McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is
pleased to announce the growth of its Grey Fox deposit Indicated
resource estimate by
22% and Inferred resource
estimate by
35%, as a result of a new geological
and structural interpretation of the
147 Zone, and
an initial resource estimate for
147NE. MUX keeps
advancing with a major exploration program and expects to be
generating a stream of updates throughout the balance of the year.
The Grey Fox deposit resources are contained in
three zones that are referred to as: 147,
Contact, and South (see
Figure 1). A total of 70 additional drill holes
have been completed in this area since the previous resource
estimate in October 2017. The 147NE zone was discovered in 2018 and
currently extends from surface to a depth of 250 m and over 250 m
along strike.
Highlights of the updated resource estimate
include:
- The Grey Fox deposit resource estimate is now
567,000 gold ounces at a grade of 7.10
grams per tonne (g/t) in the Indicated category, with an
additional 135,000 gold ounces at a grade of 6.19
g/t in the Inferred category; an increase in gold ounces
of 22% and 35%, respectively (see Tables 1 &
2);
- The 147 Zone (including 147 Main and 147NE)
resource estimate is now 369,000 gold
ounces at a grade of 8.10 g/t in the
Indicated category, with an additional 53,000 gold
ounces at a grade of 5.59 g/t in the
Inferred category.
- Recent exploration drilling highlights from 147NE include:
33.0 g/t gold over 3.14 meters
(m); 95.2 g/t gold over 0.82
m; 47.4 g/t gold over 1.08
m; 23.0 g/t gold over 1.80
m; and 3.4 g/t gold over 36.8
m (see July 10, 2019 news release). It is significant that
mineralization widens up to 36 meters in areas where structures
intersect.
- A study is underway to evaluate the economics of mining the
Grey Fox deposit via a central underground ramp system.
Sylvain Guerard, Senior VP Exploration for
McEwen Mining said, “The highest grades and best widths of
mineralization at Grey Fox are concentrated at the intersections of
NE-SW trending structure and favorable iron rich host rocks. This
has been an important geological observation because we believe
there are numerous other similar targets on our property that will
be tested this year.”
Geological Explanation
Gold mineralization at Grey Fox is strongly
controlled by sets of NE-SW trending structures (solid black lines
on Figure 2) where they intersect the N-S trending
host rocks (shaded green). At these intersections, gold grades and
widths increase significantly to create mineralized shoots. Visible
gold is often observed in these high-grade shoots. Drilling is
currently testing the 147NE shoot at depth (yellow star), and
upcoming drilling is planned in target areas with potential for
similar mineralization (blue dashed ovals).
Economic Assessment
We expect that this larger resource estimate
will enhance the economic viability of the Grey Fox deposit. MUX
has initiated economic assessments of both satellite deposits that
exist on the Black Fox property, the Froome and the Grey Fox
deposits. Preliminary results regarding the economics and potential
development plans of these deposits will be presented later in
Q3.
Table 1: Mineral Resource Estimate, Grey Fox Deposit,
July 2, 2019
Indicated Mineral Resource |
Cut-off Grade Gold (g/t) |
Quantity (‘000 tonnes) |
Gold Grade (g/t) |
Contained Gold (ounces) |
Underground |
Contact Zone |
3.60 |
773 |
5.88 |
146,000 |
147 Zone including: |
3.60 |
1,416 |
8.10 |
369,000 |
147 Main |
3.60 |
1,281 |
8.38 |
345,000 |
147 NE |
3.60 |
135 |
5.48 |
24,000 |
South Zone |
3.60 |
296 |
5.48 |
52,000 |
Total Indicated |
|
3.60 |
2,485 |
7.10 |
567,000 |
Inferred Mineral Resource |
|
|
|
|
Underground |
Contact Zone |
3.60 |
326 |
6.84 |
72,000 |
147 Zone including: |
3.60 |
296 |
5.59 |
53,000 |
147 Main |
3.60 |
134 |
5.57 |
24,000 |
147NE |
3.60 |
162 |
5.56 |
29,000 |
South Zone |
3.60 |
56 |
5.40 |
10,000 |
Total Inferred |
|
3.60 |
678 |
6.19 |
135,000 |
Table 2: Mineral Resource Estimate, Grey Fox Deposit,
October 31, 2017 (previous estimate)
Indicated Mineral Resource |
Cut-off Grade Gold (g/t) |
Quantity (‘000 tonnes) |
Gold Grade (g/t) |
Contained Gold (ounces) |
Underground |
Contact Zone |
3.60 |
782 |
5.91 |
149,000 |
|
147 Main |
3.60 |
1,096 |
7.49 |
264,000 |
|
South Zone |
3.60 |
298 |
5.48 |
53,000 |
Total Indicated |
|
3.60 |
2,177 |
6.64 |
465,000 |
Inferred Mineral Resource |
|
|
|
|
Underground |
Contact Zone |
3.60 |
302 |
7.12 |
69,000 |
|
147 Main |
3.60 |
95 |
6.74 |
20,000 |
|
South Zone |
3.60 |
56 |
5.40 |
10,000 |
Total Inferred |
|
3.60 |
453 |
6.83 |
100,000 |
The updated and new resource estimates presented
here are based on domain-constrained wireframes that used detailed
structural interpretations from MUX’s recent oriented core drill
program, as well as detailed logging of the drill core.
