MUX McEwen Mining Inc

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):

July 12, 2023

 

McEWEN MINING INC.

(Exact name of registrant as specified in its charter)

 

Colorado		001-33190		84-0796160
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

150 King Street West, Suite 2800 Toronto, Ontario, Canada	M5H 1J9
(Address of principal executive offices)	(Zip Code)

 

Registrant’s telephone number including area code:

(866) 441-0690

 

 

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock		MUX		New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

Item 7.01

Regulation FD Disclosure.

 

On July 12, 2023, McEwen Mining Inc. (the “Company”) issued a press release to report recent drill results from its subsidiary, McEwen Copper Inc., relating to the Los Azules project in San Juan, Argentina. A copy of that press release is furnished with this report as Exhibit 99.1.

 

The information furnished under this Item 7.01, including the referenced exhibit, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by reference to such filing. 

 

Item 9.01

Financial Statements and Exhibits.

 

(d)	Exhibits. The following exhibits are furnished or filed with this report, as applicable:

 

99.1

Press release dated July 12, 2023

 

104

Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document (contained in Exhibit 101)

 

Cautionary Statement

 

With the exception of historical matters, the matters discussed in the press release include forward-looking statements within the meaning of applicable securities laws that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained therein. Such forward-looking statements include, among others, statements regarding future production and cost estimates, exploration, development, construction and production activities. Factors that could cause actual results to differ materially from projections or estimates include, among others, the continuing effects of the COVID-19 pandemic and related governmental responses, future drilling results, metal prices, economic and market conditions, operating costs, receipt of permits, and receipt of working capital, as well as other factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and other filings with the United States Securities and Exchange Commission. Most of these factors are beyond the Company’s ability to predict or control. The Company disclaims any obligation to update any forward-looking statement made in the press release, whether as a result of new information, future events, or otherwise. Readers are cautioned not to put undue reliance on forward-looking statements.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	McEWEN MINING INC.
Date: July 13, 2023	By:	/s/ Carmen Diges
		Carmen Diges, General Counsel

 

 

Exhibit 99.1

 

 

 

McEwen Copper: Los Azules – Latest Assay Results

Significant Intercept

398 m of 0.75% Cu, including 124 m of 1.43% Cu (Hole AZ23220)

 

TORONTO, July 12, 2023 (GLOBE NEWSWIRE) — McEwen Copper Inc., 52% owned by McEwen Mining Inc. (NYSE: MUX) (TSX: MUX), today reports additional copper values over wide intercepts resulting from drilling performed on its Los Azules project, located in San Juan, Argentina. McEwen Copper recently published an updated Preliminary Economic Assessment (PEA) on a copper leaching phase of development (see release dated June 20, 2023). Infill and other resource drilling completed since the PEA model data cut-off date confirm very good alignment of new assay results to the resource model prediction for the same area. Also, copper grade continuity modeled in the core of the deposit is well-supported by core logging and new assay results. Los Azules is a large copper-gold-silver porphyry deposit with growth potential, it has many features comparable to world-class copper-gold deposits in South America and its depth and lateral extent have not yet been determined. Infill drilling serves several purposes: providing better data density to upgrade confidence in the mineral resources, providing material and data for metallurgical, geotechnical, and hydrological studies.

 

Table 1 provides an overview of the latest round of copper (Cu), gold (Au) and silver (Ag) assays.

 

Highlights

 

·

Hole AZ23220 intercepted an Enriched zone of 398 meters (m) grading 0.75% Cu (est. true thickness) and includes a sub-interval of 124 m grading 1.43% Cu. (Figure 3)

 

·

Hole AZ23218 intercepted an Enriched zone of 202 m grading 0.63% Cu (est. true thickness) contained within an overall intercept of 239.2 m grading 0.59% Cu. (Figure 2)

 

·

Hole AZ23216 intercepted an Enriched zone of 338 m grading 0.58% Cu and Primary mineralization of 84 m grading 0.27% Cu. (Figure 4)

 

·

Hole AZ23206 intercepted 353 m of 0.46% Cu including an Enriched zone intercept of 190 m grading 0.57% Cu. (Figure 5)

 

The latest drilling program, which began in October 2022, was concluded on June 19, 2023. Up to 15 rigs completed some 39,900 m of drilling in 138 holes, to evaluate geotechnical, hydrological, resource and exploration-related parameters and opportunities. The Los Azules drill hole database now totals some 126,000 m.

