Welcome!

News Feed Item

McEwen Mining Continues to Expand Los Azules' Large, High-Grade, Mineral Resource

Contained Copper in Inferred Class Resource Increased by +29%

TORONTO, ONTARIO -- (Marketwire) -- 02/05/13 -- McEwen Mining Inc. (NYSE:MUX)(TSX:MUX) is pleased to announce an updated, Canadian National Instrument 43-101 compliant ("NI 43-101") mineral resource estimate for its 100% owned Los Azules Copper Project in San Juan Province, Argentina. Most importantly, drilling has expanded contained copper in the inferred resource category by 29% to 13.95 billion lbs. Contained copper in the indicated resource decreased slightly to 4.45 billion lbs. The expanded resource incorporates 6,966 meters of new drilling from 10 additional holes. The resource remains open laterally, to depth and along strike (to view cross-sections displaying the resource click here). Los Azules is one of the world's largest, undeveloped, high-grade, open pit copper projects which, contains significant growth potential.

Table 1. Los Azules Copper Project - Comparison of Previous and Current Mineral Resource Estimates


============================================================================
                                        January 2013 Resource               
          June 2012 Resource Estimate      Estimate Update        % Change  
----------------------------------------------------------------------------
  Cut-off  Tonnage    Cu              Tonnage    Cu                         
   Grade   (million Grade    Cu lbs   (million Grade    Cu lbs    Contained 
   (Cu%)   tonnes)   (%)   (billions) tonnes)   (%)   (billions)   Cu lbs   
----------------------------------------------------------------------------
Indicated Resource                                                          
----------------------------------------------------------------------------
   0.35      323     0.65     4.64      310     0.65     4.45        -4%    
----------------------------------------------------------------------------
Inferred Resource                                                           
----------------------------------------------------------------------------
   0.35      948     0.52    10.82     1,302    0.49    13.95       +29%    
============================================================================
(i)Details for gold and silver resources are included in Table 2.           

"Los Azules is a unique asset, in terms of size and grade, for McEwen Mining. This year's exploration drilling has demonstrated that there is significant potential to expand the resource well beyond our previous understanding of the deposit," stated Rob McEwen, Chief Owner.

Drilling this season represents the first time a meaningful amount of deeper drilling has occurred at Los Azules. Prior to this year the deepest drill hole was 650 meters. This season there has been a total of 6 holes that exceeded 700 meters. This deeper drilling has begun to identify a potential parallel trend, west of the original Los Azules ore-body. Copper mineralization discovered within this trend occurs near surface and also at depth (down to 1,050 meters below surface). This is significant because it may indicate that previous shallow drilling, which makes up the majority of the Los Azules resource, failed to adequately test the deeper potential of the deposit. As a result, many new exploration targets have emerged.

McEwen Mining has begun work on an updated Preliminary Economic Assessment (PEA) which is expected to be completed in the third quarter of this year. The updated PEA will be based on a significantly larger mineral resource and will evaluate the possibility of increasing the daily throughput. The PEA will also incorporate further metallurgical studies currently being done on the possibility of producing copper cathode instead of a concentrate and processing low grade mineralized material not previously considered, via a heap leach. The advantage of producing a copper cathode is that it would eliminate the contemplated slurry pipeline through Chile and would reduce Argentina's export tax on concentrate.

This news release has been submitted by Andrew Elinesky, Vice President - Argentina, for the Company.

About Los Azules

Los Azules is a large undeveloped 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. Los Azules is one of the world's largest, highest grade, undeveloped copper-porphyry deposits not owned by a major base metal company.

Table 2. Los Azules Mineral Resource Estimate

In order to exhibit reasonable prospects for economic viability, the mineral resource estimate has been contained within a conceptual open pit shell generated using general technical and economic parameters that are defined at the end of this news release. The base case cut-off grade of 0.35% Cu is highlighted in the table.


