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20110711 minera agm

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  • 1. Silver, Gold & Copper
    in Argentina
    TSX: MAI OTC: MNEAF
    July 2011
    1
  • 2. Cautionary Statement
    This presentation contains certain "forward-looking statements", including, but not limited to, the statements regarding Minera Andes Inc.’s and its subsidiaries’ and affiliates’ (collectively the “Company’s”) strategic plans, forecasts, projections, future financial or operating information, evolution of mineral resources and reserves, work programs, development plans, operating performance and plans, exploration budgets and plans, or other expectations or beliefs as to future events or results. This includes descriptions and summaries of certain proposals received from significant shareholders, which the Company and its directors are currently evaluating. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of the Company to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. 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, the completion of a proposed business combination between Minera Andes and US Gold (including the numerous approvals required in connection with such a business combination), risks related to business integration as a result of a successful business combination, factors associated with fluctuations in the market price of metals, mining industry risks, risks associated with foreign operations, risks associated with operations not controlled by the Company, environmental risks and hazards, legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; employee relations; availability and costs associated with mining inputs and labour; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits, currency fluctuations, uncertainty as to calculation of mineral reserves and other risks.  Reference is made to the risk factors and uncertainties described in the Company's continuous disclosure record, a copy of which is available under the Company's profile at www.sedar.com. The Securities & Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We may use certain terms in this presentation, such as "mineral resources" and “measured”, “indicated” and “inferred” mineral resources that are normally not permitted to be used in filings made with the SEC. Investors are cautioned not to assume that any part of the mineral deposits in such categories will ever be converted into reserves. Accordingly, information in this presentation containing descriptions of our mineral deposits may not be comparable to similar information made public by U.S. companies subject to the disclosure requirements of the U.S. federal securities laws. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.  
  • 3. MAI: TSX
    MNEAF: US OTC
    NILS ENGELSTAD
    VICE PRESIDENT,CORPORATE AFFAIRS
  • 4. MAI: TSX
    MNEAF: US OTC
    Formal
    Proceedings
  • 5. MAI: TSX
    MNEAF: US OTC
    PERRY ING
    CFO
  • 6. Balance Sheet
    USD Millions
  • 7. Statement of Operations
    USD Millions
  • 8. Share Capital
    In millions
  • 9. Minera Santa Cruz
    In millions of USD
  • 10. MAI: TSX
    MNEAF: US OTC
    JIM DUFF
    COO
  • 11. Minera Andes’ AssetsSilver, Gold & Copper
  • 12. SAN JOSÉ MINESilver + GoldProduction
  • 13. San JoséA Large Silver Mine
    • 2010 Production:Silver – 5.3 million oz (@$9.67/oz Ag*)Gold - 84,000 oz (@ $568/oz Au*)
    • 14. Inferred resources nearly doubled – 12 year resource life
    • 15. Exploration continuing in 2011
    • 16. 16 day strike in April-May 2011
    * Cash operating costs on a co-product basis
  • 17. Dec 2010 Resource and Reserves*
    Resources (Significant Increase)
    2009 - Cutoff grade of 149 eqAg g/t using $925/oz Au and $15/oz Ag prices, Ag:Au ratio 60:1
    2010 - Cutoff grade of 198 eqAg g/t using $900/oz Au and $15/oz Ag prices, Ag:Au ratio 60:1
    Reserves
    2009 – Breakeven cutoff value of $125.60/t using $810/oz Au and $13.50/oz Ag prices, Ag:Au ratio 60:1
    2010 – Breakeven cutoff valueof $191.30/t using $900/oz Au and $15.00/oz Ag Prices, Ag:Au ratio 60:1
    *Reported March 28, 2011 in the company’s annual information form
  • 18. San José Mine Production
  • 19. Prospective Exploration Properties
  • 20. Santa Cruz Exploration Targets
  • 21. Los Azules
    3,500 m Above Sea Level
  • 22. Los AzulesAmongst Copper Giants
    18% ofWorld’s Copper Resources
  • 23. Exploration and Infill Drilling
  • 24. Exploration and Infill Drilling
  • 25. Los Azules – Longitudinal Section
  • 26. 2010-2011 Field Season Accomplishments
    • 9 infill drill holes - 2 deep exploration holes
    • 27. Advanced Preliminary Feasibility Study
    • 28. Preliminary hydrologic model
    • 29. Geotechnical evaluations
    • 30. Access road evaluation
    • 31. Environmental assessments and base line monitoring
    • 32. Metallurgical test work
  • 2011-2012 Goals
    • Continue exploration and infill drilling
    • 33. Advance Preliminary Feasibility Study
    • 34. Metallurgical test work
    • 35. environmental studies and baseline monitoring
  • Los Azules2010 Resource
    g/t = grams per tonne
    Resources not recalculated in 2011 because drilling during 2010-2011 season would not materially change resources
  • 36. Updated Preliminary Economic Assessment Highlights
    100,000 TPD ore production
    LOM average 375 million lbs Cu/year 
    CAPEX $2.9 Billion
    Cash Operating Cost $0.96/lb
    Payback in 3 years @ $3/lb
    25 year Mine Life
  • 37. MAI: TSX
    MNEAF: US OTC
    ROBERT R. MCEWEN
    CHAIRMAN, PRESIDENT & CEO
  • 38. 28
  • 39.
