SPOKANE, Wash., July 12, 2004 (PRIMEZONE) -- Minera Andes Inc. (TSX Venture Exchange:MAI) (OTCBB:MNEAF) is pleased to announce that ongoing development of the underground workings at the Huevos Verdes vein at the San Jose project has encountered high-grade intervals up to 263 g/t (8.46 ounces per ton) gold and 12,403 g/t (399 ounces per ton) silver over 0.42 meters. This interval is part of a wider, 2.36 meter-thick section of mineralized vein with an average grade of 59.7 g/t gold and 3,075 g/t silver.
Recent underground development and exploration of the high-grade gold-silver vein at the San Jose project shows the vein to be generally thicker and higher grade than surface drilling previously indicated. Two areas of the Huevos Verdes vein are currently in development and are accessed by the North (640N) and South (700S) inclined shafts. Horizontal drifts in the plane of the vein are being developed from both shafts. In addition, the 715S winze is exploring the vein vertically. In exposing the main vein the development work has revealed numerous splays and splits of the vein away from the main vein including separate parallel, mineralized veins. These mineralized features add to the dimensions of the main Huevos Verdes vein and have the potential to significantly increase the grade and tonnage of the currently identified resource on the property.
Results of uncut underground sampling on the Huevos Verdes vein are listed in the table below. Channel samples are collected about every 2.5 meters perpendicular to the strike of the vein to obtain an accurate estimate of metal values.
Assay Results of Underground Development at San Jose
Length Average Width Gold Silver
Working (m) (m) (g/t) (g/t)
700S gallery 104 1.7 10.9 695
715S chimney 18.97 1.1 9.86 1047
640N gallery 68 0.96 6.39 607
These closely spaced underground sampling results compare very favorably with the 2002 Huevos Verdes Resource Estimate by Snowden which calculated a grade of 3.1g/t gold and 266.8 g/t silver for the indicated resource using a 100 g/t Ag cutoff.
The San Jose project, which totals about 40,500 hectares (98,800 acres), is located in Argentina's Santa Cruz province under development by Minera Santa Cruz (MSC), a company owned 51 percent by operating partner Mauricio Hochschild & Cia. Ltda. (MHC) and 49 percent by Minera Andes. MSC is currently in the process of increasing the work force and equipment on the project to complete the underground workings at an accelerated pace to further define a mineable ore reserve through drilling, bulk sampling and geotechnical studies. New drilling equipment has been ordered to explore the mineralized features identified parallel to the main vein and surface facilities are being expanded. A feasibility study was recently commissioned by MSC. The Huevos Verdes vein is the most advanced of ten known gold/silver targets within the San Jose project area. Surface facilities for approximately 100 workers are also in place, and a 28 km all weather road and bridge access the construction area from a paved highway.
Allen V. Ambrose, president of Minera Andes, said "We are very pleased by the high-grade nature of the newly discovered mineralization and the potential to add more tonnage that can enhance any production scenario at Huevos Verdes."
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.
Minera Andes is funded with working capital of approximately US$5.0 million to carry out its exploration and development programs. Minera Andes is a mining exploration company focused on gold, silver and copper exploration in Argentina where it holds about 200,000 hectares (500,000 acres) of mineral exploration land. It currently has the Huevos Verdes gold/silver target in the feasibility stage. 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 70,291,490 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. 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.
The TSX Venture Exchange Has Not Reviewed And Does Not Accept Responsibility For The Adequacy Or Accuracy Of This Release.