 

To test the Cu% resource model veracity versus actual drilling results, 24 infill holes completed subsequent to the PEA model update were compared to expected results based on the model. The length-weighted average grade of the new drilling was 0.567% Cu versus a resource model prediction of 0.520% Cu. This limited test of the resource model’s predictive capacity is very encouraging with actual grades being 9% higher than the model prediction.

 

Preparations are underway for the next phase of drilling, anticipated to begin in early October. This phase will continue to increase geologic certainty with drilling needed to delineate a Measured mineral resource estimate on the material expected to be mined in the first five years of operation, covering more than the payback period and other technical evaluations.

 

 

  

Table 1 - Los Azules Drilling Results, May-June 2023

 

Hole-ID	Section	Predominant Mineral Zone	From (m)	To (m)	Length (m)	Cu %	Au (g/t)	Ag (g/t)	Comment
AZ23187B	52	Total	40.0	1000.0	960.0	0.08	0.00	0.48
		Enriched	40.0	90.0	50.0	0.03	0.00	0.25
		Primary	90.0	1000.0	910.0	0.08	0.00	0.49
AZ23206	51	Total	116.0	469.0	353.0	0.46	0.03	1.52
		Enriched	116.0	306.0	190.0	0.57	0.04	2.02	Incl. 94 m of 0.62% Cu
		Primary	306.0	469.0	163.0	0.32	0.02	0.93
GTK2314B	52	Total	90.0	489.0	399.0	0.10	0.01	0.46
		Enriched	90.0	204.0	114.0	0.13	0.00	0.44
		Primary	204.0	489.0	285.0	0.09	0.01	0.46
AZ23211A	49	Total	110.0	446.0	336.0	0.30	0.03	0.89
		Enriched	110.0	348.0	238.0	0.28	0.03	0.58
		Primary	348.0	446.0	98.0	0.35	0.03	1.64
AZ23218	44	Total	62.0	301.2	239.2	0.59	0.04	1.21
		Enriched	62.0	264.0	202.0	0.63	0.05	1.35	Incl. 20 m of 0.91% Cu
		Primary	264.0	301.2	37.2	0.39	0.03	0.47
AZ23216	49	Total	108.0	530.0	422.0	0.52	0.08	1.84
		Enriched	108.0	446.0	338.0	0.58	0.09	2.07	Incl. 48 m of 0.90% Cu
		Primary	446.0	530.0	84.0	0.27	0.06	0.94
GTK2318	32	Total	154.0	466.3	312.3	0.22	0.01	0.46
		Enriched	154.0	398.0	244.0	0.25	0.01	0.48
		Primary	398.0	466.3	68.3	0.13	0.01	0.38
AZ23220	45	Total	80.0	522.0	442.0	0.69	0.05	1.00
		Enriched	80.0	478.0	398.0	0.75	0.05	1.00	Incl. 124 m of 1.43% Cu
		Primary	478.0	522.0	44.0	0.16	0.02	0.91

 

 

 

 

Description of Results

 

Figure 1 shows a plan view of 2023 mineable Indicated and Inferred resources from the PEA whose pit wall is shown as a black trace at surface. Drill hole and cross-section locations relevant to today’s release are also shown.

 

The drilling results are summarized on four schematic cross sections that include interpretations of Overburden, Leached, Enriched (also called Supergene) and Primary (also called Hypogene) mineral zones. The green line on each section indicates the floor of the Base Case 27-year pit outline according to the updated PEA. Adjacent cross sections occur every 50 m with the lowest section numbers located at the southern end of the field and increasing northwards.

