Minera Andes Announces Production at the San José Mine for the Second Quarter 2010
TORONTO, ONTARIO - July 21, 2010 - Minera Andes Inc. (the "Corporation" or "Minera Andes") (TSX: MAI and US OTC: MNEAF) announces the San José mine production results for the second quarter of 2010. During the second quarter, the San José mine produced 1,220,794 ounces of silver and 19,707 ounces of gold, of which 49% is attributable to Minera Andes.
SAN JOSÉ MINE PRODUCTION COMPARISON (100% BASIS)*
| Production | Q2 2010 |
Q1
2010 |
Q2
2009 |
|---|---|---|---|
| Ore production (tonnes) | 116,259 | 96,484 | 119,184 |
| Average head grade silver (g/t) | 368 | 293 | 400 |
| Average head grade gold (g/t) | 5.81 | 5.92 | 5.65 |
| Silver produced (ounces) | 1,220,794 | 823,107 | 1,264,616 |
| Gold produced (ounces) | 19,707 | 16,430 | 18,078 |
| Silver equivalent production (ounces | 2,403,214 | 1,808,907 | 2,349,296 |
| Net silver sold (ounces) | 1,294,677 | 739,159 | 1,709,190 |
| Net gold sold (ounces) | 22,168 | 14,325 | 21,930 |
*49% of the San José mine production is attributable to Minera Andes Inc.
Compared to the first quarter of 2010, the 2010 second quarter silver production was 48% higher and gold production was 20% higher. The increase in silver and gold production was primarily the result of higher mine production and mill feed tonnage compared to the first quarter. Mill throughput in the second quarter of 2010 was 20% higher than the previous quarter. In the second quarter the silver head grade increased 26% compared to the first quarter, and the gold head grade was 2% lower than the first quarter. The improved silver grades are related to ongoing development of the Kospi vein. Compared to the second quarter of 2009, the second quarter 2010 silver production decreased 3% and gold increased 9%.
Average daily mill throughput during the second quarter of 2010 was approximately 1,280 tonnes per day, which is 15% below the mill capacity of 1,500 tonnes per day. According to Minera Santa Cruz, our operating joint venture entity managed by Hochschild Mining plc ("MSC"), the mill operated below capacity due to lower mine production. As previously reported, mine production has been adversely impacted by delays in underground mine development.
MSC has further advised us that the development delays also impacted production grades because access to certain higher grade stoping areas was delayed. Consequently, second quarter 2010 mill feed grades continue to be lower than the average 2009 head grades. However, MSC has advised Minera Andes that they expect the grades to improve during the second half of the year
Milling operations are performing satisfactorily with recoveries in line with budget expectations. A series of modifications were made to the mill during 2009 and the first half of 2010 that resulted in improved operating efficiencies. A small Merrill Crow circuit was also installed in the fourth quarter of 2009 that is resulting in the recovery of incremental silver ounces and slightly improved silver recoveries. Aside from normal sustaining capital, which includes mine development and exploration, the Corporation is not aware of any new capital projects at San José.
Second quarter production cost information will be provided jointly with second quarter financial results.
Sales of silver and gold were 75% and 55% higher, respectively, in second quarter of 2010 compared to the first quarter as a result of increased ore production and a decrease in products inventory. Compared to the same quarter last year, sales of silver in the second quarter of 2010 were 24% lower while gold sales were at about the same level. This was due to lower ore production in the second quarter of 2010, differences in head grades and inventory liquidations in the second quarter of 2009.
This news release is submitted by James K. Duff, Chief Operating Officer of Minera Andes Inc.
About Minera Andes
Minera Andes is an exploration company exploring for gold, silver and copper in Argentina with three significant assets: A 49% interest in Minera Santa Cruz SA, which owns the San José Mine, one of the world's largest primary silver producers that produced 4,998,000 million oz silver and 77,080 oz gold in 2009; 100% ownership of the Los Azules porphyry copper deposit in San Juan province, Argentina; and, a portfolio of exploration properties in the highly prospective Deseado Massif region of Santa Cruz Province in southern Argentina. Minera Andes had approximately $15 Million USD in cash and no bank debt as at March 31, 2010.
For further information, please contact: Daniela Ozersky or visit our Web site: www.minandes.com.
