McEwen Mining Continues to Expand Los Azules' Large, High-Grade, Mineral Resource

McEwen Mining Continues to Expand Los Azules' Large, High-Grade, Mineral 
Resource 
Contained Copper in Inferred Class Resource Increased by +29% 
Exploration Program Remains On-Going 
TORONTO, ONTARIO -- (Marketwire) -- 02/05/13 -- McEwen Mining Inc.
(NYSE:MUX)(TSX:MUX) is pleased to announce an updated, Canadian
National Instrument 43-101 compliant ("NI 43-101") mineral resource
estimate for its 100% owned Los Azules Copper Project in San Juan
Province, Argentina. Most importantly, drilling has expanded
contained copper in the inferred resource category by 29% to 13.95
billion lbs. Contained copper in the indicated resource decreased
slightly to 4.45 billion lbs. The expanded resource incorporates
6,966 meters of new drilling from 10 additional holes. The resource
remains open laterally, to depth and along strike (to view
cross-sections displaying the resource click here). Los Azules is one
of the world's largest, undeveloped, high-grade, open pit copper
projects which, contains significant growth potential.  
Table 1. Los Azules Copper Project - Comparison of Previous and
Current Mineral Resource Estimates 


 
============================================================================
                                        January 2013 Resource               
          June 2012 Resource Estimate      Estimate Update        % Change  
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  Cut-off  Tonnage    Cu              Tonnage    Cu                         
   Grade   (million Grade    Cu lbs   (million Grade    Cu lbs    Contained 
   (Cu%)   tonnes)   (%)   (billions) tonnes)   (%)   (billions)   Cu lbs   
----------------------------------------------------------------------------
Indicated Resource                                                          
----------------------------------------------------------------------------
   0.35      323     0.65     4.64      310     0.65     4.45        -4%    
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Inferred Resource                                                           
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   0.35      948     0.52    10.82     1,302    0.49    13.95       +29%    
============
================================================================
(i)Details for gold and silver resources are included in Table 2.           

 
"Los Azules is a unique asset, in terms of size and grade, for McEwen
Mining. This year's exploration drilling has demonstrated that there
is significant potential to expand the resource well beyond our
previous understanding of the deposit," stated Rob McEwen, Chief
Owner. 
Drilling this season represents the first time a meaningful amount of
deeper drilling has occurred at Los Azules. Prior to this year the
deepest drill hole was 650 meters. This season there has been a total
of 6 holes that exceeded 700 meters. This deeper drilling has begun
to identify a potential parallel trend, west of the original Los
Azules ore-body. Copper mineralization discovered within this trend
occurs near surface and also at depth (down to 1,050 meters below
surface). This is significant because it may indicate that previous
shallow drilling, which makes up the majority of the Los Azules
resource, failed to adequately test the deeper potential of the
deposit. As a result, many new exploration targets have emerged. 
McEwen Mining has begun work on an updated Preliminary Economic
Assessment (PEA) which is expected to be completed in the third
quarter of this year. The updated PEA will be based on a
significantly larger mineral resource and will evaluate the
possibility of increasing the daily throughput. The PEA will also
incorporate further metallurgical studies currently being done on the
possibility of producing copper cathode instead of a concentrate and
processing low grade mineralized material not previously considered,
via a heap leach. The advantage of producing a copper cathode is that
it would eliminate the contemplated slurry pipeline through Chile and
would reduce Argentina's export tax on concentrate. 
This news release has been submitted by Andrew Elinesky, Vice
President - Argentina, for the Company. 
About Los Azules 
Los Azules is a large undeveloped copper porphyry system located in
western San Juan Province within a belt of porphyry copper deposits
that straddles the Chilean/Argentine border. This belt contains some
of the world's largest copper deposits, including Codelco's El
Teniente and Andina mines, Anglo American's Los Bronces mine,
Antofagasta PLC's Los Pelambres mine and Xstrata's El Pachon project,
among others. Los Azules is one of the world's largest, highest
grade, undeveloped copper-porphyry deposits not owned by a major base
metal company. 
Table 2. Los Azules Mineral Resource Estimate 
In order to exhibit reasonable prospects for economic viability, the
mineral resource estimate has been contained within a conceptual open
pit shell generated using general technical and economic parameters
that are defined at the end of this news release. The base case
cut-off grade of 0.35% Cu is highlighted in the table.  


