SPOKANE, Wash., June 24, 2002 (PRIMEZONE) -- As reported previously, recently completed gradient array induced polarization ("IP") surveys have greatly expanded the target size at El Pluma/Cerro Saavedra.
A recent report by Mauricio Hochschild & Cia. Ltda. ("MHC") of Peru, Minera Andes' joint venture partner on the advanced stage, high-grade gold-silver discovery in Santa Cruz province, concluded, "...that the system of structures within the mineralized, north-northwest trending corridor is extensive and hence the prospect has excellent possibilities to increment its resources."
The compilation map shows the traces of the anomalies delineated by the recent geophysical surveys and their spatial relationship to known epithermal veins, breccias and sinters. This map is available for download at www.minandes.com.
Gradient array IP was initially used on the property by Minera Andes (OTCBB:MNEAF) (TSX Venture Exchange:MAI) to characterize the poorly exposed vein at Huevos Verdes. There, strong linear resistivity and chargeability anomalies coincide with strongly mineralized epithermal vein intersected in 56 drill holes. This provided a high level of confidence for subsequent IP surveys.
Geophysical surveys were then used to trace the Huevos Verdes vein for 2.5 km to the northwest under a thin cover of basalts. Subsequent drilling (three holes) confirmed the presence of the vein as outlined by the geophysics.
The recent geophysical surveys described in the MHC report extended the area of geophysical coverage from Huevos Verdes east to Huevos Verdes East and south to Saavedra West, providing coverage of the entire area from Saavedra West to Pluma West for the first time.
In addition to Huevos Verdes, two linear new anomalies, strongly indicative of vein, are defined. The first anomaly extends for 10 km from Saavedra West through La Rosalia to Pluma South (www.minandes.com). There is ample geologic evidence along the trace of the anomaly to indicate the anomaly is related to epithermal vein: mineralized "phreatic" high-grade breccias at Saavedra West (20 ft @ 1.79 opt Au and 48 opt Ag -- some of the highest grade mineralization found on the property); vein in trenches at Saavedra West; vein float north of La Rosalia; and vein in outcrop at Pluma South. To date only a 200 m section of the trace of the anomaly has been drill-tested at Saavedra West, yielding 5 ft @ 0.10 opt Au.
A second anomaly, at least 4 km long, occurs to the east of Huevos Verdes in an area of thin basalt cover. The anomaly appears to extend beyond the southeastern limit of the survey. This anomaly appears to connect mineralized vein at Pluma West (3.3 ft @ 0.36 opt Au and 11 opt Ag) and outcropping vein at Huevos Verdes East, some 5 km to the southeast.
Combined with the Huevos Verdes vein, these newly recognized anomalies provide 19.5 km of vein target in a mineralized corridor trending north-northeast. To date, only a strike length of 2.2 km has been drilled in detail at the Huevos Verdes vein and 0.2 km at Saavedra West. The larger completed area of geophysical coverage and the success in drilling mineralization based on previous geophysical surveys provide an excellent picture of the property's exploration potential. An independent resource calculation is due out later this month based on the drilling at Huevos Verdes.
Additionally, the occurrence of mineralized vein at La Sopresa (5 ft @ 0.29 opt Au) and vein in outcrop at Eastern Windows and West Portuguese tentatively suggests another 10 km long, potentially mineralized vein system. Geophysics has not been done over this area yet. Surface samples results are pending.
The exploration program on the project is currently proceeding through the Argentine winter (June - August) and includes surface mapping, sampling and possibly trenching. Drilling is scheduled and will probably start in the fourth quarter of 2002 along with underground construction at the Huevos Verdes vein.
Minera Andes is a mining exploration corporation that controls approximately 12 projects on about 163,000 hectares (402,733 acres) of mineral exploration land in Argentina. Most of the properties are located in the Andean cordillera and primarily contain gold, silver and copper mineralization targets. The Corporation is presently pursuing the further development of its gold/silver discovery property in Santa Cruz province.
For further information, please contact: Allen V. Ambrose, president, 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 3303 N. Sullivan Road 1000-355 Burrard Street Spokane, WA 99216 USA Vancouver, B.C. V6C 2G8 Phone: (509) 921-7322 Phone: (604) 689-7017 E-mail: mineraandes@minandes.com 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 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.
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