UPDATE 2-Minera says Q3 output at San Jose up sequentially

* Q3 silver production 1.4 mln oz, up 15 pct vs Q2

* Q3 gold production 22,025 oz, up 12 pct vs Q2

* Shares rise as much as 5 pct
(Recasts; adds details, analyst comments, updates share

BANGALORE, Oct 20 (BestGrowthStock) – Canada’s Minera Andes
(MAI.TO: ) said silver and gold production at its flagship San
Jose mine in Argentina grew sequentially in the third quarter,
helped by improved development of the high-grade Kospi vein,
sending its shares up as much as 5 percent.

The San Jose mine is operated by Minera Santa Cruz SA, a
joint venture between Hochschild Mining Plc (HOCM.L: ) and Minera
Andes. About 49 percent of production at San Jose is
attributable to Minera Andes.

Canaccord Genuity analyst Wendell Zerb expects improved
production at the mine in the second half of the year, compared
to the first.

Third-quarter silver production was up 15 percent at 1.4
million ounces sequentially, while gold production rose 12
percent to 22,025 ounces, compared with the second quarter.

However, sales of silver and gold were down 6 percent and
10 percent, respectively, compared with the prior quarter due
to an increase in products inventory.

The company said it will give details on production costs
with the third-quarter results.

Earlier this month, Minera Andes said the discovery of nine
veins of gold and silver would “significantly” extend the life
of the San Jose mine. [ID:nSGE6960KT]

In September, the company resolved a dispute with
Hochschild over the repayment of loans for financing the San
Jose joint venture. [ID:nSGE68J0KA]

Minera Andes shares touched a high of C$2.02 Wednesday
morning on the Toronto Stock Exchange. The stock has gained 74
percent in value since the company settled the loan dispute
with Hochschild.
(Reporting by Gowri Jayakumar in Bangalore; Editing by Jarshad
Kakkrakandy, Anne Pallivathuckal)

UPDATE 2-Minera says Q3 output at San Jose up sequentially