Minera Andes inks Argentine deal with Hochschild

Denver — Minera Andes (MIA-V) will begin drilling on the El Pluma-Cerro Saavedra silver-gold property in southern Argentina once it completes a joint-venture deal with Peru-based Mauricio Hochschild & Co.

Hochschild can earn a 51% interest in the 88,000-ha property by spending US$3 million over three years, as well as making cash payments of US$400,000 per year.

Drilling will focus on the Huevos Verdes target and test for mineralization below 150 metres. Nine other targets, in the northern portion of the property, merit work as well.

The agreement also calls for a 50-tonne-per-day pilot plant at Huevos Verdes.

Minera Andes can participate, on a pro rata basis, in production from a 500-tonne-per-day operation, or it may choose a 15% carried interest.

Hochschild operates four mines in Peru; the Minera Andes deal represents its first move into Argentina.