Daniela Ozersky
Manager, Investor Relations
99 George St. 3rd Floor,
Toronto, Ontario, Canada. M5A 2N4
Toll-Free: 1-866-441-0690
Tel:647-258-0395
Fax: 647-258-0408
E-mail: info@minandes.com
Reliability of Information
Minera Santa Cruz S.A., the owner and operator of the San José mine, is responsible for and has supplied to the Corporation all reported results from the San José mine. This press release is based entirely on information provided to Minera Andes by Minera Santa Cruz S.A. ("MSC"). Minera Andes' joint venture partner, a subsidiary of Hochschild Mining plc, and its affiliates other than MSC do not accept responsibility for the use of project data or the adequacy or accuracy of this release. As the Corporation is not the operator of the San José mine, there can be no assurance that production information reported to the Corporation by MSC is accurate, the Corporation has not independently verified such information and readers are therefore cautioned regarding the extent to which they should rely upon such information.
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, including the outcome of pending and current litigation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by us, are inherently subject to significant business, economic and competitive uncertainties and contingencies 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, 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.
Minera Andes Reports Mineral Resource Increase at Los Azules Project
TORONTO, ONTARIO - June 21st, 2010 - Minera Andes Inc. (the "Corporation" or "Minera Andes") (TSX: MAI and US OTC: MNEAF) is pleased to announce that the mineral resource at our 100% owned copper project, Los Azules, has been expanded and the confidence level increased. A total of 137 million tonnes of the previous inferred mineral resources have been upgraded to the indicated category, and an additional 116 million tonnes of inferred mineral resources have been added.
Rob McEwen, Chairman and CEO of Minera Andes commented:
"Los Azules is shaping up to be a world-class copper deposit, and we are excited about its upside potential We have commenced planning for the next field season with the objective of completing a pre- feasibility study by the end of 2011."
In September of 2008, two independent qualified persons, Robert Sim and Bruce Davis, completed a resource estimate for Los Azules showing inferred mineral resources of 922 million tonnes grading 0.55 percent copper, equivalent to 11.2 billion pounds of copper. Based on this season's drilling (23 holes totaling 10,007 meters) Mr. Sim and Mr. Davis have prepared an updated estimate, results of which are outlined in the table below. Due to tightening of the drill hole spacing, portions of the resource were upgraded to the indicated category. Also, the inferred mineral resources increased due to a combination of step-out holes drilled at the north end of the deposit and greater drill hole depths.
2008 vs 2010
| Mineral Resource Category |
Tonnes (millions) |
Copper % | Contained Copper (MM lbs) |
Gold grams/tonne |
Silver grams/tonne |
|
|---|---|---|---|---|---|---|
2008* |
Inferred |
922 | 0.55 | 11.2 | 0.06 | 1.7 |
2010 |
Indicated |
137 | 0.73 | 2.2 | 0.07 | 1.7 |
|
Inferred |
900 | 0.52 | 10.3 | 0.07 | 1.7 |
Cut-off grade of 0.35% was applied to both 2008 and 2010 estimates
* Sept 26, 2008 technical report available on Sedar
Drilling this year was also successful in further delineating and expanding the high-grade secondary enrichment zone. We use a cut-off grade of 0.70% copper to define "high-grade" mineralization. The high-grade mineralization approximates the secondary enrichment zone, but it is not exactly coincident. The portions of the deposit that exceeded the 0.70% copper limit based on previous drilling totaled 161 million tonnes at an average grade of 0.87% copper. The updated estimate shows a slight increase in grade for portions exceeding 0.70% copper compared to the previous resource estimate. Results are outlined below.
2008 vs 2010
| Mineral Resource Category |
Tonnes (millions) |
Copper % | Contained Copper (MM lbs) |
Gold grams/tonne |
Silver grams/tonne |
|
|---|---|---|---|---|---|---|
2008* |
Inferred |
161 | 0.87 | 3.1 | 0.07 | 2.0 |
2010 |
Indicated |
67 | 0.95 | 1.4 | 0.08 | 1.9 |
|
Inferred |
127 | 0.86 | 2.4 | 0.09 | 1.9 |
*Sept 26, 2008 technical report available on Sedar
The approximate limits of the mineralization are shown on the attached plan view map (Figure 1). Longitudinal and cross sections through the central portions of the deposit generated from the mineral resource model are shown on Figures 2 and 3.
Drilling Results
The location of the 23 holes drilled during the 2009-2010 field season are shown on Figure 1, and the assay results for the final six holes of this season are reported in Table 1. The results from these holes are generally consistent with the results of the other holes drilled this year, and were included in the new mineral resource estimate. Highlights include good intercepts in the secondary enrichment zone of 0.70% Cu over 118 meters in Hole 62 and 0.81% Cu over 138 meters in Hole 63. Hole 63 also contains 0.74% Cu as primary mineralization in the bottom 141 meters of the hole.
