SPOKANE, Wash., Jan. 7, 2005 (PRIMEZONE) -- Minera Andes Inc. (TSX Venture Exchange:MAI) (OTCBB:MNEAF) is pleased to report on its success in exploration and development in 2004. The Company made significant strides in its business plan during the year, particularly with development at the advanced-stage Huevos Verdes silver/gold vein, located within the San Jose project area in southern Argentina. In addition, new gold, silver and copper discoveries were made by Minera Andes on its 100 percent-owned exploration projects in Argentina. Management has been active in Argentina for eleven years and has developed a strong expertise in all aspects of conducting exploration/development business therein.
Allen V. Ambrose, president, reports, "In 2004, our operating partner Mauricio Hochshild & Cia Ltda. has accelerated the work program at Huevos Verdes, and are dedicated to fast development there in order to achieve feasibility. This demonstrates confidence in the integrity and potential of the Huevos Verdes vein system as well as in the overall San Jose project. Also in 2004, Minera Andes' new gold, silver and copper discoveries added significant new value to the Company's asset base. We look forward to further exploring these and other target areas in Argentina in 2005."
Silver/Gold Pre-Production Project Advances
Major events occurred in 2004 to advance the Huevos Verdes construction project. The accelerated development at this vein-hosted, low-sulfidation, epithermal silver/gold mineralization system has moved the joint venture much closer to a production decision.
-- A comprehensive, third-party feasibility study was commissioned
to assess possible mine production.
-- Underground construction commenced, focused on an area of drill-
proven, high-grade mineralization of some 2.3 km in length.
-- Underground testing discovered new high-grade silver/gold zones
and previously unknown veins. These discoveries hold potential
for increased grade and tonnage at Huevos Verdes. One sample
reported last year encountered bonanza grades of 728 ounces per
ton (22,653 g/t) silver and 6.4 ounces per ton (198 g/t) gold.
-- Metallurgical testing of Huevos Verdes' silver/gold
mineralization demonstrated high recoveries (over 90 percent
for both silver and gold) are possible using standard industry
technology. This high recovery percentage could increase overall
recovery in the potential mine situation at Huevos Verdes.
-- Reflecting confidence in Huevos Verdes, pre-production employment
at San Jose project exceeded 160 by December 2004 compared to 53
in January 2004, an increase in work-force of over 300%.
-- Access routes to the project area were completed, including a 28
km all-weather road with bridge access and selected surface land
rights were purchased at San Jose.
Mauricio Hochschild & Cia. Ltda. of Lima, Peru is the operating partner (51 percent) of the San Jose project with Minera Andes owning the remaining 49 percent.
Minera Andes Makes New Discoveries
Minera Andes has historically concentrated its attention on the discovery of gold, silver and copper in Argentina. In 2004, in addition to the discoveries at San Jose, Minera Andes undertook a 100 percent-owned and managed exploration program resulting in new discoveries of all three metals. A summary is as follows:
-- Exploration at Huevos Verdes continued to identify more
silver/gold mineralization. The Huevos Verdes vein itself remains
open at depth and laterally. The entire San Jose project area is
host to four parallel vein structures totaling some 32 kilometres
in combined length, as outlined by reconnaissance field work and
geophysical surveys conducted by Minera Andes. Only some 15% of
the outlined vein package has yet been drilled.
-- Drilling at Huevos Verdes East intersected significantly higher-
grade silver/gold mineralization than is currently known at
Huevos Verdes. The Huevos Verdes East vein is a parallel vein
approximately two kilometers to the east of the Huevos Verdes
vein which management feels has excellent potential to host an
economic silver/gold ore body as well.
-- Reconnaissance drilling in west central Argentina confirmed the
discovery of a sizeable zone of enriched copper. The Los Azules
copper project contains preliminary drill showings of leachable
secondary copper mineralization.
-- Minera Andes identified four new gold/silver prospects and
drilled two properties in southern Argentina. Minera Andes also
continued an ongoing exploration program to locate new
discoveries.
Minera Andes is a gold, silver and copper exploration company working in Argentina funded with working capital of about US$1.5 million and a pending credit facility of up to US$3 million for feasibility 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 71,609,306 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
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.