SPOKANE, WA, Jan. 9 /PRNewswire-FirstCall/ -- Minera Andes Inc. (TSX: MAI and US OTC: MNEAF) today announced results received from drilling that was recently completed at the San Jose mine in southern Argentina. The San Jose project is operated by Minera Santa Cruz S.A. ("MSC") owned 51% by Hochschild Mining plc ("Hochschild") (HOC.L: Reuters and HOC.LN: Bloomberg - London Stock Exchange) and 49% by Minera Andes. Hochschild is the operator of MSC. Infill and step-out drilling on several veins continues to indicate further potential to expand the areas of mineralization on the property. One of the highest-grade intercepts from this drilling campaign was in hole SJD-478 and encountered 30.92 grams per metric ton "g/t" (0.90 ounces per short ton "opt") gold and 778 g/t (22.7 opt) silver over an intercept thickness of 1.56 meters (see table below).
Between August and December 2008, 46 core holes totaling 11,278 meters were completed as part of the 2008 drilling program in which a total of 18,694 meters were drilled on the Frea, Odin, Ayelen and Kospi veins. These high-grade gold/silver veins were discovered in late 2005 through reconnaissance drilling of blind geophysical targets. A NI 43-101 technical report is underway to update the reserves and resources at San Jose. This technical report will reflect approximately 27,478 meters of drilling covering the 12 month period that occurred between June 30, 2007 and June 30, 2008 but will not contain the results that are the subject of this news release. The report is anticipated to be completed in the first quarter of 2009 upon receipt of technical information to be provided by MSC. The results described in this news release are expected to be part of another technical report due out later this year that will reflect drilling results to year end 2008.
The majority of the 2008 drilling has been concentrated on the Odin and Ayelen veins covering approximately 2.8 kilometers of strike length along these open-ended mineralized veins. Drilling completed last year extended the known mineralization along the Odin and Ayelen vein trends for 1,000 meters along strike - or a 64% increase from the discovery drilling in 2005. The drill results presented here focused on the Odin vein and a subsidiary structure at the Frea vein. Several holes were also drilled on the Kospi, Frea and Huevos Verde veins.
The development and discovery of new mineralization demonstrates 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% has been explored to date.
Odin Vein
During the 2008 campaign 37 holes have been completed on the Odin vein (bringing the total to 88 holes) along approximately 1600 meters along the strike of the vein, to a depth of approximately 200 meters. Highlights of the program included the identification of massive and banded quartz veining with disseminated pyrite and argillic alteration. The Odin vein remains open to the west along strike and to depth.
The highest-grade intercept was in hole SJD-478 (described above). Hole SJD-483 intercepted 2.12 meters of 6.91 g/t (0.20 opt) gold and 486 g/t (14.2 opt) silver (SJD-483).
Frea Vein
The Frea vein is located 2 kilometers northeast of the Huevos Verdes vein, and both veins are currently being mined on several levels. The drill results presented here are for veins subsidiary to the main Frea vein which is currently in production (see table below for results).
------------------------------------------------------------------------- 2008 Drilling Results from July 31 to December 31, San Jose Project ------------------------------------------------------------------------- From To Interval* Au Ag Drill Hole/Vein (meters) (meters) (meters) (g/t) (g/t) ------------------------------------------------------------------------- SJD-478 ODIN 122.44 124.00 1.56 30.92 778 ------------------------------------------------------------------------- SJD-479 FREA** 185.10 185.58 0.48 3.67 163 ------------------------------------------------------------------------- 210.69 212.20 1.51 7.84 52 ------------------------------------------------------------------------- 224.24 224.54 0.30 5.07 499 ------------------------------------------------------------------------- 227.78 228.12 0.34 3.23 104 ------------------------------------------------------------------------- less than SJD-480 ODIN 182.90 183.26 0.36 0.15 9 ------------------------------------------------------------------------- SJD-481 ODIN No vein encountered ------------------------------------------------------------------------- SJD-482 ODIN 172.80 174.65 1.85 18.69 1,506 ------------------------------------------------------------------------- SJD-483 ODIN 132.25 133.50 1.25 3.91 280 ------------------------------------------------------------------------- 251.73 253.85 2.12 6.91 486 ------------------------------------------------------------------------- SJD-484 FREA** 203.80 204.50 0.65 10.30 1176 ------------------------------------------------------------------------- SJD-485 FREA** 251.50 252.05 0.55 0.20 17 ------------------------------------------------------------------------- SJD-486 FREA** No vein encountered ------------------------------------------------------------------------- SJD-487 ODIN No vein encountered ------------------------------------------------------------------------- less than SJD-488 ODIN 249.2 249.6 0.40 0.15 3 ------------------------------------------------------------------------- SJD-489 ODIN 184.30 184.74 0.44 9.27 946 ------------------------------------------------------------------------- less than less than SJD-490 KOSPI 110.44 110.90 0.46 0.15 2 ------------------------------------------------------------------------- less than less than 155.15 155.45 0.30 0.15 2 ------------------------------------------------------------------------- less than less than 166.30 166.60 0.30 0.15 2 ------------------------------------------------------------------------- SJD-491 FREA** 196.26 197.10 0.84 No results reported ------------------------------------------------------------------------- SJD-492 ODIN 220.46 221.25 0.79 1.50 115 ------------------------------------------------------------------------- 300.27 302.02 1.75 1.13 59 ------------------------------------------------------------------------- less than less than SJD-493 ODIN 240.48 243.45 2.97 0.15 2 ------------------------------------------------------------------------- SJD-494 