Minera Andes' (OTC:MNEAF) latest resource estimate for its San Jose mine in Santa Cruz, Argentina, has more than doubled the inferred mineral category at the property.
The latest report indicated that inferred resources stood at 4.6 million tonnes grading 4.87 g/t gold and 317 g/t silver, giving a total of 0.71 million ounces of gold and 46.4 million ounces of silver.
Compared to the previous resource estimate completed in December 2009, total ounces of gold and silver under the inferred category were 133% and 122% higher, respectively.
Total measured and indicated mineral resources at the San Jose Mine were 3.0 million tonnes grading 6.81 g/t gold and 462 g/t silver, giving a total of 651,000 ounces of gold and 44.2 million ounces of silver. The total ounces of gold and silver under the measured and indicated resources category were 4% and 8% higher, respectively, than the previous resource estimate.
The company said the new resources are a direct result of an increased emphasis on exploration at San Jose, resulting in the discovery of nine new veins.
The estimates are net of 2010 mine production through September, which were 0.32 million tonnes at 6.68 g/t gold and 416 g/t silver.
The San Jose mine is operated by Minera Santa Cruz SA, a joint venture owned 51% by Hochschild Mining Argentina, a subsidiary of Hochschild Mining (OTCPK:HCHDF), and 49% by Minera Andes S.A., a subsidiary of Minera Andes.
Aside from the San Jose project, Minera Andes has ownership in the Los Azules copper deposit and a portfolio of exploration properties in Santa Cruz, Argentina.
Since the announcement, the company's shares have rallied almost 5% to trade at $2.14 as of 12:01 pm ET.