TORONTO, ONTARIO--(Marketwired - May 15, 2013) - McEwen Mining Inc. (NYSE:MUX)(TSX:MUX)
is pleased to announce an updated, Canadian National Instrument 43-101
compliant ("NI 43-101") mineral resource estimate for its 100% owned Los
Azules Copper Project in San Juan Province, Argentina. Key developments
include the successful conversion of inferred resources into the
indicated category while increasing the size of the resource. The
resource remains open along strike, to depth, and laterally.
Los Azules
ranks as one of the world's largest, undeveloped, high-grade, open pit
copper projects, and appears to have significant growth potential.
Table 1. Los Azules Copper Project - Comparison of Previous and Current Mineral Resource Estimates
"This Resource Estimate Update marks the completion of
our most successful drilling season at Los Azules. We discovered a new
parallel zone to the west and significantly increased the Indicated
Resource and Inferred Resource Estimates. Congratulations are in order
to our exploration team in Argentina who set a record for the number of
pounds discovered at Los Azules in one drill season," stated Rob McEwen, Chief Owner.
This season's exploration effort focused on expanding the
resource base. A total of 15,800 meters of drilling was completed which
produced a 17% increase in contained copper in the Indicated Resource
category, to 5.4 billion lbs of copper and a 32% increase in contained
copper in the Inferred Resource category, to 14.3 billion lbs of copper,
since the June 2012 estimate of mineral resources. On February 5, 2013,
we released an interim, mid-season resource update (
to view click here).
Table 1 shows a comparison of the new (May 2013) resource with the
resource estimated at the end of last year's drilling program (June
2012).
This updated resource estimate will form the basis of a new
Preliminary Economic Assessment (PEA), which is expected to be completed
in the third quarter of 2013. This PEA will evaluate the possibility
of: (1) increasing the daily throughput; (2) producing copper cathode
instead of a concentrate and (3) processing low-grade mineralized
material not previously considered, via a heap leach.
The advantages of being able to produce a copper cathode
rather than a copper concentrate is two fold: First, it would eliminate
the capital intensive, concentrate pipeline through Chile; and second,
it would reduce the applicable export tax by 50%.
About Los Azules
Los Azules is a large undeveloped copper porphyry system
located in western San Juan Province within 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 Pachón project,
among others. Los Azules is one of the world's largest, highest grade,
undeveloped copper-porphyry deposits not owned by a major base metals
company.
Table 2. Los Azules Mineral Resource Estimate
In order to exhibit reasonable prospects for economic
viability, the mineral resource estimate has been contained within a
conceptual open pit shell generated using general technical and economic
parameters that are defined at the end of this news release. For
comparison purposes, resources are listed at a series of cut-off grades
in Table 2.
The Base Case cut-off grade of 0.35% Cu is highlighted in the table below.
Details on the parameters of the resource estimate are as follows:
- The resource estimate is based on data from 185 drill
holes comprising a total length of 59,518 meters of drilling completed
to the end of March 2013.
- There were a total of 27,688 individual samples
selected for analysis. The samples were collected and analyzed in
accordance with industry standards. Splits from the drill core samples
were submitted to either Alex Stewart in Mendoza or ALS Chemex or ACME
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 May 2013 mineral resource estimate for the Los
Azules Copper Project was prepared under the direction of Robert Sim
P.Geo. of SIM Geological Inc. The mineral resource estimate uses drill
hole sample assay results and the interpretation of a geologic model
that relates to the spatial distribution of copper in the deposit.
Interpolation characteristics were defined based on the geology, drill
hole spacing and geostatistical analysis of the data. Block grade
estimates were done using Ordinary Kriging (OK) with a nominal block
size measuring 20 meters long, 20 meters wide and 15 meters high.
Resources are classified according to their proximity to sample data
locations and are reported, as required under NI 43-101, according to
the CIM Definition Standards for Mineral Resources and Mineral Reserves.
- Mineral resources, which are not mineral reserves, do not have demonstrated economic viability.
- The quantity and grade of reported Inferred
resources are uncertain in nature and there has been insufficient
exploration to classify these inferred resources as Indicated or
Measured, and it is uncertain if further exploration will result in
upgrading them to an Indicated or Measured category.
- As required under NI 43-101, reasonable prospects
for economic viability of the mineral resources has been exhibited by
the application of a resource limiting pit shell built about copper
grades in the model using a projected metal price of US$2.75 per lb. Cu,
mining costs of US$1.00 per tonne, milling and G&A costs of US$4.25
per tonne, 100% recoveries and an average pit slope of 34 degrees.
