DRILLING INTERSECTS ADDITIONAL HIGH-GRADE GOLD/SILVER
AT HUEVOS VERDES;
SAAVEDRA WEST TARGET EVALUATED
SPOKANE, WA-February 22, 2000-Assay results from the first four holes of six drill holes received
indicate high-grade gold/silver mineralization up to 0.62 oz/t (19.16 g/t) gold equivalent over 12.7 feet (3.9
meters) at Minera Andes? Huevos Verdes vein target in Santa Cruz Province, southern Argentina. Assays
are pending on drill samples from eight additional holes. A new round of exploration is being planned for the
100 percent owned Huevos Verdes gold/silver vein target. Also, an independent resource evaluation is being
commissioned to categorize the high-grade mineralization drilled on the property to date.
At Saavedra West, another gold/silver target about three miles (five kilometers) southeast of Huevos Verdes,
three deep diamond drill holes tested a geophysical anomaly beginning about 328 feet (100 m) beneath the
surface. Sulfide-bearing rocks and silicification, which can be indicators of precious metal mineralization,
were encountered in all three holes. Assay results ranged from nil to anomalous.
Huevos Verdes and Saavedra West are two of nine target areas developed so far in the northern portion of
the El Pluma/Cerro Saavedra land package in Santa Cruz Province, Argentina.
HUEVOS VERDES
The recently completed reverse-circulation drilling is a follow-up to the first drilling program at Huevos
Verdes completed last field season by Minera Andes when ore-grade mineralization over potentially mineable
widths was encountered. In early 1999, Minera Andes drilled 19 holes along a 1.5-mile (2.4 km) section of
the main vein system at Huevos Verdes, of which 12 holes intersected significant mineralization. The
mineralization is open along strike in both directions, and down-dip. The property is in an area of good access
and relatively low relief, about 1,000 to 1,600 ft. (300 to 500 meters) above sea level, which allows work to
continue for most of the year.
Significant Gold/Silver Intercepts
Huevos Verdes, Argentina
Drill TD To From Interval Thick. Gold Silver g/t (opt)
Hole (m) Azim Angle (m) (m) (m) m (ft) g/t (opt) g/t (opt) Au+(Ag/50)
Intersection Drilled True Equiv.
Gold
EP-61 151.5 N240 -60 135.5 136.5 1.0 0.9 (3) 7.4 (0.24) 99.5 (3.2) 9.40 (0.30)
EP-62 81.5 N240 -60 68 72 4.0 3.8 (12.5) 2.9 (0.09) 88.4 (2.8) 4.7 (0.15)
EP-64 111.0 N240 -50 89 93 4.0 3.9 (12.7) 7.8 (0.25) 568.5 (18.3) 19.16 (0.62)
EP-65 153.0 -- -90 124 126 2.0 1.0 (3.3) 9.3 (0.30) 286.4 (9.2) 15.04 (0.48)
Samples from all holes were prepared by Bondar-Clegg in Argentina and assayed by N.A. Degerstrom, Inc. of Spokane,
Washington. Gold and silver values were obtained by fire assay. An independent laboratory will be conducting check
assays on separate sample splits of the significant drill intersections.
Huevos Verdes is a vein/stockwork system of north-northwest trending quartz veins with associated strong
argillic alteration cutting a formation of massive and fragmental andesite. Preliminary indications are that the
massive andesite constitutes a favorable host rock for the veins and that stockwork mineralization develops
at north-northwest and west-northwest structural intersections. The vein system is known to occur over a
strike length of 1.5 miles (2.4 km) and potentially may extend to the northwest for an additional half-mile or
more under an area covered by a thin layer (about 65 feet or less than 20 m) of basalt.
A second, recently completed drill program consisted of 14 reverse-circulation holes (EP-60 to EP 73),
totaling about 5,240 feet (1,598 m), drilled on the Huevos Verdes gold-silver vein system. All holes, with the
exception of EP-60 and EP-63, intersected the vein structure (see Figure 1). EP-60 was drilled in the
extreme north of the area to test a blind geophysical target and EP-63 was abandoned due to poor drilling
conditions before encountering the vein system. Assay results have been received for holes EP-60 to EP-65
and significant intercepts are summarized in the table and are shown on Figure 2. Assay results for the
remaining eight holes are pending. Vein thickness for these holes ranged from an estimated true width of less
than 3.28 feet (one meter) to up to 36.4 feet (11.1 m).
