SPOKANE, Wash., March 31, 2005 (PRIMEZONE) -- Minera Andes Inc. (TSX-V:MAI) and (OTCBB:MNEAF) is pleased to announce that decision has been made to increase the initial start-up mine operating capacity to be used in the feasibility study at the San Jose project. The feasibility study was originally being based on a start-up operation at 500 ton per day (tpd) and will now be based on an expanded 750 tpd scenario.
The feasibility study at the San Jose project, an advanced exploration and construction project, is scheduled for completion in the third quarter of 2005. Minera Andes' joint venture partner, Mauricio Hochschild & Cia. Ltda. ("MHC"), of Lima, Peru, is the operating partner and owns 51 percent of the project. The expansion of the proposed start-up mine capacity is an outgrowth of the continued progress at the San Jose project. Positive exploration results have allowed the joint venture to evaluate the feasibility of expanding any potential mining operation beyond the original start-up plan for a 500 tpd plant.
Allen V. Ambrose, president of Minera Andes said, "The exploration and development at the San Jose project continue to deliver strong results that appear to support a larger start up operation. A larger operation has the potential to deliver a greater return on investment to the company."
In addition, Minera Andes has received a semi-annual $200,000 payment under the terms of the San Jose exploration/operating joint venture agreement with MHC.
Minera Andes is a gold, silver and copper exploration company working in Argentina. The corporation is funded with working capital of about US$7.6 million and a pending credit facility of up to US$2 million for feasibility study completion and underground construction at its advanced-stage silver/gold project in Santa Cruz province. Minera Andes holds about 500,000 acres of mineral exploration land in Argentina, including the co-owned Huevos Verdes/San Jose silver/gold project now under construction and feasibility consideration for possible mine production. Minera Andes has also discovered an enriched copper zone at its Los Azules property and is acquiring other exploration targets in southern Argentina. The Corporation presently has 90,079,504 issued and outstanding shares.
Spokane Office Vancouver Office
111 East Magnesium Rd., Suite A 410-744 West Hastings Street
Spokane, WA 99208 USA Vancouver, B.C. V6C 1A5
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. There can be no assurance that the San Jose/Huevos Verdes gold/silver project will be found to be economically feasible or that a mine will be successfully constructed. In addition, Minera Andes' joint venture partner, Mauricio Hochschild & Cia. Ltda., does not accept responsibility for the use of project data or the adequacy or accuracy of this release.
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