McEwen Mining Inc.: Los Azules Copper Project Exploration Drilling Update
TORONTO, ONTARIO -- (Marketwire) -- 03/28/13 -- McEwen Mining Inc. (NYSE: MUX)(TSX: MUX) is pleased to announce assay results for nine new core holes from the Los Azules copper project in San Juan Province, Argentina. Most importantly, drilling continues to intersect significant intercepts of high to medium grade copper mineralization over long intervals west of the original deposit. In addition, the mineralization has been successfully extended at depth.
Exploration Highlights
-- Drilling west of the resource has intersected high-grade copper
mineralization in Hole 12114, returning 0.70% copper over 150 meters.
This hole was located on the periphery of the resource and continues to
extend what is becoming an important new parallel trend.
-- Hole 1297, which was drilled on the western edge of the resource,
returned 0.50% copper over 414 meters, including 1.07% over 54 meters.
In addition to Hole 12114, this hole helps demonstrate that there is
excellent potential to increase the size of the resource.
-- Drilling below the previously known resource successfully extended the
depth of the mineralization by over 300 meters in Hole 1295, returning
0.49% copper over 338.5 meters. This result was part of a longer
intercept that went through two known zones of mineralization. The
overall intercept from this hole was 0.51% copper over 618.5 meters.
-- The Company will incorporate these drill results plus an additional 3
holes not yet released into an updated resource estimate that is
expected to be available by the end of May.
"These results continue to illustrate the growth potential of this world class copper asset. Los Azules is both large and high-grade, which makes it unique among the world's undeveloped projects," stated Rob McEwen, Chief Owner.
Table 1. Los Azules Exploration Highlights
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From To Thickness Copper Grade
Hole (m) (m) (m) (%)
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1295 426 1044.5 618.5 0.51
including 580 618 38 1.07
including 720 744 24 1.16
including 970 1044.5 74.5 0.61
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1297 276 690 414 0.50
including 436 490 54 1.07
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12114 224 374 150 0.70
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This season was the first time that exploration had drilled below 700 meters. The discovery of deeper mineralization at the project has significantly expanded the potential to grow the resource. Drilling this season has continued to focus on expanding the resource with 15,800 meters completed to date. The drill results in this news release, plus 3 additional holes not yet finalized, will be incorporated into a new resource estimate that will be released by the end of May. This updated resource would form the basis of a new Preliminary Economic Assessment (PEA), which is due by the end of the third quarter 2013. Los Azules is one of the largest, highest grade copper-porphyry deposits not owned by a major base metal company.
A table of assay results is provided below in Table 2. A drill hole location map and cross sections of the Los Azules resource are provided below in Figures 1 to 4, respectively.
About the Los Azules Copper Project
Los Azules is a large copper porphyry system located in western San Juan Province within a belt of porphyry copper deposits that straddles the Chilean/Argentine border. This belt contains some of the world's largest copper deposits, including Codelco's El Teniente and Andina mines, Anglo American's Los Bronces mine, Antofagasta PLC's Los Pelambres mine and Xstrata's El Pachon project, among others.
The mineral resources for Los Azules were calculated in January 2013 and are summarized in the table below with a cut-off grade of 0.35% copper.
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Contained
Mineral Resource Tonnes Copper Copper Gold Silver
Category (millions) (%) (MM lbs) grams/tonne grams/tonne
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Indicated 310 0.65 4.45 0.07 1.8
Inferred 1,302 0.49 13.95 0.06 2.0
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About McEwen Mining (www.mcewenmining.com)
The goal of McEwen Mining is to qualify for inclusion in the S&P 500 by 2015 by creating a high growth gold producer focused in the Americas. McEwen Mining's principal assets consist of the San Jose 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, Mexico and Nevada.
McEwen Mining has 296,024,859 shares issued and outstanding. Rob McEwen, Chairman, President 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). As of December 31, 2012, McEwen Mining had cash and liquid assets of approximately US$79 million and is debt free.
