Minera
Compared to the first quarter of 2009, the 2009 second quarter silver production was 3% lower and gold production was 9% higher. The decrease in silver production was due to a lower head grade for silver, which was partially offset by higher processing recovery rates. The increase in gold production was the result of a higher mill feed head grade for gold and higher processing recovery rates. Mill throughput in the second quarter of 2009 was similar to the level of the previous quarter. Compared to the second quarter of 2008, the second quarter 2009 silver production increased 16% and gold increased 46% due to the increased production rate associated with the expansion program completed in the fourth quarter of 2008.
In addition to the plant capacity expansion, construction of a new power line was completed at the end of the first quarter of 2009, linking the San JosŽ mine to the national grid and ensuring that it has a reliable, low-cost supply of energy. The benefit of lower energy costs started to impact mine production costs in the second quarter.
Mine production from the Kospi vein commenced at the end of the second quarter after several months of delays. During the first half of 2009, mill feed was derived from the Huevos Verdes and Frea veins and from a surface stockpile of low-grade ore. Going forward, the plan is to generate mill feed entirely from underground ore and defer processing of the stockpile ore until the end of the mine life.
In April 2009 a new mineralized structure was discovered at San JosŽ that is located approximately 845 meters southwest from the Huevos Verdes vein. The blind structure, which does not outcrop on the surface, was discovered in the first drill hole of a program of five 1,000 meter long diamond drill holes to be drilled horizontally from existing underground workings. The vein intercept from the discovery core hole (SMJ-105) ran 8.9 g/t gold and 517 g/t silver over 1.00 meters.
Brian Gavin, Minera Andes' Vice President of Exploration, who is a "qualified person" as defined by National Instrument 43-101, is responsible for technical information used in this news release and has supervised the preparation of such information and reviewed all such information used in this news release.
Minera Andes is a gold, silver and copper exploration company with a 49% interest in the San JosŽ silver-gold mine in
The company’s address is