Minera Andes Inc

Published : June 06th, 2009

Announces completion of NI 43-101 Technical report on the June 2008 San Jose Mine

( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
0
Send
0
comment
 


MINERA ANDES ANNOUNCES COMPLETION OF NI 43-101
TECHNICAL REPORT ON THE JUNE 2008 SAN JOS� MINE MINERAL RESOURCES AND RESERVE

  
TSX: MAI   
NASD-OTCBB: MNEAF   
   

SPOKANE, WA--June 5, 2009-- Minera Andes Inc. (TSX: MAI and US OTC: MNEAF) announces the results of a NI 43-101 Technical Report that comprises an independent review of the mineral resources and reserves as of June 2008 at the San Jos� mine in Santa Cruz province, southern Argentina. The San Jos� mine is operated by Minera Santa Cruz S.A. ("MSC") (owned 51% by Hochschild Mining plc ("Hochschild") (HOC..L Reuters, HOC.LN Bloomberg, London Stock Exchange) and 49% by Minera Andes.

The Technical Report entitled "NI 43-101 Technical Report, Minera Andes, Inc., San Jos� Silver-Gold Project, Santa Cruz, Argentina", was prepared by SRK Consulting (US), Inc. ("SRK") and endorsed by Chris Elliott (MAusIMM) and Leah Mach (CPG), appropriately qualified persons according to NI 43-101.

Mineral Resources
The June 2008 San Jos� mineral resource and mineral reserve estimates, mine life, and mining rates, disclosed herein are based on work from our joint venture partner that was audited and adjusted by independent qualified persons Chris Elliott and Leah Mach at SRK. The mineral resources and reserves remain open along strike and at depth in some areas..

SRK used a gold price of $600 per ounce (oz) and $10.50 per oz for silver for estimating mineral resources and reserves, which reflect the price outlook in mid-2008 for San Jos�. The average Life of Mine cash operating costs are estimated at $122/tonne of ore processed, or $271/ounce gold equivalent. The base case Net Present Value (NPV), using long-term metal price estimations of $850 per ounce of gold and $12.50 per ounce of silver and a discount rate of 8%, is $205 million. The undiscounted NPV representing cumulative cash flow is $234 million.

At June 30, 2008 total Measured and Indicated Mineral Resources at the San Jos� mine were 570,000 ounces of gold and 39.4 million ounces of silver, contained in 2.5 million tonnes grading 7.11 g/t gold and 490 g/t silver, or 73.6 million ounces of silver on a silver equivalent basis (see table below). An additional 77,000 ounces of gold and 5.1 million ounces of silver, in 447,000 tonnes, grading 5.33 g/t gold and 356 g/t silver are classified as Inferred Resources. The cutoff value used to estimate the mineral resources is 181g/t silver equivalent (using a price of $600/oz for gold and $10.50/oz for silver).

Mineral Resources* - Measured and Indicated

Area Resources
(6/30/07)

Grades

Classified Resource

Contained Ounces

Au (g/t)

Ag (g/t)

Total Resource (t)

Measured (t)

Indicated
(t)

Gold
(oz)

Silver
(oz)

Silver equivalent
(oz)

Huevos Verdes

6.80

529

560,000

292,000

268,000

122,000

9,524,000

16,844,000

Frea

8.31

374

745,000

446,000

299,000

199,000

8,958,000

20,898,000

Odin

5.27

298

196,000

-

196,000

32,000

1,878,000

3,798,000

Kospi

6.86

609

887,000

-

887,000

196,000

17,367,000

29,127,000

Ayel�n

6.22

466

79,000

-

79,000

16,000

1,184,000

2,144,000

HVR

4.86

430

31,000

12,000

19,000

5,000

439,000

739,000

Total Project
06/30/08

7.11

490

2,499,000

750,000

1,749,000

570,000

39,350,000

73,550,000

Total Project
06/30/07

7.91

500

2,365,000

645,000

1,721,000

602,000

38,032,000

74,092,000

Percentage change

 

 

+6

 

 

-5

+3

-1

*Note: Contains 100 percent of the resources, Minera Andes ownership of the project is 49%. Mineral Resources are inclusive of mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Minera Andes has calculated the Silver/Gold equivalency as 1oz gold = 60 oz silver.

