Press Release today:
Minera Andes Inc.
News Release 98-6
Alberta Stock Exchange: MAI
U.S. OTC: MNEAF
MINERA ANDES FINALIZES EXPLORATION, DRILLING STRATEGIES FOR 1998
SPOKANE, WA-March 5, 1998-A dynamic, three-faceted exploration program has been planned by Minera Andes for 1998. Properties with potential to host discoveries in gold, silver and copper are being evaluated.
Allen V. Ambrose, president, said, "Our corporate goal is to proceed rapidly to discovery. Our 1998 plans are designed to meet that goal. We are taking advantage of the existing opportunities we have. Further, with cash on hand of about US$3.7 million, we have the capability to aggressively evaluate a number of selected submittals now emerging in the current market."
EXPLORATION PROGRAMS
To enhance the potential for a discovery and to build on the work programs already accomplished, Minera Andes is focusing its financial resources and exploration efforts more on later-stage prospects rather than very early-stage grassroots exploration properties.
Consequently, to concentrate on more advanced, better-known prospects with discovery potential, the Corporation has reduced its land holdings from about 700,000 to 570,000 acres. Minera Andes has budgeted US$1.9 million for exploration over the next 12 months.
In addition to emphasizing later-stage properties, Minera Andes has released several other properties, including La Horqueta, Pino Andino, and Arroyo Nuevo, as they no longer meet the Corporation's exploration criteria. In late 1997, Minera Andes drilled 26 reverse- circulation holes at Arroyo Nuevo, totaling 1,220 meters. Minor amounts of gold mineralization were encountered (up to 3.5 g/t over five feet), with similar intercepts ranging up to 8 percent lead and 1 percent zinc.
DRILL-READY SUBMITTALS
The international and domestic markets are continuing to present Minera Andes with numerous opportunities for which it is well-suited. Submittals are being made to Minera Andes from other exploration companies which have conducted preliminary exploration and geophysics on their properties. With $1 million budgeted for exploration and development of selected properties, and a reverse-circulation track drill assigned to its specific use in Argentina, Minera Andes has the financial and professional capability to drill-test selected prospects in much less time and at a greatly reduced cost than would be the case if the property required detailed evaluation prior to drilling.
Mr. Ambrose said, "The track drill has been allocated to our use by N.A. Degerstrom, Inc., a proven contract mining company, and our largest shareholder. The use of this drill and other equipment, as well as access to Degerstrom's engineering and geologic expertise and assay laboratory, not only saves money, but allows Minera Andes to carry out an exploration program like a major mining company."
Currently, a number of drill-ready property submittals are under evaluation. In addition, pending additional preliminary results, Minera Andes forecasts drill-testing its own properties in Chubut Province later in 1998.
JOINT VENTURES
Minera Andes also controls properties it has developed through its own grassroots exploration work, and some of these hold joint venture interest to larger mining companies.
The Corporation is also the operator of the Arroyo Verde epithermal gold/silver property discovered by Pegasus Gold International, Inc. As part of a joint venture agreement with Pegasus, Minera will spend $1.3 million over four years to earn an 80 percent interest in Arroyo Verde, including $200,000 on field work this season. The objective is to increase the size and quality of the resource previously outlined by Pegasus.
Minera Andes has been contacted by potential joint venture partners for several of its Argentina properties, including Agua Blanca, a gold/copper porphyry prospect; Santa Clara and Los Chonchones, both copper porphyries; and Los Azules, a gold prospect.
Minera Andes is a mining exploration corporation that controls 25 properties on approximately 570,000 acres of mineral exploration land in Argentina. Most of the properties are located in the Andean cordillera and primarily contain gold, copper and silver exploration targets. To date, the Corporation's geologic exploration staff in Argentina has reviewed more than 200 properties. Selected opportunities in other countries are under review.
For further information please contact Arthur C. Johnson, director of investor and public relations, or Allen V. Ambrose, president, at (509) 921-7322, or at e-mail address minandes@thefuture.net. Visit our web site: www.minandes.com.
Although Minera Andes believes many of its mineral prospects 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, any mineralization may be economically extracted.
THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE INFORMATION CONTAINED HEREIN. |
