McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is
pleased to provide an update on its 2022 exploration program at the
Fox Complex properties near Timmins, Canada, and at the Gold Bar
properties in Nevada. The programs are focused on expanding known
mineral resources. At the Fox Complex, the objective is to shorten
the payback period outlined in the Fox Complex PEA (Preliminary
Economic Assessment). At Gold Bar, drilling is following up on
mineralized trends in and around the Pick Pit, and on exploration
opportunities around the nearby Atlas property that was acquired in
2020.
Fox Complex - Stock
Our Stock Property covers 4-miles (7 km)
of one of Canada’s best mining addresses, the Destor-Porcupine
Fault Zone, which is home to a number of world class Archean gold
deposits. Our 2019 discovery of the Stock West deposit and our
recent exploration success in the area adjacent to the former Stock
Mine have opened the potential to source relatively, near term
production from a shallow depth and very close to our existing
mill. The Stock property currently hosts a mineral
resource estimate of 239,000 gold ounces in the Indicated category
and 113,000 ounces of Inferred category, in addition to the 137,000
ounces of past production. These resources are largely within 1,650
feet (500 m) of surface. Stock is an Archean gold system, and the
hallmark of world-class Archean gold systems is persistent vertical
continuity measured in kilometres, allowing the very best of such
deposits to remain in production for decades.
Based on previous high-grade drill
intercepts, we have several deeper targets (see circled letter “A”
in Figure 1). Mineralization measured by ounces per vertical metre
is not a constant in Archean deposits, commonly varying by
multiples as grade or volume of mineralization increase and
decrease over lateral and vertical extents.
Stock Targets
Figure 1 below highlights our
four priority target areas that are proximal to our operating Stock
Mill. These targets have excellent potential to grow our mineral
resources and impact positively the future development of the
property.
Stock West and Stock East resource areas have
not been fully tested. The “A” target area represented by hole
S21-202 (4.29 g/t gold over 21 m)
appears to be on trend with both the shallow east-plunge of
mineralization coming from Stock West and steeper west-plunging
mineralization observed in the Stock Mine mineralization. The Heat
Map contouring shown 820 feet (250 m) below hole S21-202 remains an
isolated but highly attractive target anchored by hole S19-95
(27.20 g/t gold over 7 m).
The “B” target area is located immediately below
the base of the Stock West resource represented by hole S21-178A
that includes 9.36 g/t gold over 3
m and 2.48 g/t over 15 m
(core lengths) respectively. A further 500 feet (150 m) west, hole
S21-203 intercepted 2.61 g/t gold over 6
m and 6.69 g/t gold over 2.9
m (core lengths). Precise structural controls on the Stock
West deposit are yet to be determined.
The Target “C” area is at Stock East, where
limited drilling has been conducted beneath a porphyry sill, the
current base of mineralization. Drilling will test to determine if
the gold mineralization continues at depth, as our geologists see
possible.
The Target “D” area has
shallow exploration targets that represent an opportunity
to develop mineral resources proximal to potential Stock West
development. Some 45 holes have been completed on this area since
December 2021. These holes have been successfully expanding the
known lateral extent of the green carbonate (CGR) unit located in
the footwall to the former Stock Mine and which is also host to the
Stock West deposit. Hole SM21-029 intersected 7.98 g/t gold over an
estimated true width of 6.2 m within 100 metres from surface.
Drilling is also returning encouraging results within the bleached
mafic volcanic (BMV) unit that is host to Stock Mine
mineralization.
Table 1 and Figure 2 below, summarize key results from
shallow drilling in Target “D” area.
Figure 1 – Heat Map of Longitudinal
Section of the Stock Property
Figure 2 - Longitudinal Section Showing
Location of Table 1 Intercepts
Table 1 - Selected Drill Intercepts from
the Shallow Target Program
Hole-ID |
From (m) |
To (m) |
Length (m) |
EstimatedTrue Width (m) |
Au (g/t) |
Domain |
SM21-005A |
377.0 |
380.8 |
3.8 |
3.3 |
2.64 |
BMV |
|
439.8 |
442.2 |
2.3 |
2.0 |
2.69 |
HW CGR |
SM21-010 |
306.0 |
307.0 |
1.0 |
0.8 |
14.30 |
HW CGR |
|
392.0 |
397.0 |
5.0 |
3.9 |
2.42 |
BMV |
|
580.0 |
584.7 |
4.7 |
3.8 |
3.20 |
FW CGR |
SM21-011 |
341.0 |
342.1 |
1.1 |
0.8 |
3.14 |
HW BMV |
SM21-012 |
368.0 |
370.0 |
2.0 |
1.2 |
3.11 |
BMV |
SM21-015 |
124.9 |
126.0 |
1.1 |
0.9 |
6.66 |
MINE BMV |
|
197.0 |
199.0 |
2.0 |
1.6 |
5.40 |
MINE BMV |
SM21-023A |
459.0 |
464.0 |
5.0 |
4.5 |
7.18 |
N2 Shoot |
Including |
461.1 |
462.0 |
0.9 |
0.8 |
23.98 |
|
SM21-026 |
147.0 |
150.0 |
3.0 |
0.9 |
1.22 |
FW CGR |
SM21-027 |
119.0 |
128.0 |
9.0 |
5.6 |
4.69 |
FW CGR |
Including |
123.0 |
124.0 |
1.0 |
0.6 |
21.40 |
|
SM21-028 |
276.0 |
283.0 |
7.0 |
4.4 |
1.12 |
FW CGR |
SM21-029 |
93.6 |
101.5 |
7.9 |
6.2 |
7.98 |
FW CGR |
Including |
94.1 |
95.0 |
0.9 |
0.7 |
35.20 |
|
SM21-030 |
168.0 |
182.1 |
14.1 |
5.9 |
2.51 |
BMV |
Including |
173.0 |
174.0 |
1.1 |
0.4 |
13.24 |
|
|
353.0 |
357.0 |
4.0 |
2.0 |
1.26 |
FW CGR |
SM21-031 |
246.6 |
254.0 |
7.4 |
5.3 |
1.23 |
FW CGR |
SM21-035A |
285.9 |
289.3 |
3.4 |
2.3 |
2.31 |
FW CGR |
SM22-037 |
157.6 |
158.3 |
0.8 |
ND |
56.30 |
|
SM22-039 |
99.0 |
108.0 |
9.0 |
6.8 |
4.23 |
FW CGR |
Including |
100.0 |
101.0 |
1.0 |
0.8 |
11.84 |
|
SM22-040A |
153.9 |
162.0 |
8.1 |
ND |
4.08 |
|
|
230.0 |
231.0 |
1.0 |
0.7 |
20.36 |
FW CGR |
SM22-041 |
119.7 |
121.2 |
1.5 |
1.1 |
19.45 |
FW CGR |
SM22-045 |
294.3 |
298.1 |
3.8 |
ND |
3.93 |
|
SM22-046 |
62.0 |
62.4 |
0.4 |
0.3 |
14.54 |
MINE BMV |
SM22-047 |
126.9 |
128.0 |
1.1 |
0.7 |
9.04 |
FW CGR |
SM22-048A |
219.0 |
220.0 |
1.0 |
0.7 |
53.00 |
BMV |
|
279.9 |
285.6 |
5.7 |
ND |
7.75 |
|
SM22-052 |
371.4 |
376.8 |
5.4 |
3.5 |
1.32 |
FW CGR |
For a complete list of drilling results
at Stock since December 20, 2021, click
here:https://mcewenmining.com/files/doc_news/archive/2022/20220400/Dec2021-April2022_holes.xlsx
Opportunity to Stock’s Western Boundary
The 2-mile (3-km) strike length between the
Stock Mine and the west property boundary appears to be a
prospective trend. Holes S37 and S39, both drilled in 1964, host
intercepts of 1.50 g/t gold over
7.3 m and 16.46 g/t gold over
1.5 m respectively that occur 1-mile (1.5 km)
west of the Stock West deposit. This area warrants further work and
will be tested this year.
Fox Complex - Grey Fox
Grey Fox hosts the largest and highest-grade
mineral resources within the Fox Complex. Exploration prospectivity
remains very good, with improved understanding of the deposit. The
presence of the Gibson-Kelore and A1 fault zones created the
conditions for the formation of the Black Fox, Froome and Grey Fox
deposits. Continued exploration along these faults will remain a
priority. Figure 3 shows a simplified geological
plan view of the Grey Fox area.