The mineral resource estimates are based on 593 surface and underground drill holes (12,140 meters), 3 surface trenches (95.2 meters) and 5,389 channel samples (11,084 meters). The channel samples were taken from underground workings constructed at Huevos Verdes, Frea, and Kospi. The nominal drill spacing at Huevos Verdes and Frea is approximately 35 meters along strike (horizontally) and 50 meters vertically and at Kospi it is approximately 40 meters by 40 meters. The underground channel samples are spaced at approximately 2.5m along the drifts and the drifts are spaced at about 20m vertically.

The resource models were developed using industry-accepted methods. SRK validated the model estimates and found them to reasonably estimate grade and tonnage. The mineral resource estimates are compliant with CIM Definition Standards for Mineral Resources and Mineral Reserves as incorporated by reference in NI 43-101.

Mineral Reserves
At June 30th, 2008 the Proven and Probable Mineral Reserves, based on an overall economic cutoff value of $115/t (using a price of $600/oz for gold and $10.50/oz for silver), are 1,615,000 tonnes at 6.88 g/t gold and 486 g/t silver, containing 357,000 ounces of gold and 25,230,000 ounces of silver. The mineral reserves also take into account marginal blocks of ore located on the periphery of higher grade zones. The marginal cutoff for these blocks was $45/t. The marginal cutoff was defined by the value of ore that meets the variable costs, but not the fixed costs.

Mineral Reserves* - Proven and Probable

Area Reserves
(6/30/07)

Grades

Classified Reserve

Contained Ounces

Au (g/t)

Ag (g/t)

Total Reserve
(t)

Proven
(t)

Probable (t)

Gold
(oz)

Silver
(oz)

Silver Equivalent (oz)

Huevos Verdes

6.06

460

393,000

249,000

143,000

77,000

5,812,000

10,432,000

Frea

7.92

360

524,000

270,000

254,000

133,000

6,058,000

14,038,000

Kospi

6.55

596

698,000

-

698,000

147,000

13,361,000

22,181,000

Total Project
06/30/08

6.88

486

1,615,000

519,000

1,095,000

357,000

25,231,000

46,651,000

Total Project
6/30/07

6.79

430

2,386,000

657,000

1,729,000

521,000

33,017,000

64,277,000

Percentage Change

 

 

-32

 

 

-31

-24

-27

*Note: Contains 100 percent of the reserves, Minera Andes ownership of the project is 49%. Minera Andes has calculated the Silver/Gold equivalency as 1oz gold = 60 oz silver.

The decrease in the reserves from June 2007 to June 2008 is due to the application of a higher cut-off grade and an increased dilution allowance by SRK as well as depletion. The following summarizes the key assumptions, parameters and methods used in the mineral resource and mineral reserve estimates:

. Gold assays were cut to 120 g/t, 10 g/t, 50 g/t, 20 g/t and 50 g/t and 36 g/t at Huevos Verdes South, Central, North, Ramal, Frea and at Kospi respectively. Silver assays were cut to 10,000 g/t, 1,000 g/t, 6,000 g/t, 2,000 g/t, 4,000 g/t and 3,800 g/t at Huevos Verdes South, Central, North, Ramal, Frea, and at Kospi, respectively.
. Density values used for the estimate are 2.595 t/m3 for Huevos Verdes, 2.611 t/m3 for Frea, and 2.621 t/m3 for Kospi.
. The geological model was developed using a series of northeast oriented sections spaced approximately 5 meters to 50 meters apart.
. Assays were composited to full vein-width interval..
. The estimation was done using Ordinary Kriging coupled with oriented search ellipses within the vein wireframes.
. Block grades were estimated based on interpretation of geological parameters logged in drill holes.
. Included in the mineral resource estimate at Huevos Verdes and Frea are 17,886 chip channel samples taken from the underground workings.
. Conventional Cut and Fill (CC&F) minimum mining width 0.8m
. Mechanized Cut and Fill (MC&F) minimum mining width 2.0m
. Planned dilution 0.2m HW + 0.2m FW= 0.4m total
. Unplanned dilution 5%
. Economic stope outlines from BECOV US$115/t

A technical report, prepared in accordance with NI 43-101 will be filed on SEDAR (www.sedar.com) within 45 days. This news release was prepared by, or under the supervision of, Mr. Allen Ambrose, President of Minera Andes, a "qualified person" within the meaning of NI 43-101. For (i) the resource/reserve estimate contained herein; (ii) a description of the key assumptions, parameters and methods used to estimate the mineral resource/reserve referred to in this news release; and (iii) a general discussion of the extent to which the estimate of mineral resources/reserves may be materially affected by any unknown environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues, please refer to the technical report that will be filed within 45 days.

