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 Inc. has been advised by Minera Santa Cruz (“MSC”) that production has resumed at the San José mine in Argentina. The San José Mine is operated by MSC and Hochschild Mining plc. As the mine operator, all labour relations are managed by MSC. Minera Andes supports the efforts of MSC in resolving these on-going issues and improving labour relations. MSC has advised Minera Andes that although this recent stoppage has been resolved, it is possible that additional temporary/minor work stoppages could occur in the future. Minera Andes will disclose any future material work stoppages at the San José mine and will inform the market as the various underlying labour issues are resolved.
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.
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