About McEwen Mining (www.mcewenmining.com)
The goal of McEwen Mining is to qualify for inclusion in the
S&P 500 by creating a profitable, mid-tier gold producer focused in
the Americas. McEwen Mining's principal assets consist of the San José
Mine in Santa Cruz, Argentina (49% interest); the El Gallo Complex in
Sinaloa, Mexico; the Gold Bar Project in Nevada, US and the Los Azules
Project in San Juan, Argentina.
McEwen Mining has 297 million (common + exchangeable) shares
issued and outstanding. Rob McEwen, Chairman, President and Chief Owner,
owns approximately 25% of the shares of the Company. As of April 29,
2013, McEwen Mining had cash and liquid assets of approximately US$50
million, remains debt free, and is listed on the New York and Toronto
stock exchanges.
Technical Information
Robert Sim, P.Geo., a Qualified Person and independent of
McEwen Mining as defined by National Instrument 43-101 ("NI 43-101") has
reviewed and approved the technical content of this news release
related to the mineral resource estimate presented herein. Bruce Davis,
PhD, FAusIMM, who is a Qualified Person and independent of McEwen
Mining, as defined by NI 43-101 and responsible for the quality control
for the assaying of the Los Azules drill core has reviewed the assay
quality control information. 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 April and May 2013 by Robert Sim, P.Geo. and Bruce Davis, PhD,
FAusIMM.
For additional information about June 2012 resource estimate
and the Los Azules project generally see the Technical Report titled
"Los Azules Porphyry Copper Project, San Juan Province, Argentina" dated
August 1, 2012, with an effective date of June 15, 2012, prepared by D.
Ernest Winkler, P.Eng., Robert Sim, P.Geo., Bruce Davis, PhD, FAusIMM
and James K. Duff, P.Geo., all of whom are qualified persons and all of
whom are independent of McEwen Mining, each as defined by NI 43-101. The
foregoing report is available under the Corporation's profile on SEDAR (
www.sedar.com).
Cautionary Note to U.S. Investors
McEwen Mining reports its resource estimates in accordance
with standards of the Canadian Institute of Mining, Metallurgy and
Petroleum referred to in Canadian National Instrument 43-101 ("NI
43-101"). These standards are different from the standards generally
permitted in reports filed with the SEC. Under NI 43-101, McEwen Mining
reports measured, indicated and inferred resources, measurements which
are generally not permitted in filings made with the SEC. According to
Canadian NI 43-101 criteria, the estimation of measured resources and
indicated resources involve greater uncertainty as to their economic
feasibility than the estimation of proven and probable reserves. Under
SEC Industry Guide 7 criteria, measured, indicated and inferred
resources are considered Mineralized Material. The SEC considers that in
addition to greater uncertainty as to the economic feasibility of
Mineralized Material compared to proven and probable reserves, there is
also greater uncertainty as to the existence of Mineralized Material.
U.S. investors are cautioned not to assume that measured or indicated
resources will be converted into economically mineable reserves. The
estimation of inferred resources involves far greater uncertainty as to
their existence and economic viability than the estimation of other
categories of resources.
Caution Concerning Forward-Looking Statements
This news release contains certain forward-looking statements
and information, including "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. The
forward-looking statements and information expressed, as at the date of
this news release, McEwen Mining Inc.'s (the "Company") estimates,
forecasts, projections, expectations or beliefs as to future events and
results. Forward-looking statements and information 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, risks and
contingencies, and there can be no assurance that such statements and
information will prove to be accurate. Therefore, actual results and
future events could differ materially from those anticipated in such
statements and information. Risks and uncertainties that could cause
results or future events to differ materially from current expectations
expressed or implied by the forward-looking statements and information
include, but are not limited to, factors associated with fluctuations in
the market price of precious metals, mining industry risks, political,
economic, social and security risks associated with foreign operations,
risks associated with the construction of mining operations and
commencement of production and the projected costs thereof, risks
related to litigation, 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 included herein, which speak
only as of the date hereof. The Company 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 McEwen Mining's Annual Report on Form 10-K for the
fiscal year ended December 31, 2012 and other filings with the
Securities and Exchange Commission, under the caption "Risk Factors",
for additional information on risks, uncertainties and other factors
relating to the forward-looking statements and information regarding the
Company. All forward-looking statements and information made in this
news release are qualified by this cautionary statement.
The NYSE and TSX have not reviewed and do
not accept responsibility for the adequacy or accuracy of the contents
of this news release, which has been prepared by management of McEwen
Mining Inc.
TNR’s Back in
Right to a NSR on the Los Azules Copper Project, Argentina 
