company's 2012 surface channel sampling of the Vein, the trench assay results for the 500 metre NW outcrop returned very encouraging results (see news release of May 29, 2012), namely:
2.66 metres average width - 82.46 g/t Ag - 4.21 g/t Au - 9.42 oz/t AGE
AGE: Equivalent ounces of silver based on a gold to silver ratio of 50:1 and assuming 100% recoveries.
oz/t: Ounces per metric tonne.
The gold grade results for the 500 metre NW outcrop were consistently higher than those for the 1,000 metre Central and SE outcrops and contained some of the highest gold grades reported at the Project.
The Company is in the process of finalizing core logging, assay sample selections and rehabilitation of the drill sites. Assay results should be available over the coming two months.
The 2011 drilling program led to the release of a NI 43-101 Inferred Mineral Resource Estimate (the "Estimate") of (see news release of November 15, 2011):
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