Zeev's Turnips Patch-No Politics (ZEEV)

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*** Gold/copper related post (MNEAF.OB/MAI/V) ***


Minera Andes Hits High-Grade Copper in Argentina

By James West
24 May 2006 at 12:56 PM EDT

VANCOUVER (ResourceInvestor.com) -- Minera Andes [TSXv:MAI; OTCBB:MNEAF] yesterday announced the discovery of high-grade copper at its Los Azules property in Argentina. An eleven hole drill program returned intervals up to 1.62% copper over 221 metres and 1.00% copper over 173 metres in separate holes.

The new core drilling focused on the previously defined enriched copper target in an area approximately 2,500 metres by as much as 1,500 metres defined by prior drilling. Drilling tested mineralization on both Minera Andes' lands and adjacent lands subject to a letter of intent with Swiss mining giant Xstrata [LSE:XTA; OTCPK:XSRAF].

Allen Ambrose, president of Minera Andes, said, "Our technical team has made a second discovery in Argentina. Our careful, consistent, methodical exploration has now resulted in two discoveries including the San José project now going into production and the new exciting Los Azules drilling results. The northern portion of the Los Azules target where the new drilling has discovered thick sections of plus one percent copper is exciting in that we see a large copper target developing that is near surface and high grade. We look forward to reporting on the ongoing exploration program at this discovery later this year when an aggressive drilling campaign will start in Argentina's summer field season."

Minera Andes has a lot going for it considering its low market valuation.

Minera Andes' Huevos Verdes high-grade gold and silver discovery in southern Argentina is moving closer to production. A formal feasibility study, commissioned by operating partner Mauricio Hochschild & Cia. Ltda., of Lima, Peru is now being prepared.

Hochschild is a privately held company that generates about $200 million a year in mining-derived revenues. Annual production is about 10 million ounces of silver, 280,000 ounces of gold and about 1 million tonnes of cement. The San Jose project and the Huevos Verdes targets were discovered by Minera Andes. Hochschild has earned a 51% ownership, and Minera Andes holds 49%.

The San Jose mine, located in Santa Cruz, Argentina, is now under construction and is expected to be in production by Q12007.

Four mineralized systems totaling more than 30 km are currently known to exist at San Jose. Of this distance, only about 20% has been drill-tested for mineralization at depth.

An indicated and inferred resource has been calculated on less than 10% - only about 2.2 kilometres - of these high-potential mineralized systems.

The current resource, based on US$300 gold and $5 silver, is 700,000 ounces of gold equivalent. Using a cutoff grade of 100 grams per tonne (g/t) the Huevos Verdes vein has an indicated resource of 1,058,000 tonnes with a silver grade of 266.8 g/t and gold grade of 3.1 g/t, for a total of 9,075,300 ounces of silver and 106,000 ounces of gold.

The inferred resource is 1,541,000 tonnes with a silver grade of 318.7 g/t and a gold grade of 3.5 g/t for a total of 15,789,700 ounces of silver and 173,000 ounces of gold. (Equivalent figures are based on a 60:1 silver/gold ratio which does not take into consideration possible differences in metal recoveries).

"This is another important step in the advancement of the co-owned San José project that moves along the road to production. We look forward to attaining our portion of production and cash flow on a project whose annual production is anticipated to be 3.1 million ounces of silver and 61,000 ounces of gold," said Ambrose.

Minera Andes' strategy has been to focus on properties which can be brought to drill and discovery stage as soon as possible.

http://www.resourceinvestor.com/pebble.asp?relid=20044