Minera Andes Inc.
TSX VENTURE : MAI
OTC Bulletin Board : MNEAF

Minera Andes Inc.

June 23, 2005 08:30 ET

Minera Andes Reports Drilling Hits 155.51 g/t Gold And 11,619 g/t Silver At San Jose Project: Feasiblity Study Nearing Completion

SPOKANE, WASHINGTON--(CCNMatthews - June 23, 2005) - Minera Andes Inc. (TSX VENTURE:MAI)(OTCBB:MNEAF) is pleased to announce that core drilling at its San Jose project in southern Argentina has encountered significant gold and silver mineralization at the Frea vein trend. Results for an additional 50 in-fill holes, totaling 12,825 meters, have been received and will form part of the reserve/resource estimate that is the basis of the overall San Jose feasibility study.

In this drilling campaign the highest grade intercept in the Frea vein is 155.51 g/t (5.00 ounces per ton - opt) gold and 11,619 g/t (374 opt) silver over 0.40 meters in drill hole SJD-174. This interval is part of a broader intercept of 3.38 meters averaging 30.88 g/t (1.00 opt) gold and 2,096 g/t (67 opt) silver. Other highlights include 8.87 meters of 4.86 g/t (0.16 opt) gold and 462 g/t (15 opt) silver (SJD-118), 5.65 meters of 11.14 g/t (0.36 opt) gold and 608 (19 opt) g/t silver (SJ-129) and 3.75 meters of 9.39 g/t (0.30 opt) gold and 1,051 (34 opt) g/t silver (SJ-135). These assays complement the results presented in the news release dated April 28, 2005.

Drilling results at the Frea vein (previously called Huevos Verdes East) indicate that the vein should add a significant tonnage of high-grade mineralization to the resource/reserve estimate. Drilling to date has tested approximately 500 meters of vein strike length to a depth of 250 meters. These results indicate an exceptional success rate with 85 percent of the holes intercepting high-grade mineralization (see table below).

Allen Ambrose, president of Minera Andes, said: "The drilling results from the Frea vein show consistent high-grade mineralization that will be added to the project's reserves and resources. The feasibility study has taken longer than planned due to expansion of the project in size and scope through drilling of new mineralized zones and plans to increase the size of the mill processing facility from 500 to 750 ton per day. We anticipate these expansions will increase Minera Andes potential future cash flows from the San Jose Project based on a positive feasibility study outcome."

The discovery area at the Frea vein trend is located 2 km northeast of the Huevos Verdes vein (see attached map) on a separate, parallel vein trend. The Frea vein trend, as currently defined, is a 6 km long trend characterized by a 3 km long geophysical anomaly in the north, with intermittent quartz veining and/or high-grade gold/silver mineralization found in areas not covered by overburden in the south. The current drilling was done on the south central portion of a 3 km long geophysical anomaly.



