SPOKANE, Wash., Dec. 14, 2004 (PRIMEZONE) -- Minera Andes (TSX Venture Exchange:MAI) (OTCBB:MNEAF)is pleased to report that more high-grade silver/gold mineralization has been discovered in the underground construction and reserve development at the Huevos Verdes vein, part of the San Jose project in southern Argentina. Bonanza grades of mineralization were also found in the northern workings where one sample in the 640N drift assayed 198 g/t (6.4 opt) gold and 22,653 g/t (728 opt) silver over width of 0.39 meters (1.28 feet). These are the highest gold and silver values found to date on the vein.
Aggressive development of the high-grade silver/gold vein, accessed by the north and south inclined shafts, includes raises (vertical workings) and drifts (horizontal workings) in the plane of the vein. This work is part of a program to convert the previously estimated gold and silver resource to reserve for the purposes of a bankable feasibility study.
Allen V. Ambrose, president of Minera Andes, said "The high-grade silver/gold mineralization encountered in Huevos Verdes vein, through the excellent development progress by our partner, continues to provide a solid base for our reserve development and feasibility study completion. Although previous work has continued to show Huevos Verdes to be a high-grade system, I am especially pleased with intersections of bonanza grade silver/gold mineralization as they increase the potential profitability in a production scenario."
SOUTHERN WORKINGS
The southern part of the Huevos Verdes vein is accessed by the South Incline. Workings extend from surface to a depth of 120 meters, cover a distance of over 300 meters horizontally along the vein on two levels and have encountered good high-grade silver/gold mineralization. The grades of gold and silver continue to be higher than those encountered in the drill holes in the same area used in our published resource estimate. In the south, the highest grades of gold and silver encountered to date are in Raise 340 where over 17.6 g/t (0.57 ounces per ton (opt)) gold and 970 g/t (31 opt) silver were found over a width of 1.65 meters (5.4 feet) and a vertical distance of 58 meters (192 feet). Sampling in the 700N drift along the vein has an average width of 1.3 meters (4.3 feet) and contains 11.8 g/t gold and 939 g/t (30.2 opt) silver over 44 meters (144 feet) of newly exposed vein. Splits and splays next to the main vein and zones within the main vein have encountered bonanza high-grade silver and gold results up to 46 g/t (1.48 opt) gold and 4,961 g/t (159 opt) silver over 2.3 meters (7.5 feet).
NORTHERN WORKINGS
At the Northern Incline, the upper 480 level has been developed approximately 60 meters below the surface. Drifts 640N and 640S follow the vein for over 400 meters (1,300 feet). The inclined shaft is planned to reach 50 meters (164 feet) deeper, to the 430 level, by January, 2005. On the 480 level to the north of the shaft, the vein contains an average grade of 6.84 g/t (0.22 opt) gold and 711 g/t (23 opt) silver over an average thickness of 1.44 meters (4.72 feet) and a horizontal distance of 148 meters (486 feet). To the south of the shaft, the vein averages 3.41 g/t (0.11opt) gold and 295 g/t (9.5 opt) silver over an average width of 1.47 meters (4.82 feet) and a distance of 154 meters (505 feet). Raises 330 and 440 are in the process of being developed from this level to the surface (see table).
In general, the vein in the northern workings is lower grade than in the southern workings due to the fact that northern workings have not reached the vertical level of the zone of high-grade mineralization indicated by the drilling. In the southern workings, high-grade mineralization extends from the surface to depth whereas in the north the high-grade silver/gold mineralization appears to start 50 meters beneath the surface, at or below the upper workings at the 480 level. We expect the underground workings to reach the high-grade silver/gold mineralization encountered in drilling early next year.
Results of selected, uncut underground samples from the Huevos Verdes vein are listed in the table below. Channel samples were collected about every 2.0 meters perpendicular to the strike of the vein to obtain an accurate estimate of metal values. 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.
Assay Results of Underground Development at San Jose
Average
Length Width Gold Silver
Working (m) (m) (g/t) (g/t)
Drift 700N 44 1.30 11.8 939
Raise 340 58 1.65 17.6 970
Drift 640N 148 1.44 5.07 410
Drift 640S 147 1.47 3.41 295
Raise 330 43 1.29 2.26 202
Raise 460 21 1.53 1.75 120
These closely spaced underground sampling results compare very favorably with the 2002 Huevos Verdes Resource Estimate by Snowden which calculated a grade of 3.1 g/t gold and 266.8 g/t silver for the indicated resource using a 100 g/t Ag cutoff.
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$1.7 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 71,453,408 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 410 - 744 W. 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. Nonehave 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.
The TSX Venture Exchange Has Not Reviewed And Does Not Accept Responsibility For The Adequacy Or Accuracy Of This Release.