McEwen Mining Announces Updated Reserve & Resource Estimate at
the San Jose Mine in Argentina
TORONTO, ONTARIO--(Marketwired - Mar 13, 2014) - McEwen Mining
Inc. (NYSE:MUX)(TSX:MUX) is pleased to announce an updated mineral
reserve and resource estimate for the San José mine (49% owned by
McEwen Mining), located in Santa Cruz province, Argentina. The
updated estimate continues to demonstrate that San José is one of
the highest-grade precious metal mines in the Americas that
continues to replace its mined ounces even with record production.
The mineral reserve and resource estimates were calculated using
US$1,200 per ounce gold and US$20 per ounce silver. The estimates
were independently audited by P&E Mining Consultants Inc.
San José Mine Reserve & Resource Highlights (100% Basis)
- Proven and Probable gold and silver reserves increased by 12%
and 12% respectively, to 409,400 ounces gold and 30.1 million
ounces silver, contained in 1.8 million tonnes. Gold grades
increased by 9% to 7.03 gpt and silver grades increased by 10% to
515 gpt.
- Measured and Indicated gold and silver resources increased by
6% and 7% respectively, with 1.05 million ounces gold and 72.8
million ounces silver, contained in 4.4 million tonnes. Gold and
silver grades increased by 6% to 7.45 gpt gold and 515 gpt
silver.
- Inferred gold and silver resources were down slightly from 2012
with 430,500 ounces gold and 27.1 million ounces silver, contained
in 1.9 million tonnes. Gold grades decreased by 2% to 7.23 gpt and
silver grades decreased by 4% to 455 gpt.
SAN JOSÉ MINE - SOLID GROWTH CONTINUES
Production for 2013 increased by 10%, to 221,073 gold equivalent
ounces (converting silver into gold using a 52:1 ratio), consisting
of 98,827 gold ounces and 6,356,801 silver ounces (see Figure 1).
Production attributable to McEwen Mining for 2013 was 108,326 gold
equivalent ounces, consisting of 48,425 ounces of gold and 3.1
million ounces of silver. Net of this production, total reserves
increased by 12% for gold and 12% for silver, to an estimated 1.8
million tonnes at a grade of 7.03 gpt gold and 515 gpt silver, for
a total of 409,400 ounces of gold and 30.1 million ounces of silver
(see Figure 2). Gold grades increased by 9% to 7.03 gpt and silver
grades increased by 10% to 515 gpt.
In addition to increasing reserves, the exploration program in
2013 was focused on finding extensions of the known resource while
also upgrading the resource previously classified as Inferred. The
mine is consistently replacing production within the Measured and
Indicated resource categories. The contained ounces of gold and
silver within the 4.4 million tonnes of the Measured and Indicated
resources are up from 2012 by 6% and 7% respectively for a total of
1.05 million ounces gold and 72.8 million ounces silver (see Figure
3). Gold and silver grades both increased by 6% to 7.45 gpt gold
and 515 gpt silver.
Inferred gold and silver resources were down as a result of the
increase in the Measured and Indicated resources versus 2012, with
Inferred resources totaling 1.9 million tonnes at a grade of 7.23
gpt gold and 455 gpt silver, for a total of 430,500 ounces of gold
and 27.1 million ounces of silver, representing a decrease of 13%
for gold and 16% for silver from 2012. Gold grades decreased by 2%
to 7.23 gpt and silver grades decreased by 4% to 455 gpt.
The San José mine is owned and operated by Minera Santa Cruz
S.A., a joint venture owned 51% by Hochschild Mining Plc and 49% by
McEwen Mining Inc.