Figure 3 – Geology of the Grey Fox
Deposit Area
Exploration targets at Grey Fox planned for 2022
follows up on two exciting intersections drilled last
year.
Hole 21GF-1350 returned 7.29
g/t gold over 15.35 m (from 267 m), 100 m
west of Whiskey Jack. Determining the potential extension or
repetition of the Whiskey Jack mineralization into the sediments or
northwest along the A-1 fault zone is a priority. Other examples of
some sediment-hosted deposits in the Timmins area include the
Pamour and Dome Mines. For those deposits the gold is
preferentially found in the more clastic-rich sediments, while the
more recent discoveries of gold are found in more greywacke-rich
sediments found at Grey Fox and Froome.
Hole 21GF-1333 returned 4.75
g/t gold over 25.20 m (from 378.4 m)
proximal to the Goldpost Ramp (shown above in the upper left half
of Figure 3). Limited drilling in 2021 also
demonstrated the potential for mineralization to be hosted with
sedimentary rocks at Gibson North.
Exploration @ Gold Bar
The goal of exploration at the Gold Bar property
near Eureka, Nevada is the same as at the Fox Complex, which is to
replace what has been mined and expand the gold resource base.
There are two areas on the property where we see this opportunity,
at the Pick Pit and at the Atlas Pit. At the Pick Pit, a strong
northeast structural control of mineralization has been observed.
As a result, several areas of open mineralization have been
identified extending beyond the current pit margins (see the target
extension areas marked by ovals on Figure 4).
Evaluation of these targets is in progress starting with the SW
Pick Extension. Core drilling conducted at the SW Pick Extension
has yielded multiple significant intercepts including GBS002, which
returned 1.93 g/t gold over 38.6
m (126.5 feet) from drill depths of 51.2 m (168 feet)(see
Figure 5). Cyanide solubility assays averaged
attractive 80.1% recovery, suggesting mineralization could be heap
leachable. Assay results are listed in Table
2.
Figure 4 – Plan View of Drill Targets at
the Pick Pit
Figure 5 – Plan View of SW Pick
Extension Core Drilling Results and In-Pit Blast-hole
Data
Table 2 –Selected Drill Intercepts from
the SW Pick
Hole-ID |
From (m) |
To (m) |
Core Length (m) |
Au (g/t) |
CN Ratio |
GBSW001 |
14.5 |
28.2 |
13.7 |
0.32 |
54.3 |
|
43.9 |
49.7 |
5.8 |
0.49 |
54.5 |
|
72.1 |
75.9 |
3.8 |
0.72 |
68.9 |
GBSW002 |
51.2 |
89.8 |
38.6 |
1.93 |
80.1 |
GBSW003 |
46.9 |
48.8 |
1.9 |
0.58 |
74.7 |
|
82.5 |
89.6 |
7.1 |
0.71 |
64.8 |
GBSW005 |
6.1 |
10.1 |
4.0 |
0.31 |
92.9 |
|
31.4 |
36.0 |
4.6 |
0.54 |
80.2 |
|
43.4 |
50.6 |
7.2 |
1.35 |
54.1 |
|
50.6 |
59.7 |
9.1 |
1.22 |
85.5 |
GBSW006 |
27.1 |
46.6 |
19.5 |
0.93 |
65.5 |
Including |
37.3 |
42.1 |
4.8 |
2.41 |
87.3 |
|
51.4 |
73.5 |
22.1 |
0.54 |
74.8 |
At the Atlas Pit, located three miles west of
the Gold Bar mine, our team is evaluating the areas around this
historic open pit mine. It operated between 1988 and 1994 and the
cut-off grade used was 2 g/t. During an initial reverse circulation
drill program completed in 2021, hole OGB010 encountered
3.10 g/t gold over 27.4 m (90
feet) in an area where historic drilling suggested limited
mineralization existed. The intercept at Atlas East suggests good
potential for additional oxide mineralization down-dip to the east
below the pit bottom (see Figure 6 and 7
below).
