SPOKANE, Wash., Jan. 27, 2004 (PRIMEZONE) -- Minera Andes Inc. (TSX-V:MAI) and (OTCBB:MNEAF) has approved a collaborative exploration agreement in the Los Azules copper/gold porphyry district in San Juan province, Argentina, where Minera Andes and Xstrata Copper Americas (Xstrata) are working on separate adjoining properties.
Allen Ambrose, president of Minera Andes, said " We are pleased to work in collaboration with our neighbor Xstrata as we both move ahead to explore our respective properties in the large porphyry copper/gold system situated in the Los Azules district. This is a large system with multiple targets and working together in the region cuts down on logistical costs and allows for a more efficient evaluation of the properties, while maintaining independence on our property."
Xstrata, a subsidiary of Xstrata PLC(London Stock Exchange :XTA.L and Zurich Stock Exchange: XTRZn.S), a Swiss-based corporation, is a publicly-traded mining company producing coal, copper, lead and ferrous metals and precious metals on four continents. Through subsidiaries in Argentina and Australia, Xstrata PLC is the ninth-largest producer in the world of copper concentrates. In Argentina, Xstrata annually produces 190,000 tons of copper and 600,000 ounces of gold from one of the world's major copper deposits, Bajo de la Alumbrera.
Minera Andes and Xstrata hold adjoining properties in San Juan province, which are straddled by a potentially large copper/gold porphyry system. Approximately 50 percent of the currently identified porphyry system is located on each company's land. Minera Andes' ground at Los Azules consists of a cateo application for minerals, totaling 3,495 hectares (8,633 acres).
The Agreement
The non-binding agreement between the respective companies allows for practical cooperation between our respective geological exploration staffs in sharing costs of mobilization of contractors and logistics. In addition, Minera Andes has access to Xstrata's proprietary geophysical exploration system. Xstrata's proprietary MIMDAS system is a highly sensitive, deep penetration induced polarization (IP) system that presents excellent data to depths often exceeding 500 m. The geophysical work uses electrical and magnetic techniques to "look" beneath the surface for anomalies that might justify further investigation. This technology offers the benefits of cost savings and a more comprehensive understanding of the geology and mineralization on both properties. Cost sharing for the Los Azules access road's rehabilitation and maintenance is also covered. Cooperative drilling through a single contract is part of the agreement, including a mutual presentation of selected data to better understand both properties together.
Los Azules Program
Previously announced exploration has begun at Los Azules, and Minera Andes tentatively plans to begin exploration drilling there in the first quarter of 2004. It has contracted with Nivaldo Rojas & Associates, a geologic consulting firm with special expertise in porphyry-hosted mineralization, to manage Los Azules. Nivaldo Rojas, principal of the firm, formerly was country manager for Argentina for BHP Minerals. Prior to work in Argentina, Mr. Rojas was closely involved in BHP's early work at Escondida copper mine in Chile, one of the largest and most successful copper mines in the world.
Los Azules is an attractive exploration target because copper grades and thicknesses discovered on the adjacent property increase toward Minera Andes' land. Drilling encountered up to 0.55 percent total copper and 2.1 g/t silver over 143 meters in holes that ended in mineralization. Former joint venture operator Battle Mountain Gold drilled 18 holes on the adjacent property and of these, the three highest-grade holes were closest to the Los Azules' boundary. The holes intersected a barren leached zone from the surface to about 70 to 100 meters followed by an enriched copper oxide zone and then a mixed oxide-sulfide zone. The holes ended in mineralization. The closest hole, 220 meters from the boundary, included a 117-meter interval of 0.61 percent copper and 2.3 gm silver.
Minera Andes is a mining exploration corporation that is involved with approximately 10 projects on about 198,000 hectares (about 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 59,740,865 issued and outstanding common 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 .
Spokane Office Vancouver Office
111 East Magnesium Rd., Suite A 1000-355 Burrard Street
Spokane, WA 99208 USA Vancouver, B.C. V6C 2G8
Phone: (509) 921-7322 Phone: (604) 689-7017
Toll Free: (877) 689-7018
E-mail: mineraandes@minandes.com E-mail: ircanada@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 to 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.
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