[Most Recent Quotes from www.kitco.com]

Press Release: Minera Andes Announces Production at the San José Mine for the Third Quarter 2010

TORONTO, ONTARIO – October 20, 2010 – Minera Andes Inc. (the “Corporation” or “Minera Andes”) (TSX: MAI and US OTC: MNEAF) announces the San José mine production results for the third quarter of 2010. During the third quarter, the San José mine produced 1,408,501 ounces of silver and 22,025 ounces of gold, of which 49% is attributable to Minera Andes.


Production Q3
Ore production (tonnes) 112,681 116,259 122,342
Average head grade silver (g/t) 423 368 407
Average head grade gold (g/t) 6.42 5.81 6.65
Silver produced (ounces) 1,408,501 1,220,794 1,402,000
Gold produced (ounces) 22,025 19,707 22,470
Silver equivalent production (ounces) 2,729,995 2,403,214 2,750,527
Net silver sold (ounces) 1,219,675 1,294,677 1,535,973
Net gold sold (ounces) 19,932 22,168 24,679

*49% of the San José mine production is attributable to Minera Andes Inc.

Compared to the second quarter of 2010, the 2010 third quarter silver production was 15% higher and gold production was 12% higher. The increase in silver and gold production was primarily the result of the expected improvement in grade profile compared to the second quarter: the silver head grade increased 15% and the gold head grade increase 11%. The improved silver grades are related to ongoing development of the Kospi vein. Mill throughput in the third quarter of 2010 was 3% lower than the previous quarter. Compared to the third quarter of 2009, the third quarter 2010 silver production was approximately the same and gold production decreased 2%.

Third quarter production cost information will be provided with the third quarter financial results.

Sales of silver and gold were 6% and 10% lower, respectively, in third quarter of 2010 compared to the second quarter as a result of an increase in products inventory. Compared to the same quarter last year, sales of silver in the third quarter of 2010 were 21% lower and gold sales were 19% lower due to a decrease in products inventory in the third quarter of 2009.

The Corporation recently announced the discovery of nine new veins and vein extensions at San José. To date the total strike length of the new veins and extensions is over five kilometers, which compares to a total strike length of about 17 kilometers for the previously known veins. The new veins are ideally located between the Kospi and the Frea veins, and the new veins can be accessed from workings on those veins. The Corporation is preparing an estimate of the resources for the new veins, and the results will be released before the end of October. Meanwhile, exploration around the existing mine and elsewhere on the joint venture property is continuing.

This news release is submitted by James K. Duff, Chief Operating Officer of Minera Andes Inc.

About Minera Andes Minera Andes is an exploration company exploring for gold, silver and copper in Argentina with three significant assets: a 49% interest in Minera Santa Cruz SA, owner of the San José Mine in close proximity to Andean Resources’ Cerro Negro project; 100% ownership of the Los Azules copper deposit with an inferred mineral resource of 10.3 billion pounds of copper and an indicated resource of 2.2 billion pounds of copper; and, 100% ownership of a portfolio of exploration properties bordering Andean’s Cerro Negro project in Santa Cruz Province. The Corporation had $8 million USD in cash as at June 30th 2010 with no bank debt. Rob McEwen, Chairman and CEO, owns 33% of the company.

About Minera Santa Cruz Minera Santa Cruz SA is a joint venture owned 51% by Hochschild Mining Argentina, a wholly owned subsidiary of Hochschild Mining plc, and 49% by Minera Andes S.A., a wholly owned subsidiary of the Corporation. The joint venture owns and operates the San José property.

About Hochschild Mining plc Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over forty years of experience in the mining of precious metal epithermal vein deposits and currently operates four underground epithermal vein mines, three located in southern Peru, one in southern Argentina and one open pit mine in northern Mexico. Hochschild also has numerous long-term prospects throughout the Americas.

For further information, please contact: Daniela Ozersky or visit our Web site: www.minandes.com.

Daniela Ozersky
Manager, Investor Relations
99 George St. 3rd Floor,
Toronto, Ontario, Canada. M5A 2N4
Toll-Free: 1-866-441-0690
Fax: 647-258-0408
E-mail: info@minandes.com

Source: Company website

Comments Closed

Comments are closed.