SPOKANE, Wash., Aug. 29, 2002 (PRIMEZONE) -- Minera Andes (TSX Venture Exchange:MAI) (OTCBB:MNEAF) has begun a precious metals exploration program in four provinces in the Patagonian region of Argentina. Due to the devaluation of the peso in Argentina earlier this year exploration costs have been reduced dramatically in terms of North American dollars.
This exploration and acquisition program is in addition to ongoing advanced-stage exploration at Minera Andes' Huevos Verdes high-grade gold/silver project in Santa Cruz province on which an independent resource estimate was reported recently (see below).
Since it was founded in 1994, Minera Andes has focused its exploration activity in Argentina and has evaluated more than 100 properties. Argentina has substantial mineral potential, but historically has received relatively little mineral exploration. Minera Andes' management reasons that the chances of making a significant walk-on or surface discovery are better in unexplored but highly prospective areas than in more heavily explored areas. This strategy has been validated by Minera Andes' discovery of mining district-sized potential mineralization on the El Pluma/Cerro Saavedra (San Jose) property package, host to the Huevos Verdes vein system.
Precious Metals Exploration
The new exploration program will initially focus on geological and land status research, followed by field evaluations of targets in prospective regions of Patagonia, including Neuquen, Santa Cruz, Rio Negro and Chubut provinces. The goal of the program is to locate and acquire prospects suitable for further exploration.
Patagonia is a proven host for multimillion ounce low sulfidation, quartz vein-hosted gold mineralization. Anglogold's operating 3.2 million ounce Cerro Vanguardia gold mine in Santa Cruz province and Meridian Gold's recent acquisition of the 4.2 million ounce Esquel gold project in Chubut province both attest to Patagonia's potential. In addition, these provinces, which contain large unexplored areas, have environmental and infrastructure advantages that foster exploration. Typically, areas of interest do not exceed 2,000 meters above sea level, and many are less than 1,000 meters above sea level, providing relatively easy access and relatively mild weather. Lower, flatter land has also made it easier for provinces to construct roads and power lines into remote areas, and the areas of interest are closer to Atlantic ports.
At Minera Andes most advanced exploration project in Argentina an independent resource estimate was recently announced. The combined, inferred and indicated resource at Huevos Verdes is estimated by Snowden Mining Industry Consultants Inc. at 922,600 ounces of gold equivalent, or 55.4 million silver equivalent ounces. (Au and Ag equivalents are based upon US$300 gold and US$5.00 silver prices, or a 60:1 silver/gold ratio, which does not take into consideration possible differences in metal recoveries.) Two resources were estimated: Huevos Verdes and Saavedra West. Based on a cutoff grade of 50 g/t silver, the indicated resource for both areas combined equates to 12,800,000 ounces of silver and 128,000 ounces of gold. The inferred resource equates to 24,678,000 ounces of silver and 221,000 ounces of gold. The potential for additional mineralization at both areas is still open at depth and along strike.
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 and prospecting in other provinces of Argentina. The Corporation currently has 35,709,197 issued and outstanding common shares.
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 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.