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

Minera Andes Inc.

September 22, 2005 14:55 ET

Minera Andes San Jose Project Discovers Three New Gold/Silver Veins With Up To 1.7 Meters Of 158 g/t GOLD AND 10,819 g/t Silver

SPOKANE, WASHINGTON---(CCNMatthews - Sept. 22, 2005) - Minera Andes Inc. (TSX VENTURE:MAI)(OTCBB:MNEAF) is pleased to announce the results of an exploration core drilling program at its San Jose project in southern Argentina where three new areas of high-grade gold/silver mineralization have been discovered. Thirty eight holes totaling 8,996 meters explored several areas and identified over 2 kilometers of new and still open-ended mineralized vein trend, in addition to the 2.2 Km of separate vein trend hosting the deposits of the original Huevos Verde discoveries.

High grade gold and silver mineralization was discovered in this drilling campaign on trend of the Frea vein and at the Odin and Frea Satellite targets (see attached map and table below). The highest grade intercept drilled in this drilling campaign is 158 g/t (5.07 ounces per ton - opt) gold and 10,819 g/t (348 opt) silver intersected over 1.72 meters in the Frea Satellite vein in drill hole SJD-208. This interval is part of a broader intercept of 13.26 meters averaging 21.31 g/t (0.69 opt) gold and 1,579 g/t (51 opt) silver. Other highlights include 1.0 meter of 16.49 g/t (0.53 opt) gold and 281 g/t (9 opt) silver (SJD-188) drilled at the Frea vein. The Odin vein drilling intersected values up to 1.0 meter of 13.46 g/t (0.43 opt) gold and 928 g/t (30 opt) silver (SJ-209) which is part of a larger interval running 2.53 meters of 6.58 g/t (0.21 opt) gold and 445 (14 opt) g/t silver. At Huevos Verdes North a similar hanging wall vein in hole SJD-181 assayed 5.65 g/t gold and 69 g/t silver over 1.90 meters.

Odin Vein

The new discovery of mineralization at Odin also reveals the mining district scale potential of the project. At Odin, six holes define an area approximately 1100 meters along the vein to a depth of 180 meters. Highlights of the program included the identification of massive and banded quartz veining with disseminated pyrite and argillic alteration at the Odin target returning up to 1.3 metres of 12 g/t gold & 1300 g/t silver. The new vein discovery is totally open along strike and to depth.

Frea Vein

Exploration drilling at the original Frea vein (previously called Huevos Verdes East) has extended known mineralization by 200 meters to the northwest. Frea Vein mineralization now extends for 700 meters of strike and it continues to remain open to further expansion to the northwest and to depth.

Frea Satellite Vein

The Frea Satellite appears to be a close parallel vein structure that dips in the opposite direction to Odin vein. Drilling has defined an area along a strike of 700 meters and to a depth of 150 meters. This preliminary drilling again reveals the excellent potential within the project area to delineate an area of significant mineralization, with one intersection returning 13.2 metres of 21.3 g/t gold & 1,580 g/t silver.



