McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is pleased to report
positive exploration drilling results from its 147NE zone within
the Grey Fox deposit. This deposit is part of the Black Fox
Complex, which is located in the prolific Timmins gold district in
Canada
(see Figure 1). Highlights of the new
results are shown below in
Table 1. While the
assay values are good, management continues to work on resolving
production delays at our Gold Bar and Black Fox mines.
“I am delighted with the exploration
assay results we are generating this year. The geological potential
of the Black Fox Complex is being clearly demonstrated. Our big
exploration push has allowed us to see the opportunity to develop
three new sources of production on our properties.
While exploration is giving me a big
smile, and production at our operations in Argentina and Mexico
(representing 60% of our guidance) are delivering as planned,
production at Gold Bar and Black Fox has been a big disappointment.
Unanticipated natural and operational issues coupled with startup
delays at Gold Bar have pushed some of its production from 2019
into 2020. At Black Fox, production has been adversely impacted by
slower than planned underground development. However, site
management has been making steady progress towards resolving these
production issues,” said Rob McEwen, Chairman and Chief
Owner.
The objectives of the ongoing exploration drill
program at the 147NE zone are to infill and extend the
mineralization, which was discovered in 2018. New drill results are
confirming the continuity of the high-grade mineralization, and
indicate an extension of the main zone (mineralized shoot) down
plunge by approximately 100 m (330 ft) (see Figure
2).
Table 1 – Selected Drill
Results from the 147NE Zone
HOLE-ID |
From (m) |
To (m) |
CoreLength(m) |
EstimatedTrue Width(m) |
GoldGrade(g/t) |
GoldGrade(opt) |
19GF-1121 |
168.00 |
170.00 |
2.00 |
1.56 |
78.58 |
2.53 |
Including |
168.70 |
169.30 |
0.60 |
0.47 |
261.00 |
8.39 |
19GF-1134 |
241.00 |
250.00 |
9.00 |
6.90 |
4.79 |
0.15 |
And |
256.70 |
269.12 |
12.42 |
9.49 |
3.64 |
0.12 |
And |
371.36 |
373.36 |
2.00 |
1.53 |
13.66 |
0.44 |
And* |
466.00 |
481.50 |
15.50 |
11.71 |
6.98 |
0.22 |
Including |
466.00 |
470.00 |
4.00 |
3.02 |
9.35 |
0.30 |
And Including |
474.24 |
481.50 |
7.26 |
5.49 |
9.57 |
0.31 |
19GF-1146* |
97.00 |
111.00 |
14.00 |
10.37 |
4.68 |
0.15 |
Including |
97.00 |
100.40 |
3.40 |
2.52 |
16.98 |
0.55 |
19GF-1151* |
229.80 |
243.00 |
13.20 |
9.56 |
10.04 |
0.32 |
Including |
231.00 |
242.00 |
10.90 |
7.89 |
11.87 |
0.38 |
And Including |
237.80 |
239.78 |
1.98 |
1.43 |
15.59 |
0.50 |
19GF-1155 |
205.40 |
211.24 |
5.84 |
4.52 |
9.66 |
0.31 |
19GF-1159* |
112.00 |
116.00 |
4.00 |
3.26 |
6.43 |
0.21 |
Including |
112.00 |
114.00 |
2.00 |
1.63 |
12.08 |
0.39 |
19GF-1161 |
170.00 |
172.00 |
2.00 |
1.46 |
20.66 |
0.66 |
19GF-1164 |
292.61 |
300.00 |
7.39 |
5.33 |
5.71 |
0.18 |
And |
308.61 |
315.00 |
6.39 |
4.61 |
5.20 |
0.17 |
19GF-1167 |
241.00 |
246.00 |
5.00 |
3.38 |
6.05 |
0.19 |
And* |
250.00 |
264.89 |
14.89 |
10.06 |
5.21 |
0.17 |
Including |
259.36 |
264.89 |
5.53 |
3.74 |
11.76 |
0.38 |
* Calculated with cut off grade 1.0 g/t Au, minimum length of 3
m, and maximum consecutive internal waste 3 m.
