SPOKANE, Wash., May 12, 2005 (PRIMEZONE) -- Minera Andes Inc. (TSX-V:MAI) (OTCBB:MNEAF) is pleased to announce that additional high-grade gold/silver mineralization has been discovered during the feasibility study core drilling at its San Jose project in southern Argentina.
Eighty five in-fill holes totaling 14,000 meters have been drilled at the Huevos Verdes vein and results have been received for 34 of these holes. Drilling and drifting underground to date has defined three areas known as the North, Central, and South ore shoots along approximately 2.1 km of vein strike length to a depth of 250 meters. Assay results have been received on 34 drill holes (sixteen from the North shoot, seven from the central shoot and eleven from the South shoot). These results, in combination with the ongoing underground sampling, will be used to define a portion of the reserve that will form the basis of the on-going feasibility study at San Jose.
The best intercept in the North shoot grades 108.83 g/t (3.5 opt) gold and 6,160 g/t (198 opt) silver over 1.62 meters in drill hole SJD-88. This interval is part of a broader intercept of 7.40 meters averaging 30.23 g/t gold and 1,722 g/t silver.
In the Central shoot, 91.99 g/t (2.96 opt) gold and 13,636 g/t (438 opt) silver occur over 0.41 meters in drill hole SJD-83 within a broader interval of 3.48 meters averaging 15.74 g/t gold and 2,074 g/t silver.
The best intercept in the South shoot grades 18.45 g/t (0.59 opt) gold and 1,010 g/t (32 opt) silver over 0.64 meters in drill hole SJD-85. This interval is part of a broader intercept of 2.36 meters averaging 10.14 g/t gold and 469 g/t silver.
Allen Ambrose, president of Minera Andes, said: "The results from this round of drilling for the feasibility study continue to validate the high-grade nature of the gold/silver mineralization and add to our reserve base."
The results from all drill holes and underground sampling will be used to estimate a definitive ore reserve as part of the ongoing feasibility study. The ore reserve estimate and the feasibility study are slated for completion in the second half of this year. Assays are now in hand for about half of the holes drilled.
The Huevos Verdes vein is part of the San Jose project, held by Minera Santa Cruz ("MSC"), the joint venture corporation co-owned by Minera Andes (49%) and Mauricio Hochschild & Cia. Ltda. (51%). There are currently five core drill rigs operating at the San Jose project; Minera Andes is also core drilling other, 100% held, gold-silver projects in southern Argentina.
Huevos Verdes Vein
The Huevos Verdes vein trend, as currently defined, is a 2.2 km long trend characterized by three ore shoots revealed by the current infill drilling, 3.5 km of underground workings and 56 previous drill holes. At surface the vein is an intermittent quartz vein of high-grade gold/silver mineralization found in areas not covered by overburden. Eighteen of the 34 holes drilled contained anomalous to nil gold and silver values. The table below lists sixteen of the new Huevos Verdes drill intercepts received to date:
Drill results from the Huevos Verdes Vein, San Jose Project
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Drill From To Interval(a) Au Ag
Hole (meters) (meters) (meters) (g/t) (g/t)
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North Shoot
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SJD-58 121.3 123.3 2.00 4.56 668
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SJD-62 130.85 133.54 2.69 3.56 285
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SJD-64 155.12 155.36 0.24 10.53 1,560
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SJD-69 173.7 174.05 0.35 4.56 421
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SJD-82 128.78 130.1 1.32 12.53 62
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and 166.69 167.19 0.50 19.34 422
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and 168.91 170.93 2.02 7.01 317
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SJD-84 76.57 77.7 1.13 1.82 309
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and 227.75 229.87 2.12 4.49 560
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and 245.25 245.59 0.34 5.4 921
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SJD-88 245.9 253.3 7.40 30.23 1,722
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incl. 247.01 248.63 1.62 108.83 6,160
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incl. 252.55 253.3 0.75 66.34 3,670
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SJD-90 218.67 220.96 2.29 10.01 505
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incl. 218.67 219.39 0.72 28.90 1,296
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Central Shoot
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SJD-45 71.67 80.73 9.06 2.83 245
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incl. 74.3 77.7 3.4 4.00 263
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incl. 79.2 80.73 1.53 4.24 335
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SJD-46 146.65 149.85 3.20 6.75 88
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SJD-81 174 174.32 0.32 5.01 358
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and 178.4 179.45 1.05 11.91 1,600
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SJD-83 103.7 107.18 3.48 15.74 2,074
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incl. 106 106.41 0.41 91.99 13,636
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South Shoot
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SJD-49 21.4 29.75 8.35 4.31 339
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incl. 26.9 27.7 0.8 22.69 1,706
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SJD-50 18.2 19.75 1.55 4.11 120
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SJD-53 49.75 51.85 2.1 7.62 72
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incl. 50.9 51.85 0.95 15.17 129
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SJD-85 187 189.36 2.36 10.14 469
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incl. 187.86 188.5 0.64 18.45 1010
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(a) intervals appear to represent true widths
Assay results for the drilling were reviewed by Brian Gavin, Minera Andes' vice president, exploration, who is an appropriately qualified person as defined by National Instrument 43-101. All samples were collected in accordance with industry standards. Splits from the drill core samples were submitted to Alex Stewart Assayers, Argentina, S.A., in Mendoza, Argentina, for fire assay and ICP analysis. Accuracy of results is tested through the systematic inclusion of standards, blanks and check assays.
Minera Andes is a gold, silver and copper exploration company working in Argentina. The corporation is funded with working capital of about US$6.1 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 90,524,719 issued and outstanding shares.
Submitted on behalf of the board of directors by Allen V. Ambrose, President and Director of Minera Andes Inc.
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 (604) 689-7017; 877-689-7018 E-mail: 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.