TORONTO, ONTARIO--(Marketwire - Jan 17, 2013) - McEwen Mining Inc. (MUX)(MUX.TO) today announced that its exploration efforts at the Los Azules Copper Project in San Juan Province, Argentina, continues to show significant potential to increase the size of the resource. The first ten drill holes completed and assayed have been successful in extending the mineralization both laterally to the east and to depth. In addition, the drilling appears to have identified a parallel mineralized trend to the southwest of the main part of the existing resource.
A possible parallel mineralized trend may be emerging southwest of the resource. Good grades over long intervals have been intersected, highlights of which include 0.61% copper over 160 meters and 0.49% copper over 329 meters both in Hole 1291, 0.87% copper over 69 meters in Hole 12101 and 0.44% copper over 529 meters in Hole 1299, with each hole ending in mineralization.
Drill hole 1294 successfully extended the known copper mineralization 200 meters below the limits of the current resource. The total intersection of the hole assayed 0.47% copper over 610 meters meters and included 0.95% copper over 68 meters and 0.65% copper over 100 meters. A second drill hole, 1299, assayed 0.44% copper over 529 meters. This drill hole ended approximately 600 meters below the resource outline.
Drill hole 1289 was designed to target new mineralization further to the east. It was successful and returned 0.44% copper over 147 meters. This hole was drilled 150 meters east of any prior drilling.
The Company expects to release an updated resource estimate for Los Azules which incorporates these recent results in Mid-February.
TABLE 1. LOS AZULES EXPLORATION HIGHLIGHTS
(m) Copper Grade
1291 72 232 160 0.61
And 562 890.5 328.5 0.49
including 790 890.5 100.5 0.71
1294 252 861.9 609.9 0.47
including 268 336 68 0.95
Including 560 660 100 0.65
1299 546 1074.6 528.6 0.44
The Company was successful in starting drilling in October, two months earlier than prior seasons. In addition, the drilling has consistently achieved drill hole depths greater than 700 meters with Hole 1299 drilled to a depth of 1,075 meters. Significantly, all of the deeper drill holes ended in mineralization. Drilling will continue to focus on expanding the resource. This season''s exploration program is on track to achieve its objective of completing 15,000 meters of drilling by the end of April.
A table of all 10 drill hole assay results is provided below in Table 2. A drill hole location map (Exhibit 1) and cross sections of the Los Azules resource (Exhibits 2, 3 and 4) are provided below.
Earlier this month, the company hired BMO Capital Markets to market Los Azules.
About the Los Azules Copper Project
Los Azules is a large 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 Pachón 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.
The mineral resources for Los Azules were calculated in June 2012 and are summarized in the table below with a cut-off grade of 0.35% copper.
(%) Contained Copper
(MM lbs) Gold
Indicated 323 0.65 4.6 0.07 1.8
Inferred 948 0.52 10.8 0.06 1.8
The Argentinian provinces and the miners need to get a common-sense compromise DONE. It helps no one to drive the miners away, and it also makes no sense that provinces sitting on all this resource wealth are broke.
Like i said before, accompanied by "Major Drilling:" they have been drilling "deeper" then ever at Los Azules and as much focus has been at EL Gallo a siginicant amount of money has been spent at LA this pass drilling season to advance the project. It has always been thought thru surface studies that a signicant amount of copper has yet to be unveiled becuase it was extremely deep under the surface and tons of money and sophisticated equipment was required to dig that far down. Dont be surprised if they announce Los Azules infill has been significantly advanced.