Seeking Alpha

Sufiy's  Instablog

Sufiy
Send Message
Sufiy is a Seeking Alpha contributor.
My blog:
Sufiy
  • TNR Gold: Minera Andes drills 269 m of 0.50% Cu At Los Azules tnr.v, mai.to, uxg, tck, cuu.v, czx.v, lun.to, bwr.to, cs.to, imn.to, ncu.to, tko.to, wrn.to, qux.to, bls.to, bhp, fcx, vale, rio, abx, auy, tck 0 comments
    Jun 27, 2011 4:19 PM | about stocks: UXG, FCX, VALE, AUY, TCK, KGC, NEM, ABX, BHP, RIO
     
      Finally, we have the latest drill results from Los Azules - this copper deposit continues to shape into the one of the largest undeveloped copper deposits in the world. 
      The very important message is that there are no ice glaciers present in the project area. Step out hole looks very encouraging as well. Solid results, which will allow to upgrade the resource category. Condemnations holes are drilled on the Escorpio IV, which is described as "Contested Concession" - all other project areas are called 100% owned. Escorpio IV is a part of litigation with TNR Gold on this project. "The results of the 2011 drilling will not have a material impact on the inferred mineralisation and no resource update is warranted" - this must be the message to Minera Andes disgruntled shareholders by the US Gold's low ball merger offer made before these results were announced. TNR Gold will hardly bite into any discount of its properties.
      


    "TNR Gold Corporate Update Post Lithium Spinoff and Litigation Update On Los Azules case. Very interesting part is the link to the new Los Azules page on TNR Gold website, now we can see the recent Judgement and Application from TNR Gold for the new claim on Los Azules. Recent sell off in the company share price looks like another punishment - we have seen it a few times already during the last year. Will be interesting to see who is buying. This tree will not be shaken, these people know what they are doing and the magnitude of recent litigation is matched very well by the profile of the people involved in it."

    "The New Claim alleges that Xstrata and Minera Andes did not complete the required exploration expenditures required for Xstrata's exercise of its option on April 23, 2007 to acquire the Properties. On that basis, TNR and Solitario advance a claim of breach of contract and intentional interference with economic relations, and seek the return of the Properties, or alternatively, damages as against the defendants or any of them."

    These properties are called Xstrata on the map above. TNR Gold litigation team now seeks in this new claim that Northern half of the Los Azules deposit to be returned to TNR Gold. The level of the case is elevated now by this action from potentially 15% after back-in into the project for TNR Gold (it is 25% for the Northern Half of the deposit, but high grade core is located on TNR Gold property called Xstrata on the map) to the claim that seeks the return of the all Solitario (TNR Gold subsidiary in Argentina) properties, which comprise roughly half of the Los Azules deposit at this moment - above the line on the map called Xstrata.

    Nobody will take these kind of developments lightly just before the trial which was due to commence in June 2011. It took Judge two days to consider the application of George Macintosh litigation team and it was granted to TNR Gold.






     

     
     
    "TNR Gold: Los Azules litigation: Rob McEwen Proposes Merger of US Gold and Minera Andes. In our publishing hobby, which we consider educational for us and our fellow investors, we like to follow the big cases which are played by small players and build up the puzzles on the chess board. Los Azules with its profile of the really "Big Copper" project in Americas fits well into this description. We will have to run a little bit of history in order to put the recent news in the context"

     
     
    Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advise on this blog and there is no solicitation to buy or sell any particular company here. Always consult with your qualified financial adviser before making any investment decisions.
     




