VANCOUVER – Partners Minera Andes (MAI-V, MNEAF-O) and Mauricio Hochschild have formally approved plans to place the San Jose gold-silver project into production by the first quarter of 2007.
Situated in Argentina’s Santa Cruz province, San Jose is projected to produce 3.1 million oz. silver and 61,000 oz. gold annually from two main structures that will be mined using underground techniques. Minera Andes holds a 49% interest in the project, with Mauricio Hochschild holding the balance.
A feasibility estimated capital costs of US$61.2 million for a 750-tonne-per-day operation at San Jose. The mine plan was based on proven and probable reserves of 1.16 million tonnes grading 7.7 grams gold and 406 grams silver per tonne, sufficient for about five years of production. The company notes that only about 15% of the large property has been explored, and several new discoveries offer potential to add to existing resources.
Minera Andes recently received approval of its Environmental Impact Assessment report from the province of Santa Cruz. Financing efforts are under way, with a letter of intent for a banking credit facility already in place. The final financing agreement is expected in April, subject to the bank’s due diligence.
Financier Robert McEwan recently completed a $10-million private placement in Minera Andes. The company plans to use the proceeds to advance the San Jose project, to further explore its Los Azules copper discovery in west-central Argentina, and for general corporate purposes.
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