 
============================================================================
                                           Au                Ag             
                                         Grade             Grade            
              Tonnage    Cu              (grams            (grams           
Cut-off Grade (million Grade    Cu lbs    per     Au Oz     per     Ag Oz   
    (Cu%)     tonnes)   (%)   (billions) tonne) (millions) tonne) (millions)
----------------------------------------------------------------------------
Indicated Resource                                                          
----------------------------------------------------------------------------
     0.15       414     0.55     5.04     0.06     0.83     1.8      23.6   
----------------------------------------------------------------------------
     0.20       397     0.57     4.97     0.06     0.80     1.8      22.6   
----------------------------------------------------------------------------
     0.25       369     0.59     4.84     0.06     0.76     1.8      21.1   
----------------------------------------------------------------------------
     0.30       338     0.62     4.65     0.07     0.72     1.8      19.6   
----------------------------------------------------------------------------
     0.35       310     0.65     4.45     0.07     0.68     1.8      18.3   
----------------------------------------------------------------------------
     0.40       283     0.68     4.22     0.07     0.63     1.9      16.9   
----------------------------------------------------------------------------
     0.45       254     0.71     3.95     0.07     0.57     1.9      15.4   
----------------------------------------------------------------------------
     0.50       225     0.74     3.64     0.07     0.52     1.9      13.8   
----------------------------------------------------------------------------
     0.55       195     0.77     3.30     0.07     0.46     1.9      12.1   
----------------------------------------------------------------------------
     0.60       165     0.80     2.92     0.07     0.40     1.9      10.2   
----------------------------------------------------------------------------
     0.65       134     0.85     2.49     0.08     0.33     1.9      8.2    
-----------------------------------------------
-----------------------------
     0.70       105     0.89     2.07     0.08     0.26     1.9      6.5    
----------------------------------------------------------------------------
Inferred Resource                                                           
----------------------------------------------------------------------------
     0.15      3,378    0.34    25.33     0.04     4.84     1.7     181.4   
----------------------------------------------------------------------------
     0.20      2,890    0.37    23.44     0.05     4.35     1.7     159.8   
----------------------------------------------------------------------------
     0.25      2,318    0.40    20.61     0.05     3.71     1.8     134.9   
----------------------------------------------------------------------------
     0.30      1,774    0.44    17.32     0.05     3.01     1.9     108.9   
----------------------------------------------------------------------------
     0.35      1,302    0.49    13.95     0.06     2.34     2.0      83.3   
----------------------------------------------------------------------------
     0.40       914     0.53    10.76     0.06     1.72     2.1      60.8   
----------------------------------------------------------------------------
     0.45       622     0.59     8.03     0.06     1.21     2.1      42.8   
----------------------------------------------------------------------------
     0.50       422     0.64     5.96     0.06     0.85     2.2      29.7   
----------------------------------------------------------------------------
     0.55       290     0.69     4.43     0.06     0.60     2.2      20.6   
----------------------------------------------------------------------------
     0.60       201     0.75     3.31     0.07     0.42     2.3      14.5   
----------------------------------------------------------------------------
     0.65       143     0.80     2.51     0.07     0.31     2.3      10.5   
----------------------------------------------------------------------------
     0.70       103     0.84     1.91     0.07     0.22     2.3      7.6    
============================================================================
(i)   "Tonnes" is stated in metric and is equivalent to 2205 lbs.           
(ii)  Estimated contained metal values may be subject to rounding errors.   

 
Details on the parameters of the resource estimate are as follows: 


 
--  The resource estimation was based on data from 173 drill holes
    comprising a total length of 50,612 meters of drilling completed to the
    end of December 2012. 
 

 
--  There were a total of 23,178 individual samples selected for analysis.
    The samples were collected and analyzed in accordance with industry
    standards. Splits from the drill core samples were submitted to either
    Alex Stewart in Mendoza or ALS Chemex or ACME in Santiago, Chile for
    fire assay and ICP analysis. Accuracy of results is tested through the
    systematic inclusion of standards, blanks and check assays. 
 