    Minera Andes Reports Drill Results and Development Update for the Los Azules Copper Project06/27/2011
    Download this Press Release (PDF 1.08 MB)
    TORONTO, ONTARIO -- (MARKET WIRE) -- 06/27/11 -- Minera Andes Inc. (the "Corporation" or "Minera Andes") (TSX: MAI)(OTCBB: MNEAF) is pleased to announce drill assay results from the January - May 2011 drill program and a development update for the 100% owned Los Azules Copper Project, in San Juan Province, Argentina. Highlights from the recent drilling include a step-out drill hole, located approximately 250 meters west of the resource that returned 0.50% copper over 269 meters, including 0.95% copper over 45 meters. Infill drilling was generally in line with expectations, for example intersecting 0.66% copper over 395 meters and 0.63% copper over 237 meters (Table 1).
    Exploration Drilling West of Resource
    Two exploration holes were designed to test geophysical anomalies located west and north of the resource. The best result, hole T-01, located approximately 250 meters west of the resource, intersected 0.50% copper over 269 meters, including 0.95% copper over 45 meters. This hole is encouraging for several reasons, 1) it demonstrates that geophysics may be a useful guide for copper mineralization at Los Azules, 2) this area is only one of several high priority geophysical targets that have been identified on the property, and 3) the hole bottomed in 0.42% copper and was terminated before reaching its target depth, suggesting that there may be potential to find additional mineralization at depth. Follow up exploration is currently being planned.
    Infill Drilling Confirms Expectations
    Drilling to upgrade the inferred mineralization to the indicated category consisted of nine drill holes. In general, the holes returned mineralization in-line with expectations. Drill holes AZ1168 and AZ1170 were terminated while in mineralization due to difficult drilling conditions, bottoming in 0.95% and 0.55% copper, respectfully. The mineralization at Los Azules is open at depth.
    Hole AZ1164 was extended as planned, intersecting good copper grades over a wide intersection. This result helps infill the central portion of the deposit.
    Table 1 - Los Azules Infill Drilling Summary
    ----------------------------------------------------------------------------Hole Cu Thickness From To (%) (m) (m) (m)--------------------------------------------------------------------------------------------------------------------------------------------------------AZ1164 0.55 284.4 120.0 404.4Including 0.75 128.0 120.0 248.0--------------------------------------------------------------------------------------------------------------------------------------------------------AZ1168 0.66 395.4 148.0 569.3--------------------------------------------------------------------------------------------------------------------------------------------------------AZ1169 0.36 229.8 86.0 315.8--------------------------------------------------------------------------------------------------------------------------------------------------------AZ1170 0.63 237.3 112.0 349.3Including 0.85 62.0 112.0 174.0--------------------------------------------------------------------------------------------------------------------------------------------------------AZ1176 0.63 130.0 162.0 292.0----------------------------------------------------------------------------Despite encountering low grade copper mineralization, infill holes AZ1171, AZ1172, AZ1173 returned values less than expected.
    Planned Exploration at Los Azules
    Due to difficult ground conditions the amount of meters drilled between January-May was less than planned. The strategy for the upcoming season is to continue testing deep geophysical targets. Also,Minera Andes will look to begin drilling at Los Azules earlier than previous years in order to extend the drill campaign.
    Preliminary Feasibility Study
    Minera Andes continues to advance work related to Los Azules Preliminary Feasibility Study including the following:
    -- Developed preliminary hydrologic model-- Evaluated potential geotechnical risks with positive outcome-- Completed evaluation of construction/production access road alternatives-- Continued environmental base line assessment and monitoring, including glaciology studies (no ice glaciers are present in the project area)-- Drilled condemnation holes in areas that are potential locations for surface facilities (Exhibit 1A and Exhibit 4)-- Completed archeological assessment-- Completed initial stakeholder mapping-- Conducted preliminary testing of alternative metallurgical processing options with positive results-- Completed trade-off study of heap leaching option as an alternative to flotation recovery with determination that heap leaching is not a viable option-- The anticipated cost to complete the Preliminary Feasibility Study is $30 million, with the earliest completion date being late 2013.About Los Azules
    Los Azules is a large copper porphyry system located in western San Juan Province in a belt of porphyry copper deposits that straddles the Chilean/Argentine border. This belt contains some of the world's largest copper deposits, including Codelco's El Teniente and Andina mines, Anglo American's Los Bronces mine,Antofagasta PLC's Los Pelambres mine and Xstrata's El Pachon project, among others.
