LATIN AMERICA — Minera Andes firms up 1998 exploration plans

Spokane, Wash.-based Minera Andes (MAI-A) has rationalized its approach to the exploration of its many Argentine properties.

The company has dropped several grassroots properties, including Arroyo Nuevo, where 26 reverse-circulation holes encountered no significant gold mineralization, La Horqueta, and Pino Andino. Releasing the three properties reduced Andes’ holdings from 700,000 to 570,000 ha.

Andes plans to continue exploring its remaining early-stage properties, concentrating on the most advanced prospects with the greatest potential, says Andes President Allen Ambrose. Early-stage exploration efforts have a budget of US$1.9 million and will centre on several properties in western Chubut province. The work will include mapping and sampling on the Leon, Leleque, Willimanco, La Maria and El Valle prospects, which together cover 30.5 sq. km. Positive results could mean drilling on any of these prospects before the end of 1998.

Andes expects it will soon have results from the first round of reverse-circulation drilling at its most promising advanced project, El Pluma-Cerro Saavedra. The company is also proceeding with exploration on the Arroyo Verde project, a joint venture with Pegasus Gold (PGU-M) in northeastern Chubut province. Reconnaissance mapping and geophysical surveys are under way, with drilling planned for April. Andes is earning an 80% interest in Arroyo Verde by spending US$1.3 million over four years, including US$200,000 earmarked for field work this year.

Meanwhile, the company has been contacted by potential joint-venture partners for several of its porphyry targets in the central Andes, including: Agua Blanca, a gold-copper target covering 34,700 ha in San Juan province; Santa Clara, a 26,700-ha copper target in Mendoza province; Chonchones, a 7,200-ha copper target in San Juan province; and Los Azules, a gold prospect in San Juan province.