McEwen Mining Announces Record Resource Estimate at the San Jose Mine in Argentina

McEwen Mining Announces Record Resource Estimate at the San Jose Mine in 
Argentina 
TORONTO, ONTARIO -- (Marketwire) -- 03/18/13 -- McEwen Mining Inc.
(NYSE:MUX)(TSX:MUX) is pleased to announce that year-end 2012 mineral
resource and reserve estimates and the grades for both gold and
silver have increased from 2011 for the San Jose mine (49% owned by
McEwen Mining). Of particular interest, the mineral resource
estimates have increased to a record level. The mineral reserve and
resource estimates were calculated using US$1,200 per ounce gold and
US$20 per ounce silver. The estimates were independently audited by
P&E Mining Consultants Inc. 
San Jose Mine Resources & Reserves Highlights (100% Basis)   


 
--  Inferred gold and silver resources up 61% and 44%, respectively, to
    497,400 ounces gold and 32.1 million ounces silver, contained in 2.1
    million tonnes. Gold grades increased by 39% to 7.37 gpt and silver
    grades increased by 24% to 476 gpt. 
 
--  Proven and Probable gold and silver reserves up 7% and 20% respectively,
    to 367,100 ounces gold and 26.8 million ounces silver, contained in 1.8
    million tonnes. Gold grades increased by 1% to 6.44 gpt and silver
    grades increased by 14% to 470 gpt. 
 
--  Measured and Indicated gold silver resources down 5% to 991,200 ounces
    gold while silver resources decreased marginally to 68.3 million ounces
    silver, contained in 4.4 million tonnes. Gold grades increased by 1% to
    7.03 gpt and silver grades increased by 6% to 484 gpt.  

 
"San Jose is a world class mine that continues to get better with
each passing year. I would like to congratulate the team at the mine
and our partners, Hochschild Mining Plc, for conducting a very
successful exploration program in 2012," stated Rob McEwen, Chief
Owner.  
SAN JOSE MINE - BIGGER & HIGHER GRADE! 
The San Jose mine is one of the highest-grade precious metal mines in
the Americas. In 2012, more than 84,000 ounces of gold and 5.85
million ounces of silver were extracted, which was a new record for
the mine (see Figure 3). Production attributable to McEwen Mining for
2012 was 48,876 ounces of gold and 2.92 million ounces of silver. Net
of this production, total reserves increased by 7% for gold and 20%
for silver, to an estimated 1
.8 million tonnes at a grade of 6.44 gpt
gold and 470 gpt silver, for a total of 367,100 ounces of gold and
26.8 million ounces of silver.  
In addition to replacing reserves, the exploration program in 2012
was focused on identifying new veins and also extensions of current
zones. With the largest exploration program in the mine's history,
Inferred resources were expanded by 61% for gold and 44% for silver
versus 2011. It is also important to note that the grade of the
Inferred resources has materially increased by 39% for gold and 24%
for silver. Inferred resources now total 2.1 million tonnes at a
grade of 7.37 gpt gold and 476 gpt silver, for a total of 497,400
ounces of gold and 32.1 million ounces of silver.  
Measured and Indicated resources were down slightly versus 2011. The
reason for the decrease was due to drilling being focused on resource
expansion rather than infill for resource upgrading. Measured and
Indicated resource categories now total 4.4 million tonnes at a grade
of 7.03 gpt gold and 484 gpt silver, for a total of 991,200 ounces of
gold and 68.3 million ounces of silver. 
The San Jose mine is owned and operated by Minera Santa Cruz S.A., a
joint venture owned 51% by Hochschild Mining Plc and 49% by McEwen
Mining Inc.  
EXPLORATION IN 2013 
The 2013 exploration budget for the San Jose mine is US$8 million.
The goal is to complete 39,250 meters of diamond drilling. The
majority of this drilling will be targeting new resources located
south-east of the mine area. The balance of the drilling will be for
infill drilling designed to convert a portion of the Inferred
resources to the Measured and Indicated resource categories. 


