Announces Resource Update at the El Gallo Complex in Mexico
Toronto, June 6, 2012 AEST (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 Inc
McEwen Mining (NYSE:MUX) (TSE:MUX) is a gold and silver producer with operations in Nevada, Canada, Mexico and Argentina. McEwen Mining also holds a 48.3% interest in McEwen Copper, which is developing the large, advanced-stage Los Azules copper project in Argentina. The Company's goal is to improve the productivity and life of its assets with the objective of increasing the share price and providing a yield. Rob McEwen, Chairman and Chief Owner, has a personal investment in the Company of US$225 million.
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