McEwen Mining Announces Record Resource Estimate at the San Jose Mine in Argentina
TORONTO, ONTARIO--(Marketwire - Mar 18, 2013) - McEwen Mining Inc. (MUX)(MUX.TO) 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 José 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 José 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 José 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 JOSÉ MINE - BIGGER & HIGHER GRADE!
The San José 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
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 José 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.