McEwen Copper Inc., a subsidiary of
McEwen
Mining Inc. (NYSE: MUX) (TSX: MUX), is pleased to provide
a progress report on recent successes and future work planned at
the Los Azules copper project in San Juan, Argentina.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/34d069c1-1896-482a-966f-053692a76f2f
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/592a38a1-0da5-4fd0-848d-331959d3a0a6
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/2480d506-fb33-4f01-a9ee-4b41e183d7e0
Timing is everything and now appears to be a
time for copper to shine. According to Goldman Sachs’ (GS)
research1, copper is the new oil. A growth sector with supply
constraints, GS forecasts that copper has only two years of supply
growth left, 2022 and 2023, and an open-ended supply decline
starting from 2024. They see copper playing a big, critical role as
an essential component in the global push to electrify
transportation and to contain/reverse global warming. They are not
alone in thinking about copper this way. McKinsey’s research2 is
estimating that by 2030 copper demand will be outstripping supply
by five to eight million tons per year.
Executive Summary
An Attractive Copper Development
StoryAs you have seen above, Los Azules compares very well
to many other copper development stories, given its size, life,
location and economics.
Designing for Positive
ImpactWorking to create a net positive impact on the world
over the life of the project - McLennan Design, architects at the
forefront of the green sustainable buildings movement, are
assisting our team in designing systems and selecting innovative
technologies and approaches for making our project regenerative.
http://mclennan-design.com
Los Azules Is No Longer Remote!
The critical issue of road access to the site has been resolved! We
have developed a second road at a lower altitude that will allow us
year-round access to the site. Our access will be extended, making
it safer, less expensive and faster to advance and complete our
fieldwork.
Drilling Confirming Size and
GradeAdditional drilling is confirming the
mineralization size and grade compared to historic intercepts used
to estimate the 2017 PEA mineral resource estimate. To
date, the results from core logging and sample analysis are very
encouraging. In many holes, drilling was allowed to continue beyond
the planned length where visible copper mineralization was
observed. Often, primary mineralization in the hole was still
apparent when drilling was stopped due to drill equipment
limitations. Hole AZ22142 intersected 419.1 meters
of 0.79% copper including an interval
104.0 m of 1.00% copper in the
supergene enriched zone and 46 m of
1.59% copper in the primary copper zone.
Importantly, our updated geological model will reflect the
sub-vertical structures and rock types that are thought to be key
features controlling the distribution of mineralization. This
points directly to the potential for significant mineralization to
be discovered with additional drilling to depth.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/ab4b62e7-d548-498d-ae22-723c3e076ace
Link to Table of Drilling Results for January to April 2022 at
Los Azules:
https://mcewenmining.com/files/doc_news/archive/2022/20220500_copper/20220500_LA_results.xlsx
Community Engagement Our
sustainability efforts are currently focused on systems relating to
local procurement and employment, environment, health, education,
training and security. We employ a local workforce and invest in
projects such as the construction of medical outposts, sponsoring
education, and installing low-energy street lighting.
Bigger & BetterWhittle
Consulting’s Enterprise Optimization work, which will be outlined
in our forthcoming updated PEA expected in Q1 2023, suggests that
both the size and value of the Los Azules project have the
potential to be significantly larger than was described in the 2017
PEA. Their analysis has provided important focus and direction for
the detailed work underway, including guidance for drilling
programs, metallurgical test work and trade-off studies for mining,
processing and infrastructure. Link to Whittle
Consulting:https://www.whittleconsulting.com.au
Link to the Whittle Enterprise Optimization Methodology:
https://mcewenmining.com/files/doc_news/archive/2022/20220500_copper/20220500_whittle_methodology.pdf
PEA to be Updated – 2017
Highlights The Preliminary Economic Assessment (PEA) base
case assumed a $3/lb copper price, and the economics were robust.
Today copper is above $4/lb. Summary results of the 2017 PEA
available on the Company’s website:
Avg. annual production 1st
13 years |
415 Million lbs Cu @ $1.14/ lb cash cost |
Mine life |
36 years |
Initial capex |
$2.4 Billion |
Base case Cu price |
$3.00/ lb |
Payback |
3.6 years |
After-tax IRR |
20.1% |
After-tax NPV(8%) |
$2.2 Billion |
Timetable of Planned Events
Private placement
financing – 2022Updated Preliminary Economic Assessment (PEA) - Q1
2023Initial public offering (IPO) – post updated PEAPrefeasibility
Study (PFS) – H1 2024
One of our key goals is to improve the
perception, and reality, of mining by employing innovative
solutions to reduce our environmental impact, such as reducing our
carbon footprint.
1
https://www.goldmansachs.com/insights/podcasts/episodes/05-18-2021-nick-snowdon.html
2
https://www.mckinsey.com/industries/metals-and-mining/our-insights/the-raw-materials-challenge-how-the-metals-and-mining-sector-will-be-at-the-core-of-enabling-the-energy-transition
TECHNICAL INFORMATION
The technical content of this news release has
been reviewed and approved by Stephen McGibbon, P.Geo, SVP
Exploration of McEwen Mining and a Qualified Person as defined by
NI 43-101.
All samples were collected in accordance with
generally accepted industry standards. Drill core samples usually
taken at 2m intervals are split and submitted to Alex Stewart
International laboratory in Mendoza, Argentina for the following
assays: gold determination using fire assay fusion and an atomic
absorption spectroscopy finish (Au4-30); a 39 multi-element suite
using ICP-OES analysis (ICP-AR 39); copper content was determined
using a sequential copper analysis (Cu-Sequential). An additional
19-element analysis (ICP-ORE) was performed for samples with high
sulfide content.
The Company carries out a Quality Assurance /
Quality Control program consistent with NI 43-101 and industry best
practices utilising a combination of standards and blanks
approximately one in every 25 samples. Results are monitored as the
final certificates are received and any re-assay requests are sent
back immediately. Pulp and prep duplicate sample analyses are also
taken as part of the QAQC process. Approximately 5% of sample pulps
are sent to a secondary laboratory for check assays. In addition,
the assay lab performs its own internal QAQC checks with results
available in the certificates for review by the Company.
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, 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, 2021, 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.
ABOUT MCEWEN MININGMcEwen
Mining is a diversified gold and silver producer and explorer
focused in the Americas with operating mines in Nevada, Canada, and
Argentina. It also has a large exposure to copper through its
subsidiary McEwen Copper, owner of the Los Azules copper deposit in
Argentina.
CONTACT INFORMATION: |
Investor Relations:(866)-441-0690
Toll-Free(647)-258-0395Mihaela Iancu ext.
320info@mcewenmining.com |
Website:
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