McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is
pleased to report on near surface and deep exploration drilling
progress at its Gold Bar Mine property in Nevada, where the Company
commenced commercial production earlier this year.
Drilling at Gold Bar South has
successfully defined additional mineralization that is expected to
increase our gold resource/reserve base and extend the Gold Bar
Mine’s life. Estimates of the increase will be released in early
2020. Subject to permitting advancing as planned, the mining of
Gold Bar South could begin in early 2021. In addition, drilling is
planned later this year on the Gold Canyon property; this new
acquisition and former producer is located within the Gold Bar Mine
property.
Our Deep Drilling program has
begun to test for deep gold in sulfide targets similar to Barrick
Gold’s latest discoveries Gold Rush and Fourmile, which are located
on trend 25 miles North of the Gold Bar property. The first deep
drill hole is completed and was a geological success as it
confirmed the presence of the right host rock units over a large
intercept of 1,217 ft. (370 m), which contained anomalous
gold-pathfinder elements and alteration indicating hydrothermal
fluid movement through the rock formation, but it did not contain
any gold values. A second deep hole, located 3.2 miles (5.2 km)
away, is in progress.
Gold Bar South Deposit
The Gold Bar Mine deposits host gold reserves of
524,000 ounces at 0.029 opt (1 g/t) within Measured and Indicated
gold resource of 720,000 ounces, and Inferred gold resources of
106,000 ounces (as of Dec. 31, 2018). The Gold Bar South deposit
contains a further estimated Indicated resource
of 3,488 ktons at 0.029 opt (1 g/t) for 100,000 gold
ounces. Gold Bar South is located 3.5 miles (5.6 km)
southeast of the Gold Bar Mine.
A 60-hole drill program is underway at Gold Bar
South with the goal of increasing the Gold Bar Mine’s life beyond
its current 7.4 years. Results have been received for 32 new holes,
which have shown mineralization extending below the 2018 conceptual
open pit mine boundary (see Figure 1). This
drilling has encountered an area of higher-grade oxide
mineralization of >0.06 opt (>2 g/t), which
currently measures 50 m wide, 50 m long and 50 m thick. It is a
zone of silicification and breccia bounded by NE and NW trending
faults. A resource update for Gold Bar South will be completed by
the end of the year, and a new reserve statement will be published
in January 2020.
Table 1 – Selected Drill Intersections from Gold Bar
South
|
Imperial |
Metric |
Hole ID |
From (ft) |
To (ft.) |
Length (ft) |
Au(opt) |
From (m) |
To (m) |
Length (m) |
Au(g/t) |
GB489 |
230 |
290 |
60 |
0.018 |
70.1 |
88.4 |
18.3 |
0.62 |
GB521 |
85 |
225 |
140 |
0.068 |
25.9 |
68.6 |
42.7 |
2.32 |
GB522 |
130 |
300 |
170 |
0.065 |
39.6 |
91.4 |
51.8 |
2.21 |
GB523 |
20 |
175 |
155 |
0.061 |
6.1 |
53.3 |
47.2 |
2.10 |
GB524 |
155 |
250 |
95 |
0.047 |
47.2 |
76.2 |
29.0 |
1.61 |
GB525 |
250 |
285 |
35 |
0.018 |
76.2 |
86.9 |
10.7 |
0.63 |
GB527 |
135 |
200 |
65 |
0.028 |
41.2 |
61.0 |
19.8 |
0.95 |
GB529 |
190 |
215 |
25 |
0.015 |
57.9 |
65.5 |
7.6 |
0.50 |
Deep Drilling Targeting High-Grade
Sulfide Potential
The Gold Bar Mine property is located on the
prolific Battle Mountain - Eureka Trend, which includes the nearby
Cortez district and the recent world-class discoveries Gold Rush
and Fourmile. Gold Bar has several similarities to Cortez
including: a large mineralization and alteration footprint of 3
miles x 7.5 miles (5 km x 12 km), NW-SE structural controls to
mineralization, and the same age and type of host rocks. Gold Bar
already has a significant gold endowment of 1.7 million ounces* and
is still under-explored, particularly at depth, compared to many
mine properties in Nevada.
Two deep holes are planned this year to test for
higher-grade gold mineralization at depth. One hole has been
completed at Pot Canyon near the Wall Fault, which is the extension
of the Cortez Fault, and a second hole is currently being drilled
at Cabin Creek (see Figure 2). The first hole
(GB470) intersected near-surface mineralization, returning
0.8 g/t gold over 23.8 m oxide,
and 1.3 g/t gold over 16.2 m
sulfide from 11-51 m below surface. At depth the hole was targeting
the Roberts Mountain and Hanson Creek stratigraphy, which it
intersected over a length of 1,217 ft. (370 m) starting at a depth
of 3,900 ft. (1,200 m). Analysis showed alteration (remobilized
carbon) and anomalous pathfinder elements suggesting mineralization
potential within this formation.
The second deep hole at Cabin Creek is targeting
Roberts Mountain and Hanson Creek-hosted mineralization at an
estimated depth of 2,500 ft. (750 m). So far, the drill hole has
encountered 377 ft. (84 m) of jasperoid from a depth of 2,000 ft.
(600 m), that is interpreted to be silicified Roberts Mountain
Formation, again suggesting mineralization potential within the
formation. No assays are completed and the hole is continuing
deeper.
* Gold endowment = past production + current
resources (including reserves).
Gold Canyon Acquisition
The recently acquired Gold Canyon property
consists of a block of mineral claims within the Gold Bar property.
These claims host near surface oxide mineralization similar to Gold
Bar and historically produced about 41,000 ounces of gold. Drilling
data by previous owners show that mineralization continues below
the bottom of the open pit, with intersections such as 1.9
g/t gold over 16.8 m. Drilling is
planned to begin at Gold Canyon in Q4.
ABOUT MCEWEN MININGMcEwen
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 INFORMATIONThe
technical contents of this news release have been reviewed and
approved by Robert L. Kastelic, CPG, McEwen Mining’s Chief
Exploration Geologist, who is a Qualified Person as defined by
Canadian Securities Administrators’ National Instrument 43-101
"Standards of Disclosure for Mineral Projects".
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: www.mcewenmining.com
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