SPOKANE, WA, June 20 /CNW/ - Minera Andes Inc. ("Minera Andes" or the
"Company") (TSX: MAI and US OTC: MNEAF) announces that it is making a further
clarification of its news release dated June 18, 2007 discussing the mineral
reserves and resources at our San José Mine in southern Argentina scheduled
for production start up by the end of the second quarter of 2007.
San José is owned by Minera Santa Cruz ("MSC"), a company co-owned by
Minera Andes (49%) and joint venture partner and operator Hochschild Mining
plc (51%) ("Hochschild") (London Stock Exchange, LSE: HOC). The issue centers
around the newly discovered Kospi vein, which was not included as part of the
supporting mineral resources and reserves (at the Huevos Verdes and Frea
Veins) for the 2005 Feasibility Study for the San José Project. Since then, a
significant amount of diamond drilling (approximately 128 holes totaling
20,450 m) has been completed at the Kospi Vein during 2006, defining a 1,200 m
long gold-silver mineralized structure, located roughly 375 m to the northeast
of the Huevos Verdes vein. A new technical report supporting the material
differences on the project, including the Kospi Vein, since the previous
technical report (November 2005) is currently being prepared by AMEC for
filing under Canada's National Instrument 43-101.
As previously stated we are comfortable that the Kospi vein will be added
to the existing "resources" at the time a new technical report is filed in
respect of the San José Mine. For mineral resources to be converted to mineral
reserves, a minimum Preliminary Feasibility level study must be completed on
the Measured or Indicated portion of the resources that includes adequate
information on mining, processing, metallurgical, economic and other relevant
factors that demonstrate, at the time of reporting, that economic extraction
can be justified. Minera Andes clarifies our June 18, 2007 press release by
stating that the supporting Preliminary Feasibility Study level metallurgical
testwork has not yet been completed on the Kospi Vein mineralization in
support of any future reserve estimates.
The significant remaining items required to complete a technical report
to NI 43-101 standards are as follows:
- AMEC is currently auditing the information on the Kospi Vein provided
by MSC to confirm their resource estimate and to allow Minera Andes
to report it according to CIM standards, and AMEC reports that they
do not anticipate any significant differences in the mineral resource
estimation procedures and methodologies that have been previously
audited by AMEC for the Feasibility Study.
- Review of results from current metallurgical testwork to confirm:
amenability to a Gravity/Float and continuous Intensive Leach Reactor
(ILR) system with direct Electrowinning and Resin Column scavenging
of the leach solutions using a modular gold and silver recovery plant
manufactured by Gekko Systems; metallurgical recoveries; and
- Review of current mine design confirming mine recoveries, capital and
- Review of mine life and economic analysis based on current reserves,
without the Kospi vein.
- Review of near term production, not based on the Kospi vein.
As stated in the 2005 Feasibility Study, the existing reserves (without
the Kospi Vein) support a 4.3 year mine life at a production rate of
750 tonnes per day. The current processing facility utilizes a Gekko system.
The metallurgical testwork in support of the Gekko system on the Huevos Verdes
and Frea Veins was completed only to a Preliminary Feasibility level and not
supported by pilot plant testwork. As a result there is some risk that
additional plant modifications and commissioning time could be required to
achieve the anticipated metallurgical recovery and processing plant
throughput. Furthermore until AMEC has completed its review of the Kospi Vein
deposit and the technical report is filed on Sedar, the previously disclosed
Kospi vein mineral resources remain unverified and investors are cautioned to
factor this into their investment decision.
Minera Andes is a gold, silver and copper exploration company working in
Argentina. The Corporation holds about 410,000 acres of mineral exploration
land in Argentina including the co-owned San José silver/gold mine under
construction for production and cash flow by mid-2007. Minera Andes has a 49%
interest in the San José Project. Minera Andes is also exploring the Los
Azules copper project in San Juan province, where drilling is underway to
define a resource. Other exploration properties, primarily gold and silver,
are being evaluated in southern Argentina. The Corporation presently has
166,605,767 issued and outstanding shares.
Allen V. Ambrose, Minera Andes' President, who is an appropriately
qualified person as defined by National Instrument 43-101, has reviewed the
information used in this news release.
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.
Investors should be aware that the introduction of new technology such as a
Gekko system can create added risk in achieving metallurgical performance. 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. 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, environmental risks and hazards,
uncertainty as to calculation of mineral reserves and other risks. In
addition, Minera Andes' joint venture partner, Hochschild Mining plc, does 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.
For further information:
For further information: 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: firstname.lastname@example.org;
Vancouver Office: 911-470 Granville Street, Vancouver, B.C., V6C 1V5, Phone:
(604) 689-7017, 1-877-689-7018, E-mail: email@example.com