Geophysical Survey
During this field season Quantec Geoscience Ltd. completed a Titan 24(tm) Deep Earth Imaging geophysical survey. The purpose of this survey was to identify drilling targets at Los Azules.
The survey identified a number of promising anomalies, particularly to the southwest of the existing deposit.
The results of the geophysical survey for Los Azules will be integrated with an updated geological interpretation of this year's drilling in order to pinpoint new targets for the coming field season.
About Los Azules
Los Azules is a large copper porphyry system located in western San Juan Province, in Argentina. The Los Azules project is contained in a region consisting of other major porphyry copper deposits straddling the Chilean/Argentine border. This belt contains some of the world's largest copper deposits, including Codelco's El Teniente and Andina mines, Anglo American's Los Bronces mine, Antofagasta PLC's Los Pelambres mine and Xstrata's El Pachón project, among others.
About Minera Andes
Minera Andes is an exploration company exploring for gold, silver and copper in Argentina with three significant assets: A 49% interest in Minera Santa Cruz SA, owner of the San José Mine, a large primary silver producer that produced 4,998,000 million oz silver and 77,070 oz gold in 2009; 100% ownership of the Los Azules copper deposit; and a portfolio of exploration properties in the highly prospective Deseado Massif region of Santa Cruz Province in southern Argentina. The Corporation had $15 million USD in cash as at March 31, 2010 and no debt.
This news release has been submitted by Jim Duff, Chief Operating Officer of the Corporation.
For further information, please contact: Jim Duff or visit our Web site: www.minandes.com.
James K. Duff
Chief Operating Officer
99 George St. 3rd Floor,
Toronto, Ontario, Canada. M5A 2N4
Toll-Free: 1-866-441-0690
Tel: 647-258-0395
Fax: 647-258-0408
E-mail: info@minandes.com
Scientific and Technical Information:
The mineral resource estimate presented in this press release has been reviewed and approved by Robert Sim, P.Geo. and Bruce Davis, PhD, FAusIMM, both independent Qualified Persons as defined by National Instrument 43-101 "Standards of Disclosure for Mineral Projects" ("NI 43-101"). Robert Sim and Bruce Davis are responsible for the mineral resource estimate. The drill hole results presented in Table 1 of this press release have been reviewed and approved by Nivaldo Rojas, President of Rojas & Asociados Mining Consultants, a mining engineer and independent consultant to the Corporation, who is a Qualified Person as defined by National Instrument 43-101, and who is responsible for oversight and review of the exploration program at the Los Azules Project. Bruce Davis is responsible for the quality control for the assaying of the Los Azules drill core. All samples were collected in accordance with industry standards. Splits from the drill core samples were submitted to the ACME sample preparation laboratory in Mendoza, Argentina and then transferred to ACME's laboratory in Santiago, Chile for fire assay and ICP analysis. Accuracy of results is tested through the systematic inclusion of standards, blanks and check assays.
Mineral resources are generated using ordinary kriging with a nominal block size of 20x20x15m. Block grade estimates are derived from drill hole sample results and the interpretation of a geologic model which relates to the spatial distribution of copper, gold, silver and molybdenum in the deposit. There are a total of 114 drill holes in the Los Azules database with a cumulative length of 30,997 meters and a total of 15,260 samples analyzed for a suite of elements including total copper, gold, silver and molybdenum. A total of 58 of the drill holes have some portion of the sample intervals tested for sequential copper analysis. This information contributed to the development of the mineral zone domains. The portion of the new mineral resource that has been defined as "indicated" is based on a drilling configuration that exhibits the degree of continuity required for higher level mineral resources. Inferred mineral resources are limited to blocks within a maximum distance of 200 meters from a drill hole. As required by NI 43-101, the possible future economic viability of the mineral resource has been exhibited by restriction within a pit shell derived about the copper content in indicated and inferred class blocks at a copper price of $2.50/lb, total operating costs of $5.25/tonne and an average pit slope of 34 degrees. Mineral resources are presented at a cut-off grade of 0.35%Cu, which is the same base cut-off grade used in the 2008 mineral resource estimate. These are mineral resources, not mineral reserves.
