Minera Andes announces second quarter gold/silver sales at the San Jose mine reaches $63.7 million

    TSX: MAI

    SPOKANE, WA, July 30 /CNW/ - Minera Andes Inc. (TSX: MAI and US OTC:
MNEAF) is pleased to announce details of the San José mine performance to June
30, 2008. The San José project is operated by Minera Santa Cruz S.A. ("MSC")
and is owned 49% by Minera Andes and 51% by Hochschild Mining plc
("Hochschild") (HOCM.L: Reuters and HOC LN: Bloomberg - London Stock
Exchange). Hochschild is the operator of the project. Gross proceeds from
metal sales during the second quarter of 2008 were $63.7 million. Over the
past 12 months, the San José project has produced gross sales of approximately
$74.6 million in gold and silver, mostly from the last three quarters.
    The San José mine commenced its operation a year ago and is now at full
production. Production in Q2 2008 totaled 1,093,000 ounces of silver and
12,410 ounces of gold, of which 49% is attributable to Minera Andes.
Currently, plans are underway to expand the mine and double the current
production rate by year-end 2008.
    Allen Ambrose, president of Minera Andes said, "The San José project now
has cash flow that is being used to pay for the expansion of the mine this
year and for the connection to the regional power grid. Remaining funds will
be used to begin repayment of the joint venture project debt. With our current
cash position of approximately $8.4 million and the mine with cash flow we are
well positioned to grow the company."
    Second quarter 2008 sales of gold and silver are high because most of the
metals produced in the first quarter of 2008 were sold in Q2 2008 at the
prevailing market prices. Based on a gold price of $900 per ounce and a silver
price of $18 per ounce, the total metal production for Q2 2008 at the San José
mine had a gross metal value of $31 million or $10.3 million a month. Prices
for sales of metal in Q2 2008 on an average weighted basis were $901 per ounce
of gold and $16.47 per ounce of silver.
    The San José mine now comprises 16 km of underground workings accessed by
ramps on the Huevos Verdes, Frea and Kospi veins. During 2008 to date, 2,520
meters of workings were completed on the Huevos Verdes, Frea, and Kospi veins.
The mine is currently staffed with 669 employees and over 200 contractors.
    The San José gold/silver mine saw an increase in production in Q2 2008
over Q1 2008, as reported by MSC to the owners. The San José mine is currently
operating at rate of approximately 750 tonnes per day. Several contracts are
in place to sell doré and concentrate production.

                           SAN JOSE MINE PRODUCTION
    Product(*)                                 Q2         Q1
                                              2008       2008
    Ore production (tonnes)                 60,603     59,897
    Average head grade silver (g/t)            681        624
    Average head grade gold (g/t)             7.56       7.10
    Silver produced (ounces)             1,093,000    968,000
    Gold produced (ounces)                  12,410     12,140
    Net silver sold (ounces)(*)          2,284,400    323,000
    Net gold sold (ounces)(*)               28,980      5,050
    (*)The company has a 49% interest in the San José production.

    Allen V. Ambrose, Minera Andes' President, who is a "qualified person" as
defined by National Instrument 43-101, is responsible the information used in
this news release and has supervised the preparation of the information and
reviewed all information used in this news release.

    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 that commenced
production last year. 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 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: 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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