Figure 6 - Plan View of Atlas Pit
Showing Historic Gold in Blast Holes and Target Areas
Two other target areas have been identified for
additional drilling, including the South Pit margin to identify the
Gold Bar fault extension, and the Footwall fault zone to identify
outcropping mineralization indicated in legacy drilling. Systematic
rock chip sampling supports the potential of the Footwall fault
zone, whose possible southern extension has also not been
adequately drill-tested. Rock chip samples analyzed for cyanide
solubility at the Gold Bar laboratory indicate the presence of
anomalous mineralization.
Figure 7 –Cross-section through Atlas
pit (looking west)
TECHNICAL INFORMATION
Technical information pertaining to the Fox
Complex exploration contained in this news release has been
prepared under the supervision of Sean Farrell, P.Geo., a
Qualified Person as defined by Canadian Securities Administrators
National Instrument 43-101 "Standards of Disclosure for Mineral
Projects." Technical information pertaining to the Gold Bar geology
and exploration contained in this release has been prepared under
the supervision of Kevin Kunkel, P. Geo., a Qualified Person as
defined by Canadian Securities national Instrument 43-101
“Standards of Disclosure for Mineral Projects”.
Fox Complex drilling (including the Stock
Property) was supervised by McEwen’s Geology Department. All
exploration drill core samples at the Stock Property were submitted
as 1/2 core. Analyses reported herein
were usually performed by the fire assay
method by the independent laboratories: Pangea
Laboratorio (NMX-EC-17025-IMNC-2018, ISO /IEC 17025:2017),
Activation Labs (ISO 9001/ISO 17025) and AGAT Labs (ISO
9001/IEC17025 certified). In Nevada, McEwen’s Exploration
supervises drilling. All exploration RC samples are split and
submitted to Paragon Geochemical (ISO/IEC 17025) in Reno, Nevada
for fire assay and geochemical analysis. McEwen’s quality control
program includes systematic insertion of blanks, standard reference
material and duplicates to ensure laboratory accuracy.
CAUTION CONCERNING FORWARD-LOOKING
STATEMENTSThis news release contains certain
forward-looking statements and information, including
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements and information expressed, as at the date of this news
release, McEwen Mining Inc.'s (the "Company") estimates, forecasts,
projections, expectations or beliefs as to future events and
results. Forward-looking statements and information are necessarily
based upon a number of estimates and assumptions that, while
considered reasonable by management, are inherently subject to
significant business, economic and competitive uncertainties, risks
and contingencies, and there can be no assurance that such
statements and information will prove to be accurate. Therefore,
actual results and future events could differ materially from those
anticipated in such statements and information. Risks and
uncertainties that could cause results or future events to differ
materially from current expectations expressed or implied by the
forward-looking statements and information include, but are not
limited to, effects of the COVID-19 pandemic, fluctuations in the
market price of precious metals, mining industry risks, political,
economic, social and security risks associated with foreign
operations, the ability of the corporation to receive or receive in
a timely manner permits or other approvals required in connection
with operations, risks associated with the construction of mining
operations and commencement of production and the projected costs
thereof, risks related to litigation, the state of the capital
markets, environmental risks and hazards, uncertainty as to the
calculation of mineral resources and reserves, and other risks.
Readers should not place undue reliance on forward-looking
statements or information included herein, which speak only as of
the date hereof. The Company undertakes no obligation to reissue or
update forward-looking statements or information as a result of new
information or events after the date hereof except as may be
required by law. See McEwen Mining's Annual Report on Form 10-K for
the fiscal year ended December 31, 2021, and other filings with the
Securities and Exchange Commission, under the caption "Risk
Factors", for additional information on risks, uncertainties and
other factors relating to the forward-looking statements and
information regarding the Company. All forward-looking statements
and information made in this news release are qualified by this
cautionary statement.
The NYSE and TSX have not reviewed and do not
accept responsibility for the adequacy or accuracy of the contents
of this news release, which has been prepared by the management of
McEwen Mining Inc.
ABOUT MCEWEN MININGMcEwen
Mining is a diversified gold and silver producer and explorer
focused in the Americas with operating mines in Nevada, Canada, and
Argentina. It also has a large exposure to copper through its
McEwen Copper subsidiary, owner of the Los Azules copper deposit in
Argentina.
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