Proceeds from a $6.5-million private placement will enable
Most of the funds are earmarked for exploration designed to boost reserves at Huevos Verdes and investigate other epithermal gold-silver targets in the San Jose land package. The company’s joint-venture partner at Huevos Verdes is Lima-based Mauricio Hochschild and Cia (MHC), which can earn a 51% interest in the project by spending US$3 million on exploration over three years. MHC operates four mines in South America, and collectively these produce about 450,000 oz. gold and 10 million oz. silver per year.
Two inclined shafts are being sunk at Huevos Verdes to provide access to the main gold-silver vein in advance of delineation drilling.
Although a production decision is not expected until the third quarter, the joint venture has already constructed the head frame over the shafts. Surface facilities, including a camp, compressor and maintenance facilities, have been completed, and a 28-km all-weather road and bridge to the site are in use.
Minera Andes has interests in 10 projects totalling about 1,980 sq. km in Argentina. These contain gold, silver and copper targets. The company is forging ahead with development of a gold-silver project in Santa Cruz province (another joint venture), and prospecting in other provinces.
Minera Andes has 69.8 million shares issued and outstanding.
Shares in Minera Andes were trading at 56 at presstime. Over the past year, shares in the Spokane-based company climbed as high as 89 and dipped as low as 24.
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