McEwen Copper Inc., a subsidiary of
McEwen
Mining Inc. (NYSE: MUX) (TSX: MUX), is
pleased to provide a summary of the work at the Los Azules copper
project in San Juan, Argentina, that started in earnest this July
2021. Our two immediate objectives on our path to designing and
constructing the copper mine of the future are to:
- Advance Los Azules from its current stage of
development (Preliminary Economic Assessment or PEA) to a
Pre-Feasibility Study (PFS); and
- Construct a new road, the ‘Northern
Access Road’, that will provide critical
year-round access to Los Azules. The current
‘Exploration Road’ is generally
only usable five months of the year due to winter
weather.
Below is a photographic account of our activities to date.
Background
On July 6, 2021, we announced the creation of
McEwen Copper and our intention to raise US$80 million in a private
offering comprised of 8,000,000 shares priced at $10.00 per share.
We closed the first $40 million tranche of the placement in August
with Rob McEwen, and the balance of the financing is expected to
close in January 2022. Assuming completion of the $80 million
financing, McEwen Mining will retain 69% ownership in McEwen
Copper, and new shareholders will hold 31%. McEwen Copper will
continue to hold a 100% interest in the Los Azules project.
Los Azules is one of the largest undeveloped
copper porphyry deposits in the world. It is located along the
prolific Andes Copper Belt as shown in the location map below:
A photo accompanying this announcement is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/f03bd0fd-7c4a-4950-bc3c-535c2b0659d0
Photo 1 - Work starting in July to open the
Exploration Road.
A photo accompanying this announcement is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/51fe4417-6340-4ae6-8afc-e4d9b4780d7d
Photo 2 - By September
27th, we had reopened
the Exploration Road to Los
Azules, and the camp provisioner and caterer (Caterwest) had
started setting up our work campsites. Below is a picture of
the Exploration Road being
improved. If you look closely, you can see the road continuing
beyond the front-end loader.
A photo accompanying this announcement is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/2e6490a3-d915-4a9e-8e81-1da9d6882030
Photo 3 - While opening the Exploration
Road, on July 19th
we also started the construction of the
Northern Access Road. Pictured here is the
start of the eastern end of this new road. A prominent San
Juan-based road construction firm (Zlato) is building the road for
us. The construction of the road has been divided into five
sections.
A photo accompanying this announcement is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/caefa450-b7d3-474d-a391-78ba46eafb23
Photo 4 - By late November, we had
completed Section 5 and approximately 50% of Section 4. We are
awaiting permits, expected in Q1 2022, to advance construction of
the remaining sections. The expected completion date of
the Northern Access Road is
mid-2022.
A photo accompanying this announcement is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/291c96c3-f479-41d2-8457-96cce36f4760
Photo 5 – Back on the
Exploration Road, the road was reopened to
our first work camp, Candidito, by August
25th on the road to Los
Azules.
A photo accompanying this announcement is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/29cc27c3-ee13-4eac-afe5-226eb0a8a96a
Photo 6 - October
1st, the final destination had
been reached and Camp Los Azules was operational.
A photo accompanying this announcement is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/fa639e79-10af-4b64-b91d-8afcf2793ece
Photo 7 - November
4th, the second work camp,
Embarrada, was operational.
A photo accompanying this announcement is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/648a1258-3e55-4e10-a28a-13ca3c984f3c
On December 1st, the medical services and
emergency rescue teams had arrived at site and exploration drill
platforms were being constructed.
By December 20th, 36 drill platforms had been
constructed and 2 of the 10 exploration drills had arrived on site.
The other 8 drills are expected to be arriving throughout January
and into February. Drilling will start on January 4th. The first
phase of our drill program will involve a 174,000-foot (53,000 m)
program. It is designed to convert the Inferred mineral resources
to the Indicated category, as well as to test deeper exploration
targets, where historic drilling had ended in strong copper
mineralization.
McEwen Copper currently has 282 people
supporting the exploration drilling program at Los Azules, with
approximately 85% being from San Juan.
Photo 8 and 9 - The first two
exploration drills to arrive at the site.
A photo accompanying this announcement is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/3b776799-8b23-4902-9417-ea9bb02339dc
Photo 10 – At Los Azules, McEwen geologists orienting
the drillers from Major Drilling, with the rock conditions that
they will be encountering.
A photo accompanying this announcement is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/fdfc376d-da62-4353-bdfb-6d862092190b
Project Development
Workshop
This past week, December 14th to 16th, we held
an intensive workshop with senior management of both McEwen Mining
and McEwen Copper and a powerful group of consultants and advisors.
A total of 30 individuals well versed in designing and building,
and operating copper mines, especially in South America, gathered
physically and virtually from Argentina, Chile, USA, Canada,
Australia, and New Zealand.
The workshop started with a presentation from
Whittle Consulting from Australia, who for the
past three months have been evaluating various development
scenarios for the Los Azules Project. Their work suggests there is
considerable room to improve the economics of the project.
Companies involved in moving Los Azules to PFS
are:
-
Bechtel Corporation, the largest construction
company in America with a long history of advancing, building and
developing large copper concentrators and infrastructure projects
globally, including the recent feasibility study update on the El
Pachon project approximately 75 km south of Los Azules; and
-
Samuel Engineering, who will help oversee project
management, controls, metallurgy and processing plant design, is a
full service multi-disciplinary project development and execution
company bringing a team with extensive large copper project
experience in South America, including past involvement at the Los
Azules project; and
-
Stantec, a full service engineering and consulting
firm, with offices in Argentina, Chile, and
Peru, including select subcontract consultants will focus
on geology, resource and reserve estimates, mining engineering,
hydrology, geotechnical and the tailings, waste, and water
management facility design.
Our overarching goal is to design a mine that will be
the model for copper mining in the 21st
century. One that supplies the raw material to enable a
greener world, while incorporating the use of renewable energy
sources to have a low-carbon footprint and that uses technological
innovation to achieve an energy efficient mine.
At several points during the workshop, Jason F.
McLennan of McLennan Design in Seattle, a
prominent figure in the field of architecture and green building
movement, shared his thoughts on technologies, visions and
attitudes on how mining could change to contribute to a healthy
world and how lessons learned in other industries could be applied
to transform certain elements of mine operations, infrastructure
and facilities.
We all left the meeting energized and believing
that the future of mining will be exciting, new and game-changing.
For the world to make considerable progress towards a lower carbon
emissions world, the world needs responsible mining to provide the
materials to make that a reality.
We at McEwen Copper, along with our consultants,
plan to design, build, and operate a facility, a community, that
will be at the leading edge of a changing attitude in mining
towards protecting our planet.
To view a .PDF of this news release click here:
http://mcewenmining.com/files/doc_news/archive/2021/20211222_McEwen_Copper_Update.pdf
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, contain 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, effects of the COVID-19 pandemic, 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 the
calculation of mineral resources and reserves, and other risks.
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, 2020 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 the management of
McEwen Mining Inc.
CONTACT
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Toll-Free(647)-258-0395Mihaela Iancu ext.
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