    The mineral resources for Los Azules were calculated in June 2010 and are summarized in the table below for the "base case" cut-off grade of 0.35 percent copper. The base case cutoff grade is based on experience from other projects with similar characteristics, potential scale of operation and location.
    --------------------------------------------------------------------------------------------------------------------------------------------------------MineralResource Tonnes Copper Contained Copper Gold SilverCategory (millions) % (MM lbs) grams/tonne grams/tonne----------------------------------------------------------------------------Indicated 137 0.73 2.2 0.07 1.7----------------------------------------------------------------------------Inferred 900 0.52 10.3 0.07 1.7--------------------------------------------------------------------------------------------------------------------------------------------------------There is a high-grade secondary enrichment zone near the top of the mineralization. We use a cut-off grade of 0.70% copper to define "high-grade" mineralization, and the material above the 0.70% cut off approximates the secondary enrichment zone, but it is not exactly coincident. The portions of the deposit that exceeded the 0.70% copper limit are 67 million tonnes of indicated resources at an average grade of 0.95% (1.4 billion pounds of contained copper) and 127 million tonnes of inferred resources at an average grade of 0.86% (2.4 billion pounds of contained copper).
    The results of the 2011 drilling will not have a material impact on the inferred mineralization and no resource update is warranted.
    Refiled Interim Financial Report
    Minera Andes also announces today that it is refiling its interim financial statements for the three months ended March 31, 2011 to provide a condensed consolidated statement of changes in equity for the period ended March 31, 2010 under International Financial Reporting Standards ("IFRS"). The refilling was made at the request of the Ontario Securities Commission and the additional disclosure does not impact any of the other interim financial statements previously filed.
    About Minera Andes
    Minera Andes is an exploration company exploring for gold, silver and copper in Argentina with three significant assets: a 49% interest in Minera Santa Cruz SA, owner of the San Jose Mine in close proximity to Goldcorp's Cerro Negro project; 100% ownership of the Los Azules copper deposit with an inferred mineral resource of 10.3 billion pounds of copper and an indicated resource of 2.2 billion pounds of copper; and, 100% ownership of a large portfolio of exploration properties in Santa Cruz province,Argentina, including properties bordering the Cerro Negro project in Santa Cruz Province. Minera Andeshad $22 million in cash and short-term investments, with no bank debt (as of May 31, 2011). Rob McEwen, Chairman and CEO, owns 31% of the shares of the corporation. On June 14, 2011 the corporation announced that Mr. McEwen has proposed to combine the corporation with US Gold Corporation to create a high growth, low-cost, mid-tier silver producer focused on the Americas.
    This news release has been submitted by James K. Duff, Chief Operating Officer of the Corporation.
    For further information, please contact: Jim Duff or visit our Web site: www.minandes.com.
    Scientific and Technical Information:
    This news release was prepared by James K. Duff, Chief Operating Officer of the Corporation and a registered Professional Geologist in the State of Idaho, who is a Qualified Person as defined by National Instrument 43-101. Bruce Davis, PhD, FAusIMM, who is a Qualified Person as defined by National Instrument 43-101 and responsible for the quality control for the assaying of the Los Azules drill core has reviewed the assay quality control information and is awaiting final results from additional quality control samples. All samples were collected in accordance with industry standards. Splits from the drill core samples were submitted to the ACME sample preparation laboratory in Mendoza, Argentina, and then transferred to ACME's laboratory in Santiago, Chile for fire assay and ICP analysis. Accuracy of results is tested through the systematic inclusion of standards, blanks and check assays. The mineral resource estimate referenced in this press release was prepared in June 2010 by Robert Sim, P.Geo. and Bruce Davis, PhD, FAusIMM, both independent Qualified Persons as defined by National Instrument 43-101 "Standards of Disclosure for Mineral Projects" ("NI 43-101").
    For further information in respect of the Los Azules project please refer to the technical report entitled "Canadian National Instrument 43-101 Updated Preliminary Assessment, Los Azules Project, San Juan Province, Argentina" dated December 16, 2010, prepared by Kathleen Altman, Robert Sim, Bruce Davis,William L. Rose, Scott Elfen, and Richard Jemielita, each of whom is "independent" of the Corporation and a "qualified person" for the purposes of National Instrument 43-101 - "Standards of Disclosure for Mineral Projects . This report is available on SEDAR (www.sedar.com).
