Minera Andes finds more gold-silver mineralization

Vancouver — Recent reconnaissance surface sampling on four parallel quartz vein systems has resulted in the discovery of several new areas of high-grade gold and silver mineralization at Minera Andes‘ (MAI-V) El Pluma/Cerro Saavedra project in Santa Cruz province, southern Argentina.

The company reports that sampling confirms the mineralized nature of four separate structural trends that were outlined by previous geological and geophysical surveys. The sampling program was performed by Minera Andes joint venture partner, Peru-based Mauricio Hochschild & Co. and is part of a larger property-wide mapping and sampling program in order to define drill targets.

Earlier this year Hochschild launched a US$1.3 million exploration program that will test 9 prospects around the Huevos Verdes high-grade gold vein with 3,600 metres of trenching to be followed by 3,000 metres of drilling. The partners are testing for “low-sulphidation style” epithermal gold mineralization hosted in Jurassic-aged volcanic rocks overlain by Cretaceous sediments and Tertiary basalts.

Minera Andes also recently announced an independent resource estimate on a 2.2 km portion of one of the four vein trends at Huevos Verdes. This vein system is situated near the centre of the property and hosted an indicated resource of 1.86 million tonnes grading 2.1 grams gold and 214.5 grams silver. An additional 2.69 million tonnes grading 2.5 grams gold and 253.5 grams silver were put in the inferred category. Underground exploration and development work is scheduled to commence by the fourth quarter.

Huevos Verdes represents one of four parallel gold-silver quartz vein targets that will be sampled along with La Sorpresa, El Pluma West, and Huevos Verdes East. These targeted structural trends are defined either by geophysical anomalies and/or intermittently exposed vein, breccias, and vein float that host high-grade gold and silver. The total vein system has a potential strike length in excess of 20 km.

Recent exploration work has focused on the Pluma South and Huevos Verdes trend; the Pluma West-Huevos Verdes East trend as well as the Saavedra West trend and La Sorpresa-West Portuguese Trend. Results are as follows;

Minera Andes reports that some of the highest grade samples were collected at the Pluma South-Huevos Verdes Trend. This trend is thought to represent the northwest extension of the Huevos Verdes gold-silver vein. Results from a total of 92 surface rock chip samples ranged from nil to 81.7 grams gold per tonne, and nil to 933 grams silver per tonne. A total of 25 of these samples assayed at least 0.50 grams gold and 10 of them returned assays greater than 50 grams silver. A few of these high-grade samples include 6.1 grams gold and 815 grams silver; 2.0 grams gold, and 240 grams silver; and 81.7 grams gold and 932.5 grams silver.

The Pluma South area of sampling encompasses the northern portion of the neighboring vein system known as the Saavedra West trend. This vein strikes for about 10 km and the southern portion hosts the Saavedra West indicated resource. It was pegged at 382,000 tonnes grading 0.4 grams gold and 225 grams silver was calculated. An additional 579,000 tonnes grading 1.4 grams gold and 259.7 grams silver were slated in the inferred category.

At the Pluma West-Huevos Verdes East trend, situated northeast of the Huevos Verdes trend, the company has sampled a quartz vein structure that is about 7 km long. Geophysical anomalies in basalt-covered areas indicate that the vein stockwork system at Pluma West connects with vein outcrops at Huevos Verdes East. A total of 300 samples from this area were assayed and results ranged from nil to 40.0 grams gold. This included 40 gold assays that ranged from 1.0-to-40 grams gold per tonne. Silver values were generally low, ranging from nil to 154 grams per tonne. Moving 4 km to the south at the Huevos Verdes East zone, 32 rock chip samples yielded assays that ranged from nil to 1,079 grams silver per tonne.

The northern most quartz vein trend on Minera Andes property has a 10 km strike length and outcrops through a series of windows in the thin basalt cover. These exposed areas have been dubbed La Sorpresa, Eastern Windows, Roadside and West Portuguese. At La Sorpresa, the quartz vein is exposed intermittently over half a kilometre. A total of 123 rock chip samples were taken from this area. Results ranged from nil to a high of 13.9 grams gold and 1,855 grams silver. Of these a total of 12 samples assayed higher than 0.50 gram gold and 3 samples returned high-grade gold and/or silver. These are as follows; 13.9 grams gold and 1,855 grams silver; 1.2 grams gold and 1,170 grams silver; and 1.0 gram gold and 759 grams silver.

Fieldwork will continue in an effort to expand the potential of the property. In addition, Minera Andes reports that 10,000 ha of ground have been acquired for the joint venture. This new ground hosts the Aguas Vivas target, a new mineralized area situated 10 km northwest of the El Pluma/Cerro Saavedra vein structures.

Hochschiled stands to earn a 51% interest in the Huevos Verdes project under terms of a joint venture and operating agreement signed last year. According to the agreement Hochschild must spend US$3 million over three years and pay Minera Andes US$400,000 per year. Hochschild must spend a minimum of US$100,000 on other targets within the land package.