For further information in respect of the Los Azules project please refer to the technical report entitled "Canadian National Instrument 43-101 Technical Report in Support of the Preliminary Assessment on the Development of the Los Azules Project, San Juan Province, Argentina" dated March 19, 2009, the "Los Azules Report" prepared by Randolph P. Schneider, Robert Sim, Bruce Davis, William L. Rose and Scott Elfen, each of whom is "independent" of the Corporation and a "qualified person" for the purposes of NI 43-101. This report is available on SEDAR (www.sedar.com). Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.There is no certainty that the project as described in the Los Azules Report will be realized.
Cautionary Note to U.S. Investors:
All resource estimates reported by the Corporation were calculated in accordance with NI 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 and management's understanding of proposed legislative changes. 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.
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.
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Table 1 - Summary of Drill Hole Results for Holes 62 through 67
Hole 62 (-90°) Hole terminated at 280.0 m due to bad ground conditions
| Intersection | Vertical Thickness (m) |
% Cu | Comments | |
|---|---|---|---|---|
| from (m) | to (m) | |||
| 0 | 3.0 | 3.0 | - | Gravel overburden |
| 3.0 | 130.0 | 127.0 | 0.01 | Leached cap |
| 130.0 | 248.0 | 118.0 | 0.70 | Secondary enrichment zone |
| 248.0 | 280.0 | 32.0 | 0.40 | Chalcopyrite with local weak chalcocite enrichment |
Hole 63 (-90°)
| Intersection | Vertical Thickness (m) |
% Cu | Comments | |
|---|---|---|---|---|
| from (m) | to (m) | |||
| 0 | 46.0 | 46.0 | - | Gravel overburden |
| 46.0 | 94.0 | 48.0 | 0.07 | Leached cap |
| 94.0 | 232.0 | 138.0 | 0.81 | Secondary enrichment |
| 232.0 | 286.0 | 54.0 | 0.43 | Primary chalcopyrite and bornite veinlets and disseminations with weak chalcocite enrichment |
| 286.0 | 427.1 | 141.1 | 0.74 | Primary chalcopyrite and bornite veinlets and disseminations with weak chalcocite enrichment |
Hole 64 (-90°) Hole suspended at end of season. The hole will be re-entered and completed next season
| Intersection | Vertical Thickness (m) |
% Cu | Comments | |
|---|---|---|---|---|
| from (m) | to (m) | |||
| 0 | 3.0 | 3.0 | - | Gravel overburden |
| 3.0 | 136.0 | 133.0 | 0.01 | Leached cap |
| 136.0 | 170.1 | 34.1 | 0.47 | Chalcopyrite veinlets and disseminations with weak chalcocite enrichment |
Hole 65 (-75°) at 260° Azimuth
| Intersection | Vertical Thickness (m) |
% Cu | Comments | |
|---|---|---|---|---|
| from (m) | to (m) | |||
| 0 | 22.0 | 21.3 | - | Gravel overburden |
| 22.0 | 148.8 | 122.5 | 0.02 | Leached cap |
| 148.8 | 214.0 | 63.0 | 0.33 | Mixed primary and secondary mineralization |
| 214.0 | 362.0 | 143.0 | 0.21 | Chalcopyrite with local weak chalcocite enrichment |
| 362.0 | 388.0 | 25.1 | 0.34 | Chalcopyrite with local weak chalcocite enrichment |
| 388.0 | 431.0 | 41.5 | 0.18 | Primary chalcopyrite veins and disseminations |
Hole 66 (-75°) at 260° Azimuth Hole suspended at end of season. The hole will be re-entered and completed next season
| Intersection | Vertical Thickness (m) |
% Cu | Comments | |
|---|---|---|---|---|
| from (m) | to (m) | |||
| 0 | 50.0 | 48.3 | - | Gravel overburden |
| 50.0 | 118.4 | 66.1 | 0.02 | Leached cap |
| 118.4 | 150.0 | 30.5 | 0.58 | Secondary enrichment zone |
| 150.0 | 204.0 | 52.2 | 0.24 | Primary chalcopyrite-bornite veinlets and disseminations |
| 204.0 | 257.5 | 51.7 | 0.35 | Primary chalcopyrite veinlets and disseminations |
Hole 67 (-90°) Hole suspended at end of season. The hole will be re-entered and completed next season
| Intersection | Vertical Thickness (m) |
% Cu | Comments | |
|---|---|---|---|---|
| from (m) | to (m) | |||
| 0 | 56.6 | 56.6 | Gravel overburden | |
| 56.6 | 89.7 | 33.1 | 0.03 | Leached cap |
| 89.7 | 161.4 | 71.7 | 0.29 | Primary chalcopyrite veinlets and disseminations with weak chalcocite enrichment |
AGM 2010 One King West Hotel - June 21, 2010. 4PM Toronto
We will be discussing some exciting recent development at our 100% owned copper deposit, Los Azules in San Juan Province and at our 49% owned San Jose mine in Santa Cruz Province, Argentina.
