McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) reports
an updated resource estimate for the Froome Deposit and highly
encouraging exploration results from its ongoing $15 million
exploration program at the Black Fox Complex near Timmins, Ontario,
Canada.
Highlights include:
- Froome Footwall:
Drilling intersected 53.93 g/t gold over 8.29 m
including 322.86 g/t gold over 1.34
m, along the footwall structure located approximately 150
m North of the main Froome deposit.
- Froome Resource:
Indicated resource estimate increased by 14% to 181,000
gold ounces at a grade of 5.09 g/t.
- Pike River:
Shallow high-grade intersection of 35.04 g/t gold over 3.30
m core length (CL) along the same 7 km long structural
belt that hosts the Froome deposit and Gibson
mineralization.
- Grey Fox: Multiple
shallow intersections including 13.41 g/t gold over 2.82 m
including 27.70 g/t gold over 0.94 m, and 5.79 g/t
gold over 1.99 m including 9.71 g/t gold over 0.93 m from
a mineralized cross-structure located in the hanging wall of the
147 Zone, which has a current Indicated resource of 264,000
gold ounces at a grade of 7.49 g/t.
- Black Fox Mine: 35.08 g/t
gold over 1.69 m intersected on the depth extension of the
mine. An underground exploration drift is under development and
additional drilling will begin in mid-September.
Froome Footwall
Surface drilling at Froome during Q3
has been focused on two targets: 1) evaluating the down-plunge
extension of the Froome Deposit, and 2) assessing the potential of
the mineralized footwall, which returned 53.93 g/t gold
over 8.29 m including 322.86 g/t gold over 1.34
m. The current interpretation suggests that this new
occurrence extends the complex, braided ‘belt’ of elevated gold
mineralization (running parallel to Froome) by approximately 350 m
strike length to the East.
The addition of these new drill intersections
within the Froome Footwall could provide an economic enhancement to
the proposed underground development planned to commence later in
September. Definition drilling to further evaluate the footwall
target is ongoing.
Significant Froome Footwall drill intersections
include:
Hole |
Area |
From (m) |
To (m) |
Length (m) |
TW (m) |
Gold (g/t) |
18PR-G276 |
Froome Main |
420.50 |
422.00 |
1.50 |
1.27 |
4.81 |
Including |
|
420.50 |
421.00 |
0.50 |
0.42 |
10.50 |
And |
|
445.00 |
455.00 |
10.00 |
8.47 |
2.68 |
Including |
|
450.00 |
453.00 |
3.00 |
2.54 |
6.31 |
18PR-G279 |
Froome FW |
88.60 |
92.00 |
3.40 |
2.86 |
1.54 |
And |
|
97.00 |
101.15 |
4.15 |
3.49 |
3.05 |
And |
|
113.00 |
122.90 |
9.90 |
8.29 |
53.93 |
Including |
|
113.00 |
114.60 |
1.60 |
1.34 |
322.86 |
18PR-G280 |
Froome Main |
306.95 |
315.35 |
8.40 |
7.27 |
2.61 |
And |
|
347.00 |
354.00 |
7.00 |
6.05 |
3.24 |
18PR-G288 |
Froome FW |
81.00 |
88.00 |
7.00 |
5.96 |
3.32 |
18PR-G292 |
Froome FW |
150.20 |
158.00 |
7.80 |
7.07 |
3.05 |
TW = True width (mathematically calculated based on current
interpretation) |
Pike River Target
The Pike River Target Area, located between the
Froome Deposit to the northwest and Gibson Deposit to the
southwest, is underlain by the Gibson-Kelore Fault zone. These
mineralized intercepts indicate the high potential for a new
discovery within this underexplored segment of the Gibson-Kelore
Fault Zone.
Significant Pike River drill intersections
include:
Hole |
Area |
From (m) |
To (m) |
Length (m) |
TW (m) |
Gold (g/t) |
18PR-032 |
Pike River |
70.00 |
72.00 |
2.00 |
* |
2.12 |
And |
|
79.00 |
82.30 |
3.30 |
* |
35.04 |
* True width unknown |
Grey Fox - 147 Zone Hanging Wall Target
Previous exploration activities at Grey Fox
focused on east dipping oreshoots. A 3,000 m drill program traced a
mineralized cross-structure at a different orientation over a
strike length of 140 m, and from the surface to a depth of 125 m.
These results indicate that the mineralized cross-structure is
continuous and traceable, and provides a framework for adding
resource ounces at Grey Fox.
Significant Grey Fox drill intersections
include:
Hole |
Area |
From (m) |
To (m) |
Length (m) |
TW (m) |
Gold (g/t) |
18GF-1087 |
147 HW |
30.10 |
33.48 |
3.38 |
2.76 |
1.14 |
And |
|
129.90 |
136.00 |
6.10 |
4.96 |
3.64 |
Including |
|
133.00 |
136.00 |
3.00 |
2.44 |
6.75 |
18GF-1088 |
147 HW |
8.85 |
11.30 |
2.45 |
1.99 |
5.79 |
Including |
|
8.85 |
10.00 |
1.15 |
0.93 |
9.71 |
18GF-1092 |
147 HW |
7.00 |
10.00 |
3.00 |
2.82 |
13.41 |
Including |
|
9.00 |
10.00 |
1.00 |
0.94 |
27.70 |
Black Fox Underground
One underground drill rig has been testing the
down-plunge extension of the Deep Central Zone (DCZ) (see Figure
1). Drilling intersected multi-phase quartz-carbonated veining,
which returned an intercept of 35.08 g/t gold over 1.69
m including 55.10 g/t gold over 1.01 m.