Geological Explanation
At the 147NE zone the highest grades and largest
widths occur at the intersections of NE-SW trending structures and
favorable iron-rich host rocks. This zone starts near surface and
is interpreted to extend to a depth of at least 400 m. Following
the review of past drilling, targets with the same geological
setting have been drilled at the Contact and South zones. While
assay results are pending, this recent drilling intersected visible
gold-bearing quartz-carbonate veins and breccia structures.
Economic Assessment
The current Grey Fox deposit resource estimate
(published in July 2019) is 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.
The economic viability of the Grey Fox and
Froome deposits will benefit from their close proximity to the
Black Fox mine and its infrastructure. Preliminary results
regarding the economics and potential development plans for Grey
Fox and Froome and will be presented later this year.
Production Guidance
2019 production guidance for Black Fox and Gold
Bar is being further reduced. Revised production ranges are
36,000-40,000 gold ounces for Black Fox and
30,000-33,000 gold ounces for Gold Bar. Globally
with our two other operations, we now expect to produce
131,000-138,000 gold ounces and
3,225,000 silver ounces, or
169,000-176,000 gold equivalent ounces at an 85:1
gold to silver ratio.
At Black Fox, we have continued to experience
production problems. In 2019, we planned to source production from
both new areas and past production areas (remnant stopes) that make
up part of the mine’s reserves. These remnant stopes are located in
areas of the mine that have been inactive for a number of
years. Prior to being able to extract the ore from these areas
we must make the access safe for our workers, and this
rehabilitation work is taking longer than planned. The delay has
resulted in some higher-grade stopes, planned for extraction in
late 2019, being pushed into 2020.
At Gold Bar, despite the fact that the mine is
now running well, as evidenced by: the tonnage on the heap leach
pad that is currently 115% of the feasibility study design, ore
grades reconciling with our reserve model, and gold recoveries
in-line with our forecast; it was the startup delays that have
pushed some of 2019 planned production into 2020. Gold Bar’s
forecast production for 2020 is 65,000-70,000 gold ounces.
Complete assay results from the latest drilling on the
147NE Zone:
http://mcewenmining.com/files/doc_news/archive/20190910_147ne/20190910_147ne_composites_cog.xlsx
Figure 1 – Black Fox Property
Maphttps://www.globenewswire.com/NewsRoom/AttachmentNg/b37242b8-242a-45e6-aeba-43d869dbf153
Figure 2 – 147NE Exploration
Drilling: Inclined Longitudinal Section Looking
SEhttps://www.globenewswire.com/NewsRoom/AttachmentNg/6d380b9e-6a09-4089-ade1-f35a3a846130
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.
QUALIFIED PERSONTechnical
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.
TECHNICAL INFORMATIONFor a list
of technical terms and their definitions, please consult our mining
glossary: https://www.mcewenmining.com/investor-relations/glossary/default.aspx
Grams per tonne (g/t) converted to Troy ounces
per tonne (opt) at ratio 31.1035 to 1.
All intercept widths are true widths unless
otherwise specified.
Composite criteria unless otherwise stated: Cut
off grade 3 g/t Au, minimum length 2 m, and maximum consecutive
interval waste 3 m. If grade x length > 6 the composite will be
added.
All exploration drill core samples at
the Black Fox Complex were submitted as 1/2 core.
Analyses reported herein were performed by the independent
laboratories: ALS Laboratories, which is ISO
9001/IEC17025 certified, and AGAT Laboratories, which is ISO
9001/IEC17025 certified. 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 3g/t gold for
underground (1 g/t gold for near surface). 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 9 (3 for
surface), it may be reported. There is no top cutting or capping of
assays.
For further details about the Black Fox Complex
project including Grey Fox 147NE target area, please see our NI
43-101 technical report titled "Technical Report for the Black Fox
Complex, Canada" dated April 6th, 2018 with an effective date of
October 31st, 2017 available on SEDAR (www.sedar.com) under our
issuer profile.
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
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Toll Free(647)-258-0395 Christina McCarthy
ext. 390 info@mcewenmining.com |
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