Minera mines 1.8 million ounces AgEq at San Jose in Q1

2010-04-21 13:57 ET - News Release

Mr. Jim Duff reports

MINERA ANDES ANNOUNCES FIRST QUARTER 2010 SAN JOSE MINE PRODUCTION

Minera Andes Inc. is releasing production results from its 49-per-cent-owned San Jose mine in Santa Cruz province, Argentina. Overall production at the San Jose mine during the first quarter of 2010 was 823,000 ounces of silver and 16,430 ounces of gold, of which 49 per cent is attributable to Minera Andes.

First quarter 2010 first quarter silver and gold production were 20% and 18% lower respectively compared to the fourth quarter of 2009 as a result of lower mine production and lower head grades for both silver and gold as well as lower silver recovery rates in the mill, partially offset by higher gold recovery rates. Mine production has been impacted by delays in underground mine development, which has delayed access to certain higher grade stoping areas. Mill throughput in the first quarter of 2010 was 4% lower than the level of the previous quarter. Year on year, silver and gold production were 37% and 1% lower respectively, mainly due to the delay in mine development.

SAN JOSE MINE PRODUCTION COMPARISON (100% BASIS)(i)

Product                             Q1 2010    Q4 2009    Q1 2009

Ore production (tonnes)              96,484    100,460    118,986
Average head grade silver (g/t)         293        351        427
Average head grade gold (g/t)          5.92       7.34       5.29
Silver produced (koz)                   823      1,032      1,299
Gold produced (koz)                   16.43      19.96      16.56
Silver equivalent produced (koz)      1,809      2,230      2,293
Silver sold (koz)                       739        989        838
Gold sold (koz)                       14.32      19.23      11.38

(i)(Minera Andes holds a 49% interest in San Jose)

First quarter production cost information will be provided when available in a subsequent press release.

At San Jose, Minera Santa Cruz is completing permits to commence exploration drilling at the new Aguas Vivas target located 10 kilometers northwest of the San Jose operation.