Copper $ 3.23 +0.01 +0.19% Volume: July 28, 2014
Silver $ 20.64 -0.09 -0.43% Volume: July 28, 2014
Gold $ 1,304.55 -2.60 -0.2% Volume: July 28, 2014
TSX: MUX $ 3.09 +0.00 +0% Volume: 277,700 July 25, 2014
NYSE: MUX $ 2.86 +0.00 +0% Volume: 2,912,300 July 25, 2014
1,304.55 -2.60 -0.2% Volume: Pricing delayed 20 minutes July 28, 2014 6:15 AM
Operations
Operations

El Gallo – Mexico

Twin Domes

Twin Domes is located 17 kilometers (10.5 miles) northwest of the Company’s El Gallo 1 heap leach mine. Initial test results show that the gold mineralization at Twin Domes is potentially amenable to heap leaching, which would allow it to be processed at El Gallo 1. Ten additional core holes were completed in this recent drilling. Although it is early, McEwen Mining is highly encouraged by these results and believes Twin Domes could have a positive impact on the El Gallo 1 mine.

Twin Domes Exploration Highlights

From (m) To (m) Thickness (m) Gold Grade (GPT)
TDX011 39.8 45.0 5.2 7.1
Including 43.9 45.0 1.1 24.9
TDX012 1.0 5.5 4.5 10.0
And 25.9 33.4 7.5 1.9
TDX015 17.2 27.5 10.3 9.7
Including 24.8 25.4 0.7 135.5
TDX016 18.4 27.5 9.1 1.7
TDX017 14.5 24.5 10.1 4.0
Including 16.4 17 0.7 51.1
TDX018 7.3 24.1 16.8 5.0
Including 12.8 14.0 1.2 21.1
Including 18.3 21.1 2.8 14.9

To date, gold mineralization at Twin Domes has been identified from surface to a depth of 45 meters. The known length (or strike) of the zone is approximately 275 meters. A total of 20 additional core holes have been planned in order to follow up on these results.

Central Zone

Central is situated between two known resources, where mining began in Q2, 2013. The zone was discovered in April and has advanced quickly. Due to the exploration success at Central, the decision was made to increase the mine’s capacity by 50% to 4,500 tonnes per day (estimated cost $5 million). This expansion will increase annual gold production from 27,300 ounces in 2013 to 75,000 ounces by 2016 at the mine.

El Gallo 1 Mine
“Central Zone”
MLX091 3.5 gpt gold over 10.1 meters
MLX096 3.3 gpt gold over 11.3 meters
MLX097 1.2 gpt gold over 15.5 meters
MLX101 1.4 gpt gold over 25.1 meters

Drilling has been focused on 3 objectives: 1) extending the zone at depth, 2) extending the strike or length of the zone and 3) infilling an area between the historical near-surface drilling and McEwen Mining's discovery holes.

Regional Exploration – CSX Zone

McEwen Mining geologists first discovered CSX in 2012. The initial holes from last year were included in the Company’s last resource estimate for Mexico (June 2012). Prior to the recent drilling, CSX contained a small open pit resource of 438,000 tonnes averaging 72.2 gpt for 1.0 million ounces of silver. CSX is located 2 km from the Company’s proposed El Gallo 2 mine site and 7 km from the El Gallo 1 mine.

El Gallo Complex Regional
“CSX Zone”
CSX031 241 gpt silver over 5.8 meters
CSX031 1,849 gpt silver over 10.5 meters
CSX033 128 gpt silver over 25.0 meters
CSX036 114 gpt silver over 17.6 meters

New drilling tested further to the east, west and south of the existing resource. The most important item, realized through the new drilling, is that extremely high silver grades are present. Hole CSX031 intersected some of the highest silver grades inside of the El Gallo Complex, returning 1,849 gpt silver over 10.5 m, which included 3,425 gpt silver over 5.4 m. The high grade appears to occur in a previously unknown steeply dipping structure, which may be a “feeder” to the previously defined flat-lying deposit. Further drilling, which is underway, will look to better target this style of mineralization.   

The El Gallo technical information on this page was derived from: (1) news release titled "El Gallo Regional Exploration; Twin Domes Drilling Intersects Significant Near Surface Gold Mineralization" released on August 19, 2013 by McEwen Mining. To access the news release click here. (2) News release titled "Central Zone Continues to Expand at El Gallo 1 Mine Regional Drilling Delivers High Silver Grades Over Good Widths" released on June 12, 2013 by McEwen Mining. To access the news release click here. And (3) news release titled "Drilling Expands New Central Zone at El Gallo 1 Mine" released on May 14, 2013 by McEwen Mining. To access the news release click here.  For additional technical information on El Gallo, see a report titled "Resource Estimate for the El Gallo Complex, Sinaloa State, Mexico" with an effective date of June 30, 2013. The report was prepared by John Read, C.P.G., and Luke Willis, P. Geo. Both Mr. Read and Mr. Willis are not considered independent of the Company as defined in Section 1.5 of NI 43-101. To access the report click here.

Cautionary Notes

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.

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

This website contains certain forward-looking statements and information and investors are encouraged to review our "Cautionary Note Regarding Forward Looking Statement".


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