Replies to post #551601 on Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

*** Gold/Copper related post (MNEAF/MAI.V) ***


Minera Andes announces further clarification of news release

Wednesday June 20, 7:00 pm ET

SPOKANE, WA, June 20 /PRNewswire-FirstCall/ - Minera Andes Inc. ("Minera Andes" or the "Company") (TSX: MAI.V and US OTC: MNEAF) announces that it is making a further clarification of its news release dated June 18, 2007 discussing the mineral reserves and resources at our San Jose Mine in southern Argentina scheduled for production start up by the end of the second quarter of 2007.

San Jose is owned by Minera Santa Cruz ("MSC"), a company co-owned by Minera Andes (49%) and joint venture partner and operator Hochschild Mining plc (51%) ("Hochschild") (London Stock Exchange, LSE: HOC). The issue centers around the newly discovered Kospi vein, which was not included as part of the supporting mineral resources and reserves (at the Huevos Verdes and Frea Veins) for the 2005 Feasibility Study for the San Jose Project. Since then, a significant amount of diamond drilling (approximately 128 holes totaling 20,450 m) has been completed at the Kospi Vein during 2006, defining a 1,200 m long gold-silver mineralized structure, located roughly 375 m to the northeast of the Huevos Verdes vein. A new technical report supporting the material differences on the project, including the Kospi Vein, since the previous technical report (November 2005) is currently being prepared by AMEC for filing under Canada's National Instrument 43-101.

As previously stated we are comfortable that the Kospi vein will be added to the existing "resources" at the time a new technical report is filed in respect of the San Jose Mine. For mineral resources to be converted to mineral reserves, a minimum Preliminary Feasibility level study must be completed on the Measured or Indicated portion of the resources that includes adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. Minera Andes clarifies our June 18, 2007 press release by stating that the supporting Preliminary Feasibility Study level metallurgical testwork has not yet been completed on the Kospi Vein mineralization in support of any future reserve estimates.

The significant remaining items required to complete a technical report to NI 43-101 standards are as follows:

 
     -   AMEC is currently auditing the information on the Kospi Vein provided 
         by MSC to confirm their resource estimate and to allow Minera Andes 
         to report it according to CIM standards, and AMEC reports that they 
         do not anticipate any significant differences in the mineral resource 
         estimation procedures and methodologies that have been previously 
         audited by AMEC for the Feasibility Study. 
  
     -   Review of results from current metallurgical testwork to confirm: 
         amenability to a Gravity/Float and continuous Intensive Leach Reactor 
         (ILR) system with direct Electrowinning and Resin Column scavenging 
         of the leach solutions using a modular gold and silver recovery plant 
         manufactured by Gekko Systems; metallurgical recoveries; and 
         operating costs. 
  
     -   Review of current mine design confirming mine recoveries, capital and 
         operating costs. 
  
     -   Review of mine life and economic analysis based on current reserves, 
         without the Kospi vein. 
  
     -   Review of near term production, not based on the Kospi vein.

As stated in the 2005 Feasibility Study, the existing reserves (without the Kospi Vein) support a 4.3 year mine life at a production rate of 750 tonnes per day. The current processing facility utilizes a Gekko system. The metallurgical testwork in support of the Gekko system on the Huevos Verdes and Frea Veins was completed only to a Preliminary Feasibility level and not supported by pilot plant testwork. As a result there is some risk that additional plant modifications and commissioning time could be required to achieve the anticipated metallurgical recovery and processing plant throughput. Furthermore until AMEC has completed its review of the Kospi Vein deposit and the technical report is filed on Sedar, the previously disclosed Kospi vein mineral resources remain unverified and investors are cautioned to factor this into their investment decision.

Minera Andes is a gold, silver and copper exploration company working in Argentina. The Corporation holds about 410,000 acres of mineral exploration land in Argentina including the co-owned San Jose silver/gold mine under construction for production and cash flow by mid-2007. Minera Andes has a 49% interest in the San Jose Project. Minera Andes is also exploring the Los Azules copper project in San Juan province, where drilling is underway to define a resource. Other exploration properties, primarily gold and silver, are being evaluated in southern Argentina. The Corporation presently has 166,605,767 issued and outstanding shares.

Allen V. Ambrose, Minera Andes' President, who is an appropriately qualified person as defined by National Instrument 43-101, has reviewed the information used in this news release.

This news is submitted by Allen V. Ambrose, President and Director of Minera Andes Inc.

http://biz.yahoo.com/prnews/070620/to294.html?.v=55