SPOKANE, Wash., June 29, 2004 (PRIMEZONE) -- Minera Andes Inc. (TSX Venture Exchange:MAI) (OTCBB:MNEAF) is pleased to announce that development of the Huevos Verdes high-grade gold/silver vein, part of the San Jose project, is continuing to progress. Due to the encouraging results of the underground exploration and development program to date, Minera Andes and its joint venture operating partner, Mauricio Hochschild & Cia. Ltda. (MHC), are aggressively moving the project ahead with the commissioning of a feasibility study. The feasibility study has been commissioned by the joint venture operating company, Minera Santa Cruz (MSC). MSC is owned 51 percent by MHC and 49 percent by Minera Andes. The Huevos Verdes vein is the most advanced of a number of known mineralized targets within the San Jose project area.
Allen V. Ambrose, president of Minera Andes, said "The preparation of this comprehensive study is an important milestone for Minera Andes and the project. It will help in the solicitation of project financing for the development of the project to production and will assist in minimizing the amount of equity we need to fund to put the mine into production at Huevos Verdes."
The feasibility study is being compiled and managed by MTB Project Management Professionals, Inc. of Denver, CO, which was founded to manage international mining projects and has South American mine project experience. The purpose of the study, to be completed in early 2005, is to establish a basis for both project financing and regulatory and permitting approvals. The study will also serve as a foundation for detailed engineering, including mine design and ore reserve development.
The San Jose project, which totals about 40,500 hectares (98,800 acres), is located in Argentina's Santa Cruz province and consists of about 10 gold/silver targets. Huevos Verdes is the most advanced target. Two inclined shafts are under construction, and work is now underway on two levels by MSC to define a mineable ore reserve through drilling, bulk sampling and geotechnical studies. Surface facilities for approximately 100 workers are also in place, and a 28 km all weather road and bridge access the construction area from a paved highway.
Minera Andes is funded with working capital of approximately $5.0 million to carry out its exploration and development programs. Minera Andes is a mining exploration company focused on gold, silver and copper exploration in Argentina where it holds about 200,000 hectares (500,000 acres) of mineral exploration land. It currently has the Huevos Verdes gold/silver target in the feasibility stage. 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 70,291,490 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.
Spokane Office Vancouver Office
111 East Magnesium Rd., Suite A 1000-355 Burrard Street
Spokane, WA 99208 USA Vancouver, B.C. V6C 2G8
Phone: (509) 921-7322 Phone: (604) 689-7017;
E-mail: mineraandes@minandes.com (877) 689-7018
E-mail: ircanada@minandes.com
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. In addition, Minera Andes' joint venture partner, Mauricio Hochschild & Cia. Ltda., does not accept responsibility for the use of project data or in the adequacy or accuracy of this release.
Cautionary Note To U.S. Investors Concerning Estimates Of Inferred Resources:
This news release uses the term "Inferred Resources." We advise U.S. investors that while this term is recognized and required by Canadian regulations, the SEC does not recognize it. "Inferred Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "Inferred Resource" will ever be upgraded to a higher category. Under Canadian rules estimates of "Inferred Resources" may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that part or all of an "inferred resource" exists, or is economically or legally minable.
The TSX venture exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.