McEwen Mining Provides Third Quarter 2012 Operational and

McEwen Mining Provides Third Quarter 2012 Operational and Development
Update 
TORONTO, ONTARIO -- (Marketwire) -- 11/07/12 --  
(All Amounts in US Dollars Unless Otherwise Stated) 
McEwen Mining Inc. (NYSE:MUX)(TSX:MUX) is pleased to provide a
summary of the third quarter, including operational and development
updates, for its mines and projects in Argentina, Mexico and Nevada.  
THIRD QUARTER 2012 HIGHLIGHTS 


 
--  Gold equivalent production during the quarter totaled 25,200 ounces.
    Year-to-date, 72,530 gold equivalent ounces have been produced. The
    Company remains on track to produce approximately 105,000 gold
    equivalent ounces in 2012.  
    
--  Cash costs totaled $727 per gold equivalent ounce during the quarter.
    Year-to-date, cash costs have totaled $753 per gold equivalent ounce, in
    line with the Company's guidance of $750 per gold equivalent ounce for
    2012.  
    
--  First gold pour at El Gallo Phase 1 in Mexico. The mine is currently
    ramping up towards commercial production, expected by the end of 2012.  
    
--  El Gallo Phase 2 feasibility study completed. Confirms potential to
    produce 5.2 million ounces silver and 6,100 ounces gold per year
    (106,100 gold equivalent ounces). 
    
--  Subsequent to the third quarter, the Company announced its intention to
    raise $60 million through a rights offering. Rob McEwen, Chief Owner,
    has agreed to backstop the rights issue. 

 
Balance Sheet 
On October 29, 2012 the Company announced its intention to raise $60
million through a rights offering. The rights offering is being
backstopped by the Company's Chief Owner, Rob McEwen and is expected
to be completed early in December. The funds will be primarily used
for: 1) the purchase of long lead time equipment for El Gallo Phase
2, 2) advance the environmental impact study for the Gold Bar
project, 3) complete metallurgical studies on the Tonkin project and
4) to further explore the Company's various projects. 
At the end of the third quarter, McEwen Mining had cash and liquid
assets of $20.6 million, comprised of cash of $18.5 million, silver
and gold bullion at market value of $2.1 million. The Company remains
debt free. 
During the third quarter, the Company received a dividend of $2.1
million from its 49% owned San Jose mine in Argentina. Subsequent to
the third quarter, the Company received an additional dividend of
$2.6 million on October 4th. Proceeds from the dividends will remain
in Argentina to help fund exploration at the Los Azules Copper
project and Santa Cruz properties. We expect to receive further
dividends from San Jose during 2012, although the timing and amount
will depend upon precious metals prices, production levels, operating
costs, capital expenditures, Argentine central bank and government
restrictions, as well as other factors beyond our control.  
During the third quarter, major capital expenditures related to El
Gallo Phase 1 included $4 million for construction and $3.6 million
in expenditures for removing overburden to access mineralization. At
the end of the third quarter no more capital was required to be spent
on construction. Other major expenditures during the third quarter
included $6.7 million for exploration at the Company's various
projects and $0.7 related to El Gallo Phase 2. 
San Jose Mine, Argentina (49%) 
Another Solid Quarter of Production  
Final production results for the San Jose mine during the third
quarter was 20,967 ounces gold and 1,552,000 ounces silver,
representing 50,813 gold equivalent ounces (converting the silver
into gold using a 52:1 exchange ratio) (100% basis). The San Jose
mine remains on target to meet full-year production guidance of
85,000 ounces gold and 5.7 million ounces silver or 192,500 gold
equivalent ounces (100% basis). McEwen Mining's attributable interest
is 49% of these production totals. 
Total Cash Costs during the quarter equaled $755 per ounce gold and
$13.60 per ounce silver. Gold equivalent cash costs equaled $727 per
ounce (converting the cash cost of producing an ounce of silver into
the gold equivalent using a 52:1 exchange ratio). Cash costs
decreased versus the second quarter primarily due to a higher
percentage of sales coming from dore versus concentrate. The San Jose
mine remains on target to meet its full year cost guidance of
approximately $750 per gold equivalent ounce.  
The average grade of ore processed during the third quarter was 5.24
gpt gold and 402 gpt silver. Gold and silver recoveries averaged
91.1% and 87.9%, respectively.  
During the third quarter 26,000 meters of diamond drilling was
completed at the San Jose mine. On October 18th, the Company
announced the discovery of a new vein system called Emilia. Early
results from this vein have been encouraging.  


