SPOKANE, WA, Oct. 11 /PRNewswire-FirstCall/ -- Minera Andes Inc. (TSX: MAI and US OTC: MNEAF) is pleased to announce the drilling results from the ongoing 2007 exploration program at its San Jose operation in Southern Argentina. Recent exploration highlights include a newly discovered mineralized area about 500 meters long at the Frea vein. The highest grade intercept from this drilling campaign is in hole SJD-357 that encountered 100.09 g/t (3.22 ounces per tonne - opt) gold and 1,234 g/t (40 opt) silver over 0.50 meters (see table below).
Phase one of the planned 38,000 meter exploration drilling program announced earlier in 2007 at San Jose was completed in July. A total of 8,310 meters was drilled with the first fourteen drill holes reported in our news release dated September 6th, 2007. Assays for the remaining 14 drill holes from the phase one program are reported in the table below. These holes were drilled northwest along strike of the known reserves at the Frea vein and encountered a hanging wall vein related to the Frea vein (see attached map). The next phase of drilling is underway with over 2,000 meters completed and is focused on the Frea vein and the open ended targets to the west in the Odin and Ayelen areas. Assays are pending for the new drilling.
The Frea vein is located 2 kilometers northwest of the Huevos Verdes vein, and both veins are currently being mined on several levels. Proven reserves of 534,000 tonnes and probable reserves 75,000 tonnes ( totaling 609,000 tonnes grading 9.34 g/t gold and 375 g/t silver) at the Frea vein are currently delineated over a strike length of about 575 meters and to a depth of approximately 350 meters below the surface. The drilling completed this year extends the known mineralization along the Frea vein trend another 500 meters along strike - over an 87% increase in strike length.
The recent exploration drilling concentrated on the northwest extension of the Frea vein. Significant drilling results include SJD-350 that encountered 49.34 g/t gold and 2,721 g/t silver over 1.04 meters of high grade mineralization some 450 meters northwest of the defined reserves at the Frea vein. Drill hole SJD-357 encountered 1.50 meters grading 30.49 g/t gold and 423 g/t silver about 300 meters northwest of the Frea reserves. Hole SJD-359 encountered 2.60 meters containing 13.12 g/t gold and 661 g/t silver approximately 180 meters northwest of the current reserves. In summary, drilling at the Frea vein to date indicates that it is an open-ended mineralized silver/gold vein that averages about 2.7 meters in width.
Allen Ambrose, president of Minera Andes, said: "The exploration drilling at the San Jose project continues to expand the project. The Frea vein area is revealing significant potential to expand the reserves and mine life of the project."
Minera Santa Cruz S. A. ("MSC"), the joint venture corporation co-owned by Minera Andes (49%) and Hochschild Mining plc. (51%) owns the producing San Jose property. The discovery of new high-grade silver/gold extensions to veins such as Frea represents additional mineralization that may add to the current reserves/resources under production at the project. These discoveries also indicate the large mineral potential of the San Jose property where more than 40 kilometers of vein trend target is currently known to exist, of which less than 15 percent has been explored in detail.
Table 1 - 2007 Drill Intercepts Frea Vein, San Jose Project ------------------------------------------------------------------------- Drill From To Intercept Au Ag Location Hole(x) (meters) (meters) (meters) (g/t) (g/t) ------------------------------------------------------------------------- Frea NW SJD-348 268.30 269.80 1.50 5.42 509 ------------------------------------------------------------------------- 297.10 297.45 0.35 6.22 115 ------------------------------------------------------------------------- Frea NW SJD-349 166.50 168.00 1.5 1.42 127 ------------------------------------------------------------------------- 271.15 273.15 2.0 6.65 65 ------------------------------------------------------------------------- Frea NW SJD-350 122.14 122.54 0.4 3.56 250 ------------------------------------------------------------------------- 326.66 327.90 1.04 49.34 2,721 ------------------------------------------------------------------------- Frea NW SJD-351 118.40 118.70 0.30 8.69 671 ------------------------------------------------------------------------- 298.97 299.56 0.59 1.96 27 ------------------------------------------------------------------------- Frea NW SJD 352 183.45 184.34 0.89 4.84 128 ------------------------------------------------------------------------- 335.81 336.59 0.78 0.04 8 ------------------------------------------------------------------------- Frea NW SJD 353 222.20 223.05 0.90 0.02 5 ------------------------------------------------------------------------- Frea NW SJD 354 0 311.20 Vein not intercepted ------------------------------------------------------------------------- Frea NW SJD 355 191.77 192.06 0.30 1.28 204 ------------------------------------------------------------------------- Frea