SPOKANE, Wash., April 7, 2004 (PRIMEZONE) -- Minera Andes Inc. (TSX Venture Exchange:MAI) (OTCBB:MNEAF) is pleased to announce that multiple zones of bonanza high-grade gold up to 63 g/t and silver up to 1,690 g/t have been intersected in recent follow-up drilling at last year's discovery at Huevos Verdes East at the San Jose project in southern Argentina. These new mineralized zones are located in a separate vein trend parallel to and about 2 kilometers northeast of the Huevos Verdes deposits where underground sampling is currently underway.
Minera Andes' partner, Mauricio Hochschild & Cia. Ltda. ("Hochschild"), has reported the results from seven holes following up last year's drilling in the Huevos Verdes East area. Huevos Verdes East is a 6 km long vein trend characterized by a 3 km long geophysical anomaly in the north and intermittent quartz vein outcrop to the south. Three holes drill last year tested 150 meters of lateral extent of the trend and returned the following results:
2003 Drill Campaign, Huevos Verdes East
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Intersection
TD From To Thickness* Gold Silver
Drill Hole (m) Azimuth Angle (m) (m) (m) (g/t) (g/t)
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SJD-21 181.4 N240 -50 86.75 88.70 1.95 12.6 579
155.05 156.30 1.25 1.5 136
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SJD-31 250.3 N240 -50 233.60 233.80 0.20 12.40 1,882
234.85 235.55 0.70 4.19 461
246.06 247.10 1.04 53.75 1,712
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SJD-32 242.32 N240 -50 91.80 92.85 1.05 2.36 231
123.30 126.05 2.75 1.77 302
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* True thickness undetermined.
New Huevos Verdes East Drilling
The recent drill holes were positioned to in-fill and step out from the three discovery holes that encountered gold and silver mineralization over a distance of 300 meters laterally and 130 meters vertically. Six of the seven recent holes reached the target depth and five of these six encountered significant gold and silver values. Results of the drilling range from nil to high grade gold and silver values listed below:
2004 Drill Campaign, Huevos Verdes East (1)
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Intersection
TD From To Thickness(2) Gold Silver
Drill Hole (m) Azimuth Angle (m) (m) (m) (g/t) (g/t)
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SJD-33 400.2 N240 -55 105.00 106.00 1.00 8.90 245
109.60 110.10 0.5 63.2 1,690
328.25 330.65 2.4 0.03 3
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SJD-34 292 N240 -50 102.90 103.25 0.35 6.10 1,264
105.85 107.50 1.65 1.53 346
108.40 110.10 1.70 2.67 645
274.60 275.15 0.55 6.71 41
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SJD-35 340.1 N240 -55 300.90 301.80 0.90 7.85 228
304.25 305.10 0.85 2.55 126
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SJD-36 220.4 N240 -50 194.50 195.90 1.40 1.60 104
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SJD-37 328.5 N240 -55 Hole abandoned before reaching
target depth
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SJD-38 325.3 N240 -50 280.77 281.07 0.30 3.49 429
285.05 285.42 0.37 2.64 375
305.10 306.50 1.40 15.46 148
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SJD-39 250.1 N240 -50 129.20 130.05 0.85 6.94 1,175
219.20 220.70 1.50 5.74 286
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(1)Results of gravimetric analysis on significant drill intercepts
from SJD-35 to 39 and check assays on all seven holes are pending.
(2) True thickness undetermined
These results confirm potential to outline additional mineralization in both the main Huevos Verdes East structure, and in discrete zones within the hangingwall of the main structure. To date only 5% of this six kilometer long trend has been tested.
Eight of nine holes testing Huevos Verdes East to date have encountered high-grade gold and silver mineralization; a success rate of 90%, compared with a success rate at the nearby Huevos Verdes deposits of 60%.
At Huevos Verdes, Hochschild has now sunk two shafts to approximate depths of 100 and 125 meters, and is now drifting along the vein. The Huevos Verdes vein has an indicated resource of 1,058,000 tonnes grading 267 g/t Ag and 3.1 g/t Au, and an additional 1,541,000 tonnes of material grading 319 g/t Ag and 3.5 g/t Au is classified as inferred at a 100 g/t silver cutoff. Additional resource has been defined at the separate Saavedra West Zone at the southern end of the known vein trends (based on the previously reported resource estimate completed by Snowden an engineering firm and authored by independent qualified persons, Robert Cinits, P. Geo. and Steven Blower, P. Geo., that conforms to Canadian National Instrument 43-101 requirements).
Allen V. Ambrose, President, said, "I am pleased to report the exploration success at the San Jose project. The exploration continues to expand the potential of the project. The Huevos Verdes East area discovered less than a year ago is showing the potential to significantly expand the current resource base on a project."
Minera Andes is a mining exploration corporation that is involved with approximately 10 projects on about 198,000 hectares (about 489,000 acres) of mineral exploration land in Argentina. The properties primarily contain gold, silver and copper mineralization targets. The Corporation is presently pursuing the further development of its co-owned gold/silver discovery property in Santa Cruz province, and is prospecting in other Argentine provinces. The Corporation presently has 69,640,865 issued and outstanding common shares. All results have been reviewed by Brian Gavin, Minera Andes' vice president of exploration, who is an appropriately qualified person as defined by National Instrument 43-101.
For further information, please contact: Art Johnson at the Spokane office, or Krister A. Kottmeier, investor relations -- Canada, at the Vancouver office. Visit our Web site: www.minandes.com.
FORWARD-LOOKING STATEMENT- Although Minera Andes believes many of its properties have promising potential, its properties are in the early stages of exploration. None have yet been shown to contain proven or probable mineral reserves. There can be no assurance that such reserves will be identified on any property, or that, if identified, mineralization may be economically extracted. In addition, Minera Andes' joint venture partner, Mauricio Hochschild & Cia. Ltda., does not accept responsibility for the use of project data or in the adequacy or accuracy of this release.
CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF INFERRED RESOURCES:
This news release uses the term "Inferred Resources." We advise U.S. investors that while this term is recognized and required by Canadian regulations, the SEC does not recognize it. "Inferred Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "Inferred Resource" will ever be upgraded to a higher category. Under Canadian rules estimates of "Inferred Resources" may not form the basis of feasibility or other economic studies. U.S. INVESTORS ARE CAUTIONED NOT TO ASSUME THAT PART OR ALL OF AN "INFERRED RESOURCE" EXISTS, OR IS ECONOMICALLY OR LEGALLY MINABLE.
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