LATIN AMERICA — Minera Andes resumes drilling in Argentina

Minera Andes (MAI-A) has resumed drilling at the Huevos Verdes vein system on the El Pluma-Cerro Saavedra silver-gold property in southern Argentina.

To date, the company has drilled 10 reverse-circulation holes on the main vein to confirm high-grade silver-gold mineralization found in surface sampling.

The 2,000-metre program is designed to test the east-dipping vein to a depth of 70 metres. Between 15 and 20 holes will target four areas along the 600-metre vein, with initial results expected by the end of April.

In the northern portion of the vein, Minera Andes completed two hand-dug trenches, which returned high-grade silver-gold values. The first of these encountered 12.5 metres grading 7.7 grams gold and 191 grams silver per tonne, whereas the second hit 9 metres of 2.1 grams gold and 58.4 grams silver.

The company has also completed 79 line km of an induced-polarization survey and 135 line km of magnetics over the Huevos Verdes and Saavedra West-Cerro Celular areas.

Minera Andes plans to carry out more reconnaissance drilling on other targets on the 92,000-ha property. Among these are the La Sorpresa, Saavedra West-Cerro Celular and El Pluma deposits.

In other news, the company reached an agreement whereby Battle Mountain Gold (BMG-N) can earn a half-interest in the 3,495-ha Los Azules gold property in northern Argentina’s San Juan province. In return, the major must spend US$1.3 million on exploration over four years. Battle Mountain, which holds property of its own to the south, can earn an additional 10% interest by spending US$2.6 million and making cash payments to Minera Andes.