SOURCE: Minera Andes Inc.

May 03, 2006 15:30 ET

Minera Andes Begins Follow-Up Drill Program at Cerro Mojon, Argentina

SPOKANE, WA -- (MARKET WIRE) -- May 3, 2006 -- Minera Andes Inc. (TSX-V: MAI) and (OTC BB: MNEAF) is pleased to announce that core drilling has started at its 100 percent owned Cerro Mojón project in Santa Cruz province, Argentina. The drill plan calls for a total of 2,250 meters of drilling in 12 holes varying in depth between 100 and 300 meters.

According to Minera Andes' president, Allen Ambrose, "Drilling in 2005 revealed promising gold and silver mineralization at Cerro Mojón and this year's program will test targets deeper in the system as well as additional near surface targets."

Prior drilling at Cerro Mojón

In 2005, Minera Andes drilled 11 diamond drill holes, totaling 1,906.75 meters and 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 meters of the surface outcrop of the vein structure. The 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 with 0.3 meters containing 0.38 g/t gold and 486 g/t silver.

2005 Drill results from Cerro Mojón, Argentina

Drill Hole      From      To    Interval Gold   Silver
              (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 Mojón contained nil to background values of gold and silver.

Prior geologic mapping and sampling at Cerro Mojón 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).

Assay results for the drilling were reviewed by Brian Gavin, Minera Andes' vice president, exploration, who is a 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. Minera Andes holds about 440,000 acres of mineral exploration land in Argentina, including the co-owned San José silver/gold project now under construction and development for planned 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 133,772,051 issued and outstanding shares.

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 -- The Corporation's results will be subject to known and unknown risks and uncertainties that may cause the Corporation's actual results in future periods to differ materially from forecasted or anticipated results. Among those factors which could cause actual results to differ materially are the following: the risks inherent in mineral exploration and the mining industry, the Corporation's needs for additional capital, and other risk factors listed from time to time in the Corporation's public filings.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Spokane Office
    111 East Magnesium Rd., Suite A
    Spokane, WA 99208 USA
    Phone: (509) 921-7322
    E-mail: info@minandes.com

    Vancouver Office
    410-744 West Hastings Street
    Vancouver, B.C. V6C 1A5
    Phone: (604) 689-7017; 877-689-7018
    E-mail: ircanada@minandes.com