McEwen Mining Third Quarter 2012 Production Results and Discovery of New Vein System at the San Jose Mine in Argentina

Thu Oct 18, 2012 7:30am EDT

* Reuters is not responsible for the content in this press release.

  TORONTO, ONTARIO, Oct 18 (MARKET WIRE) --
McEwen Mining Inc. (NYSE:MUX)(TSX:MUX) is pleased to announce Third
Quarter production results and the discovery of a new vein system at the
San Jose mine (49%) in Argentina. The San Jose mine had another solid
quarter of production and El Gallo Phase I (100%) in Mexico achieved its
first gold pour. Third Quarter production totaled 10,572 ounces gold and
760,670 ounces silver, representing 25,200 gold and gold equivalent
ounces1. The Company remains on track to produce approximately 105,000
gold and gold equivalent ounces in 2012. Production costs will be
announced with the Third Quarter financial results, which will be
released in early November.

    San Jose Mine - Argentina (49%)

    The San Jose mine continued to meet its full year production guidance.
Production attributable to McEwen Mining during the Third Quarter totaled
10,274 ounces gold and 760,480 ounces silver, representing 24,899 gold
and gold equivalent ounces. The average grade mined at San Jose during
the quarter was 5.24 gpt gold and 402 gpt silver, slightly lower than
previous quarters, but in line with the Company's expectations. The
decrease in grade was offset by higher throughput at the process plant.
Ounces sold in the quarter were higher than normal due to the sale of
accumulated concentrate inventory from the previous quarter.


                     San Jose Mine Production Comparison                    
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                               Year to   3rd Quarter 2nd Quarter 3rd Quarter
San Jose - 100%(i)            Date 2012      2012        2012        2011   
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Ore production (tonnes)          380,911     136,577     128,803     124,204
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Average grade gold (gpt)            5.71        5.24        5.98        5.75
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Average head silver (gpt)            416         402         430         448
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Average gold recovery (%)           90.4        91.1        88.6        91.1
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Average silver recovery (%)         86.6        87.9        84.2        87.2
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Gold produced (ounces)            63,270      20,967      21,946      20,908
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Silver produced (ounces)       4,407,000   1,552,000   1,500,000   1,562,000
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Gold equivalent(1) produced      148,020      50,813      50,792      50,946
 (ounces)                                                                   
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Gold sold (ounces)                61,127      29,126      17,661      18,140
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Silver sold (ounces)           4,343,000   2,165,000   1,146,000   1,409,000
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McEwen Mining - 49% Share                                                   
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Gold produced (ounces)            31,002      10,274      10,754      10,245
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Silver produced (ounces)       2,159,430     760,480     735,000     765,380
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Gold equivalent(1) produced       72,530      24,899      24,888      24,964
 (ounces)                                                                   
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(i)McEwen Mining holds a 49% attributable interest in the San Jose mine.    


    El Gallo Phase 1 - First Gold Pour in Mexico

    On September 24th the Company announced that it had achieved its first
gold pour from El Gallo Phase I. The remaining commissioning activities
are underway, with commercial production anticipated to be achieved late
this year. An update on the commissioning of Phase I will be provided
with the Company's Third Quarter financial results. 

    (1)Gold equivalent calculated using an average silver:gold ratio of 52:1.

    Discovery of New Vein System at the San Jose Mine in Argentina

    The Company is pleased to announce the discovery of a new vein system at
the San Jose mine. This result is part of the largest exploration program
ever being conducted at the mine this year. The new discovery is the
high-grade gold/silver Emilia vein, located within the known San Jose
area. The Emilia vein has been traced over a strike length of more than
1,000 meters and it is open to the east and at depth. The Emilia drilling
also identified sub-parallel veins called the Estela and Esperanza veins,
and the system represents the eastward extension of the east-west Micaela
system. For a full set of results please see Table 2. The discovery of
this new vein system is encouraging and illustrates the prospective
nature of the San Jose mine and the surrounding land package.