 
Table 1- Audited San Jose Mineral Resource Estimate, December 31, 2012      
                                                                            
----------------------------------------------------------------------------
                                      Tonnes     Au      Ag       Au      Ag
Category                             (000's)   (g/t)   (g/t)  (K oz)  (M oz)
----------------------------------------------------------------------------
Measured                               1,289    8.15     559   337.8   23.17
----------------------------------------------------------------------------
Indicated                              3,098    6.56     453   653.4   45.12
----------------------------------------------------------------------------
Measured and Indicated                 4,387    7.03     484   991.2   68.29
----------------------------------------------------------------------------
Inferred                               2,099    7.37     476   497.4   32.12
----------------------------------------------------------------------------
Notes:                                                                      
1. Represents 100% of the resources. McEwen Mining Inc. has a 49%           
   attributable interest in the San Jose property.                          
2. Mineral resources, which are not mineral reserves, do not have           
   demonstrated economic viability.                                         
3. Mineral resources are reported inclusive of mineral reserves.            
4. 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 an Indicated or     
   Measured category.                                                       
5. Mineral Resources were estimated by Hochschild Mining Plc using the CIM  
   Standards on Mineral Resources and Reserves, Definitions and Guidelines  
   prepared by the CIM Standing Committee on Reserve Definitions. P&E Mining
   Consultants Inc have audited the resource estimates and found that they  
   meet both the requirements for Canadian disclosure under NI 43-101 and   
   the Joint Ore Reserves Committee of the Australian Institute of Mining   
   and Metallurgy ("JORC").                                                 
6. Resource estimations utilized inverse distance and ordinary kirging      
   methods depending upon data density.                                     
7. Metal prices used were $1200/oz for Au and $20/oz for Ag.                
8. Resources were defined at a cut-off grade of 213 g/t AgEq, which is      
   equivalent to a cut-off value of $92.88/tonne. The cut-off value was     
   increased from $88.31/tonne used for the December 31, 2011 estimate      
   reflecting higher operating costs due to local inflation.                
                                                                            
Table 2- Audited Mineral Reserve Estimate, December 31, 2012                
                                                                            
----------------------------------------------------------------------------
                                      Tonnes      Au      Ag      Au      Ag
Category                             (000's)   (g/t)   (g/t)  (K oz)  (M oz)
----------------------------------------------------------------------------
Proven                                   830    6.73     470   179.6
   12.54
----------------------------------------------------------------------------
Probable                                 942    6.19     471   187.5   14.26
----------------------------------------------------------------------------
Proven and Probable                    1,772    6.44     470   367.1   26.80
----------------------------------------------------------------------------
Notes:                                                                      
1. Represents 100% of the reserves. McEwen Mining Inc. has a 49%            
   attributable interest in the San Jose property.                          
2. Metal prices used were $1200/oz for Au and $20/oz for Ag (same as for    
   resources).                                                              
3. Reserves were defined at a cut-off $92.88/tonne, which is the same cutoff
   value used for resources. The cut-off value is based on historical       
   January to November 2012 geologic, mining, plant and mine administration 
   variable and fixed cost, and December 2012 estimated costs. P&E considers
   these costs to reasonable as a basis for estimating mineral reserves.    
4. Average internal dilution was 8%. Average mining and geotechnical        
   dilution was 27%.                                                        
5. Mineral Reserves were estimated by Hochschild Mining Plc using the CIM   
   Standards on Mineral Resources and Reserves, Definitions and Guidelines  
   prepared by the CIM Standing Committee on Reserve Definitions. P&E Mining
   Consultants Inc have audited the reserve estimates and found that they   
   meet the requirements for disclosure as reserves under NI 43-101 and the 
   Joint Ore Reserves Committee of the Australian Institute of Mining and   
   Metallurgy ("JORC") as well as the US Securities and Exchange Commission 
   Industry Guide 7.                                                        

 
Table 3 - Comparison of San Jose Mine Reserve Estimates (100% Basis) 


 
              December 31, 2012 Reserve Estimate              
--------------------------------------------------------------
                    Tonnes(000      Au      Ag      Au      Ag
Category                   's)   (g/t)   (g/t)  (K oz)  (M oz)
--------------------------------------------------------------
Proven                     830    6.73     470   179.6   12.54
--------------------------------------------------------------
Probable                   942    6.19     471   187.5   14.26
--------------------------------------------------------------
Proven & Probable        1,772    6.44     470   367.1   26.80
--------------------------------------------------------------
December 31, 2011 Reserve Estimate                         
-----------------------------------------------------------
                     Tonnes      Au      Ag      Au      Ag
Category            (000's)   (g/t)   (g/t)  (K oz)  (M oz)
-----------------------------------------------------------
Proven                  805    6.99     475     181   12.29
-----------------------------------------------------------
Probable                876    5.79     354     163    9.97
-----------------------------------------------------------
Proven & Probable     1,681    6.36     412     344   22.26
-----------------------------------------------------------

