ANNUAL REPORT REVIEW — Minera Andes augments Argentine portfolio

Spokane-based Minera Andes (MAI-A) has added six gold-copper prospects to its portfolio of properties in northwestern Argentina.

For three of the prospects a letter of intent has been signed with a private individual. The properties comprise 13,240 ha in the Valle del Cura area of San Juan province. The area contains the eastern extension of the gold-copper belt known as El Indio.

The properties include the 2,240-ha Los Banitos property, which is 4,200 metres above sea level, and another, which spans 4,200 ha in the Zancarron area.

LANDSAT (satellite) imagery indicates areas of hydrothermal alteration over both prospects.

The third property, La Ortiga, comprises 6,800 ha on the eastern side of El Indio.

Meanwhile, in Mendoza province, Minera Andes has acquired a 30,000-ha land package of three prospective gold properties under an option-to-purchase agreement, also from a private individual.

The Arroyo Las Cuevas, Invernadas and Salinillas prospects are all in the Cordillera of the western part of the province. Arroyo Las Cuevas was explored in the 1960s by the United Nations, which discovered gold, copper and molybdenum mineralization.

All six properties are currently being explored in programs consisting of reconnaissance work, geologic mapping, and soil, silt and rock-chip sampling.

Meanwhile, drilling at the Pino Andino porphyry prospect in Neuquen province — a joint venture with Cominco (CLT-T) — has encountered sub-economic gold and copper mineralization in four of 10 holes.

Results include: 6 metres grading 0.2 gram gold per tonne in hole 11; 14 metres of 0.21 gram gold and 6 metres of 0.21% copper in hole 13; 14 metres of 0.25% copper and 0.18 gram gold in hole 14; and 24 metres of 0.3% copper and 0.14 gram gold, including 14 metres of 0.42% copper and 0.09 gram gold, in hole 19.

To fund these and other exploration efforts in the South American country, Minera Andes intends to raise up to $8 million by issuing 3.9 million special warrants at $2.10 each.

The company has been active in Argentina since 1992 through N.A. Degerstrom, a privately owned contractor based in Washington state. Degerstrom owns 31% of Minera Andes on a fully diluted basis.