============================================================================
                                           Au                Ag             
                                         Grade             Grade            
              Tonnage    Cu              (grams            (grams           
Cut-off Grade (million Grade    Cu lbs    per     Au Oz     per     Ag Oz   
    (Cu%)     tonnes)   (%)   (billions) tonne) (millions) tonne) (millions)
----------------------------------------------------------------------------
Indicated Resource                                                          
----------------------------------------------------------------------------
     0.15       414     0.55     5.04     0.06     0.83     1.8      23.6   
----------------------------------------------------------------------------
     0.20       397     0.57     4.97     0.06     0.80     1.8      22.6   
----------------------------------------------------------------------------
     0.25       369     0.59     4.84     0.06     0.76     1.8      21.1   
----------------------------------------------------------------------------
     0.30       338     0.62     4.65     0.07     0.72     1.8      19.6   
----------------------------------------------------------------------------
     0.35       310     0.65     4.45     0.07     0.68     1.8      18.3   
----------------------------------------------------------------------------
     0.40       283     0.68     4.22     0.07     0.63     1.9      16.9   
----------------------------------------------------------------------------
     0.45       254     0.71     3.95     0.07     0.57     1.9      15.4   
----------------------------------------------------------------------------
     0.50       225     0.74     3.64     0.07     0.52     1.9      13.8   
----------------------------------------------------------------------------
     0.55       195     0.77     3.30     0.07     0.46     1.9      12.1   
----------------------------------------------------------------------------
     0.60       165     0.80     2.92     0.07     0.40     1.9      10.2   
----------------------------------------------------------------------------
     0.65       134     0.85     2.49     0.08     0.33     1.9      8.2    
----------------------------------------------------------------------------
     0.70       105     0.89     2.07     0.08     0.26     1.9      6.5    
----------------------------------------------------------------------------
Inferred Resource                                                           
----------------------------------------------------------------------------
     0.15      3,378    0.34    25.33     0.04     4.84     1.7     181.4   
----------------------------------------------------------------------------
     0.20      2,890    0.37    23.44     0.05     4.35     1.7     159.8   
----------------------------------------------------------------------------
     0.25      2,318    0.40    20.61     0.05     3.71     1.8     134.9   
----------------------------------------------------------------------------
     0.30      1,774    0.44    17.32     0.05     3.01     1.9     108.9   
----------------------------------------------------------------------------
     0.35      1,302    0.49    13.95     0.06     2.34     2.0      83.3   
----------------------------------------------------------------------------
     0.40       914     0.53    10.76     0.06     1.72     2.1      60.8   
----------------------------------------------------------------------------
     0.45       622     0.59     8.03     0.06     1.21     2.1      42.8   
----------------------------------------------------------------------------
     0.50       422     0.64     5.96     0.06     0.85     2.2      29.7   
----------------------------------------------------------------------------
     0.55       290     0.69     4.43     0.06     0.60     2.2      20.6   
----------------------------------------------------------------------------
     0.60       201     0.75     3.31     0.07     0.42     2.3      14.5   
----------------------------------------------------------------------------
     0.65       143     0.80     2.51     0.07     0.31     2.3      10.5   
----------------------------------------------------------------------------
     0.70       103     0.84     1.91     0.07     0.22     2.3      7.6    
============================================================================
(i)   "Tonnes" is stated in metric and is equivalent to 2205 lbs.           
(ii)  Estimated contained metal values may be subject to rounding errors.   

Details on the parameters of the resource estimate are as follows:


--  The resource estimation was based on data from 173 drill holes
    comprising a total length of 50,612 meters of drilling completed to the
    end of December 2012. 


--  There were a total of 23,178 individual samples selected for analysis.
    The samples were collected and analyzed in accordance with industry
    standards. Splits from the drill core samples were submitted to either
    Alex Stewart in Mendoza or ALS Chemex or ACME in Santiago, Chile for
    fire assay and ICP analysis. Accuracy of results is tested through the
    systematic inclusion of standards, blanks and check assays. 

--  The January 2013 mineral resource estimate for the Los Azules Copper
    Project was prepared under the direction of Robert Sim, P.Geo. of SIM
    Geological Inc. The mineral resource estimate uses drill hole sample
    assay results and the interpretation of a geologic model that relates to
    the spatial distribution of copper in the deposit. Interpolation
    characteristics were defined based on the geology, drill hole spacing
    and geostatistical analysis of the data. Block grade estimates were done
    using Ordinary Kriging (OK) with a nominal block size measuring 20
    meters long, 20 meters wide and 15 meters high. Resources are classified
    according to their proximity to sample data locations and are reported,
    as required under NI 43-101, according to the CIM Definition Standards
    for Mineral Resources and Mineral Reserves. 

--  Mineral resources, which are not mineral reserves, do not have
    demonstrated economic viability. 

--  The quantity and grade of reported Inferred resources are uncertain in
    nature and there has been insufficient exploration to classify these
    inferred resources as Indicated or Measured, and it is uncertain if
    further exploration will result in upgrading them to an Indicated or
    Measured category. 

--  As required under NI 43-101, reasonable prospects for economic viability
    of the mineral resources has been exhibited by the application of a
    resource limiting pit shell built about copper grades in the model using
    a projected metal price of US$2.75 per lb. Cu, mining costs of US$1.00
    per tonne, milling and G&A costs of US$4.25 per tonne, 100% recoveries
    and an average pit slope of 34 degrees. 

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, low-cost, mid-tier 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, Nevada and Mexico.

McEwen Mining has 296,024,859 shares issued and outstanding. Rob McEwen, Chairman, President and Chief Owner, owns approximately 25% of the shares of the Company. As of December 31, 2012, McEwen Mining had cash and liquid assets of approximately US$70 million and is debt free.

Technical Information:

Robert Sim, P.Geo., who is a Qualified Person and independent of McEwen Mining, each as defined by National Instrument 43-101 ("NI 43-101") has reviewed and approved the technical content of this news release related to the mineral resource estimate presented herein. Notwithstanding, Bruce Davis, PhD, FAusIMM, who is a Qualified Person and independent of McEwen Mining, 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. Splits from the drill core samples were submitted to the ACME sample preparation laboratory in Mendoza, Argentina, and then transferred to ACME's laboratory in Santiago, Chile for fire assay and ICP analysis. Accuracy of results is tested through the systematic inclusion of standards, blanks and check assays. The mineral resource estimate referenced in this press release was prepared in January 2013 by Robert Sim, P.Geo. and Bruce Davis, PhD, FAusIMM.

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).

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 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 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, 2011 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.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/mux0205fig1.pdf.

To view the cross-sections displaying the resource, please visit the following link: http://media3.marketwire.com/docs/mux0205cs.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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...