FOUR TARGETED EXPLORATION PROGRAMS DESIGNED
FOR 1998-99 ARGENTINA FIELD SEASON
Spokane, WA-August 10, 1998-Four exploration programs, including two on drilled discovery properties, are included in Minera Andes' plans for the 1998-99 field season as the southern hemisphere spring begins and the mineral exploration season reopens in many parts of Argentina.
The two discovery properties to receive additional attention are El Pluma/Cerro Saavedra in Santa Cruz Province, where a third-round work program is being developed for this silver/gold discovery property, and the Arroyo Verde silver/gold discovery property in Chubut Province, where the goal is to expand an existing resource.
Drilling programs using Minera Andes' dedicated reverse-circulation track drill are also forecast for silver/gold prospects in western Chubut Province, and the Agua Blanca gold/copper porphyry prospect in San Juan Province.
With working capital of approximately US$3.4 million as at the end of June 1998, Minera Andes is well-positioned to carry out its 1998-99 exploration program, while conserving a portion of its working capital in light of current market conditions. Minera Andes continues to review joint venture opportunities with its properties as part of our effort to reduce exploration costs.
Separately, Minera Andes has released its Santa Clara copper porphyry prospect in Mendoza Province, and has taken a second quarter write-off of US$757,000. The 26,580-hectare prospect was released as part of a corporate strategy designed to concentrate on properties deemed closer to realizing their potential.
El Pluma/Cerro Saavedra
Minera Andes has successfully completed a second round of work at its El Pluma/Cerro Saavedra silver/gold discovery property in the West Deseado silver/gold belt, with additional ore-grade mineralization encountered in drilling.
New geologic targets delineated at the El Pluma/Cerro Saavedra silver/gold discovery property during two rounds of exploration will be explored under a third-phase exploration program. Some of the new targets indicate good geologic potential for disseminated and high-grade bonanza-type mineralization, and Minera Andes' geologists plan to test this potential. Additional surface work, including geophysics, is planned. To date, about 20 percent of the 25,500-hectare land package has been explored, and good exploration potential exists on the rest of the property.
In June, Minera Andes successfully completed a second round of drilling at El Pluma/Cerro Saavedra, located on the West Deseado Silver/Gold Belt of Santa Cruz Province. More high-grade mineralization was intersected by drilling in the second program, which has so far concentrated on the vein systems.
The silver/gold potential of this property has attracted the attention of other mining companies, and Minera Andes continues to maintain contact with these possible joint venture partners.
Arroyo Verde
For the 1998-99 exploration year, Minera Andes' goal at the Arroyo Verde epithermal silver/gold property in extreme northeast Chubut Province is to increase, if possible, the size and quality of the current two-million-tonne drill-inferred resource.
Arroyo Verde is a joint venture between Minera Andes and Pegasus Gold International, Inc. Minera Andes, as the operator, can earn an 80 percent interest by expending US$1.3 million over four years, including $200,000 in field work in the first year.
Minera Andes plans to drill up to ten holes totaling approximately 1,000 meters on targets outside the initial discovery area. These targets are extensions of known mineralized zones discovered by Pegasus. Two of the zones have shown average grades of 1 g/t gold and 25 g/t silver, while a third zone located to the south of the other two zones intersected five meters grading 1.9 g/t gold and 17 g/t silver.
Agua Blanca
At the 39,426-hectare Agua Blanca property, a gold/copper porphyry system in the Andean mountains of San Juan Province, Minera Andes plans an estimated 1,000-meter drilling program late in 1998 or early 1999.
A 12-hole, approximately 2,000-meter drilling program by a previous joint venture partner revealed wide areas of gold and copper mineralization, both in potassically altered rock and, in higher concentrations, in phyllic alteration. One hole in phyllic alteration intersected 146 meters of 0.5 g/t gold, and 0.19 percent copper. Other zones of untested phyllic and potassic alteration, which extend for more than ten kilometers into another drainage, have been mapped, and are forecast for further evaluation by Minera Andes.
Chubut Cateos
Minera Andes' five western Chubut Province gold properties, totaling 29,520 hectares, share somewhat similar geology with the Corporation's El Pluma/Cerro Saavedra discovery property in Santa Cruz Province to the immediate south. Work in Chubut has shown the potential for mineralized epithermal and porphyry or intrusive-related systems.
A reconnaissance drilling program planned for later in the 1998-99 exploration year is being designed to further test for gold-rich multi-stage epithermal quartz veins on this land package. These veins, some of which are up to five meters wide and more than 500 meters long, have been located on the El Valle property.
Minera Andes is a mining exploration corporation that controls approximately 25 properties on about 530,000 acres of mineral exploration land in Argentina. Most of the properties are located in the Andean cordillera and primarily contain copper, gold and silver mineralization targets. The Corporation is presently pursuing the further development of its epithermal silver/gold discovery in Santa Cruz Province. Selected opportunities in other countries are also under review.
For further information, please contact Arthur C. Johnson, director of investor and public relations, or Allen V. Ambrose, president, at the Spokane office, or Krister Kottmeier, investor relations- Canada, at the Vancouver office. Visit our web site: www.minandes.com
Spokane Office Vancouver Office
3303 N. Sullivan Road 1950-400 Burrard Street
Spokane, WA 99216 Vancouver, B.C. V6C 3A6 Canada
Phone: (509) 921-7322 Phone: (604) 689-7017
E-mail: ajohnson@thefuture.net E-mail:mineracan@thefuture.net |