    Cautionary Note to U.S. Investors:
    All resource estimates reported by the Corporation are calculated in accordance with 43-101 and theCanadian Institute of Mining and Metallurgy Classification system. These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral resources which are not mineral reserves do not have demonstrated economic viability.
    Caution Concerning Forward-Looking Statements:
    This press release contains certain forward-looking statements and information. The forward-looking statements and information express, as at the date of this press release, the Corporation's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results and management's understanding of proposed legislative changes. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, risks associated with foreign operations, risks related to on-going or pending litigation including specifically risks related to litigation which if resolved adversely to Minera Andes could materially impact the Corporation's value and interest in and ability to develop the Los Azules project, property title, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral resources and reserves and other risks.
    Readers should not place undue reliance on forward-looking statements or information. The Corporation undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See the Corporation's annual information form for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. All forward-looking statements and information made in this news release are qualified by this cautionary statement.
    Exhibit 1 - Summary of Drill Hole Results for 2010-2011 Drill Season---------------------------------------------------------------------------- Intersection---------------------------------------------------------------------------- Vertical Thickness From (m) To (m) (m) % Cu Comments---------------------------------------------------------------------------- 0 120 120.0 - Pre hole drilled in 2009-2010HOLE 1064A season. 120 248 128.0 0.75 Secondary enrichment zone 248 288 40.0 0.58 Mixed secondary enrichment (Cc) and chalcopyrite mineralization disseminations 288 404.4 116.4 0.33 Primary disseminated chalcopyrite-------------------------------------------------------------------------------------------------------------------------------------------------------- 0 156 156.0 - Pre hole drilled in 2009-2011HOLE 1067 season 156 336 180.0 0.23 Mixed secondary enrichment and disseminated chalcopyrite 336 375 39.0 0.40 Primary disseminated chalcopyrite--------------------------------------------------------------------------------------------------------------------------------------------------------Hole 1168 0 46 46.0 - Gravel overburden 46 148 95.0 0.04 Leached cap 148 515 344.4 0.67 Mixed secondary enrichment and disseminated chalcopyrite 515 557 39.5 0.48 Primary disseminated chalcopyrite 557 569.3 11.5 0.95 Primary disseminated chalcopyrite and bornite--------------------------------------------------------------------------------------------------------------------------------------------------------Hole 1169 0 50 50.0 - Gravel overburden 50 86 36.0 0.10 Leached cap 86 315.75 229.8 0.36 Primary chalcopyrite mineralization disseminations--------------------------------------------------------------------------------------------------------------------------------------------------------HOLE 1170 0 30 30.0 - Gravel overburden 30 112 82.0 0.05 Leached cap 112 174 62.0 0.85 Secondary enrichment 174 349.3 175.3 0.55 Mixed secondary enrichment and disseminated chalcopyrite--------------------------------------------------------------------------------------------------------------------------------------------------------HOLE 1171 0 50 50.0 - Gravel overburden 50 86 36.0 0.05 Leached cap 86 201 115.0 0.12 Mixed secondary enrichment and disseminated chalcopyrite 201 400.1 199.1 0.16 Primary disseminated chalcopyrite--------------------------------------------------------------------------------------------------------------------------------------------------------HOLE 1172 0 62 62.0 - Gravel overburden 62 74 12.0 0.09 Leached cap 74 125 51.0 0.22 Mixed secondary enrichment and disseminated chalcopyrite 125 152 27.0 0.07 Primary pyrite and chalcopyrite veinlets-------------------------------------------------------------------------------------------------------------------------------------------------------- Intersection---------------------------------------------------------------------------- Vertical Thickness From (m) To (m) (m) % Cu Comments----------------------------------------------------------------------------HOLE 1173 0 32 32.0 - Gravel overburden 32 80 48.0 0.11 Leached cap 80 99 19.0 0.34 Secondary enrichment 99 228 129.0 0.22 Mixed secondary enrichment and disseminated chalcopyrite 228 294.5 66.5 0.18 Primary disseminated chalcopyrite--------------------------------------------------------------------------------------------------------------------------------------------------------HOLE 1174 0 24 24.0 - Overburden 24 76 52.0 0.03 Leached cap 76 250 174.0 0.17 Mixed secondary enrichment and disseminated chalcopyrite 250 341.4 91.4 