Significant New Drill Targets, San Jose Project
---------------------------------------------------------------------
Drill From To Interval Au Ag
Hole/Vein (meters) (meters) (meters) (g/t) (g/t)
---------------------------------------------------------------------
Frea Satellite
---------------------------------------------------------------------
SJD-179 nil
---------------------------------------------------------------------
SJD-191 nil
---------------------------------------------------------------------
SJD-200 73.4 75.49 2.09 4.27 431
---------------------------------------------------------------------
and 81.35 81.75 0.4 3.97 165
---------------------------------------------------------------------
and 129.33 130.61 1.28 3.63 465
---------------------------------------------------------------------
184.9 185.29 0.39 3.49 382.5
---------------------------------------------------------------------
SJD-202 nil
---------------------------------------------------------------------
SJD-203 nil
---------------------------------------------------------------------
SJD-207 nil
---------------------------------------------------------------------
SJD-208 110.28 110.78 0.5 140.58 12,030
---------------------------------------------------------------------
and 110.78 111.22 0.44 206.82 8,495
---------------------------------------------------------------------
and 111.22 111.7 0.48 223.67 17,642
---------------------------------------------------------------------
within 103.88 117.14 13.26 21.31 1,579
---------------------------------------------------------------------
SJD-215 assays pending
---------------------------------------------------------------------
Odin
---------------------------------------------------------------------
SJD-178 nil
---------------------------------------------------------------------
SJD-180 nil
---------------------------------------------------------------------
SJD-182 nil
---------------------------------------------------------------------
SJD-198 178 178.4 0.4 0.48 116.5
---------------------------------------------------------------------
SJD-199 161.05 161.57 0.52 8.51 32.5
---------------------------------------------------------------------
SJD-201 106 106.55 0.55 8.7 50
---------------------------------------------------------------------
SJD-204 84.37 85.65 1.28 12.03 1,295
---------------------------------------------------------------------
incl. 84.37 84.68 0.31 36.22 4152
---------------------------------------------------------------------
and 92.75 93.1 0.35 5.08 618
---------------------------------------------------------------------
and 95.00 96.50 1.50 2.20 354
---------------------------------------------------------------------
SJD-205 91.2 92.1 0.9 15.29 856
---------------------------------------------------------------------
and 110.25 110.55 0.3 2.9 233
---------------------------------------------------------------------
SJD-206 nil
---------------------------------------------------------------------
SJD-209 86.37 88.9 2.53 6.58 445
---------------------------------------------------------------------
incl. 87.9 88.9 1 13.46 928
---------------------------------------------------------------------
SJD-210 118.4 119.75 1.35 8.6 189
---------------------------------------------------------------------
and 136.56 137.44 0.88 11.55 515
---------------------------------------------------------------------
SJD-211 105.75 106.1 0.35 2.39 12
---------------------------------------------------------------------
SJD-213 assays pending
---------------------------------------------------------------------
SJD-214 assays pending
---------------------------------------------------------------------
Huevos Verdes N.
---------------------------------------------------------------------
SJD-181 111 112.9 1.90 5.65 68.75
---------------------------------------------------------------------
Frea NW
---------------------------------------------------------------------
SJD-188 179.05 179.36 0.31 2.39 471
---------------------------------------------------------------------
and 274.50 275.5 1.00 13.46 928
---------------------------------------------------------------------
Frea SE
---------------------------------------------------------------------
SJD-184 164.2 164.5 0.3 1.45 285
---------------------------------------------------------------------


In addition to the holes listed in the table above 13 holes were drilled in other targets and encountered veins and silicification that did not return values above, background levels of gold and silver. Hydrothermal breccia and quartz veining with disseminated sphalerite and galena were discovered at the Roadside and Portugese targets; and massive banded quartz veining at the Austri target. Although only background gold and silver values were encountered, the geologic features identified at these targets are consistent with precious metal-bearing epithermal systems. One goal of this early stage program is to identify promising geologic trends that will be further tested in order to explore for high-grade shoots typical of the mineralization found at the Frea and Huevos Verdes veins. Also, several other targets such as Aguas Vivas to the north remain to be drill tested on the property.

Allen Ambrose, president of Minera Andes, said: "The drilling results from this exploration program reveal new areas of high-grade mineralization that have the potential to expand the project and build additional reserves and resources. Also the feasibility study expected by the end of the month should, if positive, move us to the next development level at the San Jose Project."

Minera Santa Cruz ("MSC") (the joint venture corporation co-owned by Minera Andes (49%) and Mauricio Hochschild & Cia. Ltda. (51%) recently completed a reconnaissance drilling program designed to test geologic and geophysical targets adjacent to the Huevos Verdes and Frea veins that make up the resources/reserves currently bring calculated in the on-going feasibility study. A total of 10 targets were drilled with some targets receiving one hole and others receiving up to 14 holes. The new high-grade gold/silver discoveries represent additional mineralization that will not be included in part of the feasibility study nearing completion. They do, however, indicate the large mineral potential of the San Jose property where more than 30 kilometers of vein trend targets are currently know to exist.

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. In addition, assays are pending on the last four holes drilled.

Minera Andes is a gold, silver and copper exploration company working in Argentina. The corporation is funded with working capital of about US$1.3 million. 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 90,818,505 issued and outstanding shares.

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.

This news is submitted by Allen V. Ambrose, President and Director of Minera Andes Inc.

Please note: A map is available on CCNMatthews' website at the following address: http://www.ccnmatthews.com/docs/mai0922.doc

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. - Spokane office
    Arthur Johnson
    (509) 921-7322
    mineraandes@minandes.com
    or
    Minera Andes Inc. - Vancouver Office
    Krister Kottmeier
    (604) 689-7017; 877-689-7018
    ircanada@minandes.com
    or
    Minera Andes Inc. - Spokane Office
    111 East Magnesium Rd., Suite A
    Spokane, WA 99208 USA
    or
    Minera Andes Inc. - Vancouver Office
    410-744 West Hastings Street
    Vancouver, B.C. V6C 1A5