SPOKANE, Wash., Nov. 19, 2004 (PRIMEZONE) -- Progress at Minera Andes Inc.'s (TSX-Venture Exchange:MAI) (OTCBB:MNEAF) Huevos Verdes underground high-grade silver/gold vein, part of the larger San Jose project in southern Argentina, was accelerated by almost 75 percent in the third quarter, compared to the second quarter of 2004.
Allen V. Ambrose, president of Minera Andes, said, "Experienced mining personnel from our partner's Peruvian operations have succeeded in meeting third quarter construction goals and in training our local Argentinean staff to become the next generation of skilled miners at Huevos Verdes. Priority is being given to completing the underground workings to facilitate any potential production scenario and includes upgrading the current silver/gold resource into a mineable reserve."
In the third quarter of 2004, when Minera Santa Cruz (MSC), the operating company joint owned by Minera Andes (49%) and its partner Mauricio Hochschild & Cia. Ltda (MHC) (51%) of Peru, assumed full operating duties, a total of 798 meters (2,617 feet) of underground workings were completed, a 74 percent increase compared to the 458 meters (1,502 feet) completed in the second quarter. Work in the North and South Inclines includes horizontal and vertical development on two underground levels at Huevos Verdes, as well as crosscutting to test new underground veins discovered in 2004. In the last quarter of 2003 and first quarter of 2004, prior to full control of construction being assumed, a total of 240 meters (787 feet) of underground workings was completed. A total of 1,496 meters (4,908 feet) of workings has been completed on the property at quarter end. This underground work is designed to explore the high-grade silver/gold vein at Huevos Verdes and convert resources to reserves for a mine construction decision expected early next year.
Fourth Quarter Work Expedited
Further acceleration of underground work at Huevos Verdes is expected in the fourth quarter of 2004. MHC managers estimate that more than 1,100 meters (3,608 feet) of additional underground work may be completed by the end of 2004. This reflects a 42 percent increase in completed underground workings compared to the third quarter.
Surface Facilities Enhanced
Manpower at Huevos Verdes reached a new peak in the third quarter at about 164 as specialized miners, engineers and technicians were brought in from Peru and other areas of Argentina to work on the project.
The surface facilities were further upgraded in the third quarter with improved logistics capabilities, storage and communications, and project managers are currently designing an expansion that will accommodate up to 250 workers.
Minera Andes is a gold, silver and copper exploration company working in Argentina where it made new discoveries for all three metals in 2004. The Company is funded with working capital of about US$2.2 million and a pending credit facility of up to US$4 million for feasibility 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 71,139,060 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. There can be no assurance that the San Jose/Huevos Verdes silver/gold 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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