Geostatistical analysis of the data included compositing samples,
grade capping and variography for the remodeled zones. A total of
7,657 samples was sent for specific gravity determination at ALS
Chemex labs. Incorporation of these new values into the
lithological and mineralogical domains have improved the density
and tonnage estimates for the 147 Zone and have also slightly
modified the tonnages at Contact and South zones; block model
grades in these locations remain the same.
Figure 1: Grey Fox Deposit Location at Black Fox
Propertyhttps://www.globenewswire.com/NewsRoom/AttachmentNg/a826184c-7b01-4d31-8bbc-63b101cdbe9c
Figure 2: Grey Fox Resource Block Model (projected to
surface) and Key Geologic
Controlshttps://www.globenewswire.com/NewsRoom/AttachmentNg/926b49ae-3c15-4786-98c4-a8e4fc967364
ABOUT MCEWEN MINING
McEwen Mining is a diversified gold and silver
producer with operating mines in Nevada, Canada, Mexico and
Argentina. It also owns a large copper deposit in Argentina.
McEwen’s goal is to qualify for inclusion in the S&P 500 Index
by creating a profitable gold and silver producer focused in the
Americas.
McEwen has approximately 362 million shares
outstanding. Rob McEwen, Chairman and Chief Owner, owns 22% of the
shares.
QUALIFIED PERSONThe mineral
resource statement for the Grey Fox 147 zone contained in this news
release has been prepared by Dan Downton, P.Geo., McEwen Mining
Senior Resource Geologist under the supervision of Luke Willis,
P.Geo. McEwen Mining’s Director of Resource Modelling. Mr.
Willis is a "qualified person" within the meaning of NI 43-101.
CAUTIONARY NOTE TO US INVESTORS
REGARDING RESOURCE ESTIMATIONMcEwen Mining Inc. is
required to prepare reports under the Securities Exchange Act of
1934 and the Canadian Securities Administrators’ National
Instrument 43‑101 “Standards of Disclosure for Mineral
Projects” (“NI 43‑101”), under the Canadian securities laws
because we are listed on the Toronto Stock Exchange (“TSX”) and
subject to Canadian securities laws. Standards under NI 43-101 are
materially different than the standards generally permitted in
reports filed with the United States (“U.S.”) Securities and
Exchange Commission (“SEC”).
Under NI 43‑101, we report measured,
indicated and inferred resources, which are measurements that are
generally not permitted in filings made with the SEC. The
estimation of measured resources and indicated resources involve
greater uncertainty as to their existence and economic feasibility
than the estimation of proven and probable reserves under Industry
Guide 7. U.S. investors are cautioned not to assume that any part
of measured or indicated resources will ever 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. Inferred Mineral Resources could be upgraded to
Indicated Mineral Resources with continued exploration. Therefore,
U.S. investors are also cautioned not to assume that all or any
part of inferred resources exist, or that they can be legally or
economically mined.
Canadian regulations permit the disclosure of
resources in terms of “contained ounces” provided that the tonnes
and grade for each resource are also disclosed; however, the SEC
only permits issuers to report “mineralized material” in tonnage
and average grade without reference to contained ounces. Under U.S.
regulations, the tonnage and average grade described herein
disseminated by us would be characterized as mineralized material.
We provide such disclosure about our properties to allow a means of
comparing our projects to those of other companies in the mining
industry, many of which are Canadian and report pursuant to
NI 43‑101, and to comply with applicable disclosure
requirements.
CAUTION CONCERNING FORWARD-LOOKING
STATEMENTSThis 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, the ability of the corporation to receive or receive in
a timely manner permits or other approvals required in connection
with 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. The
Company’s dividend policy will be reviewed periodically by the
Board of Directors and is subject to change based on certain
factors such as the capital needs of the Company and its future
operating results. 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, 2018 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.
CONTACT INFORMATION: |
Investor Relations:(866)-441-0690 Toll Free(647)-258-0395
Christina McCarthy ext. 390Mihaela
Iancu ext. 320 info@mcewenmining.com |
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