Minera Andes Inc. (TSX:MAI)(OTCBB:MNEAF) has announced the discovery of nine new high-grade gold/silver veins plus important extensions of two other veins, which together total more than five kilometres in strike length.
The discoveries represent significant exploration progress at San José where the total strike length of all the previously known veins totalled approximately 17 kilometres. The new veins are located primarily between the Kospi and Frea veins, and can be accessed from existing mine workings (see Exhibit 1).
Rob McEwen, Chairman and CEO of Minera Andes, said:
"We are very excited by the discovery of the new veins at the San José mine. The drilling results demonstrate that the area in and around the San José mine is extremely prospective, and we anticipate these new veins will significantly extend the mine life. Recent events such as the $3.6 billion bid for Andean's nearby Cerro Negro property highlight the world class potential of this emerging gold/silver district."
Selected assay results for three of the most promising new veins are shown below. The complete assay results for the new veins and vein extensions are provided in Exhibit 2. All of the drilling reported in this press release was completed during 2010. The assays reported below and in Exhibit 2 were analyzed by Alex Stewart Argentina SA laboratory in Mendoza, Argentina, and received up until August 25th 2010. The widths shown below are true widths (normal to the dip of the vein). Longitudinal sections of the new veins and extensions are provided in Exhibit 3.
- Micaela Vein – 1,380 meter strike length, cut by 36 diamond drill holes.
Hole SJD-708 - 2.45 m (meters) at 8.33 g/t (grams/tonne) Au and 1,484 g/t Ag
Hole SJD-786 – 1.09 m at 33.50 g/t Au and 2752 g/t Ag
Hole SJD-807 – 0.53 m at 31.02 g/t Au and 629 g/t Ag
- Sofía Vein – 600 meter strike length, cut by 20 diamond drill holes.
Hole SJD-477 – 1.52 m at 7.71 g/t Au and 885 g/t Ag
Hole SJD-486 – 10.13 m at 14.96 g/t Au and 1096 g/t Ag
Hole SJD-491 – 5.45 m at 13.54 g/t Au and 206 g/t Ag
Hole SJD-726 – 1.72 m at 10.94 g/t Au and 1255 g/t Ag
- Antonella Vein – 870 meter strike length, cut by 13 diamond drill holes.
Hole SJD-524 – 5.30 m at 13.43 g/t Au and 199 g/t Ag
The following table provides a summary of new veins and extensions, the number of drill holes used to define the veins and the strike length of each. Complete assay data is provided in Exhibit 2.
The discoveries are a direct result of a significant increase in the exploration effort at San José compared to previous years. From the start of 2010 through September 25, 2010, a total of 47,431 meters have been completed in 233 diamond core holes, nearly double the drilling undertaken in 2009. The success of the current drilling is in large part a result of extensive surface geophysical surveys conducted during 2009 and 2010 that led to the development of the targets drilled this year. The geophysics consisted of 181 line-kilometres of induced polarity ("IP")/resistivity, 55 line-kilometres of magnetics and 11 line-kilometres of pole-dipole IP. An updated 43-101 Report scheduled to be completed in the near future is being prepared that will contain full details of the 2010 and 2009 drilling.
A significant portion of the property continues to be open at depth and laterally. The discovery of the Micaela-Sofía vein system, which trends approximately east-west, is especially important because its orientation is different from the typical northwest trend of all the other veins at San José. The discovery of this system, which does not outcrop, will be used as an exploration guide to open up new exploration opportunities on the property. In addition, exploration drilling is continuing to expand resources in the known veins, including Ayelén and Odin, and exploration is also continuing in other areas of the property, such as the Saavedra and Aguas Vivas targets.
The Mineral Reserves and Resources for the San José mine as at December 31, 2009 were audited by P&E Mining Consultants and reported in the Corporation's 2009 Annual Report (AIF), and are given in the following table.
None of the new veins are included in the December 31, 2009 resource or reserve estimate. An updated 43-101 Technical Report to be completed in the near future will include updated resource estimates including the new veins.
Source: Minera Andes Incorporated