 

Figure 1 – Cross Sections and Recent Drill Holes on the 2023 Base Case Mineable Resource Pit Plan

 

 

 

 

 

Figure 2 - Section 44 - Drilling, Mineral Zones & 2023 Base Case Mineable Resource Pit (Looking North)

 

 

Hole AZ23218, shown in the center of Figure 2, has been added to section 44 to infill a 300 m gap in drilling between holes AZ23189 and AZ22170. The hole returned a higher-grade Enriched zone intercept than either of those holes with 202 m of 0.63% Cu, including a sub-interval of 20 m of 0.91% Cu. Overall, the cross section is characterized by a 200 m to 300 m flat-lying Enriched zone buried immediately below a thin Leached zone horizon. The mineralization in hole AZ23218 extends at depth into the Primary (or Hypogene) zone with an intercept of 37.2 m of 0.39% Cu.

 

Figure 3 - Section 45 - Drilling, Mineral Zones & 2023 Base Case Mineable Resource Pit (Looking North)

 

 

 

 

 

Hole AZ23220, shown in Figure 3 on section 45, returned outstanding Enriched zone results of 398 m of 0.75% Cu, including a sub-interval of 124 m grading 1.43% Cu which exceeds the Base Case grade of the recently released 2023 Updated PEA for Los Azules by more than three times. The hole was positioned to test for a structural corridor located in the core of the deposit. The high grades returned occur within a hydrothermal magmatic breccia, which is representative of that corridor. The mineralization and lithology logged are consistent with the previously released neighboring holes AZ22171 and AZ23201 which supports our view that continuity within the deposit is very good and in harmony with the resource model that has been developed.

 

Figure 4 - Section 49 - Drilling, Mineral Zones & 2023 Base Case Mineable Resource Pit (Looking North)

 

 

Hole AZ23216, shown in Figure 4 on section 49, highlights a 338 m Enriched zone intercept grading 0.58% Cu including a 48 m interval of 0.90% Cu. The hole was positioned to extend mineralization east from hole AZ17133. The thick intercept occurred toward the eastern flank of the deposit, where normally both grade and thickness begin to diminish. Mineralization continues at depth where Primary mineralization corresponds to an 84 m interval of 0.27% Cu.

 

 

 

 

Figure 5 - Section 51 - Drilling, Mineral Zones & 2023 Base Case Mineable Resource Pit (Looking North)

 

 

Hole AZ23206, shown in Figure 5 on section 51, intersected 190 m of Enriched zone mineralization grading 0.57% Cu and includes a 94 m section of 0.62% Cu. Mineralization continues at depth where the Primary zone was intersected with 163 m of 0.32% Cu.

 

Technical information

 

The technical content of this press release has been reviewed and approved by Stephen McGibbon, P. Geo., McEwen Mining's Senior Consulting Geologist, 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 2 m intervals, were split and submitted to the Alex Stewart International laboratory located in the Province of Mendoza, Argentina, for the following assays: gold determination using fire fusion assay and an atomic absorption spectroscopy finish (Au4-30); a 39 multi-element suite using ICP-OES analysis (ICP-AR 39); copper content determination using a sequential copper analysis (Cu-Sequential LM-140). An additional 19-element analysis (ICP-ORE) was performed for samples with high sulphide content.

 

The company conducts a Quality Assurance/Quality Control program in accordance with NI 43-101 and industry best practices using a combination of standards and blanks on approximately one out of every 25 samples. Results are monitored as final certificates are received, and any re-assay requests are sent back immediately. Pulp and preparation sample analyses are also performed as part of the QAQC process. Approximately 5% of the sample pulps are sent to a secondary laboratory for control purposes. In addition, the laboratory performs its own internal QAQC checks, with results made available on certificates for Company review.