 
                     San Jose Mine Production Comparison                    
----------------------------------------------------------------------------
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                                                3rd        2nd        3rd   
                              Year to Date    Quarter    Quarter    Quarter 
San Jose - 100%(i)                2012         2012       2012       2011   
----------------------------------------------------------------------------
Ore production (tonnes)          380,911      136,577    128,803    124,204 
----------------------------------------------------------------------------
Average grade gold (gpt)          5.71         5.24       5.98       5.75   
----------------------------------------------------------------------------
Average head silver (gpt)        415.68         402        430        448   
----------------------------------------------------------------------------
Average gold recovery (%)         90.4         91.1       88.6       91.1   
----------------------------------------------------------------------------
Average silver recovery (%)       86.6         87.9       84.2       87.2   
----------------------------------------------------------------------------
Gold produced (ounces)           63,270       20,967     21,946     20,910  
----------------------------------------------------------------------------
Silver produced (ounces)        4,408,000    1,552,000  1,500,000  1,562,000
----------------------------------------------------------------------------
Gold equivalent(1) produced                                                 
 (ounces)                        148,039      50,813     50,792     50,946  
----------------------------------------------------------------------------
Gold sold (ounces)               61,127       29,126     17,661     18,140  
----------------------------------------------------------------------------
Silver sold (ounces)            4,343,000    2,165,000  1,146,000  1,409,000
----------------------------------------------------------------------------
Co-product cash cost Au (US$)      765          755        842        555   
----------------------------------------------------------------------------
Co-product cash cost Ag (US$)     14.29        13.60      15.32      13.09  
----------------------------------------------------------------------------
Gold equivalent cash cost                                                   
 (US$)                             753          727        816        628   
----------------------------------------------------------------------------
McEwen Mining - 49% Share                                                   
----------------------------------------------------------------------------
Gold produced (ounces)           31,002       10,274     10,754     10,245  
----------------------------------------------------------------------------
Silver produced (ounces)        2,159,920     760,480    735,000    765,380 
----------------------------------------------------------------------------
Gold equivalent(1) produced                                                 
 (ounces)                        72,538       24,898     24,888     24,964  
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(i)McEwen Mining holds a 49% attributable interest in the San Jose mine.    

