TORONTO, ONTARIO--(Marketwire - Dec. 5, 2011) - Minera Andes Inc.
(the "Corporation" or "Minera Andes") (TSX:MAI)(OTCBB:MNEAF) is pleased
to announce the results of exploration drilling at its 49% owned San Jose mine in Santa Cruz Province, Argentina.
During the third quarter, a total of 90 diamond core holes totaling
21,247 meters were drilled, which compares to 58 core holes totaling
14,300 meters during the second quarter. The total drilling program
planned for 2011 is 56,380 meters, and a total of 40,958 meters
consisting of 16,233 meters of exploration drilling and 24,725 meters of
infill drilling have been completed through the end of the third
During the third quarter, the bulk of the drilling (72 of
the 90 holes) was infill for the purpose of upgrading existing inferred
resources to the measured and indicated categories so that they can be
incorporated into the production plan. This infill drilling amounted to
16,844 meters and was concentrated on the Micaela, Sofia, Luli, Susana, Antonella, and 861 Split veins. Results of the infill drilling are in line with expectations.
balance of the drilling (18 of the 90 holes) was exploration on
step-out targets to extend the resources on existing veins. This
exploration drilling totalled 4,483 meters. Assay results have been
received on eleven of these holes and are shown in Exhibit 2. While no
new significant veins were intersected, low grade intercepts on the
eastern extension of the Odin vein in Hole SJD-998 and the southern
extension of the Huevos Verdes South vein in Hole SJD-1011 are
encouraging because these intercepts open up exploration potential for
extending these veins further east and south beyond the current known
limits of mineralization (Figure 1). Resources defined by the
exploration and infill drilling will be reported as part of the year end
resource update, which will be released at the end of the first quarter
A geophysical survey was commenced comprising of 342
line-kilometers of gradient array Induced Polarization ("IP") and 25
line-kilometers of pole-dipole array IP. The survey will cover an area
of about 16,000 square kilometers in the southern part of the joint
venture property. This data will complement magnetic surveys that were
completed over the same area during the first half of the year, and the
geophysical data will be used to identify drill targets for 2012.
The vein system at San Jose
continues to be open at depth and laterally. As a result of the
discovery of the east-west trending Micaela-Sofia vein system last year,
previous drill results are being reinterpreted to define new drilling
targets in and near the mine area in conjunction with new surface
magnetic data and induced polarization geophysics data.
Status of Proposed Merger with US Gold: On June 14, 2011 the Company announced that Mr. Rob McEwen (who is the company's Chairman and CEO and owns 30% of the shares of the company) proposed to combine the Company with US Gold Corporation to create a high-growth, low-cost, mid-tier silver producer operating in the Americas, listed on the New York and Toronto Stock Exchanges. The Corporation entered into a definitive arrangement agreement on September 22, 2011, wherein each Minera Andes shareholder would receive 0.45 of a share exchangeable into a US Gold share for every one (1) Minera Andes share held. Minera Andes shareholders of record at the close of business on the record date, December 12, 2011, will be entitled to notice of and to vote at the special meeting. The special meeting will be held in Toronto on January 19, 2012. The venue will be announced shortly.
About Minera Andes: Minera Andes is an exploration company exploring for gold, silver and copper in Argentina with three significant assets: One, a 49% interest in Minera Santa Cruz SA, owner of the San Jose Mine that is located near Goldcorp's
Cerro Negro project; Two, 100% ownership of the Los Azules copper
deposit; Three, 100% ownership of a large portfolio of exploration
properties in Santa Cruz province, Argentina, including properties bordering the Cerro Negro project. The Company had $45 million USD in cash as at September 30, 2011 with no bank debt.
About Minera Santa Cruz: Minera Santa Cruz SA is a joint venture owned 51% by Hochschild Mining Argentina, a wholly owned subsidiary of Hochschild Mining plc, and 49% by Minera Andes S.A., a wholly owned subsidiary of the Corporation. The joint venture owns and operates the San Jose property.
About Hochschild Mining plc: Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange
(HOCM.L / HOC LN) with a primary focus on the exploration, mining,
processing and sale of silver and gold. Hochschild has over forty years
of experience in the mining of precious metal vein deposits and
currently operates four underground vein mines, three located in
southern Peru, one in southern Argentina and one open pit mine in northern Mexico. Hochschild also has numerous long-term prospects throughout the Americas.
For further information, please contact: Jim Duff or visit our Web site: www.minandes.com.
This news release has been reviewed and approved by Jim Duff
the Chief Operating Officer of the Corporation, a Qualified Person as
defined by Canadian Securities Administrator National Instrument 43-101
"Standards of Disclosure for Mineral Projects" ("43-101"). Assay results
were reported to Minera Andes by MSC, which is the operating company for the San Jose joint venture. Assay results for the drilling were reviewed by Jim Duff. All samples were collected in accordance with industry standards. Splits from checks of the drill core samples assay at the San Jose Mine laboratory 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. Jim Duff has reviewed the results of the check assays and other quality control measures.
Cautionary Note to U.S. Investors:
All resource estimates reported by the Corporation are calculated in accordance with 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:
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. 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
To view Exhibit 1, please visit the following link: http://media3.marketwire.com/docs/MAIExhibit1.pdf.
To view Exhibit 2, please visit the following link: http://media3.marketwire.com/docs/MAIExhibit2.pdf.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Minera Andes Inc.
Chief Operating Officer
647-258-0395 or 1-866-441-0690
Source: Minera Andes Inc.