Minera Andes's Los Azules at 922Mt of 0.55% Cu inferred

2008-09-08 10:56 ET - News Release

Mr. Allen Ambrose reports

MINERA ANDES ANNOUNCES A MINERAL RESOURCE ESTIMATE OF 922 MILLION TONNES OF 0.55% COPPER AT LOS AZULES

Minera Andes Inc. has provided the results of an independent resource estimate at the Los Azules copper deposit located in western San Juan province, Argentina. The inferred mineral resource, at a 0.35-per-cent total copper cut-off, is defined by an area approximately 3.7 kilometres by one kilometre in size and contains a high-grade, near-surface copper core in the north. This resource estimate will form the basis of an economic scoping study (NI 43-101 preliminary assessment) planned for completion at the end of the year. In addition, the mineralized copper target remains open to the north and at depth.

At a 0.35-per-cent total copper cut-off, the inferred resource at Los Azules is 922 million tonnes grading 0.55 per cent copper, containing 11.2 billion pounds of copper.

The mineral resource estimate at different copper cut-off grades is summarized in the attached table.

Cut-off grade Inferred resource Average grade Contained copper
(CuT) (millions of tonnes) (CuT%) (billions of pounds)

0.20 1,680 0.42 15.6
0.25 1,425 0.46 14.5
0.30 1,171 0.50 12.9
0.35 922 0.55 11.2
0.40 727 0.60 9.6
0.50 451 0.69 6.9
0.60 273 0.78 4.7
0.70 161 0.87 3.1
0.80 93 0.97 2.0

Allen Ambrose, president of Minera Andes, said: "We are very pleased to report on our continued success at Los Azules. This resource estimate demonstrates that Los Azules ranks as one of the largest new undeveloped copper deposits in Argentina. At a cut-off grade of 0.8 per cent copper, the resource totals 93 million tonnes at a grade of 0.97 per cent copper, much of which occurs as a near-surface, high-grade core zone. The presence of a high-grade copper core is important in that it could significantly enhance the project economics as a starter pit in the early years of any potential mining operations."

Robert Sim, PGeo, an independent qualified person as defined by NI 43-101 with the assistance of Bruce Davis, a fellow of AusIMM, is responsible for the mineral resource estimate. This estimate will be filed in a technical report compliant with NI 43-101 and posted on SEDAR within 45 days. Mr. Ambrose, an appropriately qualified person as defined by NI 43-101 for the Los Azules project, has reviewed and approved the content of this press release.

Minera Andes is advancing the Los Azules project under an option agreement (see company's news release in Stockwatch dated Nov. 14, 2007) with Xstrata Copper, one of the commodity business units within Xstrata PLC. The scope and size potential of the project increased dramatically in 2006 when Minera Andes drilling discovered a near-surface, high-grade area of copper mineralization where AZ-06-19 encountered 221 metres of mineralization averaging 1.62 per cent copper that was 200 metres from hole AZ-06-20 containing 173 metres of 1 per cent copper.

There are a total of 83 drill holes in the Los Azules database with a cumulative length of 19,680 metres and a total of 10,919 samples analyzed for total copper with an average individual sample length of 1.5 metres. A total of 35 of the drill holes have some portion of the sample intervals tested for sequential copper analysis. The resource estimate has been generated from drill hole sample assay results and the interpretation of a geologic model which relates to the spatial distribution of copper in the deposit. Grade estimates have been made using ordinary kriging with a nominal block size of 20 by 20 by 15 metres.

Drilling and sampling practices have been reviewed and are in accordance with industry standards. Drill core samples were submitted to Alex Stewart Assayers, Argentina, and to Acme Laboratories, in Mendoza, Argentina, for sample-pulp preparation and to Acme Laboratories in Chile and ALS Chemex Laboratories in Chile for analysis. Mr. Davis has reviewed the results of the control (quality assurance and quality control) program and finds the data sufficiently accurate and precise for use in resource estimation.

This news is submitted by Mr. Ambrose, president and director of Minera Andes.

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