 
El Gallo Phase 1, Mexico (100%) 
First Gold Pour - Nearing Commercial Production  
El Gallo Phase 1 construction was completed during the third quarter
at a cost of $13.5 million, $1.5 million below estimate. On September
24th, the Company announced that it had poured its first bar of gold
at the mine. Subsequent to the third quarter, the focus has been on
increasing production levels towards the designed rate of 3,000
tonnes per day. During October, the average crusher throughput was
2,680 tonnes per day or 89% of the designed capacity. The process
plant operated at an average of 45% capacity and ended the month
nearing 70%. The Company is on pace to reach commercial production
(operating at 80% capacity for 30 consecutive days) by the end of
this year. Once commercial production is achieved, cash costs will be
reported for El Gallo. 
Approximately 335,000 tonnes at an average grade of 1.28 gpt has been
mined to date and sent to the crusher or stockpiled for future
processing. A comparison between the resource estimate and production
results shows that the total ounces mined is 1.6% higher than
estimated, the grade is 8.1% higher, while the tonnes mined are 6.0%
lower. The Company is satisfied with these results.  
During the third quarter, 9,870 meters of diamond drilling was
completed at the El Gallo complex. Drilling has been continually
encountering new mineralization beyond the defined resource. Based on
the results, the Company expects to update the mine plan for Phase 1
and 2 during the first half of 2013. A more definitive timetable will
be confirmed during the fourth quarter.  
El Gallo Phase 2, Mexico (100%) 
Feasibility Complete - Moving Towards Construction 
During the third quarter, the Company announced the results of its
feasibility study. The feasibility study was prepared by M3
Engineering of Tucson, Arizona, Independent Mining Consultants of
Tucson, Arizona, and SRK Consulting of Reno, Nevada, and confirmed
annual production of 5.2 million ounces silver and 6,100 ounces gold
during each of the first 6 years at a cash cost of $9.86 per silver
ounce (net of gold by-product and including royalties). The estimated
initial capital expenditures totaled $178 million, including a 14.4%
contingency. 
The Company completed three production water wells during the quarter
that will be used for Phase 2 operations. The results of the pumping
tests indicate that there is more than sufficient water to meet the
needs of Phase 2. CONAGUA, a division of SERMANAT, Mexico's
Environmental and Natural Resources Ministry, has granted McEwen
Mining rights to 1.0 million cubic meters of water per year, which
will meet the needs of the project. 
Environmental permits for construction and operations are progressing
and are expected to be submitted to SERMANAT during the first quarter
2013.  
The Company also received approval from CFE, Mexico's Federal
Electricity Commission, for its designs to connect Phase 2 to the
national electrical power grid. Environmental permits to construct
the power line are expected to be submitted by the end of this year.  
Long lead time equipment purchases are expected to commence once the
rights offering is completed in December. The most significant long
lead time items include: ball mill, filter presses for dry stack
tailings, Merrill Crowe, leach tanks and electrical substation.  
Nevada (100%) 
1) Gold Bar Project 
McEwen Mining continues to advance the Gold Bar permitting process in
order to begin production in 2015. Gold Bar is forecasted to produce
50,000 ounces gold per year. The project is located primarily on
public lands managed by the Bureau of Land Management (BLM).The BLM
and the Nevada Division of Environmental Protection (NDEP) are the
primary government agencies responsible for approving the permits
that would allow the Company to begin construction.  
McEwen will continue to advance the Gold Bar Project through the
permitting process during 2012. This will involve environmental
baseline data review with expected Plan of Operations report
completion and submittal in the first quarter of 2013.  
2) Tonkin Project 
The Tonkin project, which has a current resource of 1.4 million
ounces of gold in the measured and indicated categories (32.3 million
tonnes @ 1.39 gpt gold) and 0.3 million ounces of gold in the
inferred (8.4 million tonnes @ 1.13 gpt gold), is undergoing a series
of metallurgical tests for possible process alternatives that are
common to mines in Nevada. The primary process being explored is a
flotation concentrate followed by autoclaving or bio-oxidation.
Initial baseline flotation test work indicates that approximately 50%
of the gold would report to the concentrate. Follow-up testing will
look to increase this percentage by introducing different reagents
and performing a series of floatation steps that would look to remove
problematic elements, such as carbon.  
Los Azules Copper Project, Argentina (100%) 
World Class Copper Asset - Size & Grade  
Drilling began at Los Azules on October 12th. Los Azules is one of
the world's largest and highest grade undeveloped copper porphyry
deposits. A total of seven drills are operating at the property. The
drills are considerably more powerful than the ones used during past
field seasons. The Company believes this will increase the likelihood
of reaching target depths (+700 meters), where high-grade copper
mineralization has been discovered. Initial drill assay results are
expected to be released early in 2013. The Company plans to drill
approximately 15,000 meters this season. 
A portion of the Los Azules Copper project is subject to litigation
in the Courts of British Columbia. Shareholders and other interested
parties are encouraged to review our most recent quarterly filings
for detailed information. The trial is set to commence on November
19th and last for approximately six weeks.  
Santa Cruz Exploration, Argentina (100%) 
During the third quarter the Company received the drill permits for
one of its 100% owned claim packages adjacent to the San Jose mine
and Goldcorp's Cerro Negro project. Drilling is expected to commence
during the coming weeks. The Company plans to drill approximately
2,500 meters and follow up with further drilling in a second campaign
at a later date.  
Third Quarter Conference Call Details  
McEwen Mining will be hosting a conference call to discuss third
quarter results and project developments on November 7, 2012 at 2:00
pm EST. 