 

Link to drill results, locations and lengths of drillhole collars corresponding to May 2023 through June 2023 at Los Azules:

 

https://www.mcewenmining.com/files/doc_news/archive/2023/2023_06LA/2023_05-06_DrillResultsLocations_LA.xls

 

 

 

 

Link to drill results, locations and lengths of drillhole collars corresponding to the October 2022 to June 2023 drilling campaign at Los Azules:

 

https://www.mcewenmining.com/files/doc_news/archive/2023/2023_06LA/2022_10-2023_06DrillResultsLocations_LA.xls

 

Table 2 – Hole Locations and Lengths for Los Azules Drilling Results

 

HOLE-ID	Azimuth	Dip	Length	Loc X	Loc Y	Loc Z
AZ23187B	250	-83	1000	2382089	6559568	3598
AZ23206	250	-61	469	2383022	6559836	3613
AZ23211A	70	-71	446	2382742	6559653	3621
AZ23216	79	-71	530	2383139	6559822	3632
AZ23218	250	-73	301.2	2383040	6559496	3628
GTK2314B	277	-70	489	2382662	6559784	3610
GTK2318	90	-70	466.3	2383521	6559033	3660
AZ23220	70	-69	522	2383019	6559525	3627
Coordinates listed in Table 2 based on Gauss Kruger - POSGAR 94 Zone 2

 

ABOUT MCEWEN COPPER

 

McEwen Copper is a well-funded, private company which owns 100% of the large, advanced stage Los Azules copper project, located in San Juan province, Argentina. McEwen Copper is 52% owned private subsidiary of McEwen Mining, which has the ticker MUX on NYSE and TSX.

 

Los Azules is being designed to be distinctly different from a conventional copper mine, consuming significantly less water, emitting much lower carbon and progressing to be carbon neutral by 2038, being powered by 100% renewable once in operation. It recently released an updated PEA (preliminary economic assessment) which projects a long life of mine, low production cost/lb, short payback period, high annual copper production and a 21.2% after tax IRR.

 

ABOUT MCEWEN MINING

 

McEwen Mining is a gold and silver producer with operations in Nevada, Canada, Mexico and Argentina. In addition, it has significant exposure to copper through its 52% ownership of McEwen Copper. The Company’s goal is to improve the productivity and extend the life of its mines with the objective of increasing its share value and price and providing a yield. Rob McEwen, Chairman and Chief Owner, has personal investment in the company of US$220 million. His annual salary is US$1.

 

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. 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 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, 2022, Quarterly Report on Form 10-Q for the three months ended March 31, 2023, 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.

 

Want News Fast?

Subscribe to our email list by clicking here:
https://www.mcewenmining.com/contact-us/#section=followUs 

and receive news as it happens!!

 

	WEB SITE		SOCIAL MEDIA
	www.mcewenmining.com		McEwen Mining	Facebook:	facebook.com/mcewenmining
				LinkedIn:	linkedin.com/company/mcewen-mining-inc-
	CONTACT INFORMATION			Twitter:	twitter.com/mcewenmining
	150 King Street West			Instagram:	instagram.com/mcewenmining
	Suite 2800, PO Box 24
	Toronto, ON, Canada		McEwen Copper	Facebook:	facebook.com/ mcewencopper
	M5H 1J9			LinkedIn:	linkedin.com/company/mcewencopper
				Twitter:	twitter.com/mcewencopper
	Relationship with Investors:			Instagram:	instagram.com/mcewencopper
	(866)-441-0690 - Toll free line
	(647)-258-0395		Rob McEwen	Facebook:	facebook.com/mcewenrob
	Mihaela Iancu ext. 320			LinkedIn:	linkedin.com/in/robert-mcewen-646ab24
	info@mcewenmining.com			Twitter:	twitter.com/robmcewenmux

 

 

v3.23.2

Cover	Jul. 12, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 12, 2023
Entity File Number	001-33190
Entity Registrant Name	McEWEN MINING INC.
Entity Central Index Key	0000314203
Entity Tax Identification Number	84-0796160
Entity Incorporation, State or Country Code	CO
Entity Address, Address Line One	150 King Street West
Entity Address, Address Line Two	Suite 2800
Entity Address, City or Town	Toronto
Entity Address, State or Province	ON
Entity Address, Country	CA
Entity Address, Postal Zip Code	M5H 1J9
City Area Code	866
Local Phone Number	441-0690
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock
Trading Symbol	MUX
Security Exchange Name	NYSE
Entity Emerging Growth Company	false

---