Mr. Sylvain Guerard reports
MCEWEN MINING: GREY FOX DRILLING HITS 10.9 G/T AU OVER 18.8 M AND 14.1 G/T AU OVER 8.4 M
McEwen Mining Inc. has released additional positive drill results from Grey Fox, part of the Black Fox complex, located in the prolific Timmins gold district, Canada. Highlights of the new results are shown in the associated table. Fourth quarter and full-year 2019 cost estimates for the company's Black Fox and Gold Bar mines are also updated.
"These results highlight the potential to find additional gold mineralization across the one-square-kilometre Grey Fox deposit area,"
said Sylvain Guerard, senior vice-president, exploration.
The Grey Fox area comprises four deposits: 147, 147NE, Contact and South. Drill results in this news release are confirming the continuity of the main gold-mineralized shoot at 147NE and suggest the presence of two intriguing new areas of mineralization at the South zone and Whiskey Jack.
SELECTED DRILL RESULTS FROM SOUTH ZONE, WHISKEY JACK, 147NE AND 147 ZONE
Hole ID From To Core length Estimated true width Gold grade Gold grade
(m) (m) (m) (m) (g/t) (oz/t)
19GF-1198 281.2 300.0 18.8 ND 10.9 0.35
including 285.0 295.0 10.0 ND 15.9 0.51
and 317.9 320.0 2.1 ND 28.9 0.93
including 319.0 320.0 1.0 ND 54.5 1.75
19GF-1211 273.8 276.8 3.0 ND 20.4 0.66
including 273.8 274.8 1.0 ND 44.4 1.43
19GF-1242 111.6 120.0 8.4 ND 14.1 0.45
including 113.6 114.9 1.3 ND 59.1 1.90
19GF-1173 342.9 354.0 11.2 8.2 5.7 0.18
including 351.2 353.2 2.0 1.5 19.3 0.62
19GF-1175 188.7 190.7 2.0 0.7 52.6 1.69
including 189.1 189.8 0.7 0.3 148.0 4.76
19GF-1204 311.0 317.0 6.0 4.4 12.3 0.40
including 311.0 314.0 3.0 2.2 19.2 0.62
19GF-1187 227.0 241.0 14.0 11.4 7.0 0.23
including 232.0 234.0 2.0 1.6 22.0 0.71
19GF-1180 85.0 87.0 2.0 1.5 25.1 0.81
including 86.0 87.0 1.0 0.8 48.6 1.56
At 147NE, the company has observed that higher grades and thicker mineralization occur where northwest-dipping structures intersect favourable iron-rich volcanic host rocks, for example 5.7 grams per tonne gold over 8.2 metres, including 19.3 g/t Au over 2.2 m (hole 19GF-1173). This zone is exposed at surface and has been drill tested to a depth of 350 m where mineralization is offset by a fault.
The company's knowledge and success drilling 147NE resulted in the generation of targets with the same characteristics, which were drilled at Whiskey Jack and South zone.
Whiskey Jack is a new exploration target located one km north of the South zone intercepts, where drilling began in mid-September. Assays for one hole have been received to date, which returned a very encouraging result of 14.1 g/t Au over 8.4 m, including 59.1 g/t Au over 1.3 m core length, with multiple occurrences of visible gold in quartz-carbonate veins and breccias overprinted by faulting. Additional drilling in this area is under way to confirm the orientation, thickness and continuity of the vein.
South zone drilling has improved the company's knowledge of the structural controls on the replacement-style mineralization. Drill hole 19GF-1198 returned 10.9 g/t Au over 18.8 m core length, including 15.9 g/t Au over 10.0 m, and contained visible gold associated with 2 to 10 per cent disseminated pyrite in silica-albite-hematite alteration (replacement-style mineralization). Both styles of mineralization occur preferentially in iron-rich volcanic rocks.
Additional drilling at the 147 zone was done to reinforce the company's confidence in the geometry of the mineralization for modelling purposes and to provide additional drill intersections perpendicular to some of the mineralization controlling structures.
Updated cost estimates for Black Fox and Gold Bar
For Black Fox, cash costs for the full year 2019 are expected to be in line with the company's guidance of $905 per gold equivalent ounce, and AISC (all-in sustaining costs) is expected to be higher than the company's guidance of $1,080 per AuEq ounce. Actual cash costs and AISC for third quarter year to date 2019 are $859 and $1,326 per AuEq ounce, respectively. Management's AISC estimates for the fourth quarter of 2019 and the full year 2019 are $1,100 to $1,200 and $1,250 to $1,300, respectively.
Cash costs have been well controlled at Black Fox in 2019, and higher AISC is a result of higher-than-expected sustaining capital expenses related to underground development, improvement projects and additional capital spending associated with the company's transition to owner-operated crushing at the Stock mill. The company plans to scale back production in 2020 to enable greater freedom to explore in the mine, and free resources to advance development of the Froome underground deposit adjacent to Black Fox.
For Gold Bar, cash costs and AISC for the full year 2019 are expected to be higher than the company's guidance of $930 and $975 per AuEq ounce, respectively. Actual cash costs and AISC for Q3 YTD 2019 are $1,014 and $1,200 per AuEq ounce, respectively. Management's cash costs estimates for Q4 2019 and the full year 2019 are $1,000 to $1,050 and $1,000 to $1,050 per AuEq ounce, respectively; and AISC for Q4 2019 and the full year 2019 are $1,250 to $1,350 and $1,200 to $1,300 per AuEq ounce, respectively.
Higher cash costs and AISC at Gold Bar are a result of the delayed mine start-up, and higher-than-expected operating expenses and sustaining capital expenses required to correct plant deficiencies and improve performance. The company plans to increase production in 2020 to 65,000 to 70,000 gold ounces, and expects costs to moderate and then decline as the company's improvements take effect.
About McEwen Mining Inc.
McEwen Mining is a diversified gold and silver producer with operating mines in Nevada, Canada, Mexico and Argentina. It also owns a large copper deposit in Argentina. McEwen's goal is to create a profitable gold and silver producer focused in the Americas.
Technical information pertaining to geology and exploration contained in this news release has been prepared under the supervision of Ken Tylee, PGeo. Mr. Tylee is a qualified person within the meaning of National Instrument 43-101.
The technical information under the heading clarification of Black Fox and Gold Bar Q4 2019 cost estimates in this news release has been reviewed and approved by Chris Stewart, PEng, president and chief operating officer of McEwen Mining and a qualified person as defined by Canadian Securities Administrators' National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Grams per tonne (g/t) converted to troy ounces per tonne at ratio 31.1035:1.
All intercept widths are true widths unless otherwise specified.
Composite criteria unless otherwise stated: cut-off grade three g/t Au, minimum length two m and maximum consecutive interval waste three m. If grade times length greater than six the composite will be added. There is no top cutting or capping of assays.
All exploration drill core samples at the Black Fox complex were submitted as one-half core. Analyses reported herein were performed by the independent laboratories: ALS Laboratories, which is ISO 9001/IEC17025 certified, and AGAT Laboratories, which is ISO 9001/IEC17025 certified. McEwen's quality control program includes systematic insertion of blanks, standard reference material and duplicates to ensure laboratory accuracy.
We seek Safe Harbor.
© 2022 Canjex Publishing Ltd. All rights reserved.