SPOKANE, Wash., Aug. 5, 2005 (PRIMEZONE) -- Minera Andes Inc. (TSX-V:MAI) (OTCBB:MNEAF) would like to clarify drill results previously reported in a news release dated August 3, 2005. Clarification can be found in the paragraph following the table below.
Minera Andes Inc. is pleased to announce the results of two recently completed reconnaissance drilling campaigns at two of its wholly owned gold-silver exploration projects in Santa Cruz province, southern Argentina. According to the Company's President, Allen Ambrose, "Promising drill results came from Cerro Mojon and it appears that additional drill targets are deeper in the system and below our current drilling." The drill results are currently being evaluated by our geologic staff for further drilling programs.
Cerro Mojon
Eleven diamond drill holes, totaling 1,906.75 meters, were completed at the Cerro Mojon project with some encouraging results. These holes tested 10 of the 15 different hydrothermal vein structures previously mapped in the project area. The majority of drill holes intercepted their targets within 100 m of the surface outcrop the vein structure. Best results include hole CM-05-11 with 1.4 meters containing 6.99 g/t gold and 17 g/t silver within a broader intercept of 3.55 meters containing 3.01 g/t gold and 19 g/t silver and hole CM-05-09 containing 0.3 meters containing 0.38 g/t gold and 486 g/t silver.
Drill results from Cerro Mojon, Argentina
From To Interval Gold Silver
Drill Hole (meters) (meters) (meters) (g/t) (g/t)
CM-05-01 88.20 88.61 0.41 1.09 1
CM-05-02 223.1 224.0 0.90 0.70 1
CM-05-04 94.62 94.87 0.25 1.29 33
99.50 100.73 1.23 0.97 2
CM-05-09 49.16 49.46 0.30 0.38 486
50.65 54.50 3.85 0.58 3
CM-05-11 79.00 82.55 3.55 3.01 19
including: 81.15 82.55 1.40 6.99 17
The remaining six drill holes at Cerro Mojon contained nil to background values of gold and silver. Any decision regarding additional work at Cerro Mojon will be made taking into account the results from all drill holes.
Previous geologic mapping and sampling at Cerro Mojon identified more than 15 mineralized vein structures. Several of these structures outcrop for over 500 meters of strike length. In addition, a gradient array induced polarization geophysical survey identified several anomalies coincident with gold and silver mineralization found at the surface. Some 217 of approximately 340 surface samples of mineralized rock taken on the property contained detectable gold, including 117 with more than 0.1 g/t and 20 with more than 1 g/t. The best sample contains 4 g/t (0.13 opt) gold. Anomalous silver is more widespread on the property with 289 samples containing detectable silver including 109 with more than 10 g/t and 22 with more than 100 g/t with the highest sample containing 855 g/t (27 opt).
San Agustin
At the San Agustin project five diamond drill holes, totaling 1,440.2 meters, explored a regional graben- or caldera-bounding structure exhibiting near sinter-level alteration and mineralization at the surface and strong IP chargeability and resistivity geophysical anomalies at depth. The drilling intercepted abundant hydrothermal breccias 50 to 250 m vertically below the surface, often with a banded chalcedonic quartz-pyrite matrix. Sampling of the mineralized rock gave only anomalous arsenic values and weakly anomalous gold (up to 0.20 g/t) and silver values (up to 24.1 g/t).
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$3.5 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.
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.
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