SPOKANE, WA, Aug. 15 /CNW/ - Minera Andes Inc. (TSX-MAI and US OTC:
MNEAF) is pleased to report net income of $8.9 million or $0.05 cents per
share in its second quarter of 2008 financial statements. For the six months
ended June 30, 2008, Minera Andes recorded net income of $7.2 million or
$0.4 cents per share. Our financial statements are available at www.sedar.com.
Minera Andes' net income is derived from Minera Santa Cruz S.A.("MSC"),
which is owned 49% by Minera Andes and 51% by Hochschild Mining plc.
("Hochschild") (HOCM.L: Reuters and HOC LN: Bloomberg - London Stock
Exchange). MSC operates the San José silver/gold mine in southern Argentina,
which had its first quarter of positive earning from silver and gold sales
following the commencement of production at San José last year. Hochschild is
the operator of the San José mine.
Allen Ambrose, President of Minera Andes said, "This is a milestone event
for Minera Andes, to report a significant net income in its financial
statements. Showing net income is the next step as we transition to a
producing company with a growing silver and gold asset. With expansion
underway to double its current rate of production by year-end, it is estimated
that the San José mine will join the ranks of the top ten primary silver
producing mines in the world."
Commissioned in June of 2007, the San José mine is operating in 2008 at
full production or approximately 750 tonnes per day.
As previously reported, silver and gold sales in the second quarter,
totaled $63.2 million. Over the past year, San José's total sales have been
$74.4 million. The averaged weighted sales prices were $901/ounce of gold and
$16.47/ounce of silver. San José's silver and gold sales are unhedged. Second
quarter 2008 sales of silver and gold are higher than normal because some of
the metals produced in the first quarter of 2008 were sold in the following
quarter and we are presently mining ore that has a higher silver content.
San José's silver production rose in the second quarter compared to the
first quarter. Silver production was 1,093,000 ounces, compared to 968,000
ounces in the first quarter. Annualized, second quarter silver production is
running at approximately 33% above the average grade of the reserves in the
original mine plan. During the life of the mine it is anticipated the gold and
silver production will be in line with the mine plan. Gold production in the
second quarter was 12,410 ounces, compared to 12,140 ounces in the first
Mine Expansion Underway
Work continues at San José to double production rate to 1,500 tonnes of
ore per day by the end of 2008. At this rate, the mine is estimated to have
annualized metal production of approximately 120,000 ounces of gold and
approximately 6 million ounces of silver. Underground infrastructure continues
to be expanded, and construction is underway to increase capacity at the
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. 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: Art Johnson at the Spokane office, or Krister
A. Kottmeier, investor relations - Canada, at the Vancouver office. Visit our
Web site operations: 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, (877) 689-7018, E-mail: