SPOKANE, Wash., Sept. 4, 2002 (PRIMEZONE) -- Minera Andes (TSX Venture Exchange:MAI) (OTCBB:MNEAF) has received its fourth U.S.$200,000 semi-annual cash payment from its exploration/operating joint venture partner for a highly prospective gold/silver project in Santa Cruz province, southern Argentina.
The payment to Minera Andes is in accordance with an agreement with joint venture partner, Mauricio Hochschild & Cia. Ltda. ("MHC"), of Lima, Peru. MHC is earning a 51 percent ownership position in the El Pluma/Cerro Saavedra (San Jose) land package. For 2002, MHC plans to spend about US$0.8 million on the project. Due to an early winter and the devaluation of the peso in Argentina, exploration expenditures on the project have been significantly reduced this year. The most advanced exploration target, the Huevos Verdes vein system, has been MHC's primary focus.
In an August 27, 2002 joint venture meeting in Spokane with Minera Andes' management, senior officials for MHC said they are very encouraged with the Huevos Verdes project and MHC's engineering/mining group is proceeding with an underground resource/reserve exploration program. MHC plans to access the main Huevos Verdes ore shoot, a 2.2 kilometer (1.4 miles) mineralized structure, by constructing two 45-degree decline shafts. Once underground, galleries or tunnels would be driven on four levels which would then allow drilling and exploration to follow the trend of the mineralized structure. The purpose is to develop a resource/reserve base preparatory to a production decision.
The potential of the property was further confirmed recently by an independent resource estimate by Snowden Mining Industry Consultants Inc. of an indicated and inferred resource totaling 922,600 gold equivalent ounces, or 55.4 million silver equivalent ounces at Huevos Verdes and the nearby Saavedra West target. (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.