Drill results from the Huevos Verdes Vein, San Jose Project

---------------------------------------------------------------------
From To Interval Au Ag
Drill Hole (meters) (meters) (meters) (g/t) (g/t)
---------------------------------------------------------------------
Frea Vein
---------------------------------------------------------------------
SJD-100 272.68 273.88 1.20 10.95 218
---------------------------------------------------------------------
SJD-101 nil
---------------------------------------------------------------------
SJD-102 317.06 318.35 1.29 12.78 23
---------------------------------------------------------------------
SJD-104 234.30 238.13 3.83 9.18 370
---------------------------------------------------------------------
incl. 234.30 234.97 0.67 6.61 612
---------------------------------------------------------------------
incl. 236.09 238.13 2.04 14.56 443
---------------------------------------------------------------------
SJD-106 304.70 304.99 0.29 7.19 14
---------------------------------------------------------------------
and 307.93 308.90 0.97 7.10 232
---------------------------------------------------------------------
SJD-107 112.00 112.40 0.40 1.29 322
---------------------------------------------------------------------
and 167.30 168.41 1.11 6.15 863
---------------------------------------------------------------------
and 176.70 178.52 1.82 3.29 430
---------------------------------------------------------------------
and 202.35 202.68 0.33 15.07 1,514
---------------------------------------------------------------------
and 230.95 232.40 1.45 3.79 340
---------------------------------------------------------------------
and 242.14 244.52 2.38 25.28 686
---------------------------------------------------------------------
SJD-109 185.88 186.18 0.30 9.92 365
---------------------------------------------------------------------
SJD-110 91.72 93.45 1.73 3.00 310
---------------------------------------------------------------------
SJD-111 123.29 134.00 10.71 1.76 281
---------------------------------------------------------------------
incl. 124.10 125.29 1.19 3.72 789
---------------------------------------------------------------------
incl. 129.33 130.61 1.28 3.63 465
---------------------------------------------------------------------
SJD-112 nil
---------------------------------------------------------------------
SJD-113 322.30 324.43 2.13 2.96 34
---------------------------------------------------------------------
SJD-114 141.97 142.75 0.78 2.32 527
---------------------------------------------------------------------
and 158.58 162.07 3.49 2.13 293
---------------------------------------------------------------------
SJD-116 136.80 137.58 0.78 18.95 2,724
---------------------------------------------------------------------
and 223.82 224.13 0.31 20.37 867
---------------------------------------------------------------------
and 259.51 260.52 1.01 14.90 281
---------------------------------------------------------------------
SJD-118 152.10 152.40 0.30 16.32 4,118
---------------------------------------------------------------------
and 158.65 159.55 0.90 2.53 326
---------------------------------------------------------------------
and 167.13 176.00 8.87 4.86 462
---------------------------------------------------------------------
incl. 174.50 175.00 0.50 14.01 1,421
---------------------------------------------------------------------
SJD-123 166.03 167.31 1.28 4.78 1,061
---------------------------------------------------------------------
incl. 166.85 167.31 0.46 10.22 2,450
---------------------------------------------------------------------
SJD-125 122.35 123.82 1.47 22.46 2,828
---------------------------------------------------------------------
and 284.42 285.92 1.50 18.75 273
---------------------------------------------------------------------
SJD-127 nil
---------------------------------------------------------------------
SJD-129 209.73 215.38 5.65 11.14 608
---------------------------------------------------------------------
incl. 209.73 212.05 2.32 23.12 1,183
---------------------------------------------------------------------
SJD-130 87.77 88.25 0.48 4.16 750
---------------------------------------------------------------------
and 109.50 111.32 1.82 4.80 208
---------------------------------------------------------------------
SJD-131 99.60 103.12 3.52 3.66 372
---------------------------------------------------------------------
incl. 101.60 103.12 1.52 6.04 496
---------------------------------------------------------------------
SJD-132 126.16 134.37 8.21 3.17 377
---------------------------------------------------------------------
incl. 126.16 128.42 2.26 4.37 613
---------------------------------------------------------------------
SJD-135 125.45 129.20 3.75 9.39 1,051
---------------------------------------------------------------------
SJD-136 332.61 333.70 1.09 3.83 154
---------------------------------------------------------------------
SJD-137 130.06 137.88 7.82 2.42 327
---------------------------------------------------------------------
incl. 134.45 136.53 2.08 5.38 733
---------------------------------------------------------------------
SJD-138 132.50 132.73 0.38 2.91 358
---------------------------------------------------------------------
and 289.37 293.44 4.07 9.33 32
---------------------------------------------------------------------
incl. 292.12 293.00 0.88 38.12 72
---------------------------------------------------------------------
SJD-139 105.38 106.10 0.72 21.33 200
---------------------------------------------------------------------
and 108.78 109.10 0.32 3.01 200
---------------------------------------------------------------------
and 124.81 126.38 1.57 4.03 201
---------------------------------------------------------------------
SJD-142 114.89 115.89 1.00 3.95 529
---------------------------------------------------------------------
and 116.78 119.04 2.26 2.99 331
---------------------------------------------------------------------
and 120.54 125.45 4.91 3.55 316
---------------------------------------------------------------------
incl. 121.12 121.62 0.50 10.63 1,263
---------------------------------------------------------------------
incl. 123.40 125.45 2.05 5.17 352
---------------------------------------------------------------------
SJD-143 110.55 111.30 0.75 4.16 200
---------------------------------------------------------------------
and 273.05 273.50 0.45 2.86 170
---------------------------------------------------------------------
and 285.37 287.46 2.09 26.79 126
---------------------------------------------------------------------
SJD-144 276.77 277.14 0.37 7.15 90
---------------------------------------------------------------------
and 283.38 283.68 0.30 10.45 1,133
---------------------------------------------------------------------
and 287.23 288.23 1.00 10.94 215
---------------------------------------------------------------------
SJD-145 230.10 230.63 0.53 2.35 249
---------------------------------------------------------------------
and 273.33 274.78 1.45 53.52 1,055
---------------------------------------------------------------------
incl. 274.18 274.48 0.30 184.51 4,104
---------------------------------------------------------------------
SJD-146 255.72 256.77 1.05 4.43 391
---------------------------------------------------------------------
and 258.59 261.17 2.58 4.73 321
---------------------------------------------------------------------
SJD-148 nil
---------------------------------------------------------------------
SJD-149 310.77 311.68 0.91 81.79 571
---------------------------------------------------------------------
SJD-151 232.33 234.96 2.63 4.12 217
---------------------------------------------------------------------
and 250.90 251.51 0.61 7.18 65
---------------------------------------------------------------------
SJD-154 58.50 60.50 2.00 8.17 186
---------------------------------------------------------------------
SJD-155 171.57 172.20 0.63 19.61 1,303
---------------------------------------------------------------------
and 295.84 297.60 1.76 3.58 287
---------------------------------------------------------------------
SJD-156 213.02 213.38 0.36 9.31 172
---------------------------------------------------------------------
and 221.95 222.50 0.55 2.68 269
---------------------------------------------------------------------
SJD-158 nil
---------------------------------------------------------------------
SJD-159 nil
---------------------------------------------------------------------
SJD-160 295.65 297.35 1.70 5.84 51
---------------------------------------------------------------------
SJD-162 124.35 125.00 0.65 1.42 232
---------------------------------------------------------------------
SJD-164 nil
---------------------------------------------------------------------
SJD-165 224.88 226.44 1.56 9.81 80
---------------------------------------------------------------------
SJD-166 263.15 264.50 1.35 4.81 186
---------------------------------------------------------------------
SJD-168 234.32 235.53 1.21 66.79 1,926
---------------------------------------------------------------------
SJD-169 102.56 103.01 0.45 2.14 341
---------------------------------------------------------------------
and 112.32 113.17 0.85 7.86 711
---------------------------------------------------------------------
and 116.45 117.00 0.55 11.50 1,452
---------------------------------------------------------------------
SJD-170 135.62 136.56 0.94 6.55 614
---------------------------------------------------------------------
and 138.30 139.05 0.75 5.01 724
---------------------------------------------------------------------
and 145.85 148.10 2.25 3.57 273
---------------------------------------------------------------------
and 150.60 151.89 1.29 3.21 141
---------------------------------------------------------------------
and 154.14 155.25 1.11 6.25 664
---------------------------------------------------------------------
SJD-174 155.31 158.69 3.38 30.88 2,096
---------------------------------------------------------------------
incl. 156.17 156.57 0.40 155.51 11,619
---------------------------------------------------------------------
SJD-176 193.22 193.66 0.44 5.60 96
---------------------------------------------------------------------
and 195.41 195.68 1.17 10.56 599
---------------------------------------------------------------------
and 198.59 201.26 2.67 5.74 70
---------------------------------------------------------------------


