Minera Andes Inc. has commissioned a silver/gold mine in southern Argentina, San Jose, which is now in operation. Production by the joint venture operating partner began on schedule at the end of June 2007.
Current operating emphasis at San Jose is to ramp up and optimize production to the levels set forth in the bankable feasibility study - 3.1 million ounces of silver and 61,000 ounces of gold per year.
The success of San Jose illustrates and justifies the value of Minera Andes' business strategy. Minera Andes is an exploration company, founded and managed by proven exploration geologists who saw that by emphasizing their strengths in mineral exploration in a new mineral frontier like Argentina, they could maximize chances for a significant discovery.
As a result, San Jose was discovered. In line with the business plan, Minera Andes added further value through a methodical, systematic exploration program. As San Jose showed increasing promise, the project was then joint ventured to a mining company with mine construction and operation expertise. Minera Andes then uses its share of the proceeds to explore for new deposits of gold, silver and copper. As full production is gradually integrated and developed at San Jose, Minera Andes expects to use its pending share of the proceeds to explore for new discoveries in Argentina, and to pay for its share (49 percent) of improvements and expansion at San Jose.
San Jose Growth
As the San Jose mine goes into operation, plans are being developed which aim to increase its production over time. The operating partner at San Jose, Mauricio Hochschild & Cia. Ltda. of Lima, Peru, is considering plans to double mine production to 6.2 million ounces of silver and 122,000 ounces of gold per year. The mill is currently capable of 1,500 tpd production. The extraction plant, although built with a 1,500 tpd footprint, will require additional equipment. In addition, about 40,000 meters of drilling work was begun in 2007 to further increase the resource base. Most of this drilling is underway in the immediate mine area.
Only about 15 percent of 40 meters of known vein strike length have been drill-tested, and only about four meters of vein length comprise the mineable ore reserve/resource base as currently known.
San Jose may evolve into a mining district with time, in part because about 14 high-grade targets remain to be drill-tested, and because numerous new anomalies have been located by geophysics.
Expanding into Copper
Minera Andes is also in the process of completing an economic scoping study on a large copper porphyry system in San Juan province, Argentina. The discovery, Los Azules, was made by Minera Andes' geologists and contains leachable copper (chalcocite) copper mineralization. Minera Andes currently has a letter of intent with Xstrata Copper Americas for this project.
Minera Andes Inc. has commissioned a silver/gold mine in southern Argentina, San Jose, which is now in operation. Production by the joint venture operating partner began on schedule at the end of June 2007.
