Copper $ 3.29 -0.00 -0.06% Volume: May 20, 2013
Silver $ 21.57 -0.69 -3.1% Volume: May 20, 2013
Gold $ 1,354.85 -4.68 -0.34% Volume: May 20, 2013
TSX: MUX $ 2.01 -0.10 -4.74% Volume: 200,177 May 17, 2013
NYSE: MUX $ 1.96 +0.00 +0% Volume: 2,735,300 May 17, 2013
1,354.85 -4.68 -0.34% Volume: Pricing delayed 20 minutes May 20, 2013 4:50 AM
Operations
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Operations

El Gallo – Mexico

Twin Domes

McEwen Mining is pleased to announce a new gold discovery, called Twin Domes, within the El Gallo Complex. Twin Domes is located approximately 14 kilometers (8.5 miles) west of El Gallo 1 and 2. Although there is minor evidence of small-scale mining, the majority of the discovery area is covered by agricultural land. Twin Domes was identified as a prospective target based on previous exploration that was completed by a predecessor company. High-grade gold mineralization has been identified from surface to a depth of 50 meters. The known length (or strike) of the high-grade is approximately 375 meters. Both core drilling and surface trenches were used to target the mineralization. Highlights from the recent drilling are included in the table below. 

Twin Domes Exploration Highlights

  From (m) To (m) Thickness (m) Gold Grade (GPT)
TDX003 24.4 29.0 4.6 9.8
Including 26.7 27.8 1.1 37.2
TDX004 22.8 24.2 1.4 8.5
Including 23.7 24.2 0.5 15.5
And 27.0 27.5 0.5 12.1
TDX008 41.4 51.0 9.7 8.8
Including 47.3 49.2 2.0 29.5
TDT001 20.0 32.7 12.7 20.9
Including 27.9 29.6 1.7 112.9
TDT003 14.0 16.0 2.0 7.1
TDX = Core Drill Hole
TDT = Surface Trench


Currently 10 trenches are being completed over the length of the mineralization in order to gain a better understanding of 1) the nature of the high-grade, 2) the geology and 3) the orientation of the veins. This work, including final assays, is expected to be completed by the end of April. A core drill program is being planned in order to target the mineralization below 50 meters, which is the current limit of the known mineralization. In addition, McEwen Mining has completed an aeromagnetic survey over the discovery, which will be reassessed based on the new results.

The Company is planning to update its resource and mine plan in April 2013.

Lupita Vein

Drilling inside of El Gallo Phase 1 is focused on extending the mine life by exploring for additional mineralization laterally and at depth. Assay results since drilling re-commenced in June 2012 have been exceeding expectations. Highlights from recent drilling are included in the table below. There appears to be good potential to extend the mineralization at depth.

Lupita Vein Exploration Highlights

Hole From
(m)
To
(m)
Thickness
(m)
Gold Grade
(GPT)
 MLX-013  50.0  121.3 71.3  1.1
 Including  76.1 81.0  4.9   6.6
 Including  95.2  96.6  1.4  6.5
MLX-037 79.1 125.2 46.1 2.1
Including 94.2 99.2 5.0 9.9
MLX-041 61.7 83.5 21.8 2.9
Including 68.6 76.4 7.8 6.7
Including 73.4 74.6 1.3 24.3
MLX-042 159.3 163.6 4.4 10.9
MLX-044 91.5 135.8 44.4 1.3
Including 115.2 117.7 0.5 21.3
Including 134.1 134.6 0.5 16.3
MLX-054 103.1 114.9 11.8 7.4
Including 107.2 108.5 1.3 64.7

Mina Grande 

Mina Grande is located 15 km north of El Gallo Phase 1 (heap leach) and 10 km from Phase 2 (proposed mill site). Mina Grande currently has an inferred resource of 3.8 million tonnes grading 0.6 gpt gold and 23.5 gpt silver for a total of 74,000 ounces gold and 2.9 million ounces silver.

The objective of the recent drilling was to extend a high-grade gold shoot within the Mina Grande set of veins that was discovered early in 2012. The initial results from this vein returned encouraging results. New drilling has encountered additional high-grades extending the extent of the mineralization by 50 m. Highlights are shown in the table below.

Mina Grande Exploration Highlights

Hole From
(m)
To
(m)
Thickness
(m)
Gold Grade
(GPT)
Silver Grade
(GPT)
 MGX-075  34.6 36.6 2.1 27.5  24.8
 Including  34.6 35.6 1.1 44.1 37.1
 MGX-082  16.8  17.4 0.7  24.8 21.2
MGX-087 59.2 63.2 4.0 11.1 18.1
Including 59.2 60.2 1.0 16.8 16.2
Including 62.4 63.2 0.8 26.9 42.5
MGX-090 113.7 114.0 0.3 6.1 17.0
And 115.3 115.6 0.3 7.4 19.5
MGX-091 119.7 120.1 0.4 6.9 26.7
MGX-093 45.6 53.1 7.5 10.6 21.1
Including 49.1 50.3 1.2 49.0 53.1
And 139.9 140.5 0.6 9.2 13.4
MGX-097 58.6 59.9 1.3 18.6 17.8

The El Gallo technical information on this page was derived from the news release titled "New High-Grade Gold Discovery at El Gallo Complex" released on April 2, 2013 by McEwen Mining. To access the news release click here.

The El Gallo technical information on this page was derived from the news release titled "El Gallo Complex Exploration Update" released on November 6, 2012 by McEwen Mining. To access the news release click here.

The El Gallo technical information on this page was derived from the news release titled " More Drilling Success at El Gallo Phase 1 Production Area Plus Additional Zinc, Silver & Lead Intercept" released on October 11, 2012 by McEwen Mining. To access the news release click here.

Additional El Gallo technical information on this page was derived from the news release titled "McEwen Mining Discovers Additional Gold at El Gallo Phase 1 Production Area" released on July 19, 2012 by McEwen Mining. To access the news release click here.?For additional technical information on El Gallo, see a report titled "El Gallo Complex Phase 2 Project, NI 43-101 Technical Report Feasibility Study, Mocorito Municipality, Sinaloa, Mexico" with an effective date of September 10, 2012. The report was prepared by Stanley Timler, P.E., John Read, C.P.G., Michael Hester, FAusIMM, Dawn Garcia, P.G., C.P.G., Richard Kehmeier C.P.G., Brian Hartman, P.Geo, Aaron McMahon, P.G. all of whom, but John Read, are considered independent of the Company as defined in Section 1.5 of NI 43-101. To access the report click here.

All resource and reserve estimates reported by McEwen Mining Inc. are calculated in accordance with 43-101 and the Canadian Institute of Mining and Metallurgy Classification system. These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral resources which are not mineral reserves do not have demonstrated economic viability.

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