Announces Exploration Update for El Gallo 1, Mexico
Toronto, April 22, 2015 AEST (ABN Newswire) - McEwen Mining Inc. (
NYSE:MUX) (TSE:MUX) is pleased to announce drill results that we expect will extend the mine life and improve the gold grade of El Gallo 1. Drilling is ongoing and an updated resource estimate for El Gallo 1 will be released in Q3 2015.
The 2015 exploration budget for Mexico is $5.5 million. The drill assay results highlighted below are from the most advanced deposits being explored, San José del Alamo and Twin Domes. As well, we continue to explore several regional prospects with strong indications of gold and silver.
Exploration Targets (Figure 1 in link below)
San José del Alamo
The San José del Alamo deposit is located 15 kilometres north of the El Gallo 1 mine (Figure 2, page 6 in link below). The deposit outcrops at surface and the mineralization extends to a depth of 190 metres and has a strike length of 800 metres with an average width of five metres.
A small resource estimate was released in August 2013 for San José del Alamo that was based on 36 holes. Since then an additional 73 holes have been drilled. An updated resource estimate for San José del Alamo is scheduled for Q3 2015 as part of the El Gallo 1 resource estimate update.
Metallurgical testing indicates the mineralization is amenable to heap leaching and can be processed at the El Gallo 1 mine.
Twin Domes
Twin Domes is located 17 kilometres northwest of the El Gallo 1 mine (Figure 3, page 7 in link below). The deposit occurs at surface and extends to 40 metres depth. The current known strike length is 180 metres however a recent step out hole (TDX-053) indicates the potential to extend mineralization 200 metres to the south. Surface geochemistry also suggests the potential for mineralization further to the north.
Mineralization occurs as a series of stacked lenses with an overall width of 30 metres and individual lenses one to five metres in width. It is structurally controlled with sporadic high grades (up to 114 gpt Au). A total of 65 holes have been drilled since the deposit was discovered in 2013. Results for the first 18 holes were announced in 2013. In 2014 and 2015, 47 holes have been drilled at Twin Domes; highlights from this drilling are in Table 2. A follow-up drill program is currently in progress to both infill the deposit for resource estimation purposes as well as possibly expand the known mineralization.
An initial resource estimate for Twin Domes will be included in the El Gallo 1 resource estimate update scheduled for Q3 2015.
Metallurgical testing indicates mineralization at Twin Domes is amenable to heap leaching and can be processed at the El Gallo 1 mine.
Early Stage Targets
Several regional prospects with strong indications of gold and silver that are being evaluated are:
San Miguel is located three kilometres southeast of the Samaniego pit at El Gallo 1 where mining is underway and one kilometer south of the Lupita pit that will be developed in 2016 (see Figure 4 on page 7 in link below). The gold-in-soil anomaly currently measures one kilometer by 500 metres. Drilling on this target is planned for later this year.
Tule Alto is located five kilometres north of El Gallo 1 (see Figure 1, page 5 in link below). Surface rock samples and exploration blast hole drilling have returned moderate to strongly anomalous gold values over an area measuring roughly one square kilometer. Drilling on this target is planned for later this year.
To view tables and figures, please visit:
http://media.abnnewswire.net/media/en/docs/79777-TSE-MUX-20150422.pdf
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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