SPOKANE, Wash., Aug. 6, 2002 (PRIMEZONE) -- Recent reconnaissance surface sampling at Minera Andes' El Pluma/Cerro Saavedra project in Santa Cruz province, southern Argentina, has discovered new gold/silver mineralization confirming the mineralized nature of four separate structural trends highlighted by previous geological and geophysical surveys. This sampling, conducted by Minera Andes' (TSX Venture Exchange:MAI) (OTCBB:MNEAF) joint venture partner, is part of a larger property-wide mapping and sampling program continuing through the Argentine winter (June-August) to further define targets for drilling in the fourth quarter of this year.
Minera Andes recently announced an independent resource estimate on a portion of one of the four vein trends at Huevos Verdes situated near the center of the property (see July 17, 2002 News Release at www.minandes.com). A resource was estimated from detailed drilling on 2.2 km of the vein. Underground exploration and development work by Minera Andes' joint venture partner, Mauricio Hochschild & Cia. Ltda. ("MHC"), is planned to start by the fourth quarter.
Huevos Verdes is one of four parallel gold/silver quartz vein targets to be sampled along with La Sorpresa, El Pluma West, and Huevos Verdes East (see attached map). These targeted structural trends are defined by geophysical anomalies (except La Sorpresa), intermittently exposed vein, breccias, and vein float, with high-grade gold/silver values over a total of more than 20 km of potential strike length in the 50,000 hectare epithermal gold/silver land package. The results of this sampling program support the results of geophysical surveys which indicate potential for these structures, located within a mineralized, north-northwest-trending corridor to have excellent possibilities to increase the total gold/silver resource. A detailed description of the sampling program results on the four identified structural trends follows (see attached map).
PLUMA SOUTH-HUEVOS VERDES TREND
Some of the highest-grade samples were collected on this trend (number 1 on attached map) at Pluma South and probably represent the northwest extension of the Huevos Verdes high-grade gold/silver vein. This more than doubles the size potential of the Huevos Verdes vein system to 5 km. As mentioned above, a gold and silver resource has been estimated on a 2.2 km portion of this vein. Results from a total of 92 surface rock chip samples at Pluma South ranged from nil to 81.7 g/t gold, and nil to 933 g/t silver. Anomalous gold samples included 25 samples assaying at least 0.50 g/t, of which 12 samples exceeded 1.0 g/t. Anomalous silver samples included 10 assays over 50 g/t. High-grade samples include 6.1 g/t (0.2 opt) Au, and 815 g/t (26 opt) Ag; 2.0 g/t (0.06 opt) Au, and 240 g/t (8 opt) Ag; and included a bonanza high-grade sample of 81.7 g/t (2.63 opt) Au and 932.5 g/t (30 opt ) Ag.
PLUMA SOUTH-SAAVEDRA WEST TREND
The Pluma South-Saavedra West trend (number 2 on attached map) has an approximate strike length of more than 10 km and is delineated by quartz vein exposures and geophysical anomalies. Recent samples from the northern end of this trend at Pluma South returned some of the highest gold and silver assays in this sampling campaign. MHC plans additional sampling and mapping along this trend.
PLUMA WEST-HUEVOS VERDES EAST TREND
A potentially large mineralized quartz vein structure, approximately 7 km long, is defined by the Pluma West-Huevos Verdes East trend (number 3 on attached map). Geophysical anomalies in basalt covered areas connect a gold/silver vein stockwork system at Pluma West with vein outcrops at Huevos Verdes East. Recent sampling by MHC has yielded many high-grade assays. Previous reconnaissance sampling at Pluma West by Minera Andes' geologists also revealed scores of high-grade samples. Recent gold assays from MHC on approximately300 samples ranged from nil to 40.0 g/t including 60 at 0.50 g/t or higher. There are 40 gold assays ranging from 1.0 g/t to 40.0 g/t (1.3 opt). Silver values are generally low, ranging from nil to154 g/t.
Approximately 4 km on trend to the south at Huevos Verdes East, 32 rock chip samples were collected by MHC. Assays ranged from nil to 1,079 g/t (35 opt) silver.
LA SORPRESA-WEST PORTUGUESE TREND
The northern most quartz vein trend on the property is defined by intermittently exposed quartz vein in windows through the thin basalt cover at La Sorpresa, Eastern Windows, Roadside, and West Portuguese over a distance of more than 10 km (number 4 on attached map). Previous exploration, including one drill hole at La Sorpresa by Minera Andes, revealed substantial gold/silver mineralization. At La Sorpresa the quartz vein is exposed intermittently over 0.5 km. Of the 123 samples rock chip samples taken, gold and silver results ranged from nil to a high of 13.9 g/t Au and 1,855 g/t Ag. Twelve samples contain over 0.50 g/t gold including three samples containing high-grade gold and/or silver as follows: 13.9 g/t (0.45 opt) Au, 1,855 g/t (60 opt) Ag; 1.2 g/t (0.038 opt) Au, 1,170 g/t (38 opt) Ag; and 1.0 g/t (0.03 opt) Au, 759 g/t (24 opt) Ag.
SUMMARY
New sampling on all four parallel quartz vein systems identified on the property has resulted in the discovery of several new areas of high-grade gold/silver mineralization. Ongoing field work has continued to expand the potential of the property and reveal its true mining district scale potential. In addition, as previously announced, a new mineralized area, Aguas Vivas, has been discovered 10 kilometers to the northwest of the previously known structures. A mineral claim covering 10,000 hectares (24,700 acres) has been acquired for the joint venture.
MHC is earning a 51 percent ownership in the Huevos Verdes project under terms of a joint venture and operating agreement signed in 2001. Terms of the agreement include the expenditure of US$3 million by MHC over three years to earn 51 percent ownership; the expenditure of a minimum of US$100,000 on other targets within the land package; and payment to the Corporation of US$400,000 per year.
MHC, a large private South American metal mining and cement production company, specializes in the mining of vein-hosted metal deposits. In Peru, MHC is a major gold and silver producer from its underground mines.
Minera Andes is a mining exploration corporation that controls approximately 12 projects on about 163,000 hectares (402,733 acres) of mineral exploration land in Argentina. Most of the properties are located in the Andean cordillera and primarily contain gold, silver and copper mineralization targets. The Corporation is presently pursuing the further development of its gold/silver discovery property in Santa Cruz province.
For further information, please contact: Allen V. Ambrose, president, at the Spokane office, or Krister A. Kottmeier, investor relations-Canada, at the Vancouver office. Visit our Web site: www.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. 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.
CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF INFERRED RESOURCES:
This news release uses the term "Inferred Resources." We advise U.S. investors that while this term is recognized and required by Canadian regulations, the SEC does not recognize it. "Inferred Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "Inferred Resource" will ever be upgraded to a higher category. Under Canadian rules estimates of "Inferred Resources" may not form the basis of feasibility or other economic studies. U.S. INVESTORS ARE CAUTIONED NOT TO ASSUME THAT PART OR ALL OF AN "INFERRED RESOURCE" EXISTS, OR IS ECONOMICALLY OR LEGALLY MINABLE.
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