Minera Andes San Jose project drilling hits 3.22 ounces per ton gold and 40 ounces per ton silver at the Frea vein



    TSX: MAI
    NASD-OTCBB: MNEAF

    SPOKANE, WA, Oct. 11 /CNW/ - Minera Andes Inc. (TSX: MAI and US OTC:
MNEAF) is pleased to announce the drilling results from the ongoing 2007
exploration program at its San José operation in Southern Argentina. Recent
exploration highlights include a newly discovered mineralized area about 500
meters long at the Frea vein. The highest grade intercept from this drilling
campaign is in hole SJD-357 that encountered 100.09 g/t (3.22 ounces per tonne
- opt) gold and 1,234 g/t (40 opt) silver over 0.50 meters (see table below).
    Phase one of the planned 38,000 meter exploration drilling program
announced earlier in 2007 at San José was completed in July. A total of
8,310 meters was drilled with the first fourteen drill holes reported in our
news release dated September 6th, 2007. Assays for the remaining 14 drill
holes from the phase one program are reported in the table below. These holes
were drilled northwest along strike of the known reserves at the Frea vein and
encountered a hanging wall vein related to the Frea vein (see attached map).
The next phase of drilling is underway with over 2,000 meters completed and is
focused on the Frea vein and the open ended targets to the west in the Odin
and Ayelen areas. Assays are pending for the new drilling.
    The Frea vein is located 2 kilometers northwest of the Huevos Verdes
vein, and both veins are currently being mined on several levels. Proven
reserves of 534,000 tonnes and probable reserves 75,000 tonnes ( totaling
609,000 tonnes grading 9.34 g/t gold and 375 g/t silver) at the Frea vein are
currently delineated over a strike length of about 575 meters and to a depth
of approximately 350 meters below the surface. The drilling completed this
year extends the known mineralization along the Frea vein trend another 500
meters along strike - over an 87% increase in strike length.
    The recent exploration drilling concentrated on the northwest extension
of the Frea vein. Significant drilling results include SJD-350 that
encountered 49.34 g/t gold and 2,721 g/t silver over 1.04 meters of high grade
mineralization some 450 meters northwest of the defined reserves at the Frea
vein. Drill hole SJD-357 encountered 1.50 meters grading 30.49 g/t gold and
423 g/t silver about 300 meters northwest of the Frea reserves. Hole SJD-359
encountered 2.60 meters containing 13.12 g/t gold and 661 g/t silver
approximately 180 meters northwest of the current reserves. In summary,
drilling at the Frea vein to date indicates that it is an open-ended
mineralized silver/gold vein that averages about 2.7 meters in width.
    Allen Ambrose, president of Minera Andes, said: "The exploration drilling
at the San José project continues to expand the project. The Frea vein area is
revealing significant potential to expand the reserves and mine life of the
project."
    Minera Santa Cruz S. A. ("MSC"), the joint venture corporation co-owned
by Minera Andes (49%) and Hochschild Mining plc. (51%) owns the producing San
José property. The discovery of new high-grade silver/gold extensions to veins
such as Frea represents additional mineralization that may add to the current
reserves/resources under production at the project. These discoveries also
indicate 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 percent has been explored in detail.

    
         Table 1 - 2007 Drill Intercepts Frea Vein, San José Project

    -------------------------------------------------------------------------
                Drill      From      To      Intercept     Au           Ag
    Location    Hole(*)   (meters)  (meters)  (meters)    (g/t)        (g/t)
    -------------------------------------------------------------------------
    Frea NW     SJD-348    268.30    269.80      1.50      5.42          509
    -------------------------------------------------------------------------
                           297.10    297.45      0.35      6.22          115
    -------------------------------------------------------------------------
    Frea NW     SJD-349    166.50    168.00       1.5      1.42          127
    -------------------------------------------------------------------------
                           271.15    273.15       2.0      6.65           65
    -------------------------------------------------------------------------
    Frea NW     SJD-350    122.14    122.54       0.4      3.56          250
    -------------------------------------------------------------------------
                           326.66    327.90      1.04     49.34        2,721
    -------------------------------------------------------------------------
    Frea NW     SJD-351    118.40    118.70      0.30      8.69          671
    -------------------------------------------------------------------------
                           298.97    299.56      0.59      1.96           27
    -------------------------------------------------------------------------
    Frea NW     SJD 352    183.45    184.34      0.89      4.84          128
    -------------------------------------------------------------------------
                           335.81    336.59      0.78      0.04            8
    -------------------------------------------------------------------------
    Frea NW     SJD 353    222.20    223.05      0.90      0.02            5
    -------------------------------------------------------------------------
    Frea NW     SJD 354      0       311.20      Vein       not  intercepted
    -------------------------------------------------------------------------
    Frea NW     SJD 355    191.77    192.06      0.30      1.28          204
    -------------------------------------------------------------------------
    Frea NW     SJD 356      0       269.00      Vein       not  intercepted
    -------------------------------------------------------------------------
    Frea NW     SJD 357    248.10    249.60      1.50     30.49          423
    -------------------------------------------------------------------------
               includes    249.10    249.60      0.50    100.09        1,234
    -------------------------------------------------------------------------
    Frea NW     SJD 358    161.93    162.43      0.50      0.01            3
    -------------------------------------------------------------------------
    Frea NW     SJD 359    216.30    218.90      2.60     13.12          661
    -------------------------------------------------------------------------
               includes    217.25    218.01      0.76     25.96        1,373
    -------------------------------------------------------------------------
                           392.72    393.08      0.36      1.15           21
    -------------------------------------------------------------------------
    Frea NW     SJD 360      0       298.10      Vein       not  intercepted
    -------------------------------------------------------------------------
    Frea NW     SJD 361    351.23    352.10                0.40           21
    -------------------------------------------------------------------------
    (*) All of the drill holes are drilled at minus 50 degrees. True
        thickness of the vein is undetermined.
    

    To view a map of the Frea vein please visit:
    http://files.newswire.ca/530/Frea_vein.pdf

    Assay results for the drilling were reviewed by Brian Gavin, Minera
Andes' vice president of 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.
    In addition, the San José operation was commissioned during the third
quarter of 2007. Currently, the mining operation is expected to reach full
production and the process plant is expected to complete its initial start-up
phase of production by yearend, with full production forecasted in first half
of 2008. As disclosed in August 2007, we have a cash call to the San José
partners that is due on October 29, 2007. We anticipate securing our portion
of the cash call through a debt facility.

    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 that has
started initial production. Minera Andes is also exploring the Los Azules
copper project in San Juan province, where an exploration program is underway
to define a resource. Other exploration properties, primarily silver and gold,
are being evaluated in southern Argentina. The Corporation presently has
166,717,517 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.
Investors should be aware that the introduction of new technology such as ILR
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. In particular,
there can be no assurance that commercial production at the San José mine will
be achieved on a timely basis, or at all, that production capacity at the San
José mine will be successfully increased, that resources and reserves at the
San José mine will be increased or that Minera Andes will successfully raise
the funds necessary to maintain its interest in the San José mine. 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, dilution risks to it 49% ownership by not being able to contribute
pro-rata to Minera Santa Cruz S.A. cash calls, and other risks. Reference is
made 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. In addition, 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.





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: 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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