Technical Information
James K. Duff, Senior Consultant to the Company and a Registered Member in good standing of the Society for Mining, Metallurgy and Exploration, who is a Qualified Person as defined by National Instrument 43-101 ("NI 43-101") has reviewed and approved the technical contents of this news release. Bruce Davis, PhD, FAusIMM, who is a Qualified Person as defined by NI 43-101 and responsible for the quality control for the assaying of the Los Azules drill core has reviewed the assay quality control information. All samples were collected in accordance with industry standards. Split drill core samples were submitted to Alex Stewart International laboratory in Mendoza, Argentina for fire assay and ICP analysis. Accuracy of results is verified through the systematic inclusion of standards, blanks and duplicate samples.
For additional information about the Los Azules project see the Technical Report titled "Los Azules Porphyry Copper Project, San Juan Province, Argentina" dated August 1, 2012, with an effective date of June 15, 2012, prepared by D. Ernest Winkler, P.Eng, Robert Sim, P.Geo, Bruce Davis, PhD, FAusIMM and James K. Duff, 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 report is available under the Corporation's profile on SEDAR (www.sedar.com).
The mineral resource estimate referenced in this news release was prepared in January 2013 by Robert Sim, P.Geo. and Bruce Davis, PhD, FAusIMM, each a qualified person and independent of McEwen Mining, each as defined by NI 43-101 and first disclosed in the Corporation's news release dated February 5, 2013 titled "McEwen Mining Continues to Expand Los Azules' Large, High-Grade, Mineral Resource.
Cautionary Note to U.S. Investors
McEwen Mining reports 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. According to Canadian NI 43-101 criteria, the estimation of measured resources and indicated resources involve greater uncertainty as to their economic feasibility than the estimation of proven and probable reserves. Under SEC Industry Guide 7 criteria, measured, indicated and inferred resources are considered Mineralized Material. The SEC considers that in addition to greater uncertainty as to the economic feasibility of Mineralized Material compared to proven and probable reserves, there is also greater uncertainty as to the existence of Mineralized Material. U.S. investors are cautioned not to assume that measured or indicated resources will 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 press 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 press 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, political 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, risks related to the cost of transferring or otherwise allocating funds between operating jurisdictions, factors associated with fluctuations in the market price of precious metals, mining industry risks, political, economic, social and security risks associated with foreign operations, risks associated with the construction and permitting of mining operations and commencement of production and the projected costs thereof, risks related to litigation, property title, 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, 2012 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.
Table 2 - Summary of Drill Hole Results
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From To Thickness Cu
Hole Northing Easting Dip (m) (m) (m) (%) Zone
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90
1) 1290 6559000 2383750 degrees 0 61 61 - Overburden
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Leached oxide
61 142 81 0.02 cap
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142 152 10 0.06 Mixed oxide
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152 366 214 0.24 Partially
enriched with
weak
chalcopyrite
and chalcocite
Includes 30m at
0.41% Cu from
288m to 318m
------------------------------------------
Weak primary
with
366 757.5 389.5 0.13 chalcopyrite
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Step-out hole completed to target depth.
Average core recovery was 93%.
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90
2) 1293 6559621 2383360 degrees 0 61 61 - Overburden
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Caving - no
61 74.5 13.5 - sample
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Partially
enriched with
weak
chalcopyrite
74.5 106 31.5 0.18 and chalcocite
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Infill hole lost before reaching target
depth. Average core recovery was 50%.
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90
3) 1295 6558598 2382993 degrees 0 67 67 - Overburden
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Leached oxide
67 80 13 0.07 cap
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Partially
enriched with
calcocite and
80 112 32 0.31 chalcopyrite
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Primary
112 140 28 0.18 chalcopyrite
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Partially
enriched with
chalcopyrite
140 164 24 0.24 and chalcocite
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Primary
chalcopyrite
164 426 262 0.22 and bornite
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426 1044.5 618.5 0.51 Primary
chalcopyrite
and bornite
Includes 38m at
1.07% Cu from
580m to 618m,
And 24m of
1.16% Cu from
720m to 744m,
And 74.5m of
0.61% Cu from
970m to 1044.5m
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Twin of hole T-01 (drilled in 2010)
completed to target depth. Average core
recovery was 99%.
