SPOKANE, Wash, June 23, 2005 (PRIMEZONE) -- Minera Andes Inc. (TSX-V:MAI)(OTCBB:MNEAF) is pleased to announce that core drilling at its San Jose project in southern Argentina has encountered significant gold and silver mineralization at the Frea vein trend. Results for an additional 50 in-fill holes, totaling 12,825 meters, have been received and will form part of the reserve/resource estimate that is the basis of the overall San Jose feasibility study.
A photo accompanying this release is available at: http://media.primezone.com/cache/2896/file/1995.html
In this drilling campaign the highest grade intercept in the Frea vein is 155.51 g/t (5.00 ounces per ton - opt) gold and 11,619 g/t (374 opt) silver over 0.40 meters in drill hole SJD-174. This interval is part of a broader intercept of 3.38 meters averaging 30.88 g/t (1.00 opt) gold and 2,096 g/t (67 opt) silver. Other highlights include 8.87 meters of 4.86 g/t (0.16 opt) gold and 462 g/t (15 opt) silver (SJD-118), 5.65 meters of 11.14 g/t (0.36 opt) gold and 608 (19 opt) g/t silver (SJ-129) and 3.75 meters of 9.39 g/t (0.30 opt) gold and 1,051 (34 opt) g/t silver (SJ-135). These assays complement the results presented in the news release dated April 28, 2005.
Drilling results at the Frea vein (previously called Huevos Verdes East) indicate that the vein should add a significant tonnage of high-grade mineralization to the resource/reserve estimate. Drilling to date has tested approximately 500 meters of vein strike length to a depth of 250 meters. These results indicate an exceptional success rate with 85 percent of the holes intercepting high-grade mineralization (see table below).
Allen Ambrose, president of Minera Andes, said: "The drilling results from the Frea vein show consistent high-grade mineralization that will be added to the project's reserves and resources. The feasibility study has taken longer than planned due to expansion of the project in size and scope through drilling of new mineralized zones and plans to increase the size of the mill processing facility from 500 to 750 ton per day. We anticipate these expansions will increase Minera Andes potential future cash flows from the San Jose Project based on a positive feasibility study outcome."
The discovery area at the Frea vein trend is located 2 km northeast of the Huevos Verdes vein (see attached map) on a separate, parallel vein trend. The Frea vein trend, as currently defined, is a 6 km long trend characterized by a 3 km long geophysical anomaly in the north, with intermittent quartz veining and/or high-grade gold/silver mineralization found in areas not covered by overburden in the south. The current drilling was done on the south central portion of a 3 km long geophysical anomaly.
Drill results from the Huevos Verdes Vein, San Jose Project
From To Interval Au Ag
Drill Hole (meters) (meters) (meters) (g/t) (g/t)
---------------------------------------------------------------
Frea Vein
SJD-100 272.68 273.88 1.20 10.95 218
SJD-101 nil
SJD-102 317.06 318.35 1.29 12.78 23
SJD-104 234.30 238.13 3.83 9.18 370
incl. 234.30 234.97 0.67 6.6 612
incl. 236.09 238.13 2.04 14.56 443
SJD-106 304.70 304.99 0.29 7.19 14
and 307.93 308.90 0.97 7.10 232
SJD-107 112.00 112.40 0.40 1.29 322
and 167.30 168.41 1.11 6.15 863
and 176.70 178.52 1.82 3.29 430
and 202.35 202.68 0.33 15.07 1,514
and 230.95 232.40 1.45 3.79 340
and 242.14 244.52 2.38 25.28 686
SJD-109 185.88 186.18 0.30 9.92 365
SJD-110 91.72 93.45 1.73 3.00 310
SJD-111 123.29 134.00 10.71 1.76 281
incl. 124.10 125.29 1.19 3.72 789