EXPLORATION
In 2013, McEwen Mining and Hochschild Mining, entered into an
agreement to contribute their respective exploration properties
around the mine to the San José joint venture (see Figure 4). For
much of 2013, the exploration program at San José focused on the
geological mapping of the district area, identifying new structures
located south and southeast of the property. A total of
approximately 10,529 metres of drilling was completed during the
year.
|
Table 1- San José Mineral Resource Estimate, December
31, 2013 |
|
Category |
Tonnes (000's) |
Au (g/t) |
Ag (g/t) |
Au (K oz) |
Ag (M oz) |
Measured |
1,524 |
8.85 |
640 |
433.6 |
31.36 |
Indicated |
2,874 |
6.71 |
448 |
620.0 |
41.40 |
Measured and Indicated |
4,398 |
7.45 |
515 |
1053.6 |
72.76 |
Inferred |
1,852 |
7.23 |
455 |
430.5 |
27.09 |
Notes:
- Represents 100% of the resources. McEwen Mining Inc. has a 49%
attributable interest in the San José mine.
- Mineral resources, which are not mineral reserves, do not have
demonstrated economic viability.
- Mineral resources are reported inclusive of mineral
reserves.
- The quantity and grade of reported Inferred resources are
uncertain in nature and there has been insufficient exploration to
classify these Inferred resources as Measured or Indicated, and it
is uncertain if further exploration will result in upgrading them
to an Indicated or Measured category.
- Mineral Resources were estimated by Hochschild Mining Plc using
the CIM Standards on Mineral Resources and Reserves, Definitions
and Guidelines prepared by the CIM Standing Committee on Reserve
Definitions. P&E Mining Consultants Inc have audited the
resource estimates and found that they meet both the requirements
for Canadian disclosure under NI 43-101.
- Resource estimations utilized inverse distance and ordinary
kirging methods depending upon data density.
- Metal prices used were $1200/oz for Au and $20/oz for Ag.
- Resources were defined at a cut-off grade of 215 g/t AgEq,
which is equivalent to a cut-off value of $94.76/tonne. The cut-off
value was increased from $92.88/tonne used for the December 31,
2012 estimate reflecting higher operating costs due to local
inflation.
|
Table 2- Mineral Reserve Estimate, December 31,
2013 |
|
Category |
Tonnes (000's) |
Au (g/t) |
Ag (g/t) |
Au (K oz) |
Ag (M oz) |
Proven |
950 |
7.82 |
597 |
238.8 |
18.23 |
Probable |
863 |
6.15 |
426 |
170.6 |
11.82 |
Proven and Probable |
1,813 |
7.03 |
515 |
409.4 |
30.05 |
Notes:
- Represents 100% of the reserves. McEwen Mining Inc. has a 49%
attributable interest in the San José mine.
- Metal prices used were $1200/oz for Au and $20/oz for Ag (same
as for resources).
- Reserves were defined at a cut-off $94.76/tonne, which is the
same cutoff value used for resources. The cut-off value is based on
historical January to November 2013 geologic, mining, plant and
mine administration variable and fixed cost, and December 2013
estimated costs. P&E considers these costs to reasonable as a
basis for estimating mineral reserves.
- Average internal dilution was 7%. Average mining and
geotechnical dilution was 26%.
- Mineral Reserves were estimated by Hochschild Mining Plc using
the CIM Standards on Mineral Resources and Reserves, Definitions
and Guidelines prepared by the CIM Standing Committee on Reserve
Definitions. P&E Mining Consultants Inc have audited the
reserve estimates and found that they meet the requirements for
disclosure as reserves under NI 43-101.
|
Table 3 - Comparison of San José Mine Reserve
Estimates (100% Basis) |
|
December 31,
2013 Reserve Estimate |
|
December 31,
2012 Reserve Estimate |
|
|
|
Category |
Tonnes (000's) |
Au (g/t) |
Ag (g/t) |
Au (K oz) |
Ag (M oz) |
|
Category |
Tonnes (000's) |
Au (g/t) |
Ag (g/t) |
Au (K oz) |
Ag (M oz) |
|
Proven |
950 |
7.82 |
597 |
238.8 |
18.23 |
|
Proven |
830 |
6.73 |
470 |
179.6 |
12.54 |
Probable |
863 |
6.15 |
426 |
170.6 |
11.82 |
|
Probable |
942 |
6.19 |
471 |
187.5 |
14.26 |
Proven & Probable |
1,813 |
7.03 |
515 |
409.4 |
30.05 |
|
Proven & Probable |
1,772 |
6.44 |
470 |
367.1 |
26.80 |
Notes:
- Represents 100% of the reserves. McEwen Mining Inc. has a 49%
attributable interest in the San José mine.
