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.
New drilling tested further to the east, west and south of the existing resource (Fig. 3). 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.
In addition to discovering high-grade, drilling expanded the resource to the east (Fig. 3). This drilling returned wide intersections of good grade, starting close to surface. Holes CSX033 and CSX036 intersected 128 gpt silver over 25.0 m and 114 gpt silver over 17.6 m. Follow-up drilling at both areas has commenced.
Twin Domes Update
On April 2, 2013, McEwen Mining announced initial results from a new discovery called Twin Domes. Drill and trenching results included 29.5 gpt gold over 2.0 m and 20.9 gpt gold over 12.7 m, respectively. Follow up work has included a series of trenches, which delivered similar results. Core drilling to further test the prospect has been slowed due to the Company's focus on expanding the Central Zone.
Resource Update Due in Coming Weeks
The updated El Gallo Complex resource will highlight two items: 1) the initial resource for the Central Zone at the El Gallo 1 mine and 2) the process of converting inferred resources to the measured and indicated categories. The updated resource is expected to be released at the end of Q2 or beginning of Q3.
About McEwen Mining (www.mcewenmining.com)
The goal of McEwen Mining is to qualify for inclusion in the S&P 500 by creating a profitable, mid-tier gold/silver 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 and the Los Azules Project in San Juan, Argentina.
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 May 30, 2013, McEwen Mining had cash and liquid assets of approximately US$50 million and is debt free.
TECHNICAL INFORMATION AND RISKS
There are significant risks and uncertainty associated with commencing production or changing production plans without a feasibility, pre-feasibility or scoping study. The proposed expansion to El Gallo Phase 1 has not and may not be explored, developed or analyzed in sufficient detail to complete an independent feasibility or pre-feasibility study and may ultimately be determined to lack one or more geological, engineering, legal, operating, economic, social, environmental, and other relevant factors reasonably required to serve as the basis for a final decision to complete the expansion of all or part of this project.
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