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Minera Andes Inc. (the "Corporation"
or "Minera Andes") (TSX:MAI - News)(OTC.BB:MNEAF - News) announces the San
Jose mine production results for the fourth quarter of 2010 and the year
ended December 31, 2010. During the fourth quarter, the San Jose mine
produced 1,871,440 ounces of silver and 26,141 ounces of gold, of which 49%
is attributable to Minera Andes. For the full year
of 2010 silver production was 5,323,842 ounces and gold production was 84,303
ounces.
SAN JOSE MINE PRODUCTION COMPARISON (100% BASIS)(i)
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Production Total 2010 Q4 2010 Q3 2010 Total 2009 Q4 2009
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Ore production
(tonnes) 461,134 135,710 112,681 460,971 100,460
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Average head grade
silver (g/t) 397 475 423 398 351
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Average head grade
gold (g/t) 6.14 6.34 6.42 6.19 7.34
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Silver produced
(ounces) 5,323,842 1,871,440 1,408,501 4,997,700 1,032,025
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Gold produced
(ounces) 84,303 26,141 22,025 77,075 19,961
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Silver equivalent
production (ounces) 10,382,041 3,439,929 2,729,995 9,622,222 2,229,687
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Net silver sold
(ounces) 5,169,675 1,916,163 1,219,676 5,072,023 988,747
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Net gold sold
(ounces) 83,326 26,900 19,932 77,220 19,233
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(i)49% of the San Jose mine production is attributable to Minera Andes Inc.
Fourth quarter 2010 silver production
was 33% higher and gold production was 19% higher compared to the third
quarter of 2010. The increase in silver and gold production was the result of
increased mill throughput, increased metallurgical recoveries for silver and
gold, and higher grades for silver compared to the third quarter. The mill is
currently operating routinely at full capacity. The increase in mill
throughput was due to the development of additional production areas in the
mine, and the improved silver grade was due to production from higher grade
silver areas and because of incremental silver production from the Merrill
Crowe circuit in the mill. Fourth quarter 2010 silver production increased
81% and gold increased 31% compared to the fourth quarter of 2009. Production
in the fourth quarter of 2009 was reduced because of 15 days of labour disruptions.
Fourth quarter production cost
information will be provided jointly with the financial results for the
fourth quarter which are due to be filed at the end of March 2011.
Sales of silver and gold were 57% and
35% higher, respectively, in fourth quarter of 2010 compared to the third
quarter as a result of increased ore production and a decrease in products
inventory. Compared to the same quarter last year, sales of silver and gold
in the fourth quarter of 2010 were 94% and 40% higher, respectively. This was
mainly due to increases in mill throughput, metallurgical recoveries and head
grades.
This news release is submitted by James
K. Duff, Chief Operating Officer of Minera Andes
Inc.
About Minera
Andes Minera Andes is an exploration company
exploring for gold, silver and copper in Argentina with three significant
assets: A 49% interest in Minera Santa Cruz SA,
owner of the San Jose Mine in close proximity to Goldcorp Inc.'s Cerro Negro
project; 100% ownership of the Los Azules copper
deposit with an inferred mineral resource of 10.3 billion pounds of copper
and an indicated resource of 2.2 billion pounds of copper; and, 100% ownership
of a portfolio of exploration properties bordering Goldcorp Inc.'s Cerro
Negro project in Santa Cruz Province. The Corporation had $10 million USD in
cash as at September 30th 2010 with no bank debt. Rob McEwen, Chairman and
CEO, owns 33% of the company.
About Minera
Santa Cruz Minera Santa Cruz SA is a joint venture
owned 51% by Hochschild Mining Argentina, a wholly
owned subsidiary of Hochschild Mining plc, and 49%
by Minera Andes S.A., a wholly owned subsidiary of
the Corporation. The joint venture owns and operates the San Jose property.
About Hochschild
Mining plc Hochschild Mining plc is a leading
precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN)
with a primary focus on the exploration, mining, processing and sale of silver
and gold. Hochschild has over forty years of
experience in the mining of precious metal epithermal vein deposits and
currently operates four underground epithermal vein mines, three located in
southern Peru, one in southern Argentina and one open pit mine in northern
Mexico. Hochschild also has numerous long-term
prospects throughout the Americas.
Reliability of Information
Minera Santa Cruz S.A., the owner and operator
of the San Jose mine, is responsible for and has supplied to the Corporation
all reported results from the San Jose mine. This press release is based
entirely on information provided to Minera Andes by
Minera Santa Cruz S.A. ("MSC"). Minera Andes' joint venture partner, a subsidiary of Hochschild Mining plc, and its affiliates other than MSC
do not accept responsibility for the use of project data or the adequacy or
accuracy of this release. As the Corporation is not the operator of the San
Jose mine, there can be no assurance that production information reported to
the Corporation by MSC is accurate, the Corporation has not independently
verified such information and readers are therefore cautioned regarding the
extent to which they should rely upon such information.
Caution Concerning Forward-Looking
Statements:
This press release contains certain
forward-looking statements and information. The forward-looking statements
and information express, as at the date of this press release, the
Corporation's plans, estimates, forecasts, projections, expectations or
beliefs as to future events and results, including the outcome of pending and
current litigation. Forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered reasonable by us,
are inherently subject to significant business, economic and competitive
uncertainties and contingencies 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 precious metals, mining
industry risks, risks associated with foreign operations, the state of the
capital markets, environmental risks and hazards, uncertainty as to
calculation of mineral resources and reserves and other risks
Readers should not place undue reliance on
forward-looking statements or information. The Corporation undertakes 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 the Corporation's 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.
Contact:
Contacts:
Minera Andes Inc.
Andrew Elinesky
Controller
647-258-0395 or Toll-Free: 1-866-441-0690
647-258-0408 (FAX)
info@minandes.com
www.minandes.com
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