McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is
pleased to report positive exploration drill results (
see
Table 1) from its 100% owned Stock Property, part of the
Black Fox Complex, near Timmins, Ontario, Canada
(see
Figure 1). Assay results have been received for 27 holes
drilled along a 3 km (1.9 mile) trend that hosts the historical
Stock Mine and Stock East deposit.
Highlights:
- A high-grade drill intersection of
18.0 g/t Au over 9.1 m, including
120 g/t Au over 1.3 m was
encountered 250 m below the deepest intersection from exploration
in 2018, and 650 m below the deepest workings in the Stock
Mine, reinforcing our belief that the gold system
remains strong and open with potential to extend mineralization
below the mine workings (see Figure 2).
- Intersections to the East and West
of the Stock Mine, including 10.9
g/t Au over 5 m, suggest potential for
new mineralized zones along strike of the deposits.
- Drilling is continuing at depth and
along strike during the remainder of the year, and additional
results are expected to be release in Q4.
Table 1 – Selected Drill Results
from Stock Property
HOLE-ID |
From (m) |
To (m) |
CoreLength(m) |
EstimatedTrue Width(m) |
GoldGrade(g/t) |
Area |
S19-95 |
972.00 |
983.00 |
11.00 |
9.13 |
17.96 |
Deep |
Including |
974.40 |
976.00 |
1.60 |
1.33 |
119.98 |
|
Including |
974.40 |
975.00 |
0.60 |
0.50 |
311.00 |
|
S19-90 |
349.65 |
353.15 |
3.50 |
ND |
4.23 |
West |
Including |
349.65 |
351.70 |
2.05 |
ND |
5.72 |
|
SEZ19-14 |
55.50 |
57.00 |
1.50 |
1.36 |
9.94 |
East |
Including |
55.50 |
55.95 |
0.45 |
0.41 |
23.90 |
|
SEZ19-15 |
169.00 |
174.50 |
5.50 |
5.00 |
10.94 |
East |
Including |
173.00 |
174.50 |
1.50 |
1.36 |
28.63 |
|
Stock Deep
Exploration drilling by MUX in 2018 and 2019
below the workings of the Stock Mine is testing the potential for
the mineralized system to extend deeper. Production ceased in 2004
at a relatively shallow depth of only 330 m (1,080 ft), and overall
produced 137,000 ounces of gold at an average grade of 5.4 g/t. The
latest intersection in hole S19-95 is the deepest drilled to date
and encountered a very encouraging high-grade result.
In 2018, hole S18-31 intersected multiple
intervals of mineralization up to a depth of 750 m (2,460 ft) below
surface under the mine workings. The best intersections from hole
S18-31 include:
5.58 g/t Au over 3.3
m, including 14.8 g/t Au over 1.0
m; and7.01 g/t Au over 3.8
m, Including 30.1 g/t Au over 0.8
m; and3.76 g/t Au over 4.0
m.
During Q2 2019, hole S19-95 intersected
mineralization 250 m (820 ft) below the positive results
intersected in 2018 in hole S18-31, and 950 m
below surface. Multiple zones of alteration and
mineralization were observed, including visible gold. The best
interval received from this hole is 18.0 g/t Au
over 9.1 m, including 120 g/t Au
over 1.3 m, including 311 g/t Au
over 0.5 m. This high-grade intersection and other
mineralization intersected in holes S19-95 and S18-31 have
reinforced our belief that the gold-hosting system remains open
with high potential at depth. Significant depth potential well
beyond 1,000 m (3,280 ft) is a characteristic of geologically
similar deposits elsewhere in Canada as illustrated in
Figure 3.
Assay results are pending from wedge hole
S19-97W, which was drilled to follow-up on the positive assays from
S19-95. Visually positive mineralized intervals were observed over
49 m, including local occurrences of visible gold, assays are
pending for these portions. Drilling is in progress on additional
holes.
Stock West
Drilling also took place 1.1 km (0.7 miles)
along strike to the West of the Stock Mine and intersected
encouraging alteration and mineralization in hole S19-90, which
returned at 4.2 g/t Au over 3.5
m, including 5.7 g/t Au over 2.1
m (core length). This intersection is near two historical
drill intersections, which returned 23.0 g/t Au
over 1.5 m and 14.5 g/t Au over
3 m, suggesting a potentially new zone of
mineralization (a mineralized ‘shoot’) may occur in this area.