Minera Andes Reports Net Income of $1.3 Million for First Quarter 2010
TORONTO, ONTARIO -- May 11, 2010 - Minera Andes Inc. (the "Corporation" or "Minera Andes") (TSX: MAI and US OTC: MNEAF) today reported a net income of $1.3 million ($0.01 per share basic and diluted) in its financial statements for the three months ended March 31, 2010 compared to a net loss of $4.4 million ($0.02 per share basic and diluted) for the three months ended March 31, 2009. All amounts in this news release are in US dollars unless otherwise noted. Our financial statements and management's discussion and analysis are available under the Corporation's profile at www.sedar.com and www.sec.gov.
This increase was primarily due to an increase in the income recorded in our investment in Minera Santa Cruz S.A. ("MSC") and a reduction in total expenses in 2010. Minera Andes' share of the net income derived from MSC for the three months ended March 31, 2010 (before amortization), was $2.2 million compared to income of $0.0 million in the same period in 2009. MSC is owned 49% by Minera Andes and 51% by Hochschild Mining plc ("Hochschild"). MSC owns the San José silver-gold mine in southern Argentina (the "Mine" or the "San José Mine") and Hochschild is the operator of the Mine.
Also, in comparing the first quarter of this year with the same period in 2009 Minera Andes reduced total expenses by $3.6 million, which was a result of decreases in professional fees and interest expense while also benefitting from a positive change in foreign currency exchange.
For full details of the activities of the Corporation during the first quarter of 2010 please refer to our management discussion and analysis.
About Minera Andes
Minera Andes is an exploration company exploring for gold, silver and copper in Argentina with three significant assets: a 49% interest in Minera Santa Cruz SA who owns the San José Mine which is a large primary silver producer, which produced 4,998,000 million oz silver and 77,070 oz gold in 2009; 100% ownership of the Los Azules copper deposit; and, a portfolio of exploration properties in the highly prospective Deseado Massif region of Santa Cruz Province in southern Argentina. Minera Andes continues to be well funded and have no bank debt.
This news release is submitted by Perry Y. Ing, Chief Financial Officer of Minera Andes Inc.
For further information, please contact: Daniela Ozersky or visit our Web site: www.minandes.com.
Daniela Ozersky
Manager, Investor Relations
99 George St. 3rd Floor,
Toronto, Ontario, Canada. M5A 2N4
Toll-Free: 1-866-441-0690
Tel: 647-258-0395
Fax: 647-258-0408
E-mail: info@minandes.com
Reliability of Information:
MSC, the owner and operator of the San José mine, is responsible for and has supplied to the Corporation all reported results and operational updates from the San José mine. This press release is based entirely on information provided to Minera Andes by MSC. Minera Andes' joint venture partner, a subsidiary of Hochschild Mining plc, and its affiliates other than MSC do not accept responsibility for the use of project data or the adequacy or accuracy of this release. As the Corporation is not the operator of the San José mine, there can be no assurance that production information reported to the Corporation by MSC is accurate, the Corporation has not independently verified such information and readers are therefore cautioned regarding the extent to which they should rely upon such information
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, including the outcome of pending and current litigation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by us, are inherently subject to significant business, economic and competitive uncertainties and contingencies 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, 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.
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.
Excellent Drill Results from Los Azules Copper Project
TORONTO, ONTARIO - May 5, 2010 - Minera Andes Inc. (the "Corporation" or "Minera Andes") (TSX: MAI and US OTC: MNEAF) is pleased to announce 12 additional, and very encouraging, drill holes from our 100% owned Los Azules copper project in San Juan Province in Argentina. Highlights include a step-out hole 300 meters to the north of any previous drilling which contains 1.12% Cu over 62.5 meters (Hole 51). The other intercepts are from in-fill drilling and confirm the presence of an important high-grade secondary enrichment zone: 1.03% Cu over 101 meters (Hole 53A); 0.84% Cu over 52 meters and 0.83% Cu over 38 meters (Hole 57); 0.99% Cu over 84 meters (Hole 58); 0.90% Cu over 74 meters (Hole 59); and, 1.04% Cu over 168.2 meters (Hole 61A).
