SPOKANE, Wash., May 27, 2004 (PRIMEZONE) -- Minera Andes Inc. (TSX Venture Exchange:MAI) (OTCBB:MNEAF) ("the Corporation") is pleased to report the discovery of a zone of low-sulfidation epithermal gold-silver veins at its 100 percent-owned, 6,274 hectare (15,489 acres) El Trumai property in Santa Cruz province, Argentina. Field evidence for high-level epithermal veins has been obtained from mapping, rock chip sampling and gradient array and pole-dipole IP geophysical surveys.
Allen Ambrose, president of Minera Andes said, "This new vein discovery again highlights the excellent potential for the discovery of mineralization in the vast unexplored regions of Argentina. Our decision to focus on an aggressive exploration program illustrates Minera Andes' potential to repeat the discovery process."
El Trumai is located in the western Deseado Massif along the same north-trending regional lineament as the Mauricio Hochschild-Minera Andes San Jose gold-silver project and Barrick's La Paloma gold project.
El Trumai was acquired based on our exploration team's extensive knowledge of Argentina geology leading to the discovery of mineralized structures observed during fixed-wing aerial reconnaissance and from satellite imagery processed to emphasize hydrothermal alteration. This outcropping alteration and mineralization is typical of mineralized zones exposed at a high level above a possible ore grade horizon. To date 82 rock chip samples have been taken from the altered and mineralized zones. Anomalous gold (up to 877ppb), strongly anomalous silver (up to 275 ppm), arsenic (up to 1345 ppm), and some anomalous mercury (up to 9.37 ppm), are associated with quartz mineralization. These pathfinder elements are typically associated with precious metal deposits of the epithermal vein type.
Preliminary results of the gradient array and dipole-dipole IP survey suggest the presence of several well defined zones of disseminated sulfide mineralization with associated vein mineralization approximately 20 to 100 meters beneath the current surface. The strongest IP anomaly, along the east side of the prospect site, extends for over 1,200 meters and contains some of the strongest resistive zones, probable veins.
A drilling program is being planned for early austral spring, beginning in October or November of this year.
All results have been reviewed by Brian Gavin, Minera Andes' vice president of exploration and an appropriately qualified person as defined by National Instrument 43-101.
Elsewhere in Argentina, the Corporation's joint venture project continues to advance at the Huevos Verdes gold/silver discovery at the San Jose project in Santa Cruz, where underground development is currently in progress. The mine development decision is being finalized this year.
Minera Andes is well funded with working capital of approximately US$6 million to carry out its exploration and development programs. Minera Andes holds approximately 10 projects on about 200,000 hectares (500,000 acres) of mineral exploration land in Argentina. The properties primarily contain gold, silver and copper targets. The Corporation presently has 70,274,240 issued and outstanding shares.
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.
Spokane Office Vancouver Office
111 East Magnesium Rd., Suite A 1000-355 Burrard Street
Spokane, WA 99208 USA Vancouver, B.C. V6C 2G8
Phone: (509) 921-7322 Phone: (604) 689-7017;
(877) 689-7018
E-mail: mineraandes@minandes.com E-mail: ircanada@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.
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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.