SPOKANE, Wash., Nov. 4, 2004 (PRIMEZONE) -- Minera Andes Inc. (TSX Venture Exchange:MAI) (OTCBB:MNEAF) will begin exploration drilling around November 8th on the first of two 100 percent owned gold/silver discoveries made early this year in southern Argentina. Site preparation and equipment mobilization is underway now at El Trumai, a silver/gold discovery made by Minera Andes, and located in northwest Santa Cruz province.
Allen V. Ambrose, president of Minera Andes said, "El Trumai is located just south of our San Jose project for which a feasibility study is now underway. Both El Trumai and La Huella are good fits for our exploration model. They contain geology similar to the high-grade silver/gold Huevos Verdes vein on the San Jose project and they contain low-sulfidation mineralized structures. The discovery of these veins again confirms our professional opinion that Santa Cruz province is highly prospective for new silver and gold discoveries."
The El Trumai Project
Minera Andes' geologists plan to diamond drill six holes totaling at least 1,200 meters at El Trumai, which was acquired by Minera Andes' geologists in northwest Santa Cruz province earlier in 2004. El Trumai is located about 80 kilometers south of the San Jose project. Like the San Jose project, the mineral structures strike north/northwest to northwest.
El Trumai comprises 6,274 hectares (15,489 acres) and was acquired based on an exploration model designed to emphasize hydrothermal alteration. Outcropping alteration, mineralization, and surface geochemistry at El Trumai are consistent with the low-sulfidation vein model indicators found above areas that can host gold/silver mineralization.
Surface sampling, including 82 rock chip samples taken from altered and mineralized zones, included anomalous gold (up to 877 parts-per-billion or ppb); and strongly anomalous silver (up to 275 ppm or about 9 ounces silver per ton). Other anomalous "pathfinder" elements, such as arsenic and mercury that are typically found with epithermal vein-hosted mineralization, are also present.
A geophysical program suggests several well-defined zones of disseminated sulfide mineralization about 20 to 100 meters beneath the surface. The strongest anomaly extends for more than 1,200 meters and may contain veins.
The La Huella Project
La Huella, located in eastern Santa Cruz province, about 155km southeast from the San Jose project will be drill-tested after El Trumai, also with about six diamond-drill holes totaling at least 1,200 meters.
Minera Andes' geologists regard La Huella as geologically very similar to El Trumai, and a good example of a low-sulfidation silver/gold, vein-hosted epithermal structural environment similar to Anglo Ashanti Gold's Cerro Vanguardia silver/gold mine in Santa Cruz province. Cerro Vanguardia currently has a reserve of more than 3.2 million ounces of gold equivalent ore.
Quartz-hosted mineralization extends along two principal structures within an area 2.5 kilometers long and 1 kilometer wide. These characteristics are similar to Minera Andes' 98,800-acre San Jose project, of which Huevos Verdes is a part. In the San Jose project, 32 kilometers of quartz-hosted vein trend have been currently identified. Only 10 percent of this strike length has been extensively drill-tested.
Minera Andes explores for gold, silver and copper in Argentina, and has made new discoveries of all three metals in 2004. The Company is funded with working capital of about US$3.2 million and is in the process of completing a credit facility of up to US$4 million with Macquarie Bank. Minera Andes holds about 200,000 hectares (500,000 acres) of mineral exploration land in Argentina, including the co-owned 98,800-acre San Jose/Huevos Verdes advanced-stage silver/gold project now under construction for possible mine production. A feasibility study for Huevos Verdes is pending. Minera Andes has also discovered an enriched copper zone at its Los Azules property and is acquiring other exploration targets in southern Argentina. The Company has 71,076,560 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;
E-mail: mineraandes@minandes.com 877-689-7018
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.
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