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.”

Sydney, 29 October 2009

Andean Announces Quarterly Report

Andean Resources (ASX/TSX) today announced the results for the quarter ended September 30, 2009 covering the Company’s activities at its 100% owned Cerro Negro epithermal gold project in southern Argentina. Good progress continues to be made in the exploration programs designed to increase the Company’s overall gold and silver resources; in the bankable feasibility study; in site infrastructure; and in building a team to enable the path to production, with the following highlights:

Further drilling at the Bajo Negro discovery extended known strike length to over 1 kilometer with the vein remaining open along strike and to depth
• BDD-925: 9.4m of 22.1 g/t Au and 42 g/t Ag from 242m
• BDD-937: 9.6m of 22.1 g/t Au and 30 g/t Ag from 267m
• BDD-942: 13.5m of 13.7 g/t Au and 46 g/t Ag from 308m
• BDD-954: 4.9m of 21.3 g/t Au and 41 g/t Ag from 279m
• BDD-955: 5.75m of 104.9 g/t Au and >45 g/t Ag from 263m
• Completion of the first ever winter drill program at Cerro Negro
• New Bajo Negro discovery to be included in the Bankable Feasibility Study
• Underground contractor to mobilize to site in the fourth quarter of 2009
• Appointment of Louis Gignac as Chairman of the Board
• Appointment of Richard Leclerc as Vice President, Operations
• Cash balances at quarter-end were A$95.2M
A full copy of today’s ASX/TSX release is attached.

Krista Muhr
Director of Investor Relations
Andean Resources
T: +1.647.330.1478
E: [email protected]

This is a very interesting compnay on the verge of production. They have a market cap of ~$1b.. yes a billion dollars. A very rich long life deposits that will produce at around $100 – $120 per oz.

I’ve held ASX: AND for some time and topped up today.

http://www.andean.com.au/mint/pepper/orderedlist/downloads/download.php?file=http%3A//www.andean.com.au/pdf/news/2009/andean_090914.pdf

Gold explorer Andean Resources is expected to announce a capital raising to help develop its flagship Cerro Negro project in Argentina.

Shares in the company have been placed in a trading halt while the company finalises the details.

They last traded for $1.77.

The company has estimated it will cost about $434 million to bring the project into production within three years.

Last year, a pre-feasibility study suggested a low-cost operation producing up to 350,000 ounces of gold a year with cash costs of $US198 per ounce.

Recent upgrades have pushed Cerro Negro’s total resource to 2.6 million ounces of gold and 23.2 million ounces of silver.

STUART McKINNON