- Metal prices used were $1200/oz for Au and $20/oz for Ag (same
as for resources).
- Reserves for 2013 were defined at a cut-off $94.76/tonne, which
is the same cutoff value used for resources. The cut-off value is
based on historical January to November 2013 geologic, mining,
plant and mine administration variable and fixed cost, and December
2013 estimated costs. P&E considers these costs to reasonable
as a basis for estimating mineral reserves.
- Reserves for 2012 were defined at a cut-off $92.88/tonne, which
is the same cutoff value used for resources. The cut-off value is
based on historical January to November 2012 geologic, mining,
plant and mine administration variable and fixed cost, and December
2012 estimated costs. P&E considers these costs to reasonable
as a basis for estimating mineral reserves.
- Average internal dilution for 2013 was 7%. Average mining and
geotechnical dilution was 26%.
- Average internal dilution for 2012 was 8%. Average mining and
geotechnical dilution was 27%.
- Mineral Reserves were estimated by Hochschild Mining Plc using
the CIM Standards on Mineral Resources and Reserves, Definitions
and Guidelines prepared by the CIM Standing Committee on Reserve
Definitions. P&E Mining Consultants Inc have audited the
reserve estimates and found that they meet the requirements for
disclosure as reserves under NI 43-101.
|
Table 4 - Comparison of San José Mine Resource
Estimates (100% Basis) |
|
December 31, 2013 Resource Estimate |
|
December 31, 2012 Resource Estimate |
|
|
|
|
|
|
|
|
|
|
|
|
|
Category |
Tonnes (000's) |
Au (g/t) |
Ag (g/t) |
Au (K oz) |
Ag (M oz) |
|
Category |
Tonnes (000's) |
Au (g/t) |
Ag (g/t) |
Au (K oz) |
Ag (M oz) |
|
Measured |
1,524 |
8.85 |
640 |
433.6 |
31.36 |
|
Measured |
1,289 |
8.15 |
559 |
337.8 |
23.17 |
Indicated |
2,874 |
6.71 |
448 |
620.0 |
41.40 |
|
Indicated |
3,098 |
6.56 |
453 |
653.4 |
45.12 |
Measured & Indicated |
4,398 |
7.45 |
515 |
1053.6 |
72.76 |
|
Measured & Indicated |
4,387 |
7.03 |
484 |
991.2 |
68.29 |
Inferred |
1,852 |
7.23 |
455 |
430.5 |
27.09 |
|
Inferred |
2,099 |
7.37 |
476 |
497.4 |
32.12 |
Notes:
- Represents 100% of the resources. McEwen Mining Inc. has a 49%
attributable interest in the San José mine.
- Mineral resources, which are not mineral reserves, do not have
demonstrated economic viability.
- Mineral resources are reported inclusive of mineral
reserves.
- The quantity and grade of reported Inferred resources are
uncertain in nature and there has been insufficient exploration to
classify these Inferred resources as Measured or Indicated, and it
is uncertain if further exploration will result in upgrading them
to an Indicated or Measured category.
- Mineral Resources were estimated by Hochschild Mining Plc using
the CIM Standards on Mineral Resources and Reserves, Definitions
and Guidelines prepared by the CIM Standing Committee on Reserve
Definitions. P&E Mining Consultants Inc have audited the
resource estimates and found that they meet both the requirements
for Canadian disclosure under NI 43-101.
- Resource estimations utilized inverse distance and ordinary
kirging methods depending upon data density.
- Metal prices used were $1200/oz for Au and $20/oz for Ag.
- Resources for 2013 were defined at a cut-off grade of 215 g/t
AgEq, which is equivalent to a cut-off value of $94.76/tonne. The
cut-off value was increased from $92.88/tonne used for the December
31, 2012 estimate reflecting higher operating costs due to local
inflation.
- Resources for 2012 were defined at a cut-off grade of 213 g/t
AgEq, which is equivalent to a cut-off value of $92.88/tonne. The
cut-off value was increased from $88.31/tonne used for the December
31, 2011 estimate reflecting higher operating costs due to local
inflation.