This represents the deepest high-grade intercept at the mine, and
supports the belief that mineralization extends deeper down plunge.
Drilling will resume in mid-September from better positions in the
newly constructed drilling bays on the 810 m level.
Significant DCZ drilling highlights include:
Hole |
Area |
From (m) |
To (m) |
Length (m) |
TW (m) |
Gold (g/t) |
520-EX346-42 |
DCZ |
426.50 |
428.00 |
1.50 |
1.30 |
6.87 |
And |
|
561.00 |
563.00 |
2.00 |
1.69 |
35.08 |
Including |
|
561.00 |
562.20 |
1.20 |
1.01 |
55.10 |
490-L094-98 |
DCZ |
215.80 |
217.00 |
1.20 |
0.81 |
161.89 |
Including |
|
215.80 |
216.40 |
0.60 |
0.40 |
320.73 |
Froome Resource Estimate
The tables below summarize the current and
previous Froome resource estimates. The differences are primarily
attributable to additional drilling. Similar modeling parameters
were used in both estimates.
Mineral Resource Statement, Froome
Project, SRK Consulting (Canada) Inc., August 31, 2018
Classification |
|
Cut-off Grade Gold(g/t) |
Quantity(‘000 t) |
Grade Gold(g/t) |
Contained Gold (‘000 oz) |
Indicated Mineral Resource |
Underground |
|
3.20 |
1,104 |
5.09 |
181 |
Total Indicated |
|
3.20 |
1,104 |
5.09 |
181 |
Inferred Mineral Resource |
Underground |
|
3.20 |
17 |
4.62 |
2 |
Total Inferred |
|
3.20 |
17 |
4.62 |
2 |
Previous Mineral Resource Statement, Froome Project, SRK
Consulting (Canada) Inc., March 30, 2018 (Obsolete)
Classification |
|
Cut-off Grade Gold (g/t) |
Quantity(‘000 t) |
Grade Gold (g/t) |
Contained Gold (‘000 oz) |
Indicated Mineral Resource |
Underground |
|
3.20 |
941 |
5.26 |
159 |
Total Indicated |
|
3.20 |
941 |
5.26 |
159 |
Inferred Mineral Resource |
Underground |
|
3.20 |
125 |
4.70 |
19 |
Total Inferred |
|
3.20 |
125 |
4.70 |
19 |
Figure 1 – Black Fox Exploration
Drilling (Click to download
.PDF):http://mcewenmining.com/files/doc_news/archive/20180906_bf/black_fox_figure_1_sept_6_2018.pdf
Tables – All Drilling (Click to download
.XLS):http://mcewenmining.com/files/doc_news/archive/20180906_bf/black_fox_results_table_sept_6_2018.xlsx
ABOUT MCEWEN MININGMcEwen has
the goal to qualify for inclusion in the S&P 500 Index by
creating a profitable gold and silver producer focused in the
Americas. McEwen’s principal assets consist of: the San José mine
in Santa Cruz, Argentina (49% interest); the Black Fox mine in
Timmins, Canada; the El Gallo Fenix project in Mexico; the Gold Bar
mine in Nevada, currently under construction; and the large Los
Azules copper project in Argentina, advancing towards
development.
McEwen has a total of 337 million shares
outstanding. Rob McEwen, Chairman and Chief Owner, owns 24% of
McEwen.
QUALIFIED PERSON
Technical 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.
The current mineral resource estimate was
prepared by Dr. Aleksandr Mitrofanov, P Geo, who is a "qualified
person" within the meaning of National Instrument 43-101 (“NI
43-101”). The previous mineral resource estimate was audited by Dr.
David Machuca, PEng (PEO 100508889), who is a "qualified person"
within the meaning of National Instrument 43-101 (“NI 43-101”). Dr.
Mitrofanov and Dr. Machuca are employees of SRK Consulting,
(Canada) Ltd and are considered to be "independent" of McEwen for
the purposes of NI 43-101.
TECHNICAL INFORMATION
All intercept widths are true widths unless otherwise
specified.
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, Activation Labs, which is ISO
9001/IEC17025 certified, and SGS Canada Laboratories, which is
ISO9001/IEC17025 certified. Samples from definition and select
delineation drilling, and development sampling completed within the
Black Fox mine are assayed at McEwen's onsite laboratory. 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 Tamarack, please see our recent 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
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 including, but not limited to, the closing of the
Offering and the use of proceeds thereof. 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 related to
fluctuations in mine production rates, 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, 2017 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: |
Mihaela IancuInvestor Relations(647)-258-0395 ext
320info@mcewenmining.com |
Website: www.mcewenmining.com
Facebook: facebook.com/mcewenrob
Twitter: twitter.com/mcewenmining |
150 King
Street WestSuite 2800, P.O. Box 24Toronto, Ontario, CanadaM5H
1J9(866)-441-0690 |
McEwen Mining (NYSE:MUX)
Historical Stock Chart
From Mar 2024 to Apr 2024
McEwen Mining (NYSE:MUX)
Historical Stock Chart
From Apr 2023 to Apr 2024