NW SJD 356 0 269.00 Vein not intercepted ------------------------------------------------------------------------- Frea NW SJD 357 248.10 249.60 1.50 30.49 423 ------------------------------------------------------------------------- includes 249.10 249.60 0.50 100.09 1,234 ------------------------------------------------------------------------- Frea NW SJD 358 161.93 162.43 0.50 0.01 3 ------------------------------------------------------------------------- Frea NW SJD 359 216.30 218.90 2.60 13.12 661 ------------------------------------------------------------------------- includes 217.25 218.01 0.76 25.96 1,373 ------------------------------------------------------------------------- 392.72 393.08 0.36 1.15 21 ------------------------------------------------------------------------- Frea NW SJD 360 0 298.10 Vein not intercepted ------------------------------------------------------------------------- Frea NW SJD 361 351.23 352.10 0.40 21 ------------------------------------------------------------------------- (x) All of the drill holes are drilled at minus 50 degrees. True thickness of the vein is undetermined. To view a map of the Frea vein please visit: http://files.newswire.ca/530/Frea_vein.pdf
Assay results for the drilling were reviewed by Brian Gavin, Minera Andes' vice president of exploration, who is an appropriately qualified person as defined by National Instrument 43-101. All samples were collected in accordance with industry standards. Splits from the drill core samples were submitted to Alex Stewart Assayers, Argentina, S.A., in Mendoza, Argentina, for fire assay and ICP analysis. Accuracy of results is tested through the systematic inclusion of standards, blanks and check assays.
In addition, the San Jose operation was commissioned during the third quarter of 2007. Currently, the mining operation is expected to reach full production and the process plant is expected to complete its initial start-up phase of production by yearend, with full production forecasted in first half of 2008. As disclosed in August 2007, we have a cash call to the San Jose partners that is due on October 29, 2007. We anticipate securing our portion of the cash call through a debt facility.
Minera Andes is a gold, silver and copper exploration company working in Argentina. The Corporation holds about 410,000 acres of mineral exploration land in Argentina including the co-owned San Jose silver/gold mine that has started initial production. Minera Andes is also exploring the Los Azules copper project in San Juan province, where an exploration program is underway to define a resource. Other exploration properties, primarily silver and gold, are being evaluated in southern Argentina. The Corporation presently has 166,717,517 shares issued and outstanding.
This news is submitted by Allen V. Ambrose, president and director of Minera Andes Inc.
Caution Concerning Forward-Looking Statements:
This press release contains certain "forward-looking statements", including, but not limited to, the statements regarding the Company's strategic plans, evolution of mineral resources and reserves, work programs, development plans and exploration budgets at the Company's San Jose Project. Investors should be aware that the introduction of new technology such as ILR can create added risk in achieving metallurgical performance. The forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. In particular, there can be no assurance that commercial production at the San Jose mine will be achieved on a timely basis, or at all, that production capacity at the San Jose mine will be successfully increased, that resources and reserves at the San Jose mine will be increased or that Minera Andes will successfully raise the funds necessary to maintain its interest in the San Jose mine. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, risks associated with foreign operations, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral reserves, dilution risks to it 49% ownership by not being able to contribute pro-rata to Minera Santa Cruz S.A. cash calls, and other risks. Reference is made to the risk factors and uncertainties described in the Company's continuous disclosure record, a copy of which is available under the Company's profile at http://www.sedar.com/. In addition, Minera Andes' joint venture partner, a subsidiary of Hochschild Mining plc, and its affiliates do not accept responsibility for the use of project data or the adequacy or accuracy of this release.
Cautionary Note to U.S. Investors:
The United States Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits with "mineral reserves" that a company can economically and legally extract or produce. We use certain terms in this press release, such as "mineral resources", that the SEC guidelines strictly prohibit us from including in our filings with the SEC.
CONTACT: Art Johnson at the Spokane office, or Krister A. Kottmeier, investor relations - Canada, at the Vancouver office; Visit our Web site: http://www.minandes.com/; Spokane Office, 111 East Magnesium Road, Ste. A, Spokane, WA, 99208 USA, Phone: (509) 921-7322, E-mail:
