SPOKANE, Wash., Jan. 27, 2005 (PRIMEZONE) -- Minera Andes Inc. (TSX Venture Exchange:MAI) (OTCBB:MNEAF) is pleased to announce details of the 2005 work program at its co-owned San Jose silver/gold project in Southern Argentina. Currently, a 30,000-meter core drilling program is underway on the property in addition to construction, underground exploration and development at the high-grade Huevos Verdes silver/gold vein. A feasibility study is also being prepared for Huevos Verdes.
The San Jose silver/gold project comprises a series of veins and vein-trends that total over 32 kilometers of potential strike length with 2.2 kilometers under development through two shafts at the Huevos Verdes resource. The 2005 work program is designed to complete the feasibility study and related exploration and development of the underground workings. The program will also complete construction of surface buildings and infrastructure and explore other vein targets already identified on the property. The development site at Huevos Verdes currently has a work force of 188 personnel.
The 2005 San Jose budget has been expanded to total approximately US$17 million, consisting of US$13.2 million in construction and reserve development of the Huevos Verdes vein, US$1.5 million for the completion of the feasibility study, and US$2.3 million for the exploration of additional targets on the property. It is anticipated that, following completion of a positive bankable feasibility in mid 2005, debt financing will be sought for the remainder of the required mine development budget.
An important part of the work underway at the San Jose project is a three-part drilling program designed to accelerate the conversion of resources into reserves, explore existing drill discoveries such as Huevos Verdes East and to test the new targets identified from the property-wide exploration program. Currently, three core drill rigs are active on the property and a fourth drill rig is expected next month.
The drill program at San Jose will total approximately 30,000 meters in 96 drill holes. The total drilling program calls for about 10,000 meters in 34 holes at Huevos Verdes; 11,180 meters in 38 holes at Huevos Verdes East and 8,000 meters in 24 holes on exploration targets within the San Jose property. The San Jose Project is managed by Minera Santa Cruz, an operating company co-owned by Minera Andes (49%) and its operating partner, Mauricio Hochschild & Cia. Ltda (51%).
The exploration program was reviewed by Brian Gavin, Minera Andes' vice president, exploration, who is an appropriately qualified person as defined by National Instrument 43-101.
Minera Andes is a gold, silver and copper exploration company working in Argentina. The corporation is funded with working capital of about US$1.2 million and a pending credit facility of up to US$3 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 71,609,306 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 West Hastings Street Spokane, WA 99208 USA Vancouver, B.C. V6C 1A5 Phone: (509) 921-7322 Phone: (604) 689-7017; 877-689-7018 E-mail: mineraandes@minandes.com E-mail: ircanada@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 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.