****NEWS RELEASE**** (with apologies for format glitches)
MINERA ANDES INC.
NEWS RELEASE 98-7
ASE: MAI
NASD-OTC: MNEAF
Minera Andes Makes High-Grade Silver/Gold Discovery in Santa Cruz Province, Argentina
Spokane, WA-March 25, 1998-A reconnaissance drilling program by Minera Andes Inc. has encountered high-grade silver/gold mineralization in four holes, including hole EP-12 which cut 115 feet averaging 4.05 g/t (0.118 oz/t) gold and 617 g/t (18.00 oz/t) silver, at the 100 percent-owned El Pluma/Cerro Saavedra property in Santa Cruz Province, Argentina.
In addition to results from the highest grade hole, EP-12, assays confirm that three other holes out of 17 widely scattered reverse-circulation holes returned significant values in gold and silver (see table). High-grade gold and silver mineralization was intersected in three holes at the Saavedra West area, and high-grade gold in one drill hole at the La Sorpresa area, about 11 kilometers north of Saavedra West (see map 1). The precious metals
occur as structurally controlled epithermal silver/gold mineralization of the low sulfidation, adularia-sericite type, similar in style to the mineralization at Round Mountain, Nevada, and Cerro Vanguardia, also in Santa Cruz Province, Argentina.
Significant Gold and Silver Intercepts El Pluma/Cerro
Saavedra, Argentina
Drill T.D. From To Interval Gold
Silver
Area Hole* Incl.ø Az.ø ft. ft. ft. ft.**
g/t(oz/t) g/t (oz/t)
La Sorpresa EP-1 -45 225 165 40 50 10
4.98(0.145) 7.2(0.210)
110 120 10 2.74(0.080) 4.7(0.137)
Saavedra West EP-12 -45 225 430 120 235 115
4.05(0.118) 617(18.00)
Includes 135 160 25 6.77(0.197)
1628(47.48)
Includes 170 185 15 17.73(0.517) 1505(43.90)
Includes 200 230 30 0.41(0.012) 153(4.46)
235 265 30 0.14(0.004) 52.5(1.53)
Saavedra West EP-13 -45 225 390 90 135 45
0.89(0.026) 525(15.31)
Includes 110 130 20 1.44(0.042) 1032(30.10)
Saavedra West EP-15 -45 225 490 330 345 15
1.61(0.047) 156(4.55)
* Holes EP-2 through 11, 14, 16, 17 contain anomalous to non-significant results.
** Quoted intervals may not necessarily represent true widths.
The El Pluma/Cerro Saavedra drill program of 6,165 feet (1,879 meters)
tested four areas within a 15 kilometer by four kilometer mineralized trend (see map 1). Mineralization within this trend appears to be controlled by northwest and northeast trending faults. Only 20 percent of the mineralized trend has been explored to date. The property is in an area of relatively low relief, about 300 to 500 meters above sea level, which allows work to continue for most of the year. The property package consists of six cateo applications for mineral rights on 25,500 hectares.
Allen V. Ambrose, President, said "I am pleased to report our exploration success in southern Argentina. The property, discovered by Minera Andes less than a year, ago has progressed rapidly from finding high-grade mineralization at the surface to drilling a discovery hole. Our drill is on the property and geologic work is in progress to lay the foundation for our next round of drilling. "
Samples from all holes were prepared by Geolab Argentina S.R.L. in Argentina and assayed by N.A. Degerstrom, Inc. of Spokane, Washington. Gold and silver values were obtained by fire assay, and base metal values were determined by Directly Coupled Plasma. Two other independent laboratories are conducting check assays on the significant drill intersections.