The assay results received to date and the width of the vein intersected in the remaining holes confirm the
relatively strong continuity of the vein along strike and down-dip and its well-mineralized nature.
Two types of additional work are being considered for the Huevos Verdes area. Firstly, a program of in-fill
drilling and deeper drilling within the known strike length of the vein aimed at providing a resource estimate
as soon as possible; and secondly, a gradient array IP survey to trace the vein system to the northeast under
a thin (about 65 feet or less than 20 meters) cover of younger rocks.
SAAVEDRA WEST
Three NQ-sized core holes (EPD-1, 2, and 3) were drilled at Saavedra West to test the gradient array and
RealSection IP anomalies situated beneath the previously drilled mineralization (see Figure 3 and News
Release 00-3). A total of 2,323.5 feet (708 m) were drilled.
EPD-1 was drilled to test the RealSection IP anomaly which occurs between 328 feet and 656 feet (100 m
and 200 m) deep beneath the Discovery Hill area, and was drilled in the plane of the geophysical survey line
(N060ø) at -55ø. This geophysical anomaly occurs directly beneath the zone of near-surface high grade
gold/silver mineralization intersected in previous reverse circulation drilling conducted prior to the geophysical
surveys. Holes EPD-2 and EPD-3 were drilled at N060ø, -60ø, 328 feet and 656 feet (100 m and 200 m)
respectively, to the southeast of EPD-1 in order to test the southeastward extension of the RealSection
anomaly as indicated by the gradient array IP survey. All three holes successfully intersected the target zone.
Examination of the core shows that all three holes encountered a package of argillically altered, variably
silicified and pyritized epiclastic (volcanically-derived) sandstones and mudstones between approximately 328
feet and 656 feet (100 m and 200 m) beneath the surface. Hole EPD-1 intersected an open-space-filling
quartz-pyrite stockwork between 393 feet and 574 feet (120 m and 175 m) beneath the surface. This
stockwork is overprinted by a second network-vein pyrite-quartz stockwork between 393 feet and 689 feet
(120 m and 210 m). Holes EPD-2 and EPD-3 contained only pyrite-quartz stockwork which was best
developed in hole EPD-3, between 378 feet and 640 feet (85 m and 195 m) beneath the surface. EPD-3 also
intersected a total of 62.3 feet (19 m) of pyritized, partially silicified hydrothermal breccia.
The intensity of silicification and the amount of both stockwork and disseminated pyrite mineralization
encountered is sufficient to explain both the resistivity and chargeability anomalies indicated by the
RealSection and gradient array IP surveys.
Geochemical analysis of 365 one-meter samples of split core revealed no significant precious metal
mineralization at all, with only a handful of samples exceeding 100 ppb gold and 5 ppm silver.
REGIONAL PROPERTY EXPLORATION
Huevos Verdes and Saavedra West are two of nine geologic targets so far identified in the northern portion
of Minera Andes? 100-percent-owned, 356-square-mile (92,000 hectares) El Pluma/Cerro Saavedra
epithermal gold/silver land package in Santa Cruz Province. The two targets, which comprise about 5 percent
of the land area, have been the primary focus of Minera Andes? exploration program for the past two and
one-half years.
Additional exploration is being considered on these targets which would include a gradient array IP
geophysical survey at Cerro Saavedra, a small partially eroded volcanic center, and reconnaissance to detailed
geologic mapping and sampling at the remainder of the targets in the northern half of the property package.
In addition, reconnaissance exploration is planned to complete our preliminary assessment of the 50,000
hectare southern package of lands. One target area already defined in the southern block of lands, Puesto
Blanco, is scheduled for follow-up exploration.
Minera Andes is a mining exploration corporation that controls approximately 25 properties on about 163,000
hectares of mineral exploration land in Argentina and Romania. Most of the properties are located in the
Andean cordillera and primarily contain gold, silver and copper mineralization targets. The corporation is
presently pursuing the further development of its gold/silver discovery property 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 A. Kottmeier, investor relations - Canada, at the
Vancouver office. Visit our Web site: www.minandes.com. |
