Minera Andes enhances copper target at Los Azules

Vancouver An 11-hole drilling program by Minera Andes (MAI-V, MNEAF-O) has returned a number of significant intersections, notably 221 metres grading 1.62% copper and 173 metres of 1% copper, from the Los Azules property in Argentina’s San Juan province.

The latest round of drilling focused on testing the grade and continuity of an enriched copper target in an area measuring about 2,500 metres by as much as 1,500 metres, as defined by previous wide-spaced drilling campaigns. The company says the latest results confirmed “thick sections of plus-1% copper” within the large and still developing near-surface copper target.

Other highlights from the recent drilling campaign are: 87.35 metres of 0.83% copper, 158.7 metres of 0.51% copper, 42 metres of 1.13% copper, and 117.65 metres of 0.63% copper. Several holes returned lower copper values, ranging from nil to 0.5% copper.

The drilling tested mineralization on ground held solely by Minera Andes and also on lands optioned from Xstrata Copper, a unit of Xstrata (XTA-L). Minera Andes can earn 100% of the Xstrata lands by spending at least US$1 million on exploration over four years, making payments to keep the lands in good standing, and producing a preliminary economic assessment compliant with National Instrument 43-101 disclosure standards.

Xstrata Copper holds a one-time back-in right to a 50% interest if the lands are demonstrated to have potential to produce at least 200 million lbs. copper per year for ten years, subject to meeting certain conditions, such as financing and completing a feasibility study.

Minera Andes is also advancing the San Jose silver-gold project in Santa Cruz province, Argentina. The company holds a 49% interest in the project, with partner Mauricio Hochschild holding a 51% interest.

A feasibility study for San Jose has concluded that the proposed underground mine could produce an average of 60,630 oz. gold and 3.1 million oz. silver annually at cash costs of about US$200 per oz. gold-equivalent. Capital costs for the 750-tonne-per-day mine are estimated at US$61.2 million.