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A Highly Prospective Copper Discovery
Minera Andes was founded as an exploration company to search for and discover copper, gold and silver in Argentina. It has been successful in making new discoveries in all three metals.
One of the more interesting discoveries is the Los Azules copper prospect. Ongoing exploration suggests Los Azules, located in San Juan province about 30 kilometers from the Chilean border in the Andes, is evolving into a sizeable discovery. A scoping study and economic analysis is underway at Los Azules now as part of a definitive option agreement between Minera Andes and Xstrata Copper, one of the commodity business units within Xstrata plc. The option agreement consolidates into one package adjoining properties that straddle a large copper porphyry system.
The potential of Los Azules is suggested in successive exploration drilling programs in which significant high-grade copper mineralization has been discovered. For example, in 2006 an 11-hole drilling program returned intervals including 1.62 percent copper over 221 meters (about 725 feet) and one percent copper over 173 meters.
For the 2007-2008 field season, a 10,000-meter, 24-hole drilling program will further gauge Los Azules' potential.
Xstrata Copper Interest
Minera Andes and Xstrata Copper have contributed their respective properties to the option agreement, and Minera Andes is earning a 100 percent ownership in Los Azules by spending at least US$1million on the property before November 2010, and producing an economic assessment for Xstrata Copper. If in the opinion of Xstrata Copper, the preliminary assessment shows the potential to economically produce 100,000 tons of copper per year for ten years or more, then Xstrata Copper will have a right to earn a 51 percent interest in the combined properties (Please see our news release dated November 14, 2007 for further information on this agreement).
Los Azules Mineralization
Since a reconnaissance drilling program discovered Los Azules in 2004, subsequent drilling programs have encountered features associated with many copper porphyry systems. Programs have been conducted to test the grade and continuity of known leachable (chalcocite) copper mineralization. In the discovery zone, , strongly leached cap rock extends from the subcrop to as much as 161 meters beneath the surface followed by an enriched zone of secondary mineralization (chalcocite) over a zone of secondary and primary (chalcopyrite) copper mineralization.
The highlights from the previously reported 2005, 2006 and 2007 drilling campaigns are listed in the table below with several holes ending in copper mineralization, including AZ-07-24D and AZ-06-19 that bottomed in high-grade copper over 1 percent.
Maps
Click to enlarge
Los Azules Mineralization
Table 1. Significant Drilling Results at Los Azules, 1998 to 2007 |
Drill Hole |
TD
(m) |
Intersection
From To
(m) (m) |
Interval
(m) |
Total
Copper
(%) |
AZ-04-01 (core)
Includes: |
195 |
130
150 |
195
192 |
56
36 |
0.62
0.82 |
AZ-04-02 (core)
Includes:
Includes: |
330.5 |
164
164
230 |
304
190
304 |
140
26
72 |
0.38
0.47
0.42 |
AZ-04-04 (core)
Includes:
Includes: |
300.8 |
162
162
236 |
282
202
282 |
120
40
46 |
0.54
0.59
0.64 |
AZ-04-07 (core)
Includes: |
168.8 |
96
126 |
152
152 |
56
26 |
0.44
0.58 |
LA-04-98 (RC) |
250 |
117 |
250 |
133 |
0.47 |
LA-06-98 (RC)
Includes: |
250 |
61
157 |
250
250 |
189
93 |
0.44
0.64 |
LA-08-98 (RC)
Includes: |
220 |
77
103 |
220
220 |
143
117 |
0.55
0.61 |
LA-03-04 (RC)
Includes: |
226 |
94
104 |
226
114 |
132
10 |
0.40
1.12 |
AZ-06-10 (core) |
261.35 |
174 |
261.35 |
87.35 |
0.83 |
AZ-06-11 (core) |
270.7 |
158.7 |
270.7 |
158.7 |
0.51 |
AZ-06-14 (core)
Includes: |
224.55 |
136
136 |
178
158 |
42
22 |
1.13
1.40 |
AZ-06-17 (core)
Includes: |
183.5 |
66
66 |
183.5
124 |
117.65
58 |
0.63
0.84 |
AZ-06-19 (core)
Includes:
Includes: |
299.4 |
78.25
78.25
134 |
299.4
116
146 |
221.15
37.75
12 |
1.62
2.22
3.94 |
AZ-06-20 (core)
Includes:
Includes: |
253.3 |
80
80
98 |
253.3
98
182 |
173.3
18
84 |
1.00
1.69
1.12 |
AZ-07-22 (core)
Includes:
Includes:
Includes:
Includes: |
271.2 |
119
119
119
155
213 |
257
155
139
257
227 |
138
36
20
102
14 |
0.62
0.99
1.24
0.49
0.71 |
AZ-07-24D (core)
Includes:
Includes:
Includes:
Includes:
Includes:
Includes: |
278.2 |
124
124
160
202
234
234
264 |
278.2
160
202
234
278.2
254
278.2 |
154.2
36
42
32
44.2
20
14.2 |
0.54
0.80
0.50
0.34
0.66
0.74
0.87 |
AZ-07-29B
Includes:
Includes: |
226.85 |
126
126
170 |
216
154
204 |
90
28
34 |
0.71
0.86
0.92 |
Allen Ambrose, president of Minera Andes said "Our 2007-2008 field season program at Los Azules will primarily be focused on the northern portion of the property where thick sections of plus one-percent copper have been discovered. This is exciting because we see a large copper target developing that is near surface and of relatively high grade."
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