To view Figures 1, 2, 3 and 4 please click on the following
link: http://media3.marketwire.com/docs/MUX0313.pdf
About McEwen Mining (www.mcewenmining.com)
The goal of McEwen Mining is to qualify for the S&P 500 by
creating a high growth gold/silver producer focused in the
Americas. McEwen Mining's principal assets consist of the San José
mine in Santa Cruz, Argentina (49% interest), the El Gallo 1 mine
and El Gallo 2 project in Sinaloa, Mexico, the Gold Bar project in
Nevada, USA, and the Los Azules copper project in San Juan,
Argentina.
As of March 13, 2014 McEwen Mining has an aggregate of
297,159,359 million shares of common stock outstanding and issuable
upon the exchange of the exchangeable shares. Rob McEwen, Chairman
and Chief Owner, owns 25% of the shares of the Company (assuming
all outstanding Exchangeable Shares are exchanged for an equivalent
amount of Common Shares).
TECHNICAL INFORMATION
The technical content of this news release has been reviewed and
approved by Eugene Puritch, P. Eng., President of P&E Mining
Consultants Inc. Under the direction of Mr. Puritch, Al Hayden, P.
Eng., James L. Pearson, P. Eng., and Fred H. Brown, CPG, P.Geo.
performed an independent audit of the December 31, 2013 resource
and reserve estimates. Each of the foregoing is a Qualified Person
and independent of the Corporation, in each case, within the
meaning of Canadian National Instrument 43-101 (NI 43-101). Each of
the Qualified Persons visited the site on February 20th and 21st,
2014, where resource modeling techniques were reviewed, the drill
hole database was inspected and independent drill core samples were
collected for verification of Au and Ag grades. Site visit data
review and sampling revealed no issues of concern regarding the
resource estimate. For additional information about the San José
Mine, including details of the 2012 resource and reserve estimates,
see the "Technical Report on San José Silver-Gold Mine, Santa Cruz,
Argentina" dated August 15, 2013 with an effective date of December
31 2012, prepared by Eugene Puritch, P.Eng., David Burga, P.Geo.,
Alfred Hayden, P.Eng., James L. Pearson, P.Eng., and Fred H. Brown,
P.Geo., all of whom are qualified persons and all of whom are
independent of McEwen Mining, each as defined by NI 43-101.The
foregoing news release and technical report are available under the
Corporation's profile on SEDAR (www.sedar.com).
RELIABILITY OF INFORMATION REGARDING THE SAN JOSÉ MINE
Minera Santa Cruz S.A., the owner of the San José mine, is
responsible for and has supplied to the Company all reported
results from the San José mine. McEwen Mining's joint venture
partner, a subsidiary of Hochschild Mining plc, and its affiliates
other than MSC do not accept responsibility for the use of project
data or the adequacy or accuracy of this release.
CAUTIONARY NOTE TO US INVESTORS REGARDING RESOURCE
ESTIMATION
McEwen Mining prepares its resource estimates in accordance with
standards of the Canadian Institute of Mining, Metallurgy and
Petroleum referred to in Canadian National Instrument 43-101 (NI
43-101). These standards are different from the standards generally
permitted in reports filed with the SEC. Under NI 43-101, McEwen
Mining reports measured, indicated and inferred resources,
measurements, which are generally not permitted in filings made
with the SEC. The estimation of measured resources and indicated
resources involve greater uncertainty as to their existence and
economic feasibility than the estimation of proven and probable
reserves. U.S. investors are cautioned not to assume that any part
of measured or indicated resources will ever be converted into
economically mineable reserves. The estimation of inferred
resources involves far greater uncertainty as to their existence
and economic viability than the estimation of other categories of
resources.
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, 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. 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, 2013 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.
McEwen Mining Inc.Sheena ScotlandInvestor Relations(647)
258-0395 ext 410 or Toll Free: (866) 441-0690(647) 258-0408Mailing
AddressMcEwen Mining Inc.181 Bay Street Suite 4750Toronto, ON M5J
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