2) Strike (or length of the zone) Extended - 5.7 gpt gold over 23.0 meters
Holes MLX081, MLX085 and MLX090 were drilled southwest and northeast of the initial discovery holes, extending the strike or length of the zone by 30 meters to the northeast and 20 meters to the southwest (Fig. 2). Before drilling began at Central, the distance between the two resources where mining recently commenced was 1,000 meters. Based on these results and prior holes, the Company believes the area can be mined as one enlarged open pit. Highlights from this drilling included 5.7 gpt gold over 23.0 meters, 1.1 gpt gold over 20.5 meters and 3.9 gpt gold over 20.9 meters. An additional 6 holes have been drilled with assays pending.
3) Infilling Gaps & Reducing Strip - 2.5 gpt over 21.2 meters
The last objective with the recent holes was to infill an area between the historic, near surface drilling that tested for gold mineralization down to 20 meters (which encountered weak mineralization) and McEwen Mining's discovery holes, which start 80 meters below surface (Fig. 2, 3 & 4). The three holes from this area were in line with expectations, returning 2.5 gpt gold over 21.2 meters, 1.8 gpt over 12.1 meters and 0.8 gpt gold over 18.7 meters (Fig. 2, 3 & 4). This is an encouraging development as it shows the zone can be extended closer to surface, which should reduce the strip ratio. An additional 2 holes have been drilled with assays pending.
About El Gallo Complex
The El Gallo Complex is located in Sinaloa, Mexico. Phase 1 achieved commercial production in early January. It is forecasted to produce 30,000 ounces of gold per year. Phase 2, where a feasibility study was completed in 2012, is forecasted to add an additional 5,200,000 ounces of silver (105,000 ounces of gold equivalent) once in production. Combined, both phases are scheduled to produce approximately 135,000 ounces of gold equivalent annually.
About McEwen Mining (www.mcewenmining.com)
The goal of McEwen Mining is to qualify for inclusion in the S&P 500 by 2015 by creating a profitable gold producer focused in the Americas. McEwen Mining's principal assets consist of the San Jose mine in Santa Cruz, Argentina (49% interest); the El Gallo Complex in Sinaloa, Mexico; the Gold Bar project in Nevada, US; the Los Azules project in San Juan, Argentina and a large portfolio of exploration properties in Argentina, Mexico and Nevada.
McEwen Mining has 297 million shares issued and outstanding. Rob McEwen, Chairman, President and Chief Owner, owns 25% of the shares of the Company (assuming all outstanding Exchangeable Shares are exchanged for an equivalent amount of Common Shares). As of April 29, 2012, McEwen Mining had cash and liquid assets of approximately US$50 million and is debt free.
This news release has been viewed and approved by John Read, CPG, McEwen Mining's consulting geologist, who is a Qualified Person as defined by National Instrument 43-101 and is responsible for program design and quality control of exploration undertaken by the Company at its Mexican exploration properties. Samples from the core drilling were split on-site at the Company's El Gallo Complex. One half of the split drill core is shipped to ALS Chemex for sample preparation and analysis by fire assay for gold and 4-acid digestion with ICP determination for silver. Samples returning greater than 10 ppm gold or 1500 ppm silver were re-analyzed using gravimetric fire assay. Standards and blanks were inserted every 20 samples. All holes were drilled with HQ bits and reduced to NTW where required. Samples were taken based on lithologic and/or mineralized intervals and vary in length. The true width of the mineral zone has not been determined. For additional information see the technical report titled "El Gallo Complex Phase II Project, NI 43-101 Technical Report Feasibility Study, Mocorito Municipality, Sinaloa, Mexico" with an effective date of September 10, 2012, prepared by M3 Engineering along with a team of associates (the "Phase II Report"). The Phase II Report is available under the Corporation's profile on SEDAR (www.sedar.com). The authors of the Phase 2 Report, Stan Timler - M3 Engineering, Mike Hester - Independent Mining Consultants (Reserves), Dawn Garcia - SRK Consulting (Environmental), Richard Kehmeier and Brian Hartman - Pincock Allen & Holt (El Gallo Deposit Resource), John Read - McEwen Mining consultant (Palmarito In Situ, Historic Waste Dumps and Historic Tailings Resource), all of whom are qualified persons and all of whom but John Read are independent of McEwen Mining, each as defined by NI 43-101.
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