Minera Andes Inc

Published : November 15th, 2007

SIGNS DEFINITIVE AGREEMENT AT LOS AZULES COPPER PROJECT WITH XSTRATA COPPER

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

 


MINERA ANDES SIGNS DEFINITIVE AGREEMENT AT LOS AZULES COPPER PROJECT WITH XSTRATA COPPER

  

TSX: MAI   

NASD-OTCBB: MNEAF    

   

Spokane, Washington – November 14, 2007 – Minera Andes Inc. (TSX: MAI; US OTC: MNEAF) is pleased to report that a definitive Option Agreement has been executed by Minera Andes and Xstrata Copper regarding the Los Azules porphyry copper project in San Juan province, Argentina.  The Option Agreement consolidates into one package adjoining properties that straddle a large copper porphyry system.. Xstrata Copper is one of the commodity business units within Xstrata plc (London Stock Exchange: XTA.L and Zurich Stock Exchange: XTRZn.S).

Option Agreement
Minera Andes and its subsidiary company Minera Andes S.A. ("MASA") and Xstrata Copper have contributed their respective properties into the Option Agreement. Under the Option Agreement, MASA has the right to earn a 100% interest in Xstrata Copper's property by spending at least US$1.0 million on the property by November 2010, making payments to keep the property in good standing and producing a preliminary economic assessment (to NI 43-101 standards).  If in the opinion of Xstrata Copper, the preliminary assessment shows the potential to economically produce 100,000 tonnes (200 million pounds) of contained copper per year for 10 years or more then Xstrata Copper will have a right to earn a 51% interest in the combined properties (the "Back-in Right"). To satisfy the conditions of the Back-in Right, Xstrata Copper must assume control and responsibility for the combined properties, make a cash payment to Minera Andes of three times MASA's expenditures incurred on the combined properties after the 25th of November 2005 and complete a bankable feasibility study within five years of its election to exercise the Back-in Right. In the event that the preliminary assessment does not, in Xstrata Copper's opinion, meet the criterion contemplated above, Xstrata Copper's interest would be limited to a right of first refusal on a sale of the combined properties, or any part thereof.  All lands that make up the combined properties’ mineral applications are subject to a provincial mouth of mine royalty of between zero and 3%. This royalty will be negotiated with the province of San Juan as the project advances. 

If Xstrata Copper advises MASA of its intention to exercise Xstrata Copper's Back-in Right for a 51% interest, Minera Andes will be required to form a new Argentinean operating company and transfer the combined properties to the operating company. Following the completion of its Back-in Right, Xstrata Copper will also be required to use commercially reasonable efforts to obtain project financing for the development of a mine as contemplated by the bankable feasibility study.  If the project financing arrangements are accepted by MASA and such financing completes, Xstrata Copper will earn an additional 4% interest in the project, thereby reducing MASA’s interest from 49% to 45%.  If project financing is not available or not accepted by MASA, the project may proceed without third party financing. 

MASA and Xstrata Copper are to use good faith efforts to negotiate and execute a shareholders' agreement governing the operating company after the date that Xstrata Copper notifies MASA of its intention to exercise the Back-in Right.  The activities that may be undertaken by the operating company while Xstrata Copper is completing its back-in and thereafter, until a shareholders agreement is signed, will be limited to those activities necessary to deliver the Bankable Feasibility Study.  From the date that Xstrata Copper satisfies the conditions of the Back-in Right up until the date on which a shareholders agreement is signed, each of MASA and Xstrata Copper will have a right of first refusal over any bona fide offer received by the other party from a third party purchaser (other than an affiliate) to purchase any of its interest, directly or indirectly, in the project.

The obligation of Xstrata Copper to seek project financing and the limitations placed on the operating company will cease if MASA transfers, directly or indirectly, its interest in the project (other than to an affiliate) or in the event of a change of control of MASA, regardless of whether MASA and Xstrata Copper have entered into a shareholders agreement. 