Exploration commenced in mid-December 2009, and four diamond drills have been operating on the project. A total of 22 diamond drill holes were completed this season for a total of 10,007 meters. Most of the drilling is infill drilling, although step-out holes drilled at the north end of the existing deposit extend the mineralization further north. The deposit remains open to the north, to the west, and at depth. In addition, we completed 615 meters of RC drilling in three holes that were drilled for geotechnical testing.
The objective of this field season's drilling program was to expand the known limits of mineralization, delineate the high-grade secondary enrichment zone and to increase the confidence level of the existing Los Azules resource. This resource contains 922 million tonnes grading 0.55 percent copper, equivalent to 11.2 billion pounds of copper, based on drilling completed through 2008. Also included in this resource is a high-grade core of 161 million tonnes grading 0.87 percent copper, which is equivalent to 3.1 billion pounds of copper. The known resource covers an area approximately 4 kilometers by 1 kilometer, and is open at depth and laterally. Please refer to figure 2 for a drill hole map.
Rob McEwen, Executive Chairman and CEO of Minera Andes commented:
"The continued success of the drilling is accomplishing our objective of increasing the confidence level of the resource at this world class deposit. The drilling is also continuing to define the extent of the high-grade secondary enrichment zone. Once all drill results have been received we will update and announce a new resource estimate. We are extremely pleased by the results of the drilling this season, and the project continues to look better and better as we gain additional information."During this field season additional geological mapping was carried out and a state-of-the-art geophysical survey is nearly completed. The information gained from the geological mapping and geophysical survey will be utilized to target step-out drilling for the next field season's drilling. Engineering work and environmental base line studies to support a preliminary feasibility study are underway.
About Los Azules
Los Azules is a large copper porphyry system located in western San Juan Province in a belt of porphyry copper deposits that straddles the Chilean/Argentine border. This belt contains some of the world's largest copper deposits, including Codelco's El Teniente and Andina mines, Anglo American's Los Bronces mine, Antofagasta PLC's Los Pelambres mine and Xstrata's El Pachón project, among others.
About Minera Andes
Minera Andes is an exploration company exploring for gold, silver and copper in Argentina with three significant assets: A 49% interest in Minera Santa Cruz SA, which owns the San José Mine, a large primary silver producer that produced 4,998,000 million oz silver and 77,070 oz gold in 2009; 100% ownership of the Los Azules copper deposit; and, a portfolio of exploration properties in the highly prospective Deseado Massif region of Santa Cruz Province in southern Argentina. Minera Andes continues to be well funded and have no bank debt. The Corporation had $18.9 million USD in cash as at December 31, 2009.
This news release has been submitted by Jim Duff, Chief Operating Officer of the Corporation.
For further information, please contact: Jim Duff or visit our Web site: www.minandes.com.
James K. Duff
Chief Operating Officer
99 George St. 3rd Floor,
Toronto, Ontario, Canada. M5A 2N4
Toll-Free: 1-866-441-0690
Tel: 647-258-0395
Fax: 647-258-0408
E-mail: info@minandes.com
Scientific and Technical Information:
This news release has been reviewed and approved by Nivaldo Rojas, President of Rojas & Asociados Mining Consultants, a mining engineer and independent consultant to the Corporation, who is a Qualified Person as defined by National Instrument 43-101, and is responsible for oversight and review of the exploration program at the Los Azules Project, and Bruce Davis, PhD, FAusIMM, who is a Qualified Person as defined by National Instrument 43-101 and responsible for the quality control for the assaying of the Los Azules drill core. All samples were collected in accordance with industry standards. Splits from the drill core samples were submitted to the ACME sample preparation laboratory in Mendoza, Argentina, and then transferred to ACME's laboratory in Santiago, Chile for fire assay and ICP analysis. Accuracy of results is tested through the systematic inclusion of standards, blanks and check assays.
For further information in respect of the Los Azules project please refer to the technical report entitled "Canadian National Instrument 43-101 Technical Report in Support of the Preliminary Assessment on the Development of the Los Azules Project, San Juan Province, Argentina" dated March 19, 2009, the "Los Azules Report" prepared by Randolph P. Schneider, Robert Sim, Bruce Davis, William L. Rose, and Scott Elfen, each of whom is "independent" of the Corporation and a "qualified person" for the purposes of National Instrument 43-101 - "Standards of Disclosure for Mineral Projects . This report is available on SEDAR (www.sedar.com). The results of the preliminary assessment referenced in this news release are preliminary in nature and include inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the project as described in the preliminary assessment will be realized. The basis for the preliminary assessment and the qualifications and assumptions made are set out in the Los Azules Report.
