SPOKANE, Wash., July 12, 2005 (PRIMEZONE) -- Minera Andes Inc. (TSX-V:MAI) and (OTCBB:MNEAF) is pleased to announce that additional high-grade gold/silver mineralization has been discovered during the feasibility study core drilling at its San Jose project in southern Argentina. Results for an additional 25 in-fill holes, totaling 5,605 meters, drilled at the Huevos Verdes vein have been received.
Allen Ambrose, president of Minera Andes, said: "These drilling results are now being added to the feasibility study that is planned for completion at the end of summer. We look forward to presenting the feasibility study NI43-101 technical report to the markets shortly thereafter in early fall. The study will contain the details on the project including estimates of reserves, production rates, and cash flow models."
HUEVOS VERDES VEIN
Drilling and drifting underground to date has defined three areas known as the North, Central, and South shoots along approximately 2.1 km of vein strike length to a depth of 250 meters. Results are presented here for 29 drill holes (twelve from the North shoot, ten from the Central shoot and seven from the South shoot) (see table below).
The best intercept in the North shoot grades 50.12 g/t (1.6 opt) gold and 5,149 g/t (166 opt) silver over 0.55 meters in drill hole SJD-126. This interval is part of a broader intercept of 3.70 meters averaging 9.42 g/t (0.30 opt) gold and 954 g/t (30 opt) silver.
In the Central shoot 19.23 g/t (0.62 opt) gold and 598 g/t (19 opt) silver occur over 0.41 meters in drill hole SJD-171 within a broader interval of 2.15 meters averaging 8.59 g/t gold (0.28opt) and 388 g/t (12 opt) silver.
The best intercept in the South shoot grades 46.78 g/t (1.5 opt) gold and 2,093 g/t (67 opt) silver over 0.36 meters in drill hole SJD-141. This interval is part of a broader intercept of 1.28 meters averaging 14.10 g/t (0.45 opt) gold and 617 g/t (20 opt) silver.
The Huevos Verdes vein trend, as currently defined, is a 2.2 km long trend characterized by three shoots revealed by the current infill drilling and 3.5 km of underground workings and 56 previous drill holes. The vein is an intermittent quartz vein of high-grade gold/silver mineralization found in areas not covered by overburden.
Drill results from the Huevos Verdes Vein, San Jose Project
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From To Interval Au Ag
Drill Hole (meters) (meters) (meters) (g/t) (g/t)
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North Shoot
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SJD-103 nil
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SJD-105 68.70 69.40 0.70 13.17 1,560
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and 114.77 119.22 4.45 4.12 302
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SJD-108 nil
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SJD-115 185.66 190.58 4.92 5.91 236
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SJD-117 50.30 51.35 1.05 2.50 310
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and 67.00 71.40 4.40 20.30 2,565
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incl. 69.50 70.40 0.90 58.46 8,126
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and 163.27 164.91 1.64 7.12 465
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SJD-119 nil
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SJD-120 nil
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SJD-121 nil
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SJD-122 141.30 141.67 0.37 1.98 445
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and 213.21 215.57 2.36 18.57 990
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incl. 213.21 214.12 1.39 29.76 1,650
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and 220.24 220.69 0.45 4.26 299
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and 243.85 244.25 0.40 4.11 272
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SJD-126 156.28 159.98 3.70 9.42 954
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incl. 156.28 156.83 0.55 50.12 5,149
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SJD-133 124.00 130.25 6.25 7.41 172
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incl. 126.20 127.00 0.80 42.85 82
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and 227.84 229.70 1.86 3.02 250
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and 245.82 246.62 0.80 7.05 713
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SJD-140 218.60 220.46 1.86 5.31 184
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and 246.28 249.20 2.92 3.81 283
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Central
Shoot
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SJD-124 nil
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SJD-128 nil
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SJD-157 nil
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SJD-161 nil
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SJD-167 nil
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SJD-171 184.75 186.90 2.15 8.59 388
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incl. 185.28 186.00 0.72 19.23 598
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SJD-172 18.23 19.12 0.89 1.12 243
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and 71.57 71.90 0.33 2.90 279
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and 112.11 113.62 1.51 1.35 254
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SJD-173 nil
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SJD-175 97.20 97.67 0.47 6.05 239
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and 98.38 98.80 0.42 2.97 233
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and 102.15 102.50 0.35 8.89 1,070
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and 109.20 109.70 0.50 3.51 458
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SJD-177 101.19 103.01 1.82 2.96 96
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and 105.70 107.06 1.36 4.53 344
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South Shoot
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SJD-134 112.08 114.20 2.12 4.15 395
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SJD-141 191.31 192.59 1.28 14.10 617
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incl. 191.31 191.67 0.36 46.78 2,093
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SJD-147 144.15 144.56 0.41 1.77 332
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SJD-150 nil
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SJD-152 nil
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SJD-153 175.91 176.42 0.51 4.03 471
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SJD-163 135.31 135.71 0.40 12.85 679
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The results from all drill holes and underground sampling will be used to estimate resources and reserves as part of the ongoing feasibility study. The reserve estimate and the feasibility study are slated for completion in the second half of this year. Assays are now in hand for all of the holes drilled.
The Huevos Verdes vein is 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 several core drill rigs operating at the San Jose project; Minera Andes is also core drilling other, 100% held, gold-silver projects in southern Argentina.
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$4.0 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 90,549,719 issued and outstanding shares.
This news is submitted by Allen V. Ambrose, President and Director of Minera Andes Inc.
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.