McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is
pleased to report high-grade exploration drill results (
see
Table 1) from its 100% owned Stock Property, part of the
Black Fox Complex, near Timmins, Canada
(see Figure
1).
“When we acquired the Black Fox Complex,
we had very limited knowledge about the Stock Property. Our
drilling has revealed the presence of a strongly mineralized gold
system. Currently, our exploration program is assessing the
occurrence of higher-grade gold zones or “shoots” within the wider
and lower grade Stock East Deposit, and is generating some of the
highest-grade intersections to date. Stock has become a top
priority exploration target for us. Stock East’s potential to
become an economic deposit is enhanced by the advantage of being
strategically located right next to our operating
mill,” commented Sylvain Guerard, SVP
Exploration.
Highlights:
- At Stock East, two high-grade drill
intersections: 34.7 g/t gold over 5.9
m, including 74.1 g/t gold over
2.7 m, and 83.5 g/t gold over
5.6 m, including 417 g/t gold
over 1.1 m, were encountered at a vertical depth
of approximately 290 meters.
- The presence of new high-grade intersections together with
previous results strengthens our conviction that the Stock East
Deposit hosts higher-grade zones that could potentially be mined
using existing nearby underground mine workings (see Figure
2).
- At Stock Deep, testing for the depth extension
of the Stock Mine mineralization has produced a new intersection of
4.2 g/t gold over 7.5 m,
including 25.9 g/t gold over 0.8
m. This intersection is 100 meters (330 ft) below the last
reported deep intersection of 18 g/t gold over
9.1 m, including 120 g/t gold
over 1.3 m (see Sept 4, 2019 news
release). These results reinforce our belief that a strong
mineralized system is continuing at depth.
- On the Stock Property, drilling is continuing
along the 3 km mine trend with four drill rigs: two rigs are
focused on Stock East and two rigs are drilling the western section
of the trend. A resource update for the Stock property is planned
for year-end.
Table 1 – Selected
New Drill Results from Stock Property
HOLE-ID |
From (m) |
To (m) |
Core Length (m) |
Estimated True Width (m) |
Gold Grade (g/t) |
Area |
S19-97W1 |
1090.0 |
1099.0 |
9.0 |
7.47 |
4.17 |
Stock Deep |
Including |
1098.0 |
1099.0 |
1.0 |
0.83 |
25.90 |
|
SEZ19-28 |
337.0 |
343.5 |
6.5 |
5.91 |
34.71 |
Stock East |
Including |
339.8 |
342.5 |
3.0 |
2.73 |
74.13 |
|
SEZ19-35 |
324.3 |
330.5 |
6.2 |
5.64 |
83.49 |
Stock East |
Including |
325.3 |
326.5 |
1.2 |
1.09 |
417.00 |
|
Stock East
At Stock East the gold mineralization extends
from surface to a depth of approximately 450 m. The initial
resource estimate envisioned an open pit mining scenario at Stock
East. However, the high-grade intersections encountered suggest the
presence of higher-grade shoots within the lower grade resource
area (see Figure 3). An infill drill program is
ongoing to better assess this higher-grade mineralization.
Stock Deep
Exploration drilling by McEwen Mining in 2018
and 2019 tested the potential of the mineralized system to extend
below the lowest levels of the Stock Mine. Production from this
mine ceased in 2004 at a relatively shallow depth of only 330 m
(1,080 ft). Total production was 137,000 ounces of gold at an
average grade of 5.4 g/t Au.
In 2018, hole S18-31
intersected multiple intervals of mineralization up to a depth of
650 m (2,130 ft) below surface under the mine workings. The best
intersections from hole S18-31 include: 5.6
g/t Au over 3.3 m, including 14.8
g/t Au over 1.0 m; and 7.0
g/t Au over 3.8 m, including 30.1
g/t Au over 0.8 m; and 3.8
g/t Au over 4.0 m.
During Q2 2019, hole S19-95
intersected mineralization 250 m (820 ft) below the positive 2018
results intersected 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.
A new result of 4.2 g/t gold
over 7.5 m, including 25.9 g/t
gold over 0.8 m was returned from hole
S19-97W1 at a vertical depth of 1,020 m (3,345 ft)
(see Figure 2). The gold mineralization is hosted
in fuchsite-altered ultramafics, and could potentially represent
the depth extension of the historical “N2 Zone” of the Stock Mine,
which produced 80,000 oz of gold at an average grade of 6.2 g/t
Au.
Property and Geologic
Information
The Stock Property is the site of McEwen
Mining’s Stock Mill, which currently processes ore from the Black
Fox Mine. The mill has a capacity of approximately 2,000 tonnes per
day and is currently underutilized. 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 prolific
Destor Porcupine Fault (DPF), 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 DPF near
the Stock Mine making the area a prime structural setting for gold
mineralization (see Figure 1). In addition to
these major structures, the property also exhibits other
characteristics of strongly mineralized systems: intense
alteration, multi-style and multi-phase mineralization, and
significant gold mineralization hosted in various rock types,
including wide intersections of 10-30 meters at 1-2 g/t Au, and
also higher-grade intersections of +10 g/t Au.
Gold mineralization at the Stock Property
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 accompanying this announcement is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/280796bd-1d92-47a7-a743-0ed793ea8339
Figure 2 accompanying this announcement is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/27b2647e-4566-4486-b128-52ea4f83a429
Figure 3 accompanying this announcement is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/b2dc85f4-478b-42e6-8748-0493786f1569
Complete assay results from the latest drilling on the
Stock Property:
https://www.mcewenmining.com/files/doc_news/archive/201909xx_stock/stock_pr_late_sept2019_composites.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 were
established.
Stock East: 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.
Stock Deep: a minimum
reportable interval length of 3 m was determined by establishing a
cut-off grade of 3 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 6, 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: |
|
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Christina McCarthy ext. 390Mihaela
Iancu ext. 320 info@mcewenmining.com |
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