Cautionary Note to U.S. Investors:
All resource estimates reported by the Corporation were calculated in accordance with Canadian National Instrument 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 and management's understanding of proposed legislative changes. 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 on-going or pending 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.
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.
Hole 49 (-90º)
| Intersection | Vertical Thickness (m) |
% Cu | Comments | |
|---|---|---|---|---|
| from (m) | to (m) | |||
| 0 | 62.0 | 62.0 | - | Gravel overburden (no leached cap) |
| 62.0 | 298.0 | 236.0 | 1.05 | Secondary enrichment zone |
| Including 64.0 |
134.0 | 72.0 | 1.43 | |
| 298.0 | 418.0 | 120.0 | 0.42 | Primary chalcopyrite-bornite mineralization in fractures and disseminations |
| 418.0 | 491.2 | 73.2 | 0.32 | Primary chalcopyrite-bornite mineralization in fractures and disseminations |
Hole 50 (-90º)
| Intersection | Vertical Thickness (m) |
% Cu | Comments | |
|---|---|---|---|---|
| from (m) | to (m) | |||
| 0 | 66.8 | 66.8 | - | Gravel overburden |
| 66.8 | 94.0 | 27.2 | 0.07 | Leached cap |
| 94.0 | 132.0 | 38.0 | 0.68 | Secondary enrichment zone |
| 132.0 | 332.0 | 200.0 | 0.23 | Primary chalcopyrite-bornite in fractures and disseminations |
| 332.0 | 408.5 | 76.5 | 0.13 | Primary disseminated chalcopyrite |
Hole 51 (-90º)
| Intersection | Vertical Thickness (m) |
% Cu | Comments | |
|---|---|---|---|---|
| from (m) | to (m) | |||
| 0 | 45.0 | 45.0 | - | Gravel overburden |
| 45.0 | 69.0 | 24.0 | 0.05 | Leached cap |
| 69.0 | 363.5 | 294.5 | 0.25 | Chalcopyrite with local weak chalcocite enrichment |
| 363.5 | 426.0 | 62.5 | 1.12 | Primary bornite with chalcopyrite in fractures and disseminations |
| 426.0 | 620.2 | 194.2 | 0.26 | Primary disseminated chalcopyrite and bornite |
Hole 52 (-90º)
| Intersection | Vertical Thickness (m) |
% Cu | Comments | |
|---|---|---|---|---|
| from (m) | to (m) | |||
| 0 | 72.0 | 72.0 | - | Gravel overburden |
| 72.0 | 103.0 | 103.0 | 0.05 | Leached cap |
| 103.0 | 284.0 | 181.0 | 0.47 | Mixed secondary chalcocite and primary chalcopyrite |
| 284.0 | 425.0 | 141.0 | 0.36 | Primary disseminated chalcopyrite |
Hole 53A (-70º) at 250º Azimuth
| Intersection | Vertical Thickness (m) |
% Cu | Comments | |
|---|---|---|---|---|
| from (m) | to (m) | |||
| 0 | 70.0 | 68.5 | - | Gravel overburden |
| 70.0 | 122.0 | 48.9 | 0.22 | Mixed leached cap and secondary enrichment |
| 122.0 | 230.0 | 101.5 | 1.03 | Secondary chalcocite enrichment zone |
| 230.0 | 650.0 | 394.7 | 0.45 | Primary disseminated chalcopyrite |
Hole 54 (-90º)
| Intersection | Vertical Thickness (m) |
% Cu | Comments | |
|---|---|---|---|---|
| from (m) | to (m) | |||
| 0 | 116.0 | 116.0 | 0.01 | Leached cap |
| 116.0 | 411.0 | 295.0 | 0.30 | Mixed secondary chalcocite enrichment and disseminated primary chalcopyrite. |
Hole 55 (-75º) at 345º Azimuth
| Intersection | Vertical Thickness (m) |
% Cu | Comments | |
|---|---|---|---|---|
| from (m) | to (m) | |||
| 0 | 98.0 | 94.7 | - | Pre collar (overburden) |
| 98.0 | 116.0 | 17.4 | 0.12 | Mixed leached cap and secondary enrichment |
