AND is going to be a larger mid-cap producer is the near future. According to Ben Clark TMS capital it is also going to be one of the world’s lowest cost producers at $120 per ounce.

Today’s announcement adds to their alrady impressive drilling results and we can now start to speculate about something quite massive:

NEW SAN MARCOS DISCOVERY AT CERRO NEGRO
November 23, 2009, Perth Australia — Andean Resources (AND:ASX; AND:TSX) is pleased to report another new vein discovery from the ongoing exploration drill program at its 100% owned Cerro Negro project in Southern Argentina. Today’s release includes the results of four new drillholes at 100 meter spacing over a strike length of 300 meters and approximately 150 meters beneath the surface:
SRC-901: 22m of 8.5 g/t gold and 58 g/t silver from 181m
SRC-902: 16m of 10.3 g/t gold and 86 g/t silver from 195m
SRC-903: 7m of 8.1 g/t gold and 77 g/t silver from 189m
SRC-904 1m of 6.8 g/t gold and 62 g/t silver from 189m
A fifth hole, SRC-905, was drilled 100m west of SRC-904 and did not intersect the vein.
The widths reported above are intersected widths, which are generally, but not always less than the true widths. Andean has assumed an underground cut-off grade of 2.5 g/t gold at San Marcos for all the interval summaries reported in this release.
The first ore-shoot at San Marcos has been intersected over a strike length of 300 meters and is open to the east and to depth. The widest intersection is SRC-901 with an intersected width of 22m and is the eastern-most hole. The vein narrows to the west with sequential holes SRC-902, SRC-903, and SRC-904, all of which obtained successively narrower intersections. Further drilling is in progress with results pending to test the extension east of SRC-901.

Wayne Hubert, Andean’s President and CEO commented, “This new discovery is another testament to the highly prospective exploration potential at Cerro Negro. San Marcos is a new gold and silver discovery on the northern part of the property position. This new discovery now opens up the potential for additional discoveries along strike in a north-west direction between the Bajo Negro and San Marcos veins, as well as for parallel veins at the Mariana targets between Eureka and San Marcos. The exploration team continues to focus on adding value through the drill bit at the Cerro Negro site.”