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MINERA ANDES INC.
News Release: 98-1
Alberta Stock Exchange: MAI
U.S. OTC: MNEAF
MINERA ANDES BEGINS DRILLING EL PLUMA/CERRO SAAVED PRECIOUS METALS SYSTEM IN ARGENTINA
Spokane, WA -February 2, 1998- A first-phase reconnaissance drilling program of up to 20 holes and 2,000 meters has begun on Minera Andes Inc.'s El Pluma/Cerro Saavedra epithermal gold/silver properties in Argentina.
The Santa Cruz Province prospects consist of six cateo applications covering 25,500 hectares. Drilling, with Minera Andes' dedicated reverse-circulation drill, is intended to locate surface or underground mineable gold/silver mineralization.
The geology of El Pluma/Cerro Saavedra consists of mineralized, Jurassic volcanic rocks exposed through erosional "windows" in a thin overlying layer of Tertiary basalt and Quaternary alluvium. Mineralization is controlled by northwest and northeast trending regional faults which apparently extend for 16 kilometers north-to-south, and four kilometers east-to-west. A major gold discovery hosted in similar geology in Santa Cruz Province, Cerro Vanguardia, is now reported to contain 3.2 million ounces of gold reserves, according to the Argentina Undersecretary of Mining for the Ministry of Economy, Public Works and Services.
Allen V. Ambrose, president of Minera Andes, said "El Pluma and Cerro Saavedra were at first thought to be separate altered and mineralized areas. However, our work indicates that they may actually be part of a larger altered and mineralized region, which is typical in epithermal areas."
Minera Andes' geologists have found mineralization associated with adularia-sericitic alteration in quartz veins, silicified beds, stockworks and breccias, all signatures of an epithermal system. At El Pluma, mineralization appears to be closely associated with graben bounding faults. At Cerro Saavedra, mineralization is exposed at a more shallow erosional level in association with high-level argillic alteration.
Drilling follows an extensive and systematic program of surface sampling and geophysics. Rock geochemical results at El Pluma range from less than detection limit to 15.4 g/t gold and 545 g/t silver. At Cerro Saavedra, rock geochemical results range from less than detection limit to 8.5 g/t gold and 10,270 g/t silver. From the properties, 649 reconnaissance rock chip samples and 778 grid soil samples were taken. Assay values of more than one g/t were found in 63 of these rock chip samples. In addition, geophysical work included 42 line kilometers of CSAMT surveys (a high resolution resistivity method) on 2,500 hectares at each of El Pluma and Cerro Saavedra. As a result, first-phase drilling will test seven targets in four areas (see map):
El Pluma West: A prominent geophysical anomaly that is present in all the geophysical sections has its closest approach to the surface at this sub-area. The anomaly may contain stockwork mineralization in a resistant volcanic unit.
La Sorpresa (El Pluma North): Drilling on this prospect is underway now and is designed to test a one-kilometer long zone of mineralization (up to 15.4 g/t gold in rock chip samples, and 0.673 g/t gold in soil samples) that is open-ended under post-mineral cover to the north and south. A large geophysical anomaly (400 meters by 700 meters) is about 50 meters below the surface.
El Guanaco (El Pluma West): This prospect is a hill containing quartz veins, silicified beds and stockworks with up to 1.6 g/t gold in rock chip samples, and 0.371 g/t gold in soil samples overlying a geophysical resistivity anomaly 20 meters deep.
El Aguila (El Pluma West): A hill containing quartz veins, this property consists of silicified beds with up to 3.5 g/t gold in rock chip samples, and 0.387 g/t gold in soil samples overlying a flat-lying geophysical resistivity anomaly at 10 meters of depth. The anomaly is 400 meters long, more than 50 meters thick, and may contain a feeder zone at depth.
El Choique (El Pluma West): This low hill containing quartz veins and silicified beds with up to 2.4 g/t gold in rock chip samples, and 0.288 g/t gold in soil samples. Surface mineralization overlies a resistivity anomaly 400 meters long. The anomaly extends to depth along two feeder zones.
Saavedra West: Mineralization on this parcel is at a more shallow erosional level than El Pluma, but still contains up to 8.5 g/t gold, and 10,270 g/t silver in chalcedonic quartz veins, and up to 0.178 g/t gold and 75 g/t silver in soil samples. A geophysical resistivity anomaly that is 300 meters long, 50 meters thick and located 20 meters below the surface will be drill-tested.
Cerro Saavedra (Saavedra Central): This prominent hill has quartz veins and silicified beds with up to 0.162 g/t gold in soils in association with a five-square-kilometer area of high-level argillic alteration. Drilling here will test the geochemical anomaly that overlies a structural zone which controls mineralization.
Minera Andes is a mining exploration corporation that controls approximately 25 properties on about 700,000 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 has reviewed more than 200 properties in Argentina, and is currently staffed with 10 geologists. 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 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, any mineralization may be economically extracted.
THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE INFORMATION CONTAINED HEREIN. |
