SPOKANE, Wash., Aug. 4, 2004 (PRIMEZONE) -- Construction work at Minera Andes'(OTCBB:MNEAF) (TSX Venture Exchange:MAI) Huevos Verdes gold/silver vein, part of the San Jose project in southern Argentina, is expanding and accelerating to complete underground workings by the end of 2004. The expanded and accelerated construction schedule is in part due to the recent underground work at the site that has indicated much higher gold and silver grades from the underground development sampling relative to the grades encountered in drilling from surface (see July 12, 2004 News Release) and to facilitate completion of the announced feasibility study.
Allen V. Ambrose, president of Minera Andes, said, "We are very pleased to see the work program accelerated. The increased tempo of this program reflects great confidence in the Huevos Verdes discovery. This underground development work, including drifts, inclines, vertical raises and a ramp to increase capacity, are an important step at Huevos Verdes moving us towards the road to production."
Underground Work Pace Increases
Minera Santa Cruz (MSC), an operating company owned jointly by Minera Andes' and its partner, Mauricio Hochschild & Cia. Ltda. (MHC) of Lima, Peru, plans to complete some 3500 meters of underground workings by the end of the year. Underground work is expected to increase monthly peaking in October. The underground work, estimated to be about one-quarter completed by the end of July, will connect both the North and South access shafts via underground workings when finished. Through their respective ownership interests in MSC, Minera Andes owns 49 percent of Huevos Verdes and the 98,800-acre San Jose project area of which it is a part, and MHC owns 51 percent.
Additional Workers Hired
The quickened pace of the construction schedule at Huevos Verdes has resulted in the hiring of more workers. Since January 2004 when 53 were employed, employment rose to 109 by midyear, and is expected to reach 166 workers by the end of 2004. Occupations represented include engineers, geologists, miners, maintenance personnel, computer systems operators, transportation personnel, and safety personnel. Completing the construction work has required the addition of new equipment, including the addition of several new scoop front end loaders and drills. Currently up to six faces are being worked underground at once and up to 14 faces will be active at any given time through the completion of the underground workings.
Minera Andes is funded with working capital of approximately US$5.0 million to carry out its exploration and development programs. Minera Andes is a mining exploration company focused on gold, silver and copper exploration in Argentina where it holds about 200,000 hectares (500,000 acres) of mineral exploration land and co-owns the advanced stage San Jose/Huevos Verdes gold/silver project now under construction for possible mine production, with a feasibility study underway. 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 70,291,490 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 1000-355 Burrard Street
Spokane, WA 99208 USA Vancouver, B.C. V6C 2G8
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. 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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.