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90
4) 1296 6558158 2323223 degrees 0 60.2 60.2 - Overburden
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Leached oxide
60.2 66.2 4 0.03 cap
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Caving - no
66.2 72.7 6.5 - sample
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Primary
72.7 156 83.3 0.25 chalcopyrite
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Primary
chalcopyrite
156 244 88 0.92 and chalcocite
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Primary
chalcopyrite
244 523.2 279.2 0.24 and bornite
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Reattempt of hole 12101 lost before
reaching target depth. Average core
recovery was 86%.
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90
5) 1297 6559203 2382889 degrees 0 69 69 - Overburden
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69 72 3 0.03 Mixed oxide
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Partially
enriched with
chalcopyrite
72 218 146 0.18 and chalcocite
------------------------------------------
Primary
chalcopyrite
218 276 58 0.18 and bornite
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276 690 414 0.50 Primary
chalcopyrite
and bornite
Includes 54m at
1.07% Cu from
436m to 490m
------------------------------------------
Primary
chalcopyrite
690 980.8 290.8 0.23 and bornite
------------------------------------------
Step-out hole completed to target depth.
Average core recovery was 97%.
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90
6) 12104 6558803 2383200 degrees 0 114 114 - Overburden
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Partially
enriched with
chalcocite and
114 172 58 0.18 chalcocite
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Primary
chalcopyrite
172 270 98 0.23 and bornite
------------------------------------------
Primary
chalcopyrite
270 374 104 0.39 and bornite
------------------------------------------
Primary
chalcopyrite
374 706.4 332.4 0.25 and bornite
------------------------------------------
Infill hole completed to target depth.
Average core recovery was 92%.
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90
7) 12106 6559621 2383360 degrees 0 79 79 - Overburden
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Leached oxide
79 106 27 0.02 cap
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Enriched with
chalcocite and
106 222 116 1.01 chalcopyrite
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Partially
enriched with
chalcopyrite
222 428 206 0.55 and chalcocite
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Partially
enriched with
chalcopyrite
428 496 68 1.18 and chalcocite
------------------------------------------
Primary
chalcopyrite
496 866.4 370.4 0.30 and bornite
------------------------------------------
Offset hole 1048 (drilled in 2010)
completed to target depth. Average core
recovery was 91%.
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90
8) 12100 6559046 2383378 degrees 0 30 30 - Overburden
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Leached oxide
30 104 74 0.02 cap
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104 136 32 0.30 Mixed oxide
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Secondary
chalcocite with
136 222 86 0.55 pyrite
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222 282 60 0.29 Partially
enriched with
pyrite,
chalcopyrite
and chalcocite
------------------------------------------
Primary pyrite,
chalcopyrite
282 751.3 469.3 0.21 and bornite
------------------------------------------
Infill hole completed to target depth.
Average core recovery was 97%.
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90
9) 12114 6559820 2382635 degrees 0 101 101 - Overburden
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101 138 37 0.09 Mixed oxide
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Partially
enriched with
pyrite and
138 174 36 0.16 chalcocite
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Enriched with
chalcocite and
174 224 50 0.39 chalcopyrite
------------------------------------------
Enriched with
chalcocite and
224 374 150 0.70 chalcopyrite
------------------------------------------
Primary pyrite,
chalcopyrite
374 814.5 440.5 0.22 and bornite
------------------------------------------
Step-out hole completed to target depth.
Average core recovery was 95%.
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To view the figures associated with this release, please visit the following link: http://media3.marketwire.com/docs/MUX328_maps.pdf.
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.
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McEwen Mining Inc.
Jenya Meshcheryakova
Investor Relations
(647) 258-0395 ext 410 or Toll Free: (866) 441-0690
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