SPOKANE, Wash., Sep. 11, 2003 (PRIMEZONE) -- Minera Andes Inc. (the "Corporation") (TSX Venture Exchange:MAI) (OTCBB:MNEAF) has notified its joint venture operating partner, Mauricio Hochschild & Cia. Ltda. ("MHC"), that it has opted to retain a 49 percent ownership in its San Jose gold/silver property, located in southern Argentina. Surface construction and underground exploration/development are currently being completed to define a mineable gold/silver ore reserve at the Huevos Verdes resource within the San Jose project.
The San Jose project is a 40,000-hectare (98,800 acres) land package, with a developing resource defined by drilling on approximately 2 kilometers of vein trend. An additional 32 kilometers of mineral trend with multiple gold/silver targets is scheduled for further exploration. As previously announced, an estimated US$12.2 million, 17-month, MHC-managed program is underway at San Jose which includes US$2 million for exploration; US$4.2 million for construction and reserve development work at the Huevos Verdes resource; and a planned US$6 million for metallurgical testing and pilot plant development at Huevos Verdes.
Minera Andes' decision is under terms of the option and joint venture agreement signed with MHC in March 2001. According to this agreement, MHC spent US$3 million to earn 51 percent of the San Jose project and made certain cash payments to the Corporation. The Corporation announced July 1 that MHC had vested its 51% ownership position. Minera Andes will now pay pro-rata its share of costs to develop the project that is planned to reach a production decision in late 2004. MHC will continue to make semi-annual payments totaling US$400,000 a year to Minera Andes until completion of the pilot plant.
Allen Ambrose, president of Minera Andes, said, "Minera Andes is actively pursuing various financing alternatives available to it and is also evaluating its options to continue to grow the company in South America."
Mr. Ambrose also announced that shareholders approved all the proposals put to them at the Corporation's annual meeting held September 3, 2003.
Minera Andes is a mining exploration corporation that is involved with approximately 10 projects on about 198,000 hectares (489,000 acres) of mineral exploration land in Argentina. The properties primarily contain gold, silver and copper mineralization targets. The Corporation is presently pursuing the further development of its co-owned gold/silver discovery property in Santa Cruz province, and is prospecting in other Argentine provinces. The Corporation presently has 37,475,864 issued and outstanding shares.
For further information, please contact: Art Johnson at the Spokane office, or Krister A. Kottmeier, investor relations -- Canada, at the Vancouver office. Visit our Web site: www.minandes.com.
FORWARD-LOOKING STATEMENT -- Although Minera Andes believes many of its properties have promising potential, its properties are in the early stages of exploration. None have yet been shown to contain proven or probable mineral reserves. There can be no assurance that such reserves will be identified on any property, or that, if identified, mineralization may be economically extracted. The Corporation's results will be subject to known and unknown risks and uncertainties that may cause the Corporation's actual results in future periods to differ materially from forecasted or anticipated results. Among those factors which could cause actual results to differ materially are the following: the risks inherent in mineral exploration and the mining industry, the Corporation's needs for additional capital and other risk factors listed from time to time in the Corporation's SEC reports.
In addition, Minera Andes' joint venture partner, Mauricio Hochschild & Cia. Ltda., does not accept responsibility for the use of project data or the adequacy or accuracy of this release.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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