FEASIBILITY STUDY

The results from all drill holes and underground sampling will be used to estimate a definitive ore reserve as part of the ongoing San Jose feasibility study. The ore reserve estimate and the feasibility study are slated for completion by the end of summer. Assays are now in hand for all of the holes drilled at the Frea vein.

The Huevos Verdes and Frea veins are part of the San Jose project, held by Minera Santa Cruz ("MSC") the joint venture corporation co-owned by Minera Andes (49%) and Mauricio Hochschild & Cia. Ltda. (51%). There are currently several core drill rigs operating at the San Jose project; Minera Andes is also core drilling other, 100% held, gold-silver projects in southern Argentina.

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$4.0 million and a pending credit facility of up to US$2 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.

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. In addition, Minera Andes' joint venture partner, Mauricio Hochschild & Cia. Ltda., does not accept responsibility for the use of project data or the adequacy or accuracy of this release.

Please note: A map is available on CCNMatthews' website at the following
address: http://www2.ccnmatthews.com/database/fax/2000/mai0623.pdf


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

Contact Information

  • Minera Andes Inc.
    Allen V. Ambrose
    President and Director
    or
    Minera Andes Inc.
    Spokane Office
    111 East Magnesium Rd., Suite A
    Spokane, WA 99208 USA
    (509) 921-7322
    mineraandes@minandes.com
    or
    Minera Andes Inc.
    Vancouver Office
    410-744 West Hastings Street
    Vancouver, B.C. V6C 1A5
    (604) 689-7017; or (877) 689-7018
    ircanada@minandes.com