Minera Andes (TSX: MAI and US OTC: MNEAF) is a successful mining exploration company transitioning into the ranks of mid-tier gold and silver production. It co-owns an operating, relatively high-grade silver-gold mine in Argentina. Production from the San Jose mine for 2008 is expected to be about 60,000 ounces of gold and 3 million ounces of silver, of which the value of 49 percent accrues to Minera Andes. This production is projected to increase in 2009 to 100,000 ounces of gold and 8 million ounces of silver, again with 49 percent accruing to Minera Andes account.
Since 2002, proven and probable silver-equivalent ore reserves at San Jose have steadily risen from 17.4 million ounces to 64 million ounces in 2007. Further growth in gold and silver is possible because current reserves are based on only about three kilometers out of 40 kilometers of vein strike length currently known to exist in the 99,000-acre project area.
Even as it benefits from gold and silver mining income, Minera Andes continues as a successful exploration company. Its Los Azules copper discovery in San Juan province, where drilling and exploration continue, contains an inferred mineral resource of 11.2 billion pounds of copper at a grade of 0.55 percent copper at a total 0.35 percent cutoff. Additional silver/gold prospects, some of which are being drill-tested, are located in Santa Cruz province.
Minera Andes reported a net income of $5.2 million ($0.02 per share) in its financial statements for the three months ended September 30, 2009, and a net income of $1.9 million for the nine months ended September 30, 2009 ($0.01 per share). Production cash operating costs (calculated on a co-product basis) for the mine were $4.75 per ounce for 1,402,000 ounces of silver and $313 per ounce for 22,470 ounces of gold. As previously reported, a total of 122,342 tonnes of ore was processed in the third quarter of 2009 with an average grade of 407 g/t of silver and 6.65 g/t of gold.
Minera Andes (TSX: MAI and US OTC: MNEAF) is a successful mining exploration company transitioning into the ranks of mid-tier gold and silver production. It co-owns an operating, relatively high-grade silver-gold mine in Argentina. Production from the San Jose mine for 2008 is expected to be about 60,000 ounces of gold and 3 million ounces of silver, of which the value of 49 percent accrues to Minera Andes. This production is projected to increase in 2009 to 100,000 ounces of gold and 8 million ounces of silver, again with 49 percent accruing to Minera Andes account.
Past Producer
Development
Exploration