Saavedra West
At Saavedra West, four widely-spaced holes totaling 1,760 feet (537 meters) tested a northwest trending mineralized structural zone at least 800 meters in length (see maps 2 and 3). These holes were drilled along the trend and approximately perpendicular to the mineralized zone. Hole EP-12 contained 115 feet of 4.05 g/t gold and 617 g/t silver, including 25 feet of 6.77 g/t gold and 1,628 g/t silver. Hole EP-13, drilled 100 meters southeast of EP-12, showed 45 feet of 0.89 g/t gold and 525 g/t silver, including 20 feet of 1.44 g t gold and 1,032 g/t silver. Hole EP-15 was drilled 700 meters northwest of EP-12 on the same structural zone and cut 15 feet of 1.61 g/t gold and 156 g/t silver. Sub-economic disseminated silver and gold mineralization was also found in all holes at Saavedra West.
Precious metals occur in association with sulfide mineralization, silicification, quartz stockwork and quartz veining and strong illitic alteration. The mineralization is hosted by a sequence of Jurassic lacustrine epiclastic tuffs interbedded with carbonaceous shales and siltstones that may have been deposited in a caldera lake. The Jurassic host rocks are mostly covered by a thin cover of Quaternary sediments (less than one meter thick) and post-mineral Tertiary basalt (less than ten meters thick).
The northwest trending mineralized zone is open to the southeast and northwest under post-mineral cover. Within the limited area explored to date, Minera Andes' geologists have located numerous geochemical, geophysical and geologic targets that have yet to be drill tested.
The Saavedra West area has excellent exploration potential for extending and in-filling the mineralization cut in holes EP-12, EP-13 and EP-15 and for finding other high-grade structures and widespread disseminated mineralization.
La Sorpresa
At the La Sorpresa area, three reverse-circulation holes totaling 885 feet (270 meters) were drilled. Hole EP-1, drilled to intersect a quartz vein with 15.4 g/t gold at the surface, cut two separate zones with 4.98 g/t gold over 10 feet and 2.74 g/t over 10 feet. The other two holes, EP-2 and EP-3, were designed to test geophysical anomalies and encountered a large Jurassic dacite porphyry intrusion that was probably the heat source for the hydrothermal mineralization at La Sorpresa.
The mineralized zone at La Sorpresa is open ended to the northwest under post-mineral cover of sediments less than ten meters thick and has excellent exploration potential.
El Pluma West
The El Pluma West area was drilled with eight holes totaling 2,860 feet (872 meters). Extensive zones of anomalous gold, silver, arsenic and mercury were encountered, and the drill results demonstrated that the mineralized system extends at least an additional 500 meters to the south beneath the thin (less than 20 meters) post-mineral Tertiary basalt cover that overlies much of the property. Drill results suggest that the mineralization exposed at El Pluma West represents the western portion of a large hydrothermal system that extends beneath cover to the east.
Saavedra Central
The Saavedra Central area was evaluated by two drill holes totaling 660 feet (201 meters). Hole EP- 17 contained anomalous gold and pathfinder elements over the entire length of the hole and confirmed that the extensive area of high-level alteration and mineralization at Saavedra Central has additional exploration potential.
Brian Gavin, Vice President of Exploration, said "I am extremely pleased with the results of our reconnaissance drill program at El Pluma/Cerro Saavedra. We tested a wide variety of geologic,
geochemical and geophysical targets with relatively few drill holes, and our strategy has paid off. Coupled with the immense size of the property-we are lucky to have a district-size property-the thin cover of basalt and surficial material has hindered the development of a more complete understanding of the geology in the short time since we discovered the prospect. We are just beginning to get a handle on the setting of the mineralization and the true potential of the property.
"The next round of exploration has begun and will be aimed at extending the zones of mineralization encountered to date, and at developing new targets beneath cover."
Minera Andes is a mining exploration corporation that controls approximately 25 properties on about 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 has reviewed more than 200 properties in Argentina, and is 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 the Spokane office or Kris Kottmeier, Investor Relations-Canada
at the Vancouver office. Visit our web site: www.minandes.com.
Spokane Office Vancouver Office
3303 N. Sullivan Road 1210-675 W. Hastings
Spokane, WA Vancouver, B.C.
99216 V6B 1N2
USA Canada
(509) 921-7322 (604) 689-7017
E-mail: minandes@thefuture.net E-mail: mineracan@thefuture.net
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. |