 
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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 high quality, high growth, low-cost, mid-tier
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 Copper project in San Juan,
Argentina and a large portfolio of exploration properties in
Argentina, Nevada and Mexico. 
McEwen Mining has 268,495,751 shares issued and outstanding
(comprised of 190,516,797 Common Shares and 77,987,621 Exchangeable
Shares). Rob McEwen, Chairman and Chief Owner, owns approximately 25%
of the shares of McEwen Mining (assuming all outstanding Exchangeable
Shares are exchanged for an equivalent amount of Common Shares). As
of September 30, 2012, McEwen Mining had cash and liquid assets of
$20.6 million. 
RELIABILITY OF INFORMATION 
Minera Santa Cruz S.A., the owner of the San Jose mine, is
responsible for and has supplied to the Company all reported results
from the San Jose mine. McEwen Mining's joint venture partner, a
subsidiary of Hochschild Mining plc, and its affiliates other than
MSC do not accept responsibility for the use of project data or the
adequacy or accuracy of this release. As the Company is not the
operator of the San Jose mine, there can be no assurance that
production information reported to the Company by MSC is accurate,
the Company has not independently verified such information and
readers are therefore cautioned regarding the extent to which they
should rely upon such information. 
TECHNICAL INFORMATION 
This news release has been reviewed and approved by William Faust,
PE, McEwen Mining's Chief Operating Officer, who is a Qualified
Person as defined by National Instrument 43-101 ("NI 43-101). For
additional information about the El Gallo complex 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 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 Insitu, Historic Waste Dumps and
Historic tailings Resource), are each qualified persons and all of
whom but John Read are independent of McEwen Mining, each as defined
by NI 43-101. For additional information about the Los Azules project
see the technical Report titled "Los Azules Porphyry Copper Project,
San Juan Province, Argentina" dated August 1, 2012, with an effective
date of June 15, 2012, prepared by D. Ernest Winkler, PE, Robert Sim,
PGeo, Bruce Davis, PHD, FAUSIMM and James K. Duff, PGeo, all of whom
are qualified persons and all of whom but James K. Duff are
independent of McEwen Mining, each as defined by NI 43-101. For
additional information about the Tonkin project see the technical
report titled "Technical Report on Tonkin Project" dated and with an
effective date of May 16, 2008. The report was prepared by Alan C.
Noble, P.E., Ore Reserves Engineering and Richard Gowans, Micon
International, and Steven Brown (then US Gold Corporation) all of
whom are qualified persons and all of whom but Mr. Brown are
independent of McEwen Mining, each as defined by NI 43-101. For
additional information about the Gold Bar project see the technical
report titled "NI 43-101 Technical Report on Resources and Reserves
Gold Bar Project, Eureka County, Nevada" dated February 24, 2012 with
an effective date of November 28, 2011, prepared by J. Pennington,
C.P.G., MSc., Frank Daviess, MAusIMM, Registered SME, Eric Olin, MBA,
RM-SME, MSc, Herb Osborn, P.E, Joanna Poeck, MMSA, B. Eng., Kent
Hartley P.E. Mining, SME, BSc, Mike Levy, P.E, P.G, MSc., Evan
Nikirk, P. E., Mark Allan Willow, M.Sc, C.E.M. and Neal Rigby, CEng,
MIMMM, PhD, all of whom are qualified persons and all of whom are
independent of McEwen Mining, each as defined by NI 43-101. Each of
the foregoing reports is available under the Corporation's profile on
SEDAR (www.sedar.com). 
CAUTIONARY NON-GAAP MEASURES 
In this report, we have provided information prepared or calculated
according to U.S. GAAP, as well as provided some non-U.S. GAAP
("non-GAAP") performance measures. Because the non-GAAP performance
measures do not have any standardized meaning prescribed by U.S.
GAAP, they may not be comparable to similar measures presented by
other companies.  
Total cash cost per ounce are calculated on a co-product basis and by
dividing the respective proportionate share of the total cash costs
for the period attributable to each metal by the ounces of each
respective metal produced. Total cash cost per ounce is the sum of
the geology, mining, processing, general and administration costs,
royalties, refining and treatment charges (for both dore and
concentrate products), sales costs and export taxes divided by the
number of ounces of gold and silver produced at the mine.
Depreciation is excluded from total cash costs. 
CAUTIONARY NOTE TO US INVESTORS  
McEwen Mining prepares its resource estimates in accordance with
standards of the Canadian Institute of Mining, Metallurgy and
Petroleum referred to in Canadian National Instrument 43-101 (NI
43-101). These standards are different from the standards generally
permitted in reports filed with the SEC. Under NI 43-101, McEwen
Mining reports measured, indicated and inferred resources,
measurements which are generally not permitted in filings made with
the SEC. The estimation of measured resources and indicated resources
involve greater uncertainty as to their existence and economic
feasibility than the estimation of proven and probable reserves. U.S.
investors are cautioned not to assume that any part of measured or
indicated resources will ever be converted into economically mineable
reserves. The estimation of inferred resources involves far greater
uncertainty as to their existence and economic viability than the
estimation of other categories of resources. 
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS 
This press 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 press 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, risks related to business integration as a result of the
business combination between the Company and Minera Andes, factors
associated with fluctuations in the market price of precious metals,
mining industry risks, political, economic, social and security risks
associated with foreign operations, risks associated with the
construction of mining operations and commencement of production and
the projected costs thereof, risks related to litigation including
specifically but not limited to ongoing litigation with respect to
the Los Azules property which if resolved adversely to the Company,
would materially affect the Company's ability to develop the Los
Azules project, property title, the state of the capital markets,
environmental risks and hazards, uncertainty as to 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, 2011 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 management of McEwen Mining Inc. 
Contacts:
McEwen Mining Inc.
J
enya Meshcheryakova
Investor Relations
(647) 258-0395 ext 410 or Toll Free: (866) 441-0690
(647) 258-0408 (FAX) 
McEwen Mining Inc.
Mailing Address
181 Bay Street Suite 4750
Toronto, ON M5J 2T3, PO box 792
info@mcewenmining.com
www.mcewenmining.com 
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