McEwen Mining Inc. (NYSE:MUX)(TSE:MUX) Announces Resource Update at the El Gallo Complex in Mexico

Toronto, Canada (ABN Newswire) - McEwen Mining Inc. (NYSE:MUX)(TSE:MUX) is pleased to announce an updated resource estimate for the El Gallo Complex (100% owned) in Sinaloa State, Mexico, where Phase 1 production is scheduled to begin during the Third Quarter. New drilling by McEwen Mining from November 2010 to April 2012 (approximately 100,000 meters) has increased the level of confidence associated with the mineralization and increased the size of the resource. This update reports both global and in-pit resources. The updated resource estimates were generated using a silver and gold price of US$28.50 and US$1,500 per ounce, respectively.

'Our exploration team in Mexico has done a tremendous job at El Gallo. This growth in resources is even more important as we look to begin production during the Third Quarter. The goal for our exploration during the remainder of 2012 is to continue to grow our silver and gold resources,' stated Rob McEwen, Chairman and CEO.

The first objective of the Company's exploration program since the last resource update in February 2011 was to increase the Measured and Indicated silver resources. This was done in order to raise the confidence level associated with this mineralization as the company is currently finalizing production plans for Phase 2, which will include the El Gallo and Palmarito (part of the El Gallo Complex) deposits. This was successfully achieved as the majority of the in-pit mineralization has been converted to Measured and Indicated for these two areas.

The second objective was to establish an inferred resource on a number of new veins that were discovered throughout 2010-2012. These veins contain both silver and gold. Although much of the Inferred mineralization was closely drilled and high degree of confidence exists, it was given an Inferred classification because additional geological modelling is required to gain a full understanding of the mineralization or because it fell outside of the conceptual pit design.

The resource calculation for the El Gallo deposit in Table 1 and 2 (see link below) was estimated based on the lower cut-off grade of 12 gpt (grams per tonne) silver using a heap leach recovery process. Cut-off grade for mineralization that would be processed at the mill was 23.75 gpt silver. Table 3 shows the resource estimate for the El Gallo deposit at various cut-off grades that would be contained inside of a conceptual pit in order to highlight the higher-grade core.

For the full announcement including tables and charts, please visit:
http://abnnewswire.net/lnk/6KE3KNJ4

About McEwen Mining :

The goal of McEwen Mining (TSE:MUX) (NYSE:MUX) is to qualify for inclusion in the S&P 500 by 2015 by creating a high growth, low-cost, mid-tier silver and gold 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 Complex in Sinaloa, Mexico; the Gold Bar Project in Nevada, US; the Los Azules Project in San Juan, Argentina and a large portfolio of exploration properties in Argentina, Nevada and Mexico. In 2012, McEwen Mining is planning to spend approximately US$40 million on exploration.

McEwen Mining has 267,919,384 shares issued and outstanding. Rob McEwen , Chairman, President and CEO, owns 25% of the shares of the Company. As of March 31, 2012, McEwen Mining had cash and liquid assets of US$66.7 million, comprised of cash of US$41.1 million, silver and gold bullion at market value of US$21.4 million, short-term investments of US$3.1 million and marketable securities

Source:

McEwen Mining

Contact:

McEwen Mining Inc.
Jenya Meshcheryakova
Investor Relations
TEL: +1-647-258-0395 ext 410 or 
Toll Free: +1-866-441-0690
Fax: +1-647-258-0408