TORONTO, ONTARIO -- (Marketwired) -- 07/17/13 -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is pleased to announce an updated resource estimate for the El Gallo 1 mine in Sinaloa State, Mexico.
El Gallo 1 Mine Resource Estimate Highlights
-- Measured and Indicated gold resources grew by 38% to 691,523 ounces (13.9 million tonnes at 1.54 gpt) after mining depletion. Gold grades increased by 3% to 1.54 gpt.-- Plans to expand the El Gallo 1 mine's process facilities by 50% to 4,500 tonnes per day for an estimated cost of $5 million are underway.-- Two exploration core drills are operating at the mine to test for extensions of the known resource and the new Twin Domes discovery (Announced April 2, 2013 - excluded from this resource estimate).-- Updated El Gallo 2 resource to be released in early August.
El Gallo 1 Mine/Twin Domes Discovery:
The El Gallo 1 mine poured its first bar of gold in September 2012 and declared commercial production on January 1, 2013. The mine is forecasted to produce 27,300 ounces of gold this year and ramp-up to 75,000 ounces of gold by 2016, after completing an expansion that is expected to increase throughput from 3,000 to 4,500 tonnes per day for an estimated $5 million. The expansion is expected to be operational by mid-2014.
Measured and Indicated Resources increased at the mine by 38% after mining depletion at Dec 31, 2012. Gold grades for the Measured and Indicated categories also increased by 3% to 1.54 gpt. The increase in resource size and grade is based on a cut-off grade of 0.3 gpt gold, which is unchanged from the prior estimate.
The increase in Measured and Indicated Resources is due to 1) the discovery of the Central Zone and 2) the conversion of Inferred Resources at San Dimas (Please see Figure 1 for location of resources). Currently two core drills are operating at the mine. Drilling is focused on further expanding the Central Zone, identifying parallel zones, establishing an initial resource for Twin Domes and testing exploration targets at the mine. Four column tests have been completed on Twin Domes mineralization using the same operating parameters as the mine. The tests have averaged 80% recovery for gold. This indicates that the Twin Domes mineralization could potentially be processed at the El Gallo 1 mine.
A comparison between the new and previously reported resource estimates for the El Gallo 1 mine are shown in Table 1. A breakdown of the new resource estimate by zone is shown in Table 2. Table 3a highlights the whole El Gallo 1 resource estimate at different cut-off grades. Table 3b provides the same detail by zones.
To see Figure 1: El Gallo 1 Mine- Resource Areas, please select the following link:
To see Table 1: El Gallo 1 Mine Resource Estimate Comparison, please select the following link:
To see Table 2: El Gallo 1 Mine Resource Estimate by Zone, please select the following link: