Minera Andes Provides Update on Exploration Drilling at the San Jose Mine
TORONTO, ONTARIO -- (Marketwire) -- 08/30/11 -- Minera Andes Inc. (the 'Corporation' or 'Minera Andes') (TSX: MAI)(OTCBB: MNEAF) is pleased to announce the results of exploration drilling at its 49% owned San Jose mine in Santa Cruz Province, Argentina. Drilling during the first half of the year was mainly dedicated to infill drilling, whereas drilling during the second half will focus on exploration for new resources. A total drilling program of 50,600 meters is planned for 2011. During the second quarter a total of 58 diamond core holes totaling 14,300 meters were drilled compared to 24 core holes totaling 5,411 meters during the first quarter.
The drilling successfully extended the Dos Lauras vein several hundred meters to the northwest and the known vein strike length is now just over 1,000 meters. In addition, infill drilling was completed with good results on the Micaela, Luli, Susana and Marta veins. Resources defined by the drilling will be reported as part of the year end resource update that will be released near the end of the first quarter of 2012.
A map of the principal veins at the San Jose mine is shown in Exhibit 1, and locations of some of the principal drill holes drilled during the quarter are shown in Exhibit 2. Drilling results received for the drilling are provided in Exhibit 3 and highlights include:
- Susana Vein
Hole SJD-864 - 0.56 m (meters) at 6.93 g/t (grams/tonne) Au and 1,504
g/t Ag
Hole SJD-875 - 0.88 m at 5.28 g/t Au and 441 g/t Ag
- Luli Vein
Hole SJD-869 - 1.05 m at 16.89 g/t Au and 1,642 g/t Ag
Hole SJD-871 - 1.98 m at 19.55 g/t Au and 1,721 g/t Ag
- Luli Cymoid Loop
Hole SJD-869 - 1.19 m at 5.54 g/t Au and 668 g/t Ag
Hole SJD-871 - 0.80 m at 44.48 g/t Au and 7,747 g/t Ag
Hole SJD-879 - 0.79 m at 11.9 g/t Au and 1,263 g/t Ag
- Dos Lauras Vein
Hole SJD-884 - 1.37 m at 43.32 g/t Au and 5,314 g/t Ag
- Micaela Vein
Hole SJD-889 - 1.32 m at 7.71 g/t Au and 825 g/t Ag
Hole SJD-895 - 4.03 m at 21.37 g/t Au and 2,285 g/t Ag
The vein system at San Jose continues to be open at depth and laterally. As a result of the discovery of the east-west trending Micaela-Sofia vein system last year, previous drill results are being reinterpreted to define new drilling targets in and near the mine area in conjunction with new surface magnetic data and existing induced polarization geophysics data.
During the first half of 2011, 3,147 line-kilometers of surface magnetic lines spaced 75 meters apart were run covering 22,000 hectares (54,000 acres) southeast of the mine area. The magnetic data is being analyzed to define drilling targets southwest of the mine, an area that is covered by a layer of post-mineral basalt. The magnetic data will be complemented by 342 line-kilometers of gradient array Induced Polarization ('IP') to be run over the same area during the next four months as well as 25 line-kilometers of pole-dipole array IP.
About Minera Andes: Minera Andes is an exploration company exploring for gold, silver and copper in Argentina with three significant assets: One, a 49% interest in Minera Santa Cruz SA, owner of the San Jose Mine that is located near Goldcorp's Cerro Negro project; Two, 100% ownership of the Los Azules copper deposit with an inferred mineral resource of 10.3 billion pounds of copper and an indicated resource of 2.2 billion pounds of copper; Three, 100% ownership of a large portfolio of exploration properties in Santa Cruz province, Argentina, including properties bordering the Cerro Negro project. The Company had $22 million USD in cash as at June 30, 2011 with no bank debt. Rob McEwen, Chairman and CEO, owns 30% of the shares of the company. On June 14, 2011 the Company announced that Mr. McEwen proposed to combine the Company with US Gold Corporation to create a high growth, low-cost, mid-tier silver producer focused on the Americas. This transaction, subject to a number of approvals (including by the shareholders of the Corporation), is expected to close in late 2011.
About Minera Santa Cruz: Minera Santa Cruz SA is a joint venture owned 51% by Hochschild Mining Argentina, a wholly owned subsidiary of Hochschild Mining plc, and 49% by Minera Andes S.A., a wholly owned subsidiary of the Corporation. The joint venture owns and operates the San Jose property.
About Hochschild Mining plc: Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over forty years of experience in the mining of precious metal vein deposits and currently operates four underground vein mines, three located in southern Peru, one in southern Argentina and one open pit mine in northern Mexico. Hochschild also has numerous long-term prospects throughout the Americas.
Technical Information:
This news release has been reviewed and approved by Jim Duff the Chief Operating Officer of the Corporation, a Qualified Person as defined by Canadian Securities Administrator National Instrument 43-101 'Standards of Disclosure for Mineral Projects' ('43-101'). Assay results were reported to Minera Andes by MSC, which is the operating company for the San Jose joint venture. Assay results for the drilling were reviewed by Jim Duff. All samples were collected in accordance with industry standards. Splits from checks of the drill core samples assay at the San Jose Mine laboratory 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. Jim Duff has reviewed the results of the check assays and other quality control measures.
Cautionary Note to U.S. Investors:
All resource estimates reported by the Corporation are calculated in accordance with 43-101 and the Canadian Institute of Mining and Metallurgy Classification system. These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral resources which are not mineral reserves do not have demonstrated economic viability.
Caution Concerning Forward-Looking Statements:
This press release contains certain forward-looking statements and information. The forward-looking statements and information express, as at the date of this press release, the Corporation's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, risks associated with foreign operations, risks related to litigation, property title, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral resources and reserves and other risks.
Readers should not place undue reliance on forward-looking statements or information. The Corporation undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See the Corporation's Annual Information Form for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. All forward-looking statements and information made in this news release are qualified by this cautionary statement.
To view 'Exhibit 1 - Plan Map of Principal Veins at the San Jose Mine', please visit the following link: http://media3.marketwire.com/docs/MAI-Exhibit1.pdf.
To view 'Exhibit 2 - Drill Hole Location Map', please visit the following link: http://media3.marketwire.com/docs/MAI-Exhibit2.pdf.
To view 'Exhibit 3 - Surface Drilling Results from April 1, 2011 to June 30, 2011', please visit the following link: http://media3.marketwire.com/docs/MAI-Exhibit3.pdf.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management.
Contacts:
Minera Andes Inc.
Jim Duff
Chief Operating Officer
Toll-Free: 1-866-441-0690 or 647-258-0395
647-258-0408 (FAX)
info@minandes.com
www.minandes.com