MAI 221 meters of 1.62 copper-I added today, anyone know about this one?
Minera Andes Inc (C-MAI) - News Release
Minera Andes drills 1.62% Cu over 221 m at Los Azules
2006-05-23 10:21 ET - News Release
Shares issued 120,906,813
MAI Close 2006-05-19 C$ 1.36
Mr. Art Johnson reports
MINERA ANDES DRILLING CUTS 221 METERS '725 FT' OF 1.62% COPPER AT LOS AZULES PROJECT, ARGENTINA
Minera Andes Inc. has discovered significant high-grade copper at its Los Azules property in Argentina. An 11-hole drill program returned intervals up to 1.62 per cent copper over 221 metres and 1 per cent copper over 173 metres in separate holes.
The new core drilling (see table 1) 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's lands and adjacent lands subject to a letter of intent with Xstrata Copper.
TABLE 1. SIGNIFICANT 2006 DRILLING RESULTS AT LOS AZULES
Intersection Total
TD from to Interval copper
Drill hole (m) (m) (m) (m) (%)
AZ-06-10 (core) 261.35 174 261.35 87.35 0.83
AZ-06-11 (core) 270.7 158.7 270.7 158.7 0.51
AZ-06-14 (core) 224.55 136 178 42 1.13
includes: 136 158 22 1.40
AZ-06-17 (core) 183.5 66 183.5 117.65 0.63
includes: 66 124 58 0.84
AZ-06-19 (core) 299.4 78.25 299.4 221.15 1.62
includes: 78.25 116 37.75 2.22
includes: 134 146 12 3.94
AZ-06-20 (core) 253.3 80 253.3 173.3 1.00
includes: 80 98 18 1.69
includes: 98 182 84 1.12
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 Jose 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 1 per cent 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."
Eleven reconnaissance core holes totalling 3,426 metres were drilled in the current campaign to depths of between 133 to 316 metres. The primary focus of the drilling was to test the grade and continuity of known leachable (chalcocite) copper mineralization identified in prior drill campaigns (see table 2). Drilling at Los Azules continues to encounter features typical of many porphyry copper systems. In the discovery zone, strongly leached cap rock extends from the subcrop to as much as 161 metres beneath the surface followed by an enriched zone of secondary copper mineralization (chalcocite) overlying a zone of mixed secondary and primary (chalcopyrite) copper mineralization. The majority of holes shown in table 1 ended in mineralization. Drill holes AZ-06-12, 13, 15, 16, and 18 returned lower copper values ranging from nil to 0.5 per cent copper.
TABLE 2. SIGNIFICANT DRILLING RESULTS AT LOS AZULES, 1998 TO 2004
Intersection Total
TD from to Interval Copper
Drill hole (m) (m) (m) (m) (%)
AZ-04-01 (core) 195 130 195 56 0.62
includes: 150 192 36 0.82
AZ-04-02 (core) 330.5 164 304 140 0.38
includes: 164 190 26 0.47
includes: 230 304 72 0.42
AZ-04-04 (core) 300.8 162 282 120 0.54
includes: 162 202 40 0.59
includes: 236 282 46 0.64
AZ-04-07 (core) 168.8 96 152 56 0.44
includes: 126 152 26 0.58
LA-04-98 (RC) 250 117 250 133 0.47
LA-06-98 (RC) 250 61 250 189 0.44
includes: 157 250 93 0.64
LA-08-98 (RC) 220 77 220 143 0.55
includes: 103 220 117 0.61
LA-03-04 (RC) 226 94 226 132 0.40
includes: 104 114 10 1.12
All results have been reviewed by Brian Gavin, Minera Andes's vice-president of exploration, an appropriately qualified person as defined by NI 43-101. Minera Andes has retained the firm of Roscoe Postle and Associates, an independent international geological and mining consulting firm, to review the quality control and quality assurance program on the project. A full program of check analyses and sequential leach copper analyses is in progress.
Xstrata Copper agreement
Minera Andes owns a 100-per-cent interest in its land that makes up the southern half of the property. The Xstrata Copper lands are subject to a letter of intent whereby Minera Andes has the right to earn a 100-per-cent interest in Xstrata's copper property by spending at least $1-million (U.S.) on the property over the next four years, making payments to keep the property in good standing and producing a preliminary economic assessment (to NI 43-101 standards). If the preliminary assessment shows the project to be potentially economically viable at a potential production rate of 100,000 tonnes (200 million pounds) of copper per year for 10 years then Xstrata Copper will have a one-time back-in right to earn a 51-per-cent interest in the combined properties by making a cash payment to Minera Andes of three times Minera Andes's expenditures on the property, completing a bankable feasibility study within five years and assuming underlying property commitments. In the event that the preliminary assessment does not meet the size criterion contemplated above, Xstrata's copper interest would reduce to a first right of refusal on any subsequent sale of the property. All lands that make up the property's mineral applications are subject to a provincial mouth of mine royalty of between nil and 3 per cent. This royalty will be negotiated with the province of San Juan as the project advances.
The Xstrata Copper lands to be acquired by Minera Andes are subject to two underlying agreements. The first agreement covering approximately 1,400 hectares has remaining payments totalling $845,000 (U.S.) to acquire 100 per cent of these lands. The second agreement, covering the remainder of the Xstrata Copper lands contains underlying payments totaling $410,000 (U.S.), a $1-million (U.S.) work commitment and a 25-per-cent buy-back clause if a feasibility study is completed within three years of Xstrata Copper or Minera Andes exercising the option to acquire the property, subject to payback to Xstrata Copper/Minera Andes of two times the expenditures on the property. If the vendor buys back 5 per cent or less its interest will convert to a 1-per-cent net smelter royalty.
We seek Safe Harbor. |