0.10 Primary chalcopyrite mineralization disseminations--------------------------------------------------------------------------------------------------------------------------------------------------------HOLE 1175 0 63 63.0 - Overburden 63 74 11.0 0.03 Leached cap 74 249.5 175.5 0.22 Primary disseminated pyrite and veinlets-------------------------------------------------------------------------------------------------------------------------------------------------------- 0 32 32.0 -HOLE 1176 Overburden 32 162 130.0 0.03 Leached cap 162 292 130.0 0.63 Secondary enrichment 292 393.4 101.4 0.19 Primary disseminated pyrite and veinlets--------------------------------------------------------------------------------------------------------------------------------------------------------HOLE T-01B 0 72 72.0 - Overburden 72 80 8.0 0.09 Leached cap 80 86 6.0 0.78 Secondary enrichment 86 132 46.0 0.27 Primary disseminated chalcopyrite 132 140 8.0 0.73 Mixed secondary enrichment and disseminated chalcopyrite 140 186 46.0 0.25 Primary disseminated chalcopyrite 186 192 6.0 1.43 Secondary enrichment 192 387 195.0 0.13 Primary disseminated chalcopyrite 387 408 21.0 0.62 Secondary enrichment 408 422 14.0 0.54 Mixed secondary enrichment and disseminated chalcopyrite 422 468 46.0 0.25 Primary disseminated chalcopyrite 468 486 18.0 0.49 Mixed secondary enrichment and disseminated chalcopyrite 486 496 10.0 0.95 Secondary enrichment 496 560 64.0 0.33 Mixed secondary enrichment 560 605 45.0 0.95 Primary chalcopyrite and bornite 605 656 51.0 0.42 Primary chalcopyrite--------------------------------------------------------------------------------------------------------------------------------------------------------HOLE T-02 0 76 76.0 0.04 Leached cap 76 700.1 624.1 0.06 Primary pyrite mineralization disseminations and veins----------------------------------------------------------------------------Exhibit 1A - Summary of Condemnation Drills Results for 2010-2011 Drill Season
    ---------------------------------------------------------------------------- Intersection---------------------------------------------------------------------------- Vertical Thickness From (m) To (m) (m) % Cu Comments----------------------------------------------------------------------------HOLE CO 01 0 200 200.0 0.001 Fresh unmineralized rock--------------------------------------------------------------------------------------------------------------------------------------------------------HOLE CO 02 0 168 168.0 0.001 Fresh unmineralized rock 168 200 32.0 0.006 Fresh unmineralized rock--------------------------------------------------------------------------------------------------------------------------------------------------------HOLE CO 03 0 200 200.0 0.003 Fresh unmineralized rock-------------------------------------------------------------------------------------------------------------------------------------------------------- Fresh unmineralized rock,HOLE CO 04 0 28 28.0 0.004 partially leached 28 186 158.0 0.001 Fresh unmineralized rock--------------------------------------------------------------------------------------------------------------------------------------------------------HOLE CO 05 0 162 162.0 0.002 Fresh unmineralized rock--------------------------------------------------------------------------------------------------------------------------------------------------------HOLE CO 06 0 200 200.0 0.003 Fresh unmineralized rock--------------------------------------------------------------------------------------------------------------------------------------------------------HOLE HB 04 0 200 200.0 0.002 Fresh unmineralized rock--------------------------------------------------------------------------------------------------------------------------------------------------------HOLE HB 05 0 200 200.0 0.001 Fresh unmineralized rock--------------------------------------------------------------------------------------------------------------------------------------------------------HOLE HB 06 0 200 200.0 0.003 Fresh unmineralized rock-------------------------------------------------------------------------------------------------------------------------------------------------------- Fresh unmineralized rock withHOLE HB 07 0 82 82.0 0.002 meteoric weathering 82 200 118.0 0.006 Fresh unmineralized rock-------------------------------------------------------------------------------------------------------------------------------------------------------- Fresh unmineralized rock withHOLE GB 02 0 42 42 0.003 meteoric weathering 42 200 158.0 0.007 Fresh unmineralized rock----------------------------------------------------------------------------To view the figures associated with this press release, please visit the following link:http://media3.marketwire.com/docs/mai_627_figures.pdf
    The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management.
    Contacts:Minera Andes Inc.James K. Duff, Chief Operating Officer99 George St. 3rd Floor, Toronto, Ontario, Canada, M5A 2N4647-258-0395 or Toll-Free: 1-866-441-0690647-258-0408 (NYSEMKT:FAX)info@minandes.comwww.minandes.comSource: Minera Andes Inc.
    Related articles
Back To Sufiy's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.