  • 40. Dow vs Gold Ratio
  • 41. Silver / Gold Exchange Ratio# of ozs Silver = 1 oz Gold
    1980 – Present
    Range14 - 100
  • 42. LIFE IS FULL OF DISTRACTIONS. NO MATTER HOW TEMPTING IT MAY BE TO VEER OFF YOUR PATH, KEEP YOUR GOALS IN FOCUS AND KEEP MOVING FORWARD.
    - Gabriel Cid
  • 43. MarketRewards
  • +
    Creating a High Growth, Low Cost
    Mid-tier Silver Producer
    With Big Growth Pipeline
  • 46. Combination Benefits
    • Asset Diversification
    • 47. Greater Trading Liquidity
    • 48. Increased Research
    • 49. Index Inclusion
  • Diversified in the Americas
    * San Jose: includes just MAI 49% interest
  • 50. Production & DevelopmentPipeline
  • 51. Significant Growth Pipeline
  • 52. Rob McEwen Big Ownership – No Salary!Compared to Other CEO’s and No Salary
    $345 MM
    27x
    Avg.
    $39 MM
    $31 MM
    $5 MM
    $3 MM
    $1 MM
    $0 MM
    McEwen
    Mining
    First
    Majestic
    Silvercorp
    Hecla
    Coeur
    D’Alene
    Pan
    American
    Silver
    Standard
    * As of Jun 13, 2011
  • 53. High Growth + Low CostPro-forma Estimates
    7.5 MM oz
    Growing
    Production
    Lowering Costs
    Cash Cost / Silver oz*
    (Gold by-product)
    2.5 MM oz
    -$0.40
    -$1.50
    2011E
    2014E
    2011E
    2014E
    *Cash cost reported on a by-product basis
  • 54. Creating a Low Cost, High Margin ProducerCash Cost (By-Product Basis): McEwen Mining vs Peers
    Silver
    Standard
    $10.95
    First
    Majestic
    $8.25
    Pan
    American
    $7.85
    Coeur
    $6.50
    Hecla
    $1.05
    McEwen
    Mining
    Silvercorp
    -$7.60
    2011
    -$0.40
    2014
    -$1.50
    *Cash cost reported on a by-product basis
    ** As of March 31, 2011
  • 55. McEwen Mining Market Cap vs Peers
    $3.3 B
    $2.2 B
    $2.2 B
    $2.1 B
    $2.1 B
    24.3 MMoz
    $1.8 B
    $1.6 B*
    7.0 MMoz
    8.5 MMoz
    10.6 MMoz
    16.8 MMoz
    Est.7.5 MMoz
    5.6 MMoz
    McEwen
    Mining
    Silvercorp
    First
    Majestic
    Silver
    Standard
    Hecla
    Coeur
    Pan
    American
    *Pro-forma market cap** As of July 11, 2011
  • 56. Strong Treasury - No Bank DebtCash + Silver / Gold Bullion
    $111 MM
    $90 MM
    $21 MM
    Pro-forma
    US Gold
    Minera Andes
    * As of June 30, 2011
  • 57. Pro-forma Resource Estimates
    81.2 MM oz
    10.3 B lbs
    3.8 MM oz
    51.1 MM oz
    2.2 B lbs
    0.9 MM oz
    M&I
    Inferred
    M&I
    Inferred
    Indicated
    Inferred
    Silver
    Gold
    Copper
    * As of Dec 31, 2010
  • 58. Past SuccessGoldcorp + Wheaton Combination
    Premium Paid: 7%
    Goldcorp Performance
    Day of Announcement
    Goldcorp Performance
    12 Months Upon Closing
    $0.01
    170%
  • 59. 52 Week Trading $ Volume
    Cdn
    US
    $0.7 MM
    5%
    $13 MM
    95%
    US Gold
    $3 MM
    80%
    $0.8 MM
    20%
    Minera
    $3.7 MM
    20%
    $13.8 MM
    80%
    Pro-forma
    *US Gold – NYSE & TSX Minera – OTC.BB & TSX In US $
  • 60. 52 Week Hi/Lo Share Price
    Hi
    Lo
    US Gold
    Minera
    Ratio@ 0.40
    $9.58
    $3.47
    0.36$3.83
    $4.35
    $0.70
    0.16
    Hi & LowOccurredon thesame day
    *USD
  • 61. Share Price Exchange Ratio
    MNEAF/ UXG July 2009 - 2011
  • 62. Share Exchange RatioJune 1 - Present
    AnnouncementJune 14
  • 63. Share Exchange RatioStarting 1 Day Before Announcement
    Positive
  • 64. LIFE HAS TAUGHT ME THAT WE ARE CAPABLE OF FAR GREATER THINGS THAN ONE CAN POSSIBLY IMAGINE!