McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is
pleased to provide an update on its progress so far this year along
with a timeline for deliverables in 2021 and recent financing
activities.
Timmins, Canada
The Fox Complex has a combined resource base of
3 million oz(1) of gold and we have ambitious plans for these
assets. Independent technical consultants have been employed to
develop a Preliminary Economic Assessment (PEA) to expand the
production from the current short mine life producing 30-40,000 oz
gold per year to a ten-year mine life with annual production of
100-150,000 oz gold per year. Early results are encouraging.
The turnaround at the Black Fox Mine is
progressing, with development of the underground access to the
Froome deposit ahead of schedule. The first ore from Froome is
planned to be delivered to the mill later this quarter and
commercial production is expected to begin in Q4 of this year.
Underground drilling at the Black Fox Mine
continues to return encouraging high-grade intercepts that
illustrate the potential of the mine. These recent results are from
delineation drilling:
64.7
g/t gold over 2.0 m core length
(1.0 m TW(2)) from hole 300-F892-03 (300 level
West Flank)50.8 g/t gold over 5.6
m core length (1.3 m TW) from hole
460-L249-02 (460 level Central Zone)37.7 g/t gold
over 2.6 m core length (1.0 m TW)
from hole 460-L249-06 (490 level Central Zone)12.7
g/t gold over 3.2 m core length
(2.0 m TW) from hole 490-L310-14 (490 level
Central Zone)
At the Stock property, surface exploration
drilling is underway with three drills on the Stock West target,
and one drill testing for the extension of economic mineralization
below the historic workings of the Stock Mine. Assuming this
drilling is successful in identifying sufficient gold to support a
decision to re-open the historic Stock Mine, we are well positioned
to act quickly and begin dewatering the mine in the second half of
this year. Previously the mine was dewatered in just 4 months via
the existing shaft workings.
Nevada, USA
On January 7th, we updated resource and reserve
numbers for our Gold Bar Mine. As a result of the 16% overall
reduction in estimated reserves, an updated Feasibility Study has
been completed and the report will be published by February
23rd.
Exploration drilling has resumed on targets
close to the mine. On our adjoining Tonkin property, we have an
oxide deposit that we are assessing as a potential source of
production that may also extend the mine life of Gold Bar.
Argentina
The San José mine, which is operated by our
joint venture partner Hochschild Mining, has resumed production
after being temporarily closed during Q4 2020 due to
government-imposed quarantine measures. The mine performed well in
2020 despite interruptions due to COVID-19 issues. We are pleased
to report that we have just received our first dividend for the
year from our 49% interest in the San José mine.
On January 20th, Hochschild released encouraging
exploration drilling results from San José including: 1.3
m @ 13.8 g/t Au and
3,149 g/t Ag (SJD-2188, Ramal
HVNX vein), and 1.6 m @ 5.6 g/t
Au and 648 g/t Ag
(SJD-2210, Isabel vein).
At our Los Azules copper project, we expect to
provide an update on the construction of a new access road to the
project in the coming months. This critical infrastructure would
provide year-round access to the project, compared to the current
road which is only passable 5 months of the year. The Los Azules
PEA published in 2017 projected a robust operation at $3/lb copper.
With the improving copper price, interest in the project has
increased.
We are currently evaluating two alternatives to
realize more value for our shareholders: one is pursuing a joint
venture with a senior mining company to bring the project into
production; and the other alternative is spinning out the asset
into a new public company. Concurrently we are looking at
opportunities to improve the economics of Los Azules with ore
sorting technologies.
Mexico
The Fenix Feasibility study, that envisions a
gold and silver mine with a 9.5-year life, will be published by
February 15th. The project is turn-key with permits in hand, as
well as an established local workforce.
FINANCING
We have closed the previously announced private
placement offering (the “Offering”) of 12,600,600 flow-through
common shares (within the meaning of subsection 66(15) of
the Income Tax Act (Canada)) priced at US$1.01 (Cdn$1.29)
per flow-through common share for total gross proceeds of
US$12,689,000 (Cdn$16,254,774). The Offering was completed through
a syndicate of underwriters led by Cantor Fitzgerald Canada
Corporation as sole bookrunner and included H.C. Wainwright &
Co., LLC and A.G.P./Alliance Global Partners.
The proceeds of the Offering will be used
exclusively to fund development of the Froome deposit, which
is part of the Fox Complex in Timmins, Ontario.
This press release is not an offer of common
shares for sale in the United States. The common shares may not be
offered or sold in the United States absent registration or an
available exemption from the registration requirements of the US.
Securities Act of 1933, as amended (the "U.S. Securities Act") and
applicable U.S. state securities laws. McEwen will not make any
public offering of the securities in the United States. The common
shares have not been and will not be registered under the U.S.
Securities Act, or any state securities laws.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be
any sale of these securities, in any jurisdiction in which such
offer, solicitation or sale would be unlawful.
Notes:
- Resources and Reserves for all the
McEwen Mining projects can be found on our website
at: https://www.mcewenmining.com/operations/reserves-and-resources/default.aspx
- True widths (TW) of the drill hole
core intercepts are estimated at this time.
Reliability of Information Regarding San
JoséMinera 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.
Technical Information The technical
contents of this news release have been reviewed and approved by G.
Peter Mah, P.Eng., COO of McEwen Mining and a Qualified Person as
defined by Canadian Securities Administrators National Instrument
43-101 "Standards of Disclosure for Mineral Projects."
Technical information pertaining to Black Fox Mine drilling
results contained in this news release has been prepared under the
supervision of Robert Glover, P.Geo. Mr. Glover 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, 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, 2019 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.
ABOUT MCEWEN MINING
McEwen Mining is a diversified gold and silver producer and
explorer focused in the Americas with operating mines in Nevada,
Canada, Mexico and Argentina. It also owns a large copper deposit
in Argentina.
CONTACT INFORMATION: |
|
Investor Relations:(866)-441-0690 Toll
Free(647)-258-0395Mihaela Iancu ext.
320info@mcewenmining.com |
150 King Street WestSuite 2800, P.O. Box 24Toronto, ON, CanadaM5H
1J9 |
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