AndeanGold Updates on Exploration at Urumalqui Gold-Silver Project in Peru

AndeanGold Ltd. (TSX VENTURE:AAU) has announced the following update on its advanced-stage Urumalqui Au-Ag exploration project in Peru, where the Company is earning a 60% joint venture interest from Gitennes Exploration Inc.

• Environmental and Community Relations consultants (the "Consultants") have been engaged and are working productively on the requisite tasks necessary to timely obtain a permit (the "Permit") from the Peruvian governmental authorities to allow the Company to initiate a proposed Phase I infill drilling program (the "Program") on the Project. The Program will focus on infill drilling to a depth of 200 meters along the central and southeastern segments of the Urumalqui Vein, which cover 1.0 kilometre of the 1.5 kilometre Urumalqui Vein outcrop where the majority of the Project's historical drilling programs were concentrated.
• Based on a review of the Project's historical geological information, the Company is now planning on increasing the Program from 2,000 to approximately 3,000 metres of diamond core infill drilling, which is intended to produce an overall drill hole spacing of approximately 50 metres over the 1.0 kilometre vein strike, to a depth of 200 metres. This level of drilling density should optimize the results of a NI 43-101 resource calculation, which the Company plans to commission upon completion of the Program.
• New agreements have been signed with the key surface owners controlling lands covering the Urumalqui Vein to permit the Company to undertake its proposed drilling and exploration programs. Also, an agreement has been signed with a surface owner for a core storage facility.
• A new core storage facility has been constructed, and the drill core from the Project's previous drilling programs has been transferred to this new facility.
• The Company's geologists have relogged all Urumalqui Vein drill core from previous drilling programs and remapped the entire 1.5 kilometre Urumalqui Vein outcrop.
• A topographical firm was engaged to relocate all the Project's previous drill collars covering the Urumalqui Vein and to establish the locations of the Company's proposed Phase I drill collars. This work was completed successfully during December.
• Drilling companies have been contacted, and it appears that an appropriate diamond core drilling rig could be timely available to complete the Phase I drill program.
• The Company's Consultants and legal counsel have advised that the Permit is expected to be approved during the second half of January 2011, which should enable the Company to initiate the Phase I drill program in February – March 2011.

Source: AndeanGold Ltd.