The obligations of MASA under the Option Agreement are guaranteed by Minera Andes and the obligations of Xstrata Copper are guaranteed by Xstrata Queensland Limited. Minera Andes is prohibited from entering into certain transactions resulting in its disposing its interest in the project or a certain portion of its interest in Minera Santa Cruz S.A., unless the acquirer assumes Minera Andes' guarantee obligations under the Option Agreement. 

The Los Azules Property
Road
work and planning for the set up of the base camp and drilling at Los Azules is currently in progress.  It is anticipated that the drilling will start for this Argentine summer field season within the next thirty days. The exploration program at Los Azules is designed to define an inferred resource and provide sufficiently detailed information to allow the completion of a Preliminary Assessment (as defined by NI 43-101) of the property.

Over half the drilling to define a copper resource has been completed to date and drilling will continue this field season over the known area of leachable (chalcocite) and sulfide (chalcopyrite) copper mineralization as currently defined.  The area to be drilled covers approximately 2.5 kilometers by 0.9 kilometers within the enriched copper target currently identified at Los Azules that is about 3.3 kilometers long and 0.9 kilometers wide (see attached map). Holes will be drilled at a nominal grid spacing of 200 meters east-west and 400 meters north-south.  Where needed fill in holes will be drilled on the 200 meter north-south grid lines.

A total of 24 holes, totaling approximately 10,000 meters, are planned for the current campaign, to complete a mineral resource estimate. Drilling will commence on the northern half of the mineralized copper target where AZ-06-19 encountered 221 meters of mineralization averaging 1.62 percent copper that was 200 meters from hole AZ-06-20 containing 173 meters of 1.00 percent copper.  Drilling will also include infill drilling on the southern half of the target. The holes will be drilled to a depth of approximately 350 meters. This drilling will test a known area of leachable (chalcocite) and sulfide (chalcopyrite) copper mineralization currently defined by 26 drill holes.

Allen Ambrose, president of Minera Andes, said, "Our technical team is anxious start drilling and following up on the high grade copper results from our previous drilling campaigns. The northern portion of the Los Azules target where drilling has discovered thick sections of plus 1% copper is exciting in that we see a large copper target developing that is near surface and high grade. We look forward to reporting on Los Azules and anticipate completing the remainder of the drilling in the coming field season so we can report a copper resource by mid next year."

The engineering firm of Gustavson and Associates has been retained to monitor the program and prepare the NI 43-101 resource estimate and Preliminary Assessment report. The fieldwork during the upcoming field season will be managed by Minera Andes’ technical staff with the assistance of Nivaldo Rojas and Associates.

The highlights from the previously reported 2005, 2006, and 2007 drilling campaigns are listed in Table 1 below with several holes ending in copper mineralization, including AZ-07-24D and AZ-06-19 that bottomed in high-grade copper over 1 percent.

Table 1. Significant Drilling Results at Los Azules, 1998 to 2007

Drill Hole

TD
(m)

Intersection
From             To
(m)              (m)

Interval
(m)

Total
Copper
(%)

AZ-04-01 (core)
Includes:

195

130
150

195
192

56
36

0.62
0.82

AZ-04-02 (core)
Includes:
Includes:

330..5

164
164
230

304
190
304

140
26
72

0.38
0.47
0.42

AZ-04-04 (core)
Includes:
Includes:

300..8

162
162
236

282
202
282

120
40
46

0.54
0.59
0.64

AZ-04-07 (core)
Includes:

168..8

96
126

152
152

56
26

0.44
0.58

LA-04-98 (RC)

250

117

250

133

0.47

LA-06-98 (RC)
Includes:

250

61
157

250
250

189
93

0.44
0.64

LA-08-98 (RC)
Includes:

220

77
103

220
220

143
117

0.55
0.61

LA-03-04 (RC)
Includes:

226

94
104

226
114

132
10

0.40
1.12

AZ-06-10 (core)