San Jos� Mine Update
The capacity of the processing plant at San Jos� was increased to 1,500 tonnes per day in fourth quarter of 2008, and the processing plant is currently consistently achieving target production throughput. However, mine production has lagged behind mill capacity due to difficult ground conditions encountered in the Kospi vein development. Those problems have largely been overcome, and MSC is forecasting full production from Kospi by the end of the second quarter. During the development of the Kospi vein, mill feed has been supplemented with material from low grade surface stockpiles. For the full year, MSC is forecasting silver production approximately 30% higher than 2008 and gold production approximately 50% higher than 2008.

Subsequent to the June 2008 resource and reserve estimate, which was the subject of SRK's review, MSC has prepared an updated estimate of the resources and reserves at San Jos� as at December 31, 2008. The updated resources and reserves, compliant with NI 43-101 standards, will be released shortly.

Minera Andes is a gold, silver and copper exploration company working in Argentina. The Corporation holds or has an interest in approximately 304,000 acres of mineral exploration land in Argentina, including the properties comprising the 49% owned San Jos� silver/gold mine. Minera Andes is also exploring the Los Azules copper project in San Juan province, where a scoping study has been completed and a 43-101 technical report filed. Other exploration properties, primarily silver and gold, are being evaluated in southern Argentina. The Corporation presently has 230,538,851 shares issued and outstanding.

Allen V. Ambrose, Minera Andes' President, who is an appropriately "qualified person" as defined by National Instrument 43-101, has supervised the preparation of the information in the news release.

This news is submitted by Allen V. Ambrose, President and Director of Minera Andes Inc.



For further information, please contact: Art Johnson at the Spokane office, or Krister A. Kottmeier, investor relations - Canada, at the Vancouver office. Visit our Web site: www.minandes.com.

Spokane Office
111 East Magnesium Rd.,
Spokane, WA 99208 USA
Phone: (509) 921-7322
E-mail: mineraandes@minandes.com

Vancouver Office
Suite 911 - 470 Granville St,
Vancouver, BC. V6C 1V5
Phone: (604) 689-7017 / 877-689-7018
E-mail: ircanada@minandes.com

Caution Concerning Forward-Looking Statements:
This news release contains forward-looking statements and forward-looking information within the meaning of applicable US and Canadian securities laws. Such forward-looking statements or information include expected production at MSC's San Jos� Project. In making the forward-looking statements and providing the forward-looking information, we have made numerous assumptions. Although our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statements will prove to be accurate. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from that expressed or implied by such forward-looking information. Such risks, uncertainties and other factors include among other things, declines in the price of gold, silver, copper and other base metals, capital and operating cost increases, changes in general economic and business conditions, including changes in interest rates and the demand for base metals, economic and political instability in Argentina, discrepancies between actual and estimated production and mineral reserves and resource, operational and development risk, and the speculative nature of mineral exploration and regulatory risks.

Readers should not place undue reliance on forward-looking statements or information. We undertake no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See our annual information form for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. All forward-looking statements and information made in this news release are qualified by this cautionary statement. Minera Andes' joint venture partner, a subsidiary of Hochschild Mining plc, and its affiliates do not accept responsibility for the use of project data or the adequacy or accuracy of this release.

Cautionary Note to U.S. Investors:
The United States Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits with "mineral reserves" that a company can economically and legally extract or produce. We use certain terms in this news release, such as "mineral resources", that the SEC guidelines strictly prohibit us from including in our filings with the SEC, because these terms are common usage in Canada and form part of our Canadian filing requirements. U.S. Investors are urged to consider closely the disclosure in our Form File No. 40F, which may be secured from us, or from the SEC's website at http://www.sec.gov/edgar.shtml.


THE TSX HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

 

Forward email


Minera Andes Inc. | S. 911 - 470 Granville Street | Vancouver | British Columbia | V6C 1V5 | Canada

<
Data and Statistics for these countries : Argentina | Canada | All
Gold and Silver Prices for these countries : Argentina | Canada | All

Minera Andes Inc

CODE : MAI.TO
ISIN : CA6029101012
CUSIP : 602910101
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
ProfileMarket
Indicators
VALUE :
Projects & res.
Press
releases
Annual
report
RISK :
Asset profile
Contact Cpy

Minera Andes is a silver producing company based in Canada.

Minera Andes is listed in Canada and in United States of America. Its market capitalisation is CA$ 730.0 millions as of today (US$ 728.7 millions, € 555.9 millions).