incl. 129.33 130.61 1.28 3.63 465
SJD-112 nil
SJD-113 322.30 324.43 2.13 2.96 34
SJD-114 141.97 142.75 0.78 2.32 527
and 158.58 162.07 3.49 2.13 293
SJD-116 136.80 137.58 0.78 18.95 2,724
and 223.82 224.13 0.31 20.37 867
and 259.51 260.52 1.01 14.90 281
SJD-118 152.10 152.40 0.30 16.32 4,118
and 158.65 159.55 0.90 2.53 326
and 167.13 176.00 8.87 4.86 462
incl. 174.50 175.00 0.50 14.01 1,421
SJD-123 166.03 167.31 1.28 4.78 1,061
incl. 166.85 167.31 0.46 10.22 2,450
SJD-125 122.35 123.82 1.47 22.46 2,828
and 284.42 285.92 1.50 18.75 273
SJD-127 nil
SJD-129 209.73 215.38 5.65 11.14 608
incl. 209.73 212.05 2.32 23.12 1,183
SJD-130 87.77 88.25 0.48 4.16 750
and 109.50 111.32 1.82 4.80 208
SJD-131 99.60 103.12 3.52 3.66 372
incl. 101.60 103.12 1.52 6.04 496
SJD-132 126.16 134.37 8.21 3.17 377
incl. 126.16 128.42 2.26 4.37 613
SJD-135 125.45 129.20 3.75 9.39 1,051
SJD-136 332.61 333.70 1.09 3.83 154
SJD-137 130.06 137.88 7.82 2.42 327
incl. 134.45 136.53 2.08 5.38 733
SJD-138 132.50 132.73 0.38 2.91 358
and 289.37 293.44 4.07 9.33 32
incl. 292.12 293.00 0.88 38.12 72
SJD-139 105.38 106.10 0.72 21.33 200
and 108.78 109.10 0.32 3.01 200
and 124.81 126.38 1.57 4.03 201
SJD-142 114.89 115.89 1.00 3.95 529
and 116.78 119.04 2.26 2.99 331
and 120.54 125.45 4.91 3.55 316
incl. 121.12 121.62 0.50 10.63 1,263
incl. 123.40 125.45 2.05 5.17 352
SJD-143 110.55 111.30 0.75 4.16 200
and 273.05 273.50 0.45 2.86 170
and 285.37 287.46 2.09 26.79 126
SJD-144 276.77 277.14 0.37 7.15 90
and 283.38 283.68 0.30 10.45 1,133
and 287.23 288.23 1.00 10.94 215
SJD-145 230.10 230.63 0.53 2.35 249
and 273.33 274.78 1.45 53.52 1,055
incl. 274.18 274.48 0.30 184.51 4,104
SJD-146 255.72 256.77 1.05 4.43 391
and 258.59 261.17 2.58 4.73 321
SJD-148 nil
SJD-149 310.77 311.68 0.91 81.79 571
SJD-151 232.33 234.96 2.63 4.12 217
and 250.90 251.51 0.61 7.18 65
SJD-154 58.50 60.50 2.00 8.17 186
SJD-155 171.57 172.20 0.63 19.61 1,303
and 295.84 297.60 1.76 3.58 287
SJD-156 213.02 213.38 0.36 9.31 172
and 221.95 222.50 0.55 2.68 269
SJD-158 nil
SJD-159 nil
SJD-160 295.65 297.35 1.70 5.84 51
SJD-162 124.35 125.00 0.65 1.42 232
SJD-164 nil
SJD-165 224.88 226.44 1.56 9.81 80
SJD-166 263.15 264.50 1.35 4.81 186
SJD-168 234.32 235.53 1.21 66.79 1,926
SJD-169 102.56 103.01 0.45 2.14 341
and 112.32 113.17 0.85 7.86 711
and 116.45 117.00 0.55 11.50 1,452
SJD-170 135.62 136.56 0.94 6.55 614
and 138.30 139.05 0.75 5.01 724
and 145.85 148.10 2.25 3.57 273
and 150.60 151.89 1.29 3.21 141
and 154.14 155.25 1.11 6.25 664
SJD-174 155.31 158.69 3.38 30.88 2,096
incl. 156.17 156.57 0.40 155.51 11,619
SJD-176 193.22 193.66 0.44 5.60 96
and 195.41 195.68 1.17 10.56 599
and 198.59 201.26 2.67 5.74 70
FEASIBILITY STUDY
The results from all drill holes and underground sampling will be used to estimate a definitive ore reserve as part of the ongoing San Jose feasibility study. The ore reserve estimate and the feasibility study are slated for completion by the end of summer. Assays are now in hand for all of the holes drilled at the Frea vein.
The Huevos Verdes and Frea veins are 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 several core drill rigs operating at the San Jose project; Minera Andes is also core drilling other, 100% held, gold-silver projects in southern Argentina.
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$4.0 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 90,549,719 issued and outstanding shares.
This news is submitted by Allen V. Ambrose, President and Director of Minera Andes Inc.
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.