SPOKANE, WA, Sept. 1 /CNW/ - MINERA ANDES INC. (TSX:MAI) (the
"Corporation" or "Minera Andes") is pleased to provide an update on its option
agreement with Xstrata (and certain Xstrata affiliates) (the "Agreement") on
its Los Azules copper project in Argentina (the "Project").
As previously announced, Minera Andes has exercised its 100% earn-in
option with respect to the Project effective June 1, 2009, thereby granting
Xstrata 90 days to deliver notice of exercise of its right to back-in to the
Project for a 51% interest (the "Back-in Notice").
This 90 day period has expired without Xstrata having delivered the
Back-in Notice. Minera Andes has so notified Xstrata and by the terms of the
Agreement Xstrata now has 30 days, expiring October 1, 2009, to deliver the
After delivery of the Back-in Notice, in order to exercise the back-in
right, Xstrata must pay Minera Andes, within 90 days of delivery of the
Back-in Notice, an amount equal to three times the direct expenditures
incurred by the Corporation and its affiliates since November 25, 2005, and
assume operational control and responsibility of the Project no later than 120
days after delivery of the Back-in Notice. Xstrata must also produce a
feasibility study in accordance with the standards set out in National
Instrument 43-101 - Standards of Disclosure for Mineral Projects, adopted by
the Canadian Securities Administrators ("NI 43-101") within 5 years of
delivery of the Back-in Notice.
About the Los Azules Project
The Los Azules copper discovery is a very large copper porphyry system.
Located in western San Juan province, Los Azules has an independently
calculated inferred mineral resource of 922 million tonnes grading 0.55
percent copper, and containing 11.2 billion pounds of copper. This resource,
at 0.35 percent total copper cutoff grade, is defined by an area approximately
3.7 kilometers by one kilometer in size. Drilling has identified a high-grade,
near-surface copper core exceeding one percent in grade. Los Azules is open at
depth and to the north.
About Minera Andes
Minera Andes is a gold, silver and copper exploration company focused in
Argentina. The Corporation holds or has an interest in approximately 304,000
acres of mineral exploration land in Argentina, located in the regions near
the San José silver-gold mine and the Los Azules Project. The San José
silver-gold mine is a joint venture between the Corporation and Hochschild
Mining plc. The Corporation owns a 49% interest in the joint venture and
Hochschild Mining plc owns the remaining 51% and is the operator of the mine.
The San José joint venture property covers 50,491 hectares and is not included
in the acres noted above. Other exploration properties, primarily silver and
gold, in southern Argentina, are being evaluated. The Corporation presently
has 261,393,851 shares issued and outstanding.
Scientific or technical information contained in this news release has
been prepared by, or under the supervision of, Brian Gavin, a full-time
employee of Minera Andes and a qualified person for the purposes of National
Instrument 43-101 - "Standards of Disclosure for Mineral Projects". For
further information in respect of the Los Azules project please refer to the
technical report entitled "Canadian National Instrument 43-101 Technical
Report in Support of the Preliminary Assessment on the Development of the Los
Azules Project, San Juan Province, Argentina" dated March 19, 2009.
This news release contains forward-looking statements and forward-looking
information within the meaning of applicable US and Canadian securities laws.
In making the forward-looking statements and providing the forward-looking
information, we have made numerous assumptions. Although our management
believes that the assumptions made and the expectations represented by such
statements or information are reasonable, there can be no assurance that the
forward-looking statements will prove to be accurate. Forward-looking
statements and information involve known and unknown risks, uncertainties and
other factors that may cause our actual results to be materially different
from that expressed or implied by such forward-looking information. Such
risks, uncertainties and other factors include among other things, the
speculative nature of mineral exploration. Readers should not place undue
reliance on forward-looking statements or information. We undertake no
obligation to reissue or update forward-looking statements or information as a
result of new information or events after the date hereof except as may be
required by law. See our annual information form for additional information on
risks, uncertainties and other factors relating to the forward-looking
statements and information. All forward-looking statements and information
made in this news release are qualified by this cautionary statement.
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: email@example.com;
Vancouver Office, 911-470 Granville Street, Vancouver, B.C., V6C 1V5, Phone:
(604) 689-7017, Toll-free: 877-689-7018, E-mail: firstname.lastname@example.org