SPOKANE, Wash., Feb. 10, 2005 (PRIMEZONE) -- Minera Andes Inc. (TSX Venture Exchange:MAI) (Pink Sheets:MNEAF) is pleased to announce that new high-grade silver/gold mineralization has been discovered at the Huevos Verdes advanced-stage construction project in southern Argentina. Newly exposed mineralization along 150 meters of the vein averages 1.76 meters of 11.03 g/t gold & 645 g/t silver (490 ft vein segment averaging 5.8 ft of 0.32 opt Au & 18.8 opt Ag). This high-grade vein segment remains open along strike and at depth. As with other vein segments exposed in the southern workings earlier in the underground program, this average is appreciably higher than indicated by surface core drilling.
During the fourth quarter 2004, 926 meters of underground workings were completed, a 16% increase over the 798 meters of workings completed in the third quarter and a 100% increase over the second quarter. By year's end, Minera Andes' and operator/partner Mauricio Hochschild and Cia. Ltda. (MHC) had completed about 2,400 of the planned 3,500 meters of underground workings at Huevos Verdes (see attached map). The goal of underground development is to upgrade the existing resource base to an ore reserve as part of a bankable feasibility study. In addition to the underground work a 30,000 meter drilling program is underway to explore new targets and define new reserves and resources on the property.
To date gold and silver mineralization encountered in the southern workings is higher grade than in the northern workings; drilling indicates that the northern workings will encounter higher grades at the 430 level, about120 meters below surface whereas in the southern workings higher grades extend to the surface. The northern workings are now at the 430 level.
The underground program is providing insights into the precious metals distribution at Huevos Verdes that will help guide the exploration program to locate new areas of mineralization and will become a part of the project's equity based capital upon the potential completion of a positive feasibility study thereby allowing production to commence immediately upon completion of plant and ancillary facilities.
Results of selected, uncut underground samples from the Huevos Verdes vein are listed in the table below. Channel samples were collected about every 2.0 meters perpendicular to the strike of the vein to obtain an accurate estimate of metal values. Assay results are obtained from laboratories using industry standard QA and QC protocols. All results have been reviewed by Brian Gavin, Minera Andes' vice president of exploration and an appropriately qualified person as defined by National Instrument 43-101.
Assay Results of Underground Development, San Jose
South
Average
Length Width Gold Silver
Working (m) (m) (g/t) (g/t)
--------------- ----------- ---------------- ------------- --------
Drift G700 230 1.18 4.54 392
--------------- ----------- ---------------- ------------- --------
Raise CH340 15 0.80 10.57 642
--------------- ----------- ---------------- ------------- --------
Drift G110N 110 1.10 6.77 439
--------------- ----------- ---------------- ------------- --------
Drift G110S 150 1.76 11.03 645
--------------- ----------- ---------------- ------------- --------
Assay Results of Underground Development, San Jose
North
Average
Length Width Gold Silver
Working (m) (m) (g/t) (g/t)
--------------- ----------- ---------------- ------------- --------
Raise CH520 3 1.20 2.18 66
--------------- ----------- ---------------- ------------- --------
Raise CH330 64 1.35 1.96 174
--------------- ----------- ---------------- ------------- --------
Raise CH460 70 1.65 2.38 226
--------------- ----------- ---------------- ------------- --------
Minera Andes is a gold, silver and copper exploration company working in Argentina. The corporation is funded with working capital of about US$1.9 million and a pending credit facility of up to US$2 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 71,674,306 issued and outstanding shares.
Spokane Office Vancouver Office
111 East Magnesium Rd., Suite A 410-744 West Hastings Street
Spokane, WA 99208 USA Vancouver, B.C. V6C 1A5
Phone: (509) 921-7322 Phone: (604) 689-7017;
877-689-7018
mineraandes@minandes.com 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. 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.