Its stock quote reached its lowest recent point on February 06, 2009 at CA$ 0.32, and its highest recent level on April 15, 2011 at CA$ 3.39.

Minera Andes has 282 959 000 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
 
In the News and Medias of Minera Andes Inc
3/23/2006New Analysis
10/16/2006Learning from the Iconoclast
Annual reports of Minera Andes Inc
2008 Annual report
2006 Annual Report
Financings of Minera Andes Inc
2/26/2009COMPLETES SECOND TRANCHE OF PRIVATE PLACEMENT WITH ROB McEWE...
2/17/2009revised C$40.0 million private placement with Robert R. McEw...
Financials of Minera Andes Inc
8/11/2011Announces Second Quarter 2011 Financial Results
6/6/2011Announces First Quarter 2011 Financial Results and Restated ...
3/30/2011Announces 2010 Full Year Financial Results and Record Earnin...
7/17/2009(San Jose Argentina)second quarter 2009 San José Production
5/16/2009REPORTS FIRST QUARTER 2009 FINANCIAL RESULTS
1/23/2009(San Jose Argentina)ANNOUNCES FOURTH QUARTER GOLD/SILVER PRODUCTION INCREASES AT...
11/14/2008REPORTS THIRD QUARTER 2008 RESULTS
11/11/2008(San Jose Argentina)ANNOUNCES THIRD QUARTER GOLD/SILVER SALES AT THE SAN JOSE MI...
8/15/2008REPORTS NET INCOME FOR SECOND QUARTER OF $0.05 PER SHARE
7/30/2008ANNOUNCES SECOND QUARTER GOLD/SILVER SALES AT THE SAN JOSE M...
5/9/2008(San Jose Argentina)ANNOUNCES FIRST QUARTER 2008 PRODUCTION FOR SAN JOSE MINE TO...
Project news of Minera Andes Inc
12/7/2011(San Jose Argentina)Provides Update On Exploration Drilling at the San Jose Mine
8/30/2011(San Jose Argentina)Provides Update on Exploration Drilling at the San Jose Mine
6/27/2011(Los Azules Argentina)Reports Drill Results and Development Update for the Los Azu...
5/17/2011(Los Azules Argentina)on Litigation With TNR Gold Corp.
5/4/2011(San Jose Argentina)Announces Work Resumption at San Jose Mine
3/13/2011(San Jose Argentina)Announces Outstanding 2010 Exploration Drill Results at the ...
10/5/2009(San Jose Argentina) Production Has Resumed At TheSan Jos=E9 Mine
10/2/2009(Los Azules Argentina)Provides Confirmation of its 100% Earn-In on the Los Azules ...
6/6/2009(San Jose Argentina) Announces completion of NI 43-101 Technical report on the J...
6/6/2009(Los Azules Argentina) Announces delivery of Earn-in notice under option agreement...
1/16/2009(San Jose Argentina)ANNOUNCES INCREASE IN FORECAST PRODUCTION AT THE SAN JOSE GO...
1/10/2009(San Jose Argentina)Announces Remaining Results From 2008 San Jose Drilling
9/25/2008(Los Azules Argentina)ANNOUNCES EXCELLENT METALLURGICAL TESTING RESULTS FOR LOS AZ...
9/8/2008(Los Azules Argentina)announces a mineral resource estimate of 922 million tonnes ...
8/13/2008(San Jose Argentina)REPORTS SAN JOSE PRODUCTION CASH COSTS AT $322/oz GOLD AND $...
6/27/2008(Los Azules Argentina)Exploration Program Increases The Size Of The Los Azules Por...
4/16/2008(Los Azules Argentina)DRILLING CUTS 132 METERS (433FT) OF 1.11 PERCENT COPPER AT L...
3/28/2008(San Jose Argentina) PROVIDES SAN JOSE MINE UPDATE
3/12/2008(Los Azules Argentina)ANNOUNCES 113 METERS OF +1 PERCENT COPPER IN DRILLING AT LOS...
3/7/2008(San Jose Argentina)ANNOUNCES 1.69 OZ/TON GOLD AND 37 OZ/TON SILVER FROM SAN JOS...
12/11/2007(Los Azules Argentina) ANNOUNCES DRILLING COMMENCES AT LOS AZULES COPPER PROJECT
10/26/2007(San Jose Argentina) ENGAGES MACQUARIE BANK LIMITED FOR DEBT FINANCING FOR SAN J...
8/15/2007(San Jose Argentina)ANNOUNCES PROGRESS AND PLANS AT SAN JOSE MINE
5/31/2007(Los Azules Argentina)drills significant copper at Los Azules Project, Argentina
Corporate news of Minera Andes Inc
3/22/2012Files Annual 2011 Financial Statements and MD&A and Project ...
1/18/2012Announces Fourth Quarter and Full Year 2011 San Jose Mine Pr...
1/13/2012(Los Azules Argentina).: Response to TNR Gold Corp. News Release Regarding Los Azu...
12/21/2011Rob McEwen Letter to Shareholders of US Gold and Minera Ande...
10/3/2011(San Jose Argentina)Announces Full Repayment of Loans From San Jose Mine
9/22/2011US Gold and Minera Andes Enter Into Arrangement Agreement to...
7/20/2011Announces Second Quarter 2011 San Jose Mine Production
4/20/2011Announces First Quarter 2011 San Jose Mine Production
2/7/2011' Treasury Increases by $19 Million
1/24/2011Reminds Warrant Holders of Accelerated Expiry on January 31,...
7/3/2009'AGM Presentation On Video
2/23/2009Rob McEwen becomes Executive Chairman of Minera Andes - Two ...
2/6/2009Announces Results Of Preliminary Assessment At Los Azules Co...
10/1/2008Recent Media Coverage on Minera Andes Inc.
9/2/2008ANNOUNCES 2.05 OZ/TON GOLD AND 37 OZ/TON SILVER FROM ONGOING...
8/6/2008ADDS ROB MCEWEN AND OTHER MINING INDUSTRY EXECUTIVES TO ITS ...
7/30/2008Welcomes Lundin Mining Executive To Board
12/22/2007ANNOUNCES 1st CLOSING ON FINANCING
12/19/2007 ANNOUNCES PROPOSED FINANCING
11/27/2007 ANNOUNCES THE SAN JOSE MINE INCREASES SILVER AND GOLD MINE...
11/15/2007SIGNS DEFINITIVE AGREEMENT AT LOS AZULES COPPER PROJECT WITH...
11/9/2007 ANNOUNCES SAN JOSE UPDATE
10/12/2007SAN JOSE PROJECT DRILLING HITS 3.22 OUNCES PER TON GOLD AND ...
9/18/2007ANNOUNCES THE SAN JOSE MINE INCREASES SILVER AND GOLD RESOUR...
9/6/2007SAN JOSE PROJECT DRILLING HITS 1.86 OUNCES PER TON GOLD AND ...
Comments closed
 
Latest comment posted for this article
Be the first to comment
Add your comment
TORONTO (MAI.TO)OTC BB (MNEAF.OB)
2.58-2.64%2.54-3.05%
Last quotes and information before delisting
Prev close Open
2.65 2.71
Low High
2.48 2.73
Year l/h YTD var.
 -  -
52 week l/h 52 week var.
- -  2.58 -%
Volume 1 month var.
2,733,962 -%
Produces
Develops
Explores for
 
 
 
Analyse
Interactive chart Add to compare
Interactive
chart
Print Compare Export
Last updated on : 9/7/2010
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
MOST READ
Annual variation
DateVariationHighLow
 
5 years chart
 
3 months chart
 
3 months volume chart
 
 
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
Santos(Ngas-Oil)STO.AX
announces expected non-cash impairment
AU$ 7.45+0.68%Trend Power :
Oceana Gold(Au)OGC.AX
RELEASES NEW TECHNICAL REPORT FOR THE HAILE GOLD MINE
AU$ 2.20+0.00%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.86+0.00%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
TO ACQUIRE BLACK FOX FROM PRIMERO=C2=A0
US$ 5.34-4.81%Trend Power :
Rentech(Coal-Ngas)RTK
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
KEFIKEFI.L
Reduced Funding Requirement
GBX 0.84-1.18%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.09+5.88%Trend Power :
Imperial(Ag-Au-Cu)III.TO
Closes Bridge Loan Financing
CA$ 1.96-10.50%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 8.16-0.85%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.20+8.33%Trend Power :
Havilah(Cu-Le-Zn)HAV.AX
Q A April 2017 Quarterly Report
AU$ 0.33-2.94%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 2.41+2.99%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 68.30+0.74%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
Terramin(Ag-Au-Cu)TZN.AX
2nd Quarter Report
AU$ 0.03+0.00%Trend Power :