Assays are pending from a follow up hole S19-98,
which was drilled to intersect mineralization beneath S19-90.
Visible gold was noted in multiple quartz veinlets within the
silicified zones of a highly altered ultramafic volcanic.
Stock East
Drilling in early 2018 initially focused on
Stock East, a shallow target that is located 700 m (2,300 ft) from
the Stock Mill. Successful drilling at Stock East quickly led to
the definition of an initial Indicated and Inferred resource
estimate of 1,490 kt @ 1.25 g/t Au for 60 koz Au
and 1,997 kt @ 1.39 g/t for 90 koz Au,
respectively. The initial resource assumed an open pit mining
scenario at Stock East, however recent drilling has encountered
higher-grade mineralization, such as in hole SEZ19-15 that returned
10.9 g/t Au over 5 m. This new
mineralization correlates with positive drill intersections from
2018, such as 4.7 g/t over 2 m,
including 14 g/t over 0.4 m; and
31.8 g/t over 0.4 m.
Property and Geologic
Information
The Stock Property is the site of McEwen’s Stock
Mill, which currently processes ore from the Black Fox Mine.
Previously the mill processed ore from the historical underground
Stock Mine that was in intermittent production from the early 1980s
until 2004.
Known mineralization occurs along the Destor
Porcupine Fault Zone (DPFZ), which crosses the property from West
to East over a strike length of approximately 8 km. A significant
NE-SW trending fault (the Nighthawk Fault) intersects the DPFZ near
the Stock Mine making the area a prime structural setting for gold
mineralization.Gold mineralization at Stock consists of
disseminated sulfides (mostly pyrite) and quartz-carbonate
stockwork and breccia, hosted in sericite-silica-albite and
fuchsite altered mafic and ultramafic volcanic rocks, and in highly
siliceous and albite-rich dykes.
Figure 1: Stock Mine Trend Plan
Viewhttps://www.globenewswire.com/NewsRoom/AttachmentNg/22fb24d9-9054-4e23-a523-279f0d478ffd
Figure 2: Stock Mine Trend
Longitudinal
Sectionhttps://www.globenewswire.com/NewsRoom/AttachmentNg/58883495-2e79-456f-8a5c-a3bd92676c9b
Figure 3: Illustration of Other
Mines in Similar Geological
Settingshttps://www.globenewswire.com/NewsRoom/AttachmentNg/00d84b71-9d6c-48d3-b566-c9a1ca12f88a
Complete assay results from the latest drilling on the
Stock Property:
http://mcewenmining.com/files/doc_news/archive/20190900_stock_pr/20190900_stock_composites_cog_1.xlsx
ABOUT MCEWEN MINING
McEwen Mining is a diversified gold and silver
producer and explorer with operating mines in Nevada, Canada,
Mexico and Argentina. It also owns a large copper deposit in
Argentina. McEwen’s goal is to create 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.
TECHNICAL INFORMATIONTechnical
information pertaining to geology and exploration contained in this
news release has been prepared under the supervision of Ken
Tylee, P.Geo. Mr. Tylee is a "qualified person" within the meaning
of NI 43-101.
Black Fox Complex drilling (including the Stock
Property) was conducted by Major Drilling and Norex Drilling and
supervised by McEwen’s Geology Department. All exploration drill
core samples at the Stock Property were submitted as 1/2 core.
Analyses reported herein were usually performed by
the fire assay method by the independent laboratories:
ALS Laboratories (ISO 9001/IEC17025 certified) and AGAT Labs (ISO
9001/IEC17025 certified). On occasion, a screen metallic
fire assay technique is used to determine coarse and fine gold in
samples and utilises a larger volume of the sample. The plus
fraction is fire assayed for gold and a duplicate assay is
performed on the minus fraction. Size fraction weights, coarse and
fine fraction gold content and total gold content are
reported. McEwen’s quality control program includes
systematic insertion of blanks, standard reference material and
duplicates to ensure laboratory accuracy.
To determine the lengths of significant
mineralized intervals, the following composite criteria was
established: a minimum reportable interval length of 3 m was
determined by establishing a cut-off grade of 1 g/t gold. A
consecutive maximum length of 3 m of internal waste, including sub
cut-off grade material, is allowed and incorporated into the
reported composites. Where an interval of less than 3 m is
considered, if the grade x length calculation is greater than 3, it
may be reported. There is no top cutting or capping of assays.
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 |
Website:
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CanadaM5H 1J9 |
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