SPOKANE, Wash., Dec. 2, 2004 (PRIMEZONE) -- Minera Andes' (TSX Venture Exchange:MAI) (OTCBB:MNEAF) reconnaissance program in the Santa Cruz province of Southern Argentina has identified a new area of epithermal precious metal mineralization.
Minera Andes' 100 percent-owned San Agustin property is located approximately 100 kilometers south of our advanced stage San Jose silver/gold project where underground construction and a feasibility study are underway. The properties are in a region of Argentina known as the Deseado Massif where epithermal gold and silver mineralization was first identified in the 1980s. Minera Andes' exploration team has been working in this region for almost a decade and has developed a large proprietary exploration database. Minera Andes' expertise has resulted in several discoveries at San Jose and four new wholly owned silver and silver/gold discoveries in other areas of the massif over the last 12 months. The Deseado Massif currently hosts two producing gold/silver mines, two projects with feasibility studies underway and many companies exploring gold and silver prospects. The largest epithermal vein operation in the region is the Cerro Vanguardia Mine, owned by Anglo Ashanti Gold, which has a reserve of approximately 3.2 million ounces of gold.
The San Agustin property contains "sinter", sponge-like silica and relic fossil plants indicating that the current surface appears to be at or near the paleo-surface. Although often devoid of metals at the surface, these silica systems can be associated with precious metals at depth. Close by, but in a separate part of the system, one rock chip sample returned 123 grams/tonne (3.6 oz/ton) silver. In addition, some rock sampling has indicated anomalous areas of arsenic and mercury that are indicator elements to potential precious metals at depth. Geologic mapping, sampling, and drilling are planned for the San Agustin property next 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.
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$2.0 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 71,452,408 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 Suite 410 - 744 West Hastings St. Spokane, WA 99208 USA Vancouver, B.C. V6C 1A5 Phone: (509) 921-7322 Phone: (604) 689-7017; 877-689-7018
FORWARD-LOOKING STATEMENT - Although Minera Andes believes many of its properties have promising potential, its properties are in the early stages of exploration one 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.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE