Minera Andes announces 2.05 oz/ton gold and 37 oz/ton silver from ongoing 2008 San Jose drilling



    
    TSX: MAI                                               NASD-OTCBB: MNEAF
    

    SPOKANE, WA, Sept. 2 /CNW/ - Minera Andes Inc. (TSX: MAI and US OTC:
MNEAF) is pleased to announce the results of the ongoing 2008 exploration
drilling along the Odin, Ayelén and Frea veins at its producing San José mine
in southern Argentina. Infill and step-out drilling on these veins indicates
significant potential to further increase the current reserves/resources on
the property. One of the highest-grade intercepts from this drilling campaign
was in hole SJD-462 and encountered 63.63 grams per tonne "g/t" (2.05 ounces
per ton "opt") gold and 1,158 g/t (37 opt) silver over 1.94 meters. In
addition, bonanza silver grades were intersected in hole SJD-477 where
4,945 g/t (159 opt) of silver over 0.30 meters was intersected (see table
below).
    Allen Ambrose, president of Minera Andes, said: "The drilling results
from the 2008 exploration drilling program continue to increase the San José
project's size potential. Recent positive events such as reaching a company
milestone of reporting net income last quarter and the potential to further
increase the reserves and resources all further facilitate plans at San José
to double production from 750 to 1500 tonnes per day by the end of this year."
    Through July 31, 2008, approximately 7,980 meters of drilling in 35 core
holes was completed as part of a planned 21,260 meter drilling program focused
on three veins at San José. The drilling focused on the Frea, Odin, and Ayelén
veins that contain high-grade gold/silver mineralization discovered in late
2005 through reconnaissance drilling of blind geophysical targets. A new NI
43-101 technical report is underway to update the reserves and resources at
San José. The last technical report on San José dated October 2007 indicates
reserves at San Jose increased by over 100 percent from the November 2005
technical report based largely on the results of 29,000 meters of additional
drilling that occurred in the time period between the two reports. The current
technical report being prepared will include approximately 30,000 meters of
new drilling that occurred between July of 2007 and present. Minera Andes
anticipates this work may further expand the current reserves and resources
based on a track record of success in converting drilling to new reserves and
resources in previous drilling campaigns at San José. In addition, MSC will
complete another 13,280 meters of drilling to finish the current exploration
program in progress.
    The majority of the 2008 drilling has been concentrated on the Odin and
Ayelén veins covering approximately 2.8 kilometers of strike length along
these open-ended mineralized veins. Drilling completed last year extended the
known mineralization along the Odin and Ayelén vein trends for 1000 meters
along strike - or a 64% increase from the discovery drilling in 2005.
    The San José project is operated by Minera Santa Cruz S.A. ("MSC") owned
51% by Hochschild Mining plc ("Hochschild") (HOC.L: Reuters and HOC.LN:
Bloomberg - London Stock Exchange) and 49% by Minera Andes. The development of
new high-grade silver/gold mineralization in veins such as Odin, Ayelén and
Frea represents additional mineralization that can add to the
reserves/resources currently being mined at a rate of 750 tonnes per day. The
development and discovery of new mineralization also indicates the large
mineral potential of the San José property where more than 40 kilometers of
vein-trend target is currently known to exist, of which less than 15% has been
explored to date.

    Odin Vein

    During the 2008 campaign 21 holes have been completed on the Odin vein
(bringing the total to 65 holes) along approximately 1600 meters along the
strike of the vein, to a depth of approximately 200 meters. Highlights of the
program included the identification of massive and banded quartz veining with
disseminated pyrite and argillic alteration. The Odin vein remains open to the
west along strike and to depth.
    High-grade gold and silver mineralization was intersected in the 2008
drilling campaign at the Odin vein (see table below). The highest-grade
intercept was in hole SJD-462 (described above). Other highlights of the Odin
vein drilling include 2.58 meters of 30.41 g/t (0.98 opt) gold and 1,922 g/t
(62 opt) silver (SJD-475) which is near to an interval running 1.55 meters of
20.56 g/t (0.66 opt) gold and 1,919 (62 opt) g/t silver in the same hole. Hole
SJD-451 contains 1.85 meters of 18.69 g/t (0.60 opt) gold and 1,506 g/t
(48 opt) silver at depth of 173 meters below surface. See table below for the
drill intercepts.

    Frea Vein

    The Frea vein is located 2 kilometers northeast of the Huevos Verdes
vein, and both veins are currently being mined on several levels. Proven
reserves of 587,000 tonnes and probable reserves 350,000 tonnes (totaling
937,000 tonnes grading 7.77 g/t gold and 343 g/t silver - see November 26,
2007 News Release) at the Frea vein are based drilling results through
mid-2007 and cover a strike length of about 575 meters and a depth of
approximately 350 meters of vein. With the drilling completed in 2007-2008 the
known mineralization along the Frea vein trend has been extended to about
1.2 kilometers, a 200% increase.
    Significant 2008 drill results were encountered in drill hole SJD-477
that hit three high-grade splits off the main Frea vein of 0.30 meters grading
25.23 g/t (0.81 opt) gold and 4,945 g/t (159 opt) silver and 0.93 m grading
14.82 g/t (0.48 opt) gold and 1,688 g/t (54 opt) silver and 1.30 meters of
13.30 g/t (0.43 opt) gold and 1,532 g/t (49 opt) silver. In 2007, the drilling
at the Frea vein indicates that it is an open-ended mineralized silver/gold
vein. See table below for the intercepts. Assay results are pending for hole
SJD-478.

    Ayelén Vein

    Drilling to July 31st has identified additional mineralization along the
1.2 kilometers of strike and 200 meters of depth of the Ayelén gold silver
vein. A total of 52 holes have been drilled on the Ayelén vein with 7 holes
drilled in the 2008 to date. The Ayelén vein structure is sub parallel to the
Odin vein and dips in the same direction southwest. The results have been
moderate to low grade in the 2008 drilling with an exception in drill hole
SJD-416 drilled at the end of 2007 where 5.10 meters of vein was intersected
grading 9.6 g/t gold and 594 g/t silver (see table below).

    
             2008 Drilling Results to July 31, San José Project
    -------------------------------------------------------------------------
    Drill                 From          To  Interval(*)       Au         Ag
    Hole/Vein          (meters)    (meters)    (meters)     (g/t)      (g/t)
    -------------------------------------------------------------------------
    SJD-444 ODIN         109.1         112         2.9       4.41        402
    -------------------------------------------------------------------------
    SJD-445 AYELEN       237.2      239.64        2.44        NIL        NIL
    -------------------------------------------------------------------------
    SJD-446 ODIN        240.85       243.4        2.55       1.46         54
    -------------------------------------------------------------------------
    SJD-447 AYELEN       301.4         304         2.6        NIL        NIL
    -------------------------------------------------------------------------
    SJD-448 ODIN         238.1      240.65        2.55       0.43         34
    -------------------------------------------------------------------------
    SJD-449 ODIN        244.81      245.84        1.03       8.17         28
    -------------------------------------------------------------------------
    SJD-450 ODIN        140.08      140.76        0.68       0.87        181
    -------------------------------------------------------------------------
    SJD-451 ODIN        172.80      174.65        1.85      18.69      1,506
    -------------------------------------------------------------------------
    SJD-452 AYELEN      136.98      137.83        0.85       3.33        191
    -------------------------------------------------------------------------
    SJD-453 ODIN        204.90      206.10        1.20       0.94         36
    -------------------------------------------------------------------------
    SJD-454 AYELEN      145.14      146.36        1.22        NIL        NIL
    -------------------------------------------------------------------------
    SJD-455 AYELEN      325.90      326.75        0.85       0.27         15
    -------------------------------------------------------------------------
    SJD-456 ODIN        194.50      195.10        0.60       2.57        303
    -------------------------------------------------------------------------
    SJD-457 ODIN        219.65      220.15        0.50       7.77        124
    -------------------------------------------------------------------------
    SJD-458 ODIN         89.70       91.00        1.30       2.98        122
    -------------------------------------------------------------------------
    SJD-459 AYELEN      136.95      139.65        2.70       0.24         21
    -------------------------------------------------------------------------
    SJD-460 ODIN        120.30      122.30        2.00       3.55        524
    -------------------------------------------------------------------------
    SJD-461 AYELEN      166.35      166.90        0.55        NIL        NIL
    -------------------------------------------------------------------------
    SJD-462 ODIN        172.60      174.54        1.94      63.63      1,158
    -------------------------------------------------------------------------
    SJD-463 ODIN         81.30       82.20        0.90       1.30         93
    -------------------------------------------------------------------------
    SJD-464 ODIN        255.50      257.60        2.10        NIL        NIL
    -------------------------------------------------------------------------
    SJD-465 ODIN        175.90      176.57        0.67        NIL        NIL
    -------------------------------------------------------------------------
    SJD-466 ODIN        264.56      265.70        1.14       8.60        237
    -------------------------------------------------------------------------
    SJD-467 AYELEN                    No structure encountered
    -------------------------------------------------------------------------
    SJD-468 ODIN        240.85      241.30        0.45       3.07         30
    -------------------------------------------------------------------------
    SJD-469 ODIN        238.30      239.85        1.55        NIL        NIL
    -------------------------------------------------------------------------
    SJD-470 FREA         96.90       97.85        0.95       1.71        158
    -------------------------------------------------------------------------
    and                 101.65      102.30        0.65       3.60        183
    -------------------------------------------------------------------------
    SJD-471 FREA        237.90      239.00        1.10       4.01         70
    -------------------------------------------------------------------------
    SJD-472 FREA        172.75      174.32        1.57       0.42         24
    -------------------------------------------------------------------------
    SJD-473 FREA        253.62      253.92        0.30       6.33        890
    -------------------------------------------------------------------------
    SJD-474 ODIN         79.00       80.50        1.50       1.38        149
    -------------------------------------------------------------------------
    SJD-475 ODIN        173.75      175.30        1.55      20.56      1,919
    -------------------------------------------------------------------------
    and                 178.82      181.40        2.58      30.41      1,922
    -------------------------------------------------------------------------
    SJD-476 ODIN        149.13      150.19        1.06        NIL        NIL
    -------------------------------------------------------------------------
    SJD-477 FREA        109.62      109.92        0.30      25.23      4,945
    -------------------------------------------------------------------------
    and                 129.90      130.83        0.93      14.82      1,688
    -------------------------------------------------------------------------
    and                 136.85      138.15        1.30      13.30      1,532
    -------------------------------------------------------------------------
    SJD-478 FREA        assays pending
    -------------------------------------------------------------------------
    (*) All of the drill holes are angle holes. True thickness of the vein is
        undetermined.


    Outstanding September to December 2007 Drilling Results, San José Project
    -------------------------------------------------------------------------
    Drill                 From          To  Interval(*)        Au         Ag
    Hole/Vein          (meters)    (meters)    (meters)      (g/t)      (g/t)
    -------------------------------------------------------------------------
    SJD-410 ODIN        235.04      236.91        1.87       3.12         45
    -------------------------------------------------------------------------
    SJD-411 AYELEN                                            NIL        NIL
    -------------------------------------------------------------------------
    SJD-416 AYELEN      141.90      147.05        5.10        9.6        594
    -------------------------------------------------------------------------
    including           141.90      142.90        1.00      33.41      1,788
    -------------------------------------------------------------------------
    SJD-418 ODIN                                              NIL        NIL
    -------------------------------------------------------------------------
    SJD-431 AYELEN      124.30      126.55        2.25       0.12        133
    -------------------------------------------------------------------------
    SJD-432 AYELEN      165.10       165.5        0.40       0.24         35
    -------------------------------------------------------------------------
    SJD-433 AYELEN      231.66      232.10        0.44       0.19         39
    -------------------------------------------------------------------------
    SJD-434 AYELEN      223.10      224.04        0.94       1.50        168
    -------------------------------------------------------------------------
    SJD-435 AYELEN                                            NIL        NIL
    -------------------------------------------------------------------------
    SJD-436 AYELEN      177.28         178        0.72       2.86        328
    -------------------------------------------------------------------------
    SJD-437 AYELEN      159.88      160.73        0.85       1.23         76
    -------------------------------------------------------------------------
    SJD-438 AYELEN                                            NIL        NIL
    -------------------------------------------------------------------------
    SJD-439 AYELEN                                            NIL        NIL
    -------------------------------------------------------------------------
    SJD-440 AYELEN      177.40      178.60        1.20       1.06         29
    -------------------------------------------------------------------------
    SJD-441 AYELEN                                            NIL        NIL
    -------------------------------------------------------------------------
    SJD-442 FREA        125.81      127.18        1.37       4.97        548
    -------------------------------------------------------------------------
    and                 229.60      230.15        0.55       9.87      1,089
    -------------------------------------------------------------------------
    SJD-443 AYELEN      137.88      139.35        1.47       0.49         90
    -------------------------------------------------------------------------
    (*) All of the drill holes are angle holes. True thickness of the vein is
        undetermined
    

    Assay results for the drilling were reviewed by Brian Gavin, Minera
Andes' vice president, exploration, who is an appropriately qualified person
as defined by National Instrument 43-101. All samples were collected in
accordance with industry standards. Splits from the drill core samples 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.

    Minera Andes is a gold, silver and copper exploration company working in
Argentina. The Company holds about 304,000 acres of mineral exploration land
in Argentina including the 49% owned San José silver/gold mine. Minera Andes
is also exploring the Los Azules copper project in San Juan province, where an
exploration program is underway to define a resource and to prepare a scoping
study. Other exploration properties, primarily silver and gold, are being
evaluated in southern Argentina. The Corporation presently has 189,456,935
shares issued and outstanding.
    This news is submitted by Allen V. Ambrose, President and Director of
Minera Andes Inc.

    Caution Concerning Forward-Looking Statements:

    This press release contains certain "forward-looking statements",
including, but not limited to, the statements regarding the Company's
strategic plans, evolution of mineral resources and reserves, work programs,
development plans and exploration budgets at the Company's San José Project.
The forward-looking statements express, as at the date of this press release,
the Company'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. In
particular, there can be no assurance that production capacity at the San José
mine will be successfully increased, that resources and reserves at the San
José mine will be increased. 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, the state of
the capital markets, environmental risks and hazards, uncertainty as to
calculation of mineral reserves and other risks. We refer readers to the risk
factors and uncertainties described in the Company's continuous disclosure
record, a copy of which is available under the Company's profile at
www.sedar.com. Minera Andes' joint venture partner, a subsidiary of Hochschild
Mining plc, and its affiliates do not accept responsibility for the use of
project data or the adequacy or accuracy of this release.

    Cautionary Note to U.S. Investors:

    The United States Securities and Exchange Commission (the "SEC") permits
mining companies, in their filings with the SEC, to disclose only those
mineral deposits with "mineral reserves" that a company can economically and
legally extract or produce. We use certain terms in this press release, such
as "mineral resources", that the SEC guidelines strictly prohibit us from
including in our filings with the SEC, because these terms are common usage in
Canada and form part of our Canadian filing requirements.





For further information:

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, 111 East
Magnesium Road, Ste. A, Spokane, WA, 99208, USA, Phone: (509) 921-7322,
E-mail: info@minandes.com; Vancouver Office, 911-470 Granville Street,
Vancouver, B.C., V6C 1V5, Phone: (604) 689-7017, (877) 689-7018, E-mail:
ircanada@minandes.com

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