TNR Gold still asserts right to Los Azules back-in

2009-10-02 13:53 ET - News Release

Also News Release (C-MAI) Minera Andes Inc

Mr. Gary Schellenberg reports

TNR GOLD CORP. PROVIDES UPDATE ON LOS AZULES COPPER PROPERTY

TNR Gold Corp. has provided an update on the status of its Los Azules property, located in the San Juan Province of west-central Argentina.

Xstrata PLC has not given notice to exercise its right to back-in to its Los Azules copper project for a 51-per-cent interest prior to the expiry of the time period for giving such notice under the terms of its back-in.

Gary Schellenberg, president of TNR, commented: "Xstrata's decision does not affect TNR's own back-in right with respect to certain of the properties located in the project. We are confident in the viability of the project, therefore fully intend to exercise our back-in at the appropriate time and look forward to a mutually beneficial working relationship with Minera Andes Inc. (MAI)."

TNR retains a conditional 25-per-cent back-in right to certain of the properties within the project through its wholly owned subsidiary, Solitario Argentina SA, under an exploration and option agreement between MIM Argentina Explorationes SA (MIM), a subsidiary of Xstrata PLC, and Solitario dated May 15, 2004, which is one of the underlying agreements to which MAI's interest is subject. TNR's back-in option is currently the subject of a legal dispute, with a court date set for the fall of 2010.

In the legal proceedings, TNR is seeking rectification of the exploration and option agreement to the extent that it purports to terminate Solitario's back-in rights if a feasibility study is not completed within three years of MIM exercising its option. TNR's position is that the true intent of the parties is reflected in a letter of understanding which provided that Solitario's back-in right subsists until 120 days after completion of a feasibility study. TNR is also seeking confirmation of ownership of its Escorpio IV claim, which is located adjacent to the project; and a declaration that the Escorpio IV property is excluded from the exploration and option agreement.

There can be no assurances as to the outcome of this litigation or of any related claim that TNR may have with respect to the exploration and option agreement. At this time, the likelihood of the outcome is not determinable and no recoverability or liability has been recorded in connection with these legal actions.

We seek Safe Harbor.

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MAI's version

Minera Andes still has 100% interest in Los Azules

2009-10-02 09:41 ET - News Release

Mr. James Duff reports

MINERA ANDES PROVIDES CONFIRMATION OF ITS 100% EARN-IN ON THE LOS AZULES COPPER PROJECT

Minera Andes Inc. is confirming its 100-per-cent earn-in interest in the Los Azules copper project in Argentina.

As previously announced, Minera Andes exercised its 100-per-cent earn-in option with respect to the Los Azules project, effective June 1, 2009. The Los Azules project was subject to a back-in right by Xstrata Copper. This right expired on Oct. 1, 2009, without being exercised.

"With the expiry of the back-in right we can now turn our attention to aggressively continuing to explore and develop this property in order to deliver value to our shareholders," said Rob McEwen, president, chief executive officer and chairman of Minera Andes (and the corporation's largest individual shareholder).

Minera Andes expects the transfer of all the Los Azules properties from certain Xstrata affiliates to be completed shortly.

The Los Azules copper discovery is a very large copper porphyry system. Located in western San Juan Province (Argentina), Los Azules has an independently calculated, inferred mineral resource of 922 million tonnes grading 0.55 per cent copper and containing 11.2 billion pounds of copper. This resource, calculated using a 0.35-per-cent copper cut-off grade, is defined by an area approximately 3.7-kilometres by one-kilometre. Drilling has also identified a high-grade, near-surface copper core approximately one per cent in grade. Los Azules is open at depth and to the north. At the current copper price ($2.70 (U.S.) per pound) the preliminary assessment contained in the corporation's previously published technical report indicated a preproduction capital cost of $2.7-billion (U.S.) with an internal rate of return of approximately 22 per cent and a net present value of $2.9-billion (U.S.).

In further news, Nils Engelstad, formerly legal counsel to the corporation, has been appointed to the position of vice-president, corporate affairs.

We seek Safe Harbor.