SPOKANE, Wash., Sept. 9, 2004 (PRIMEZONE) -- The construction program at Minera Andes' (TSX Venture Exchange:MAI) (OTCBB:MNEAF) Huevos Verdes gold/silver project in southern Argentina is being supplemented with additional managerial and technical staff and underground workers as part of a plan to accelerate the work program. Joint venture operator Mauricio Hochschild & Cia. Ltda. (MHC) is transitioning the joint venture company, Minera Santa Cruz (MSC), into a mining company by proceeding to self mining in Argentina.
MSC's plan is to hire and train its own personnel and phase out third party mining contractors. Key personnel from MHC's mines and headquarters in Peru are assisting in this program. The transition of MSC into a mining company is part of a larger plan to increase efficiency, lower costs, and accelerate the development of the underground workings and to facilitate the studies needed to complete the feasibility program.
Allen V. Ambrose, president of Minera Andes, said "Higher grade gold and silver mineralization and the discovery of additional veins at depth are among the reasons for the accelerated work program at Huevos Verdes. MHC's commitment to the project is evident in that they are bringing in some of their key mine managers from Peru to ensure rapid advancement of the project. Huevos Verdes is moving towards the road to production, and this reflects confidence in Huevos Verdes' potential and value by a mining partner whose operating capabilities are well established."
Employees, Equipment Added
The employees from MHC's Peruvian operations now involved at Huevos Verdes include managers with mine operating and supervisory expertise, and health, safety and environmental experience. Drill and scoop operators, roof support experts and other underground workers are also being assigned to Huevos Verdes as additional equipment is acquired and construction and underground development are accelerated. Employment was over 100 people at the end of the second quarter, and is expected to increase to over 150 in September.
MSC, an operating company owned by Minera Andes and MHC, maintains direct operating control of day-to-day operations at the Huevos Verdes project. Through their respective ownership interests in MSC, Minera Andes owns 49 percent of Huevos Verdes, and the 98,800-acre San Jose land package of which it is a part, while MHC has a 51 percent ownership.
Mr. Ambrose said "As Huevos Verdes becomes more advanced, additional people with specialized skills are needed to accommodate the project's needs. Workers with skills in various underground duties; logistics; accounting, budgeting and control and purchasing, are being transferred from MHC's Peruvian operations to assist the project. The local Argentine workforce is also being hired and trained for the new jobs being created at Huevos Verdes."
Huevos Verdes is Minera Andes' most advanced project and is located in the San Jose project, a 98,800-acre mining district-size property with about ten other known gold/silver targets at earlier stages of exploration. Currently, four veins totaling about 32 km of strike length have been identified at San Jose. Only 2.2 km of Huevos Verdes has been drill-tested in detail, or less than half of its presently known 5 km of strike length. The mineralization at Huevos Verdes is open at depth and laterally.
Minera Andes is funded with working capital of approximately US$5.3 million, as at June 30, 2004, for its exploration and underground construction programs. Minera Andes is a mining exploration company focused on gold, silver and copper exploration in Argentina where it holds about 200,000 hectares (500,000 acres) of mineral exploration land and co-owns the advanced stage San Jose/Huevos Verdes gold/silver project now under construction for possible mine production, with a feasibility study underway. Minera Andes has also discovered an enriched copper zone at its Los Azules property, and is acquiring other exploration targets in southern Argentina. The Corporation presently has 70,361,490 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
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
E-mail: mineraandes@minandes.com (877) 689-7018
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. In addition, Minera Andes' joint venture partner, Mauricio Hochschild & Cia. Ltda., does not accept responsibility for the use of project data or in the adequacy or accuracy of this release.
Cautionary Note to U.S. Investors Concerning Estimates Of Inferred Resources:
This news release uses the term "Inferred Resources." We advise U.S. investors that while this term is recognized and required by Canadian regulations, the SEC does not recognize it. "Inferred Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "Inferred Resource" will ever be upgraded to a higher category. Under Canadian rules estimates of "Inferred Resources" may not form the basis of feasibility or other economic studies. U.S. INVESTORS ARE CAUTIONED NOT TO ASSUME THAT PART OR ALL OF AN "INFERRED RESOURCE" EXISTS, OR IS ECONOMICALLY OR LEGALLY MINABLE.
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