261..35

174

261.35

87.35

0.83

AZ-06-11 (core)

270..7

158.7

270.7

158..7

0.51

AZ-06-14 (core)
Includes:

224..55

136
136

178
158

42
22

1.13
1.40

AZ-06-17 (core)
Includes:

183..5

66
66

183.5
124

117..65
58

0.63
0.84

AZ-06-19 (core)
Includes:
Includes:

299..4

78.25
78.25
134

299.4
116
146

221..15
37.75
12

1.62
2.22
3.94

AZ-06-20 (core)
Includes:
Includes:

253..3

80
80
98

253.3
98
182

173..3
18
84

1.00
1.69
1.12

AZ-07-22 (core)
Includes:
Includes:
Includes:
Includes:

271..2

119
119
119
155
213

257
155
139
257
227

138
36
20
102
14

0.62
0.99
1.24
0.49
0.71

AZ-07-24D (core)
Includes:
Includes:
Includes:
Includes:
Includes:
Includes:

278..2

124
124
160
202
234
234
264

278.2
160
202
234
278.2
254
278.2

154..2
36
42
32
44.2
20
14.2

0.54
0.80
0.50
0.34
0.66
0.74
0.87

AZ-07-29B
Includes:
Includes:

226..85

126
126
170

216
154
204

90
28
34

0.71
0.86
0.92

For a map showing drill hole locations, please click on the following link:

http://www.minandes.com/i/maps/LosAzules-map.jpg

All results have been reviewed by Brian Gavin, Minera Andes' vice president of exploration, an appropriately qualified person as defined by National Instrument 43-101. All samples were collected in accordance with industry standards. Splits from the drill core samples were submitted to Alex Stewart Assayers, Argentina, S.A., in Mendoza, Argentina, for sample pulp preparation and to ALS Chemex Laboratories, Mendoza, during the 2004 field season and to ACME Analytical Laboratories, Mendoza, during the 2006 and 2007 field seasons, for fire assay and ICP analysis.  Accuracy of results is tested through the systematic inclusion of standards, blanks and check assays and by reanalysis of 10% of samples at the Alex Stewart Assayers, Argentina, S.A. lab in Mendoza Argentina.

About Minera Andes
Minera Andes is a gold, silver and copper exploration company working in Argentina. The Corporation holds about 410,000 acres of mineral exploration land in Argentina including the 49%owned San Jos� silver/gold mine that has started initial production.  As discussed above, Minera Andes is exploring the Los Azules copper project in San Juan province, where an exploration program is underway to define a resource. Other exploration properties, primarily silver and gold, are being evaluated in southern Argentina. The Corporation presently has 166,832,517 shares issued and outstanding.

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 press release contains certain "forward-looking statements", including, but not limited to, the statements regarding the Company's strategic plans, evolution of mineral resources and reserves, work programs, development plans and exploration budgets. The forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of base metals, mining industry risks, risks associated withe foreign operations, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral reserves, and other risks. Reference is made to the risk factors and uncertainties described in the Company's continuous disclosure record, a copy of which is available under the Company's profile at www.sedar.com.

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 press release, such as "mineral resources", that the SEC guidelines strictly prohibit us from including in our filings with the SEC.


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

 

 

Forward email

 


MINERA ANDES INC. | 911 - 470 Granville Street | Vancouver | British Columbia | V6C 1V5 | Canada


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$ 7.02+2.33%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$ 3.26+4.15%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 0.58+1.93%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.10-9.09%Trend Power :
Imperial(Ag-Au-Cu)III.TO
Closes Bridge Loan Financing
CA$ 2.43-0.41%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$ 6.98+0.14%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.26+0.00%Trend Power :
Havilah(Cu-Le-Zn)HAV.AX
Q A April 2017 Quarterly Report
AU$ 0.30+8.16%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$ 2.22+1.37%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 60.13-1.38%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$ 0.04+0.00%Trend Power :