ODIN 225.10 225.40 0.30 10.90 92 ------------------------------------------------------------------------- less than less than 302.00 302.60 0.60 0.15 2 ------------------------------------------------------------------------- SJD-495 ODIN 252.50 255.20 2.70 6.03 952 ------------------------------------------------------------------------- SJD-496 FREA 170.45 172.65 2.2 1.63 193 ------------------------------------------------------------------------- less than less than SJD-497 ODIN 267.00 268.45 1.45 0.15 2 ------------------------------------------------------------------------- SJD-498 FREA** 132.25 132.90 0.65 1.43 108 ------------------------------------------------------------------------- 140.20 140.55 0.35 1.40 113 ------------------------------------------------------------------------- (Frea vein) 149.10 154.20 5.10 2.84 203 ------------------------------------------------------------------------- 224.15 225.00 0.85 21.73 1502 ------------------------------------------------------------------------- SJD-499 ODIN 174.95 175.55 0.60 2.10 45 ------------------------------------------------------------------------- less than less than SJD-500 ODIN 300.00 300.30 0.30 0.15 2 ------------------------------------------------------------------------- SJD-501 ODIN 259.35 261.42 2.07 0.97 42 ------------------------------------------------------------------------- less than less than SJD-502 HV OESTE 130.67 130.97 0.30 0.15 2 ------------------------------------------------------------------------- SJD-503 FREA** 220.85 223.60 2.75 6.63 837 ------------------------------------------------------------------------- 239.25 240.60 1.35 2.33 116 ------------------------------------------------------------------------- less than less than SJD-504 HV SUR 119.58 120.58 1.00 0.15 2 ------------------------------------------------------------------------- less than SJD-505 HV SUR 90.40 90.77 0.37 0.15 5 ------------------------------------------------------------------------- SJD-506 FREA 89.77 91.23 1.46 1.53 319 ------------------------------------------------------------------------- 215.58 216.43 0.85 0.70 89 ------------------------------------------------------------------------- less than less than SJD-507 HV NORTE 89.03 94.15 5.12 0.15 2 ------------------------------------------------------------------------- 96.00 99.86 3.86 0.22 71 ------------------------------------------------------------------------- less than less than SJD-508 HV NORTE 178.55 179.20 0.65 0.15 2 ------------------------------------------------------------------------- SJD-509 E. FREA/ less than KOSPI 99.80 100.15 0.35 0.15 3 ------------------------------------------------------------------------- less than less than 144.00 145.55 0.55 0.15 2 ------------------------------------------------------------------------- SJD-510 E. FREA/ less than less than KOSPI 201.70 202.25 0.55 0.15 2 ------------------------------------------------------------------------- SJD-511 E. FREA/ less than KOSPI 134.70 135.90 1.20 0.15 8 ------------------------------------------------------------------------- SJD-512 E. FREA/ less than less than KOSPI 127.15 128.20 1.05 0.15 2 ------------------------------------------------------------------------- less than less than 186.20 186.95 0.75 0.15 2 ------------------------------------------------------------------------- SJD-513 E. FREA** 100.05 103.50 3.45 0.99 57 ------------------------------------------------------------------------- less than less than SJD-514 KOSPI 111.90 112.65 0.75 0.15 2 ------------------------------------------------------------------------- less than less than 135.45 135.80 0.35 0.15 2 ------------------------------------------------------------------------- less than less than SJD-515 AYELEN 232.90 235.75 2.85 0.15 2 ------------------------------------------------------------------------- less than less than 245.30 259.30 14.00 0.15 2 ------------------------------------------------------------------------- SJD-516 KOSPI/FREA No vein encountered ------------------------------------------------------------------------- less than less than SJD-517 KOSPI 190.50 193.40 2.90 0.15 2 ------------------------------------------------------------------------- SJD-518 AYELEN No vein encountered ------------------------------------------------------------------------- SJD-519 KOSPI NIL ------------------------------------------------------------------------- SJD-520 AYELEN 85.50 86.50 1.00 0.47 82 ------------------------------------------------------------------------- SJD-521 FREA No vein encountered ------------------------------------------------------------------------- SJD-522 ODIN 159.40 160.25 0.85 0.20 34 ------------------------------------------------------------------------- less than less than 267.40 268.40 1.00 0.15 2 ------------------------------------------------------------------------- less than less than SJD-523 HV OESTE 108.75 109.30 0.55 0.15 2 ------------------------------------------------------------------------- * All of the drill holes are angle holes. True thickness of the vein is undetermined. ** Subsidiary vein
Assay results were reported to Minera Andes by MSC, which is the operating company for the San Jose joint venture. Assay results for the drilling were reviewed by Brian Gavin, Minera Andes' Vice President, Exploration, who is a 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.
Minera Andes is a gold, silver and copper exploration company working in Argentina. The Company holds about 304,000 acres of mineral exploration land in Argentina including the 49% owned San Jose silver/gold mine. Minera Andes is also exploring the Los Azules copper project in San Juan province, where an exploration program has defined a resource and a scoping study is underway. Other exploration properties, primarily silver and gold, are being evaluated in southern Argentina. The Corporation presently has 190,158,851 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", which may include, but are not limited to, 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. 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. 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 and other risks. We refer readers 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/. 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.
