McEwen Mining Inc.: Exploratory Drilling at El Gallo 1 Mine Shows Potential to Expand Gold Resource & Mine Life
2.9 gpt Gold over 43 Meters & 1.8 gpt Gold over 56 meters
TORONTO, ONTARIO--(Marketwired - April 11, 2013) - McEwen Mining Inc. (NYSE:MUX)(TSX:MUX) is pleased to announce that a new gold zone is emerging at its El Gallo 1 Mine in Sinaloa, Mexico (Fig. 1). Nine core holes were drilled in a new area called "Central". Drilling has returned encouraging grades and widths between two planned open pits and has opened up a large area for additional exploration. These results have the potential to both increase the size of the gold resource and extend the mine life. In addition, two holes encountered some of the deepest mineralization to date at El Gallo 1, demonstrating the potential for higher-grade underground mining. The Central Zone is open laterally (along strike) and at depth.
"Despite the steep fall in our share price and that of all precious metal companies we remain committed to actively exploring our properties. In Mexico, we are very pleased with our continuing exploration success. On April 2nd we announced a new high-grade gold discovery named Twin Domes which is located near our existing (El Gallo 1) and planned mining operations (El Gallo 2). Today, we have more good news. At El Gallo 1 drilling has extended the mineralization to connect two planned open pits with the result of potentially increasing the gold resource and life of the mine. An update resource estimate of our El Gallo Complex will be released in Q2 of this year," stated Rob McEwen, Chief Owner.
The Central Zone is located between two known resources, Sagrado and Lupita (Fig. 2). Mining at Sagrado started on April 1st and it is expected to begin at Lupita later this year. A distance of 1,000 meters separates these two planned open pits. Based on the results contained in this news release plus holes drilled during the second half of 2012, there appears to be good potential to mine the area as one enlarged open pit rather than as two separate pits.
In the 1990's, there was limited near surface drilling in Central, which encountered weak near surface gold mineralization. McEwen Mining's drilling tested below the previous exploration (Fig. 3-6). This new drilling has successfully confirmed the presence of a strongly mineralized system at depth. Our initial holes were spaced 200 meters apart, with subsequent holes drilled 30 meters apart in order to establish continuity and the orientation of the mineralization. The zone remains open along strike and at depth.
About El Gallo
The El Gallo Complex is located in Sinaloa, Mexico. Phase 1 achieved commercial production in early January. It is forecasted to produce 30,000 ounces of gold per year. Phase 2, where a feasibility study was completed in 2012, is forecasted to add an additional 5,200,000 ounces of silver (105,000 ounces of gold equivalent) once in production. Combined, both phases are scheduled to produce approximately 135,000 ounces of gold equivalent annually.
Note this is separate from the Twin Dome's find, released April 2nd. Today's release deals with an area between the two producing mines at EG1 - so it can be immediately mined, and suggests that the full 1000 meter-long area may be mineralized. The Twin Dome find is a few kilometers to the east.