 
Table 4 - Comparison of San Jose Mine Resource Estimates (100% Basis) 


 
December 31, 2012 Resource Estimate                         
------------------------------------------------------------
                      Tonnes      Au      Ag      Au      Ag
Category             (000's)   (g/t)   (g/t)  (K oz)  (M oz)
------------------------------------------------------------
Measured               1,289    8.15     559   337.8   23.17
------------------------------------------------------------
Indicated              3,098    6.56     453   653.4   45.12
------------------------------------------------------------
Measured & Indicated   4,387    7.03     484   991.2   68.29
------------------------------------------------------------
Inferred               2,099    7.37     476   497.4   32.12
------------------------------------------------------------
December 31, 2011 Resource Estimate                         
------------------------------------------------------------
                      Tonnes     Ag      Au       Au      Ag
Category             (000's)   (g/t)   (g/t)  (K oz)  (M oz)
------------------------------------------------------------
Measured               1,155    8.21     560     305   20.80
------------------------------------------------------------
Indicated              3,513    6.53     423     738   47.78
------------------------------------------------------------
Measured & Indicated   4,668    6.95     457    1043   68.58
------------------------------------------------------------
Inferred               1,813    5.30     384     309   22.38
------------------------------------------------------------

 
To view figure 1, "Historical Mineral Resource Estimates (100%
Basis)", please visit the following link:
http://media3.marketwire.com/docs/MUX315fig1.pdf. 
To view figure 2, "Historical Mineral Reserve Estimates (100%
Basis)", please visit the following link:
http://media3.marketwire.com/docs/MUX315fig2.pdf.  
To view figure 3, "Historical Production of Gold Equivalent Ounces
(100% Basis)", please visit the
http://media3.marketwire.com/docs/MUX315fig3.pdf.  
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 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, Mexico and Nevada. 
McEwen Mining has 296,024,859 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 December
31, 2012, McEwen Mining had cash and liquid assets of approximately
US$79 million and is debt free. 
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. Although the Company has
independently verified reserve and resource estimates, 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 
The technical content of this news release has been reviewed and
approved by Eugene Puritch, P. Eng., President of P&E Mining
Consultants Inc. Under the direction of Mr. Puritch, Al Hayden, P.
Eng
., James L. Pearson, P. Eng., and Fred H. Brown, CPG, P.Geo.
performed an independent audit of the December 31, 2012 resource and
reserve estimates. Each of the foregoing is a Qualified Person and
independent of the Corporation, in each case, within the meaning of
Canadian National Instrument 43-101 (NI 43-101). Each of the
Qualified Persons visited the site on February 23rd and 24th, 2013,
where resource modeling techniques were reviewed, the drill hole
database was inspected and independent drill core samples were
collected for verification of Au and Ag grades. Site visit data
review and sampling revealed no issues of concern regarding the
resource estimate. For additional information about the San Jose
Mine, see the technical report dated August 15, 2012 titled
"Technical Report on the San Jose Silver-Gold Mine, Santa Cruz,
Argentina" prepared by Eugene J. Puritch, P.Eng., Alfred S. Hayden,
P.Eng., James L. Pearson, P.Eng, Fred H. Brown, CPG, P.Geo., and
David Burga, P.Geo. all of P&E Mining Consultants Inc. and each a
"Qualified Person" and "independent" of McEwen Mining, in each case,
within the meaning of NI 43-101.  
The foregoing news release and technical report are available under
the Corporation's profile on SEDAR (www.sedar.com). 
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, political 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 and permitting 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, 2012 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.
Jenya Meshcheryakova
Investor Relations
(647) 258-0395 ext 410 or Toll Free: (866) 441-0690
(647) 258-0408 (FAX) 
Mailing Address
McEwen Mining Inc.
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
Store: www.mcewenmining.com/store
 
 
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