| 116.0 | 336.0 | 212.5 | 0.58 | Mixed secondary chalcocite enrichment and disseminated chalcopyrite |
| 336.0 | 408.5 | 70.0 | 0.47 | Primary disseminated chalcopyrite |
Hole 56 (-90º)
| Intersection | Vertical Thickness (m) |
% Cu | Comments | |
|---|---|---|---|---|
| from (m) | to (m) | |||
| 0 | 26.0 | 26.0 | - | Gravel overburden |
| 26.0 | 70.0 | 44.0 | 0.02 | Leached cap |
| 70.0 | 223.2 | 153.2 | 0.49 | Mixed secondary chalcocite enrichment zone and disseminated chalcopyrite |
| Including 192 |
223 | 31 | 0.88 | |
| 223.2 | 295.25 | 72.3 | 0.44 | Mixed secondary chalcocite and disseminated primary chalcopyrite |
Hole 57 (-90º)
| Intersection | Vertical Thickness (m) |
% Cu | Comments | |
|---|---|---|---|---|
| from (m) | to (m) | |||
| 0 | 173.0 | 173.0 | 0.01 | Mixed leached cap and pyrite |
| 173.0 | 225.0 | 52.0 | 0.84 | Secondary chalcocite enrichment zone with disseminations and stockworks |
| 225.0 | 255.0 | 30.0 | 0.36 | Mixed secondary chalcocite enrichment and disseminated chalcopyrite |
| 255.0 | 293.0 | 38.0 | 0.83 | Secondary chalcocite enrichment zone with disseminations and stockworks |
| 293.0 | 353.0 | 60.0 | 0.30 | Mixed secondary chalcocite enrichment and disseminated chalcopyrite |
| 353.0 | 503.6 | 150.6 | 0.26 | Primary disseminated chalcopyrite |
Hole 58 (-90º)
| Intersection | Vertical Thickness (m) |
% Cu | Comments | |
|---|---|---|---|---|
| from (m) | to (m) | |||
| 0 | 30.0 | 30.0 | - | Gravel overburden |
| 30.0 | 70.0 | 40.0 | 0.03 | Leached cap |
| 70.0 | 96.0 | 26.0 | 0.23 | Mixed secondary chalcocite enrichment and disseminated chalcopyrite |
| 96.0 | 180.0 | 84.0 | 0.99 | Secondary chalcocite enrichment zone with disseminations and stockworks |
| 180.0 | 451.8 | 271.8 | 0.41 | Primary disseminated chalcopyrite |
Hole 59 (-90º)
| Intersection | Vertical Thickness (m) |
% Cu | Comments | |
|---|---|---|---|---|
| from (m) | to (m) | |||
| 0 | 39.0 | 39.0 | - | Gravel overburden |
| 39.0 | 88.0 | 49.0 | 0.05 | Leached cap |
| 88.0 | 330.0 | 242.0 | 0.41 | Primary disseminated chalcopyrite |
| 330.0 | 404.0 | 74.0 | 0.90 | Primary bornite with disseminated chalcopyrite |
| 404.0 | 656.4 | 252.4 | 0.41 | Primary disseminated chalcopyrite |
Hole 60A (-90º)
| Intersection | Vertical Thickness (m) |
% Cu | Comments | |
|---|---|---|---|---|
| from (m) | to (m) | |||
| 0 | 60.0 | 60.0 | - | Gravel overburden |
| 60.0 | 116.0 | 56.0 | 0.11 | Leached cap |
| 116.0 | 130.0 | 14.0 | 0.30 | Mixed secondary chalcocite enrichment and disseminated chalcopyrite |
| 130.0 | 170.0 | 40.0 | 0.69 | Secondary chalcocite enrichment zone |
| 170.0 | 281.0 | 110.0 | 0.55 | Mixed secondary chalcocite enrichment and disseminated chalcopyrite |
| 281.0 | 402.5 | 121.5 | 0.42 | Primary disseminated chalcopyrite |
Hole 61A (-70º) at 260º Azimuth
| Intersection | Vertical Thickness (m) |
% Cu | Comments | |
|---|---|---|---|---|
| from (m) | to (m) | |||
| 0 | 54.0 | 50.8 | - | Gravel overburden |
| 54.0 | 71.0 | 16.0 | 0.04 | Leached cap |
| 71.0 | 250.0 | 168.2 | 1.04 | Secondary chalcocite enrichment zone with disseminations and stockworks |
| 250.0 | 293.4 | 40.8 | 0.32 | Primary disseminated chalcopyrite |
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