To see Table 3a: El Gallo 1 Mine Resource Estimate Summary, please select the following link:
To see Table 3b: El Gallo 1 Mine Resource Estimate by Zones, please select the following link:
Details on the parameters used to calculate the resource estimates are as follows:
-- The resource estimation was based on data from 1,110 holes comprising a total of 132,318 meters of drilling completed by mid-June 2013. The effective date of the resource estimate is July 5, 2013.-- There were a total of 83,985 samples assayed. The samples were assayed by ALS Laboratory Group for gold, silver and 32 other elements. Gold was assayed by fire assay with atomic absorption finish; over-limit intervals were analyzed by fire assay with gravimetric finish.-- All of the block model grades at the El Gallo 1 mine were interpolated using an Inverse Distance method, except for the San Dimas portion of the resource. The San Dimas resource was estimated using ordinary Kriging. Different methods were used in order to generate resource estimates that are believed to be the most representative of each resource within the El Gallo 1 mine.-- All Mineral Resources were estimated by McEwen Mining using the CIM (Canadian Institute of Mining) Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions.-- Mineral resources, which are not mineral reserves, do not have demonstrated economic viability.-- The quantity and grade of reported Inferred resources are uncertain in nature and there has been insufficient exploration to classify these Inferred resources as Measured or Indicated, and it is uncertain if further exploration will result in upgrading them to a Measured or Indicated category.-- At Samaniego one composite was capped at 24 gpt gold. A total of two composites were capped at 40 gpt gold for the Lupita-Central area. The San Dimas resource area had three composites capped at 8 gpt gold.-- Density values for all resources were 2.6 t/m(3)-- In order to determine mining depletion, topography as of December 31, 2012 was used.
In order to determine "prospect of economic extraction" the following parameters were used:
-- Due to the recent gold price volatility McEwen Mining used a 90-day trailing average, which equaled US$1,425/oz.-- Mining costs for mineralized material and waste were estimated at $1.65 per tonne based on current operations at the El Gallo 1 mine.-- Gold heap leaching costs were estimated at $6.50 per tonne based on current processing costs at the El Gallo 1 mine.-- Gold recovery of 70% was based on metallurgical tests and actual recoveries from the El Gallo 1 mine.-- Open pit resources were deemed to be from surface to a maximum depth of 250 meters.
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 1 mine and El Gallo project in Sinaloa, Mexico; the Gold Bar project in Nevada, US and the Los Azules Copper project in San Juan, Argentina.