SPOKANE, Wash., May 4, 2004 (PRIMEZONE) -- Minera Andes Inc. (TSX Venture Exchange:MAI) (OTCBB:MNEAF) ("the Corporation") is pleased to report the discovery of a large, enriched (chalcocite) copper zone at its 100% owned Los Azules property. The overall target area is approximately 1500 meters by 2000 meters (see attached map). Drilling returned up to 0.8% copper over 36 meters and 120 meters of 0.54% copper within an area defined by geology, MIMDAS deep penetration IP and magnetic geophysical surveys. This new zone has been confirmed by four drill holes showing enriched copper over an area 1000 meters by 500 meters. A fifth drill hole penetrated a thick section of related surface alteration before stopping short of its target depth.
Minera Andes' President Allen V. Ambrose said, "We are very pleased with the results of the drilling. This type of geologic setting and mineralization can be amenable to low cost mining and process methods. There are several mines in production with the same mineralogy and grade of copper identified in our current drilling. These discovery drilling results speak to the project's potential."
Nine reconnaissance core holes totaling 2,050 meters were drilled in the current campaign to depths of between 154 to 330 meters. The primary focus of the drilling was to test the extension of known leachable (chalcocite) copper mineralization identified on the adjacent property. Minera Andes' drilling tested a deep penetrating IP chargeability high anomaly as well as a well-defined magnetic low on its eastern flank.
Drilling at Los Azules encountered features typical of many porphyry copper systems. In the discovery zone, strongly leached cap rock extends from 65 to 161 meters depth followed by an enriched zone of secondary copper mineralization (chalcocite) overlying a zone of mixed secondary and primary (chalcopyrite) copper mineralization. The mineralization in our drilling is consistent with the mineralization observed in a prior drill hole by Battle Mountain Gold some 220 meters north of Minera Andes' property, which contained a 117-meter interval of 0.61% copper in the enriched zone.
The 100 percent-owned Los Azules project is 3,495-hectares (8,633 acres) and was discovered by Minera Andes' geologists through regional exploration. The project is situated in San Juan province, Argentina near the Argentina/Chile border.
Significant Drilling Results at Los Azules
Intersection True Total
TD From To Thickness Copper
Drill Hole (m) (m) (m) (m) Percentage
AZ-04-01 195 130 195 56 0.62
150 192 including 36 0.82
AZ-04-02 330.5 164 304 140 0.38
164 190 including 26 0.47
230 304 and 72 0.42
AZ-04-04 300.8 162 282 120 0.54
162 202 including 40 0.59
236 282 and 46 0.64
AZ-04-07 168.8 96 152 56 0.44
126 152 including 26 0.58
Hole AZ-04-03 drilled within the enriched copper target penetrated 154 meters of leached cap but failed to reach the enriched copper target. Other reconnaissance holes examined the outer boundaries of the target and tested these areas for the presence of primary sulfide mineralization. Drill hole AZ-05 tested an outcrop to the west of the geophysical anomalies and encountered fresh rhyolite. Core holes AZ-04-08 and AZ-04-09 were drilled in the center of the induced polarization chargeability high and encountered mostly primary sulfides ranging from nil up to 0.25% copper. In addition, surface sampling encountered gold in breccias ranging from nil up to 6.94 grams per tonne in grab samples.
All results have been reviewed by Brian Gavin who is Minera Andes' vice president of exploration and an appropriately qualified person as defined by National Instrument 43-101. Minera Andes has retained the firm of Roscoe Postle and Associates, an independent international geological and mining consulting firm, to review the quality control and quality assurance program on the project. Core logging was completed on site and sampling was completed in Minera Andes' secure facility in Mendoza. The drill core was split on site and samples were transported to Alex Stewart Assayers in Mendoza, Argentina for sample preparation and sent to ALS Chemex in Santiago, Chile for analysis. Samples were assayed using acid digestion and atomic absorption finish for a variety of elements including copper, silver, gold, lead, zinc and arsenic. In accordance with Roscoe Postle's recommendations, standards, blanks and duplicates selected on a random basis were inserted into the samples sent to ALS Chemex. Additionally, 5 percent of the sample pulps and at least 30 sample rejects will be sent for check analysis at laboratories in Santiago, Chile.
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.
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.
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