SPOKANE, Wash., April 28, 2005 (PRIMEZONE) -- Minera Andes Inc. (TSX-V:MAI) (OTCBB:MNEAF) is pleased to announce an area of high-grade gold/silver has been discovered during the feasibility study core drilling at its San Jose project in southern Argentina.
Forty-three holes totaling 10,800 meters have been drilled at the Frea vein (previously called Huevos Verdes East) and results indicate that the vein should add a significant tonnage of high-grade mineralization to the resource/reserve estimate. Drilling to date has tested approximately 500 meters of vein strike length to a depth of 250 meters. Assays results have been received on 24 drill holes with an exceptional success rate of 75 percent of the holes intercepting high-grade mineralization (see table below). These results will be used to define a portion of the reserve that will form the basis of the on-going feasibility study at San Jose.
To date the highest grade intercept in the Frea vein is 885.2 g/t (28.5 opt) gold and 13,762 g/t (442 opt) silver over 0.32 meters in drill hole SJD-97. This interval is part of a broader intercept of l.62 meters averaging 231 g/t gold and 3,983 g/t silver. Other highlights include 8.23 meters of 7.9 g/t gold and 902 g/t silver (SJD-55), and 5.47 meters of 43.8 g/t gold and 1,860 g/t silver (SJ-79).
Allen Ambrose, president of Minera Andes, said: "The results so far from the Frea vein suggest that the project's potential is only just being realized. Drilling to date has been very successful, considering the limited area tested with the current drilling campaign and speaks to the potential of the property."
As of mid-April approximately 85 "fill-in" holes (14,000 meters) have also been drilled on the main Huevos Verdes vein to complement the almost 3.5 km of underground workings and 56 previous drill holes. The results from all drill holes and underground sampling will be used to estimate a definitive ore reserve as part of the ongoing feasibility study. The ore reserve estimate and the feasibility study are slated for completion in the second half of this year. Assays are now in hand for about half of the holes drilled.
The Huevos Verdes and Frea veins are part of the San Jose project, held by Minera Santa Cruz ("MSC") the joint venture corporation co-owned by Minera Andes (49%) and Mauricio Hochschild & Cia. Ltda. (51%). There are currently five core drill rigs operating at the San Jose project; Minera Andes is also core drilling other, 100% held, gold-silver projects in southern Argentina.
Frea Vein (Huevos Verdes East)
The discovery area at the Frea vein trend is located 2 km northeast of the main Huevos Verdes vein (see attached map) on a separate, parallel vein trend. The Frea vein trend, as currently defined, is a 6 km long trend characterized by a 3 km long geophysical anomaly in the north, with intermittent quartz veining and/or high-grade gold/silver mineralization found in areas not covered by overburden in the south. The current drilling was done on the south central portion of a 3 km long geophysical anomaly (A map can be viewed at: http://media.primezone.com/cache/2896/file/1871.html). The table below lists all the new Frea drill intercepts received to date:
Drill results from the Frea Vein, San Jose Project
Drill From To Interval(1) Au Ag
Hole (meters) (meters) (meters) (g/t) (g/t)
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SJD-41 281.25 285.65 4.40 19.8 665
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SJD-48 156.4 161.15 4.75 6.4 705
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SJD-52 111.2 112.65 1.45 4.9 835
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120.45 122.3 1.85 4.7 588
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SJD-54 184.25 185.55 1.30 17.7 1312
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SJD-55 183.44 191.67 8.23 7.9 902
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SJD-56 158.1 158.95 0.85 0.4 52
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SJD-57 129.7 130.2 0.50 17.6 1826
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SJD-68 263.18 265.74 2.56 9.1 1161
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271.18 273.1 1.92 7.4 408
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SJD-70 115.28 118.91 3.63 2.2 444
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SJD-73 Nil
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SJD-78 101.5 102.5 1.0 6.6 471
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SJD-79 219.55 225.02 5.47 43.8 1860
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includes 220.18 221.28 1.10 188.0 7090
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SJD-80 270.97 274.03 3.06 5.2 742
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SJD-86 93.95 94.95 1.0 0.3 32
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SJD-87 253.47 256.45 2.98 24.7 1349
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SJD-89 104.53 105.58 1.05 1.0 176
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SJD-92 131.7 133.18 1.48 1.02 128
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SJD-93 Nil
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SJD-96 Nil
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SJD-94 344.19 348.42 4.23 19.5 230
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SJD-95 213.90 217.00 3.10 9.5 311
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SJD-97 281.69 283.31 1.62 231.0 3983
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includes 281.69 282.01 0.32 885.2 13,762
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SJD-98 120.59 121.08 0.49 3.98 946
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SJD-99 183.55 185.03 1.48 9.8 749
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(1)Intervals appear to represent true widths
Assay results for the drilling were reviewed by Brian Gavin, Minera Andes' vice president, exploration, who is an appropriately qualified person as defined by National Instrument 43-101. All samples were collected in accordance with industry standards. Splits from the drill core samples were submitted to Alex Stewart Assayers, Argentina, S.A., in Mendoza, Argentina, for fire assay and ICP analysis. Accuracy of results is tested through the systematic inclusion of standards, blanks and check assays.
Minera Andes is a gold, silver and copper exploration company working in Argentina. The corporation is funded with working capital of about US$6.4 million and a pending credit facility of up to US$2 million for feasibility study 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 90,084,719 issued and outstanding shares.
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.