[M.D. Holloway]

Mining News:

Ivanhoe Mines shares (TSX:IVN) rose above their 10-year high Tuesday after the company said it signed a draft agreement with the Mongolian government for development of the huge Oyu Tolgoi copper-gold project in the South Gobi region.

Aura Gold shares climbed 15 per cent after the company said it has arranged financing to be used to develop its Arapiraca project in Brazil, reports Canadian Press. The stock was up 14 cents to Can$1.07 in early trading Tuesday after the Toronto-based miner said a group led by Canaccord Capital Corp. agreed to a $70-million private placement financing. The agreement includes 87.5 million subscription receipts at 80 cents each, exchangeable for common shares, with conditions attached. Aura Gold said it plans to use the money to explore and develop Arapiraca, other projects and for ''general corporate working capital purposes.''

Minera Andes released results of the 2006 exploration program at the San Jose project in Santa Cruz province, southern Argentina, where production is scheduled to commence in the second quarter of this year. In 2006, a 21,241-metre drilling program increased silver and gold reserves by approximately 71% from the reserves reported in October, 2005. Using a cut-off off grade of $75/tonne and assuming metal prices of US$500 per ounce gold and US$8.50 per ounce silver, proven and probable mineral reserves at December 31, 2006 are 1,958,430 tonnes averaging 7.2 g/t gold and 450 g/t silver, containing 453,348 ounces of gold and 28,334,242 ounces of silver. Mine life has increased from 4.3 years to 6.8 years, with average annual production forecast at 60,633 ounces of gold and 3,119,533 ounces of silver. The San Jose project is held by Minera Santa Cruz SA, the joint venture corporation co-owned by Minera Andes (49%) and project operator Hochschild (51%).