--  The January 2013 mineral resource estimate for the Los Azules Copper
    Project was prepared under the direction of Robert Sim, P.Geo. of SIM
    Geological Inc. The mineral resource estimate uses drill hole sample
    assay results and the interpretation of a geologic model that relates to
    the spatial distribution of copper in the deposit. Interpolation
    characteristics were defined based on the geology, drill hole spacing
    and geostatistical analysis of the data. Block grade estimates were done
    using Ordinary Kriging (OK) with a nominal block size measuring 20
    meters long, 20 meters wide and 15 meters high. Resources are classified
    according to their proximity to sample data locations and are reported,
    as required under NI 43-101, according to the CIM Definition Standards
    for Mineral Resources and Mineral Reserves. 
 
--  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 Indicated or Measured, and it is uncertain if
    further exploration will result in upgrading them to an Indicated or
    Measured category. 
 
--  As required under NI 43-101, reasonable prospects for economic viability
    of the mineral resources has been exhibited by the application of a
    resource limiting pit shell built about copper grades in the model using
    a projected metal price of US$2.75 per lb. Cu, mining costs of US$1.00
    per tonne, milling and G&A costs of US$4.25 per tonne, 100% recoveries
    and an average pit slope of 34 degrees. 

 
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 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 Project in San Juan, Argentina and a large portfolio
of exploration properties in Argentina, Nevada and Mexico.  
McEwen Mining has 296,024,859 shares issued and outstanding. Rob
McEwen, Chairman, President and Chief Owner, owns approximately 25%
of the shares of the Company. As of December 31, 2012, McEwen Mining
had cash and liquid assets of approximately US$70 million and is debt
free. 
Technical Information: 
Robert Sim, P.Geo., who is a Qualified Person and independent of
McEwen Mining, each as defined by National Instrument 43-101 ("NI
43-101") has reviewed and approved the technical content of this news
release related to the mineral resource estimate presented herein.
Notwithstanding, Bruce Davis, PhD, FAusIMM, who is a Qualified Person
and independent of McEwen Mining, as defined by NI 43-101 and
responsible for the quality control for the assaying of the Los
Azules drill core has reviewed the assay quality control information.
All samples were collected in accordance with industry standards.
Splits from the drill core samples were submitted to the ACME sample
preparation laboratory in Mendoza, Argentina, and then transferred to
ACME's laboratory in Santiago, Chile for fire assay and ICP analysis.
Accuracy of results is tested through the systematic inclusion of
standards, blanks and check assays. The mineral resource estimate
referenced in this press release was prepared in January 2013 by
Robert Sim, P.Geo. and Bruce Davis, PhD, FAusIMM. 
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, P.Eng., Robert Sim,
P.Geo., Bruce Davis, PhD, FAusIMM and James K. Duff, P.Geo., all of
whom are qualified persons and all of whom are independent of McEwen
Mining, each as defined by NI 43-101. The foregoing report is
available under the Corporation's profile on SEDAR (www.sedar.com). 
Cautionary Note to U.S. Investors: 
McEwen Mining reports 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. According to Canadian NI 43-101 criteria, the estimation of
measured resources and indicated resources involve greater
uncertainty as to their economic feasibility than the estimation of
proven and probable reserves. Under SEC Industry Guide 7 criteria,
measured, indicated and inferred resources are considered Mineralized
Material. The SEC considers that in addition to greater uncertainty
as to the economic feasibility of Mineralized Material compared to
proven and probable reserves, there is also greater uncertainty as to
the existence of Mineralized Material. U.S. investors are cautioned
not to assume that measured or indicated resources will be converted
into economically mineable reserves. The estimation of inferred
resourc
es 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 the cost of transferring or otherwise
allocating funds between operating jurisdictions, 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, 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. 
To view Figure 1, please visit the following link:
http://media3.marketwire.com/docs/mux0205fig1.pdf. 
To view the cross-sections displaying the resource, please visit the
following link: http://media3.marketwire.com/docs/mux0205cs.pdf. 
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.
Jenya 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 
Facebook: www.facebook.com/McEwenRob
Twitter: www.twitter.com/McEwenMining
 
 
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