    The location of the Emilia vein is shown in Figure 1. Highlights from the
holes recently drilled on the Emilia vein include:


                 Table 1.Drill Hole Intercepts - Emilia Vein                
----------------------------------------------------------------------------
                                                      True                  
               Drill Hole                Intercept    Width    Au      Ag   
                                            (m)        (m)    (g/t)   (g/t) 
----------------------------------------------------------------------------
                                            2.30      0.53    22.8    3,403 
           SJD-496 including                1.00      0.23    46.4    6,951 
----------------------------------------------------------------------------
                SJD-1220                    0.85      0.58     2.3     840  
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                                            1.65      0.73    44.5    2,251 
           SJD-1246 including               1.00      0.31    71.3    3,579 
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                                            1.65      0.56    86.4    1,041 
           SJD-1264 including               0.90      0.31    147.0   1,276 
----------------------------------------------------------------------------
                                            4.70      0.89    11.6     86   
           SJD-1269 including               1.00      0.19    30.4     212  
----------------------------------------------------------------------------


    About the San Jose Mine

    The San Jose mine is a high grade silver/gold mine located in southern
Argentina in the province of Santa Cruz. The mineralisation occurs as low
sulphidation quartz veins. It is owned and operated by Minera Santa Cruz
S.A., a joint venture between Hochschild Mining (51%) and McEwen Mining
(49%). Operations commenced at San Jose in June 2007 and in the second
half of 2008 its processing capacity was increased from 750 to 1,500
tonnes per day. The mine produced 81,000 ounces gold and 5.9 million
ounces silver in 2011.

    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, low-cost, mid-tier 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, Nevada and Mexico. 

    McEwen Mining has 267,919,384 shares issued and outstanding. Rob McEwen,
Chairman, President and Chief Owner, owns approximately 25% of the shares
of the Company. As of June 30, 2012, McEwen Mining had cash and liquid
assets of US$38 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. This press release is based entirely on information provided
to McEwen Mining by Minera Santa Cruz S.A. (MSC). 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. 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 contents of this news release has been reviewed and
approved by Jim Duff, Senior Operations Advisor to the Company, a
Qualified Person as defined by Canadian Securities Administrator National
Instrument 43-101 "Standards of Disclosure for Mineral Projects". Assay
results were reported to McEwen Mining by MSC, which is the operating
company for the San Jose mine joint venture. Assay results for the
drilling were reviewed by Jim Duff. All samples were collected in
accordance with industry standards. Drill core samples were submitted to
Alex Stewart Assayers, Argentina S.A. in Mendoza, Argentina, for fire
assay and ICP analysis. Accuracy of results is tested through the
systematic inclusion of standards, blanks and check assays. Jim Duff has
reviewed the assay certificates from the lab and the quality control
measures.

    Cautionary Note to U.S. Investors

    McEwen Mining reports 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. According to NI 43-101 criteria, the
estimation of measured resources and indicated resources involve greater
uncertainty as to their economic feasibility than the estimation of
proven and probable reserves. Under SEC Industry Guide 7 criteria,
measured, indicated and inferred resources are considered Mineralized
Material. The SEC considers that in addition to greater uncertainty as to
the economic feasibility of Mineralized Material compared to proven and
probable reserves, there is also greater uncertainty as to the existence
of Mineralized Material. U.S. investors are cautioned not to assume that
measured or indicated resources will 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 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 business integration as a result of the business
combination between US Gold and Minera Andes, 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 of mining
operations and commencement of production and the projected costs
thereof, risks related to litigation including specifically but not
limited to ongoing litigation with respect to the Los Azules property
which if resolved adversely to the Company, would materially affect the
Company's ability to develop the Los Azules project, 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, 2011 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. 

    To view Figure 1, "San Jose Mine - Emilia Vein System", please visit the
following link:
http://media3.marketwire.com/docs/McEwenMining1016fig1.pdf 

    To view Figure 2, "Emilia Vein System - Drill Hole Locations", please
visit the following link:
http://media3.marketwire.com/docs/McEwenMining1016fig2.pdf 


     Table 2. Emilia Vein System Drilling Results From July 1, 2012 to 
                             September 30, 2012 
----------------------------------------------------------------------------
  Drill   From    To   Intercept  Au     Ag    True   Au     Ag      Vein   
   Hole    (m)    (m)     ( m)   (g/t)  (g/t) Width  (g/t)  (g/t)           
                                                (m)                         
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SJD-180  142.57  143.20   0.63   0.07   8.00   0.78  0.11   17.32   Emilia  
        --------------------------------------                              
         143.20  143.75   0.55   0.17   28.00                               
----------------------------------------------------------------------------
SJD-198  178.00  178.40   0.40   0.48  116.50  0.55  0.24   59.25   Emilia  
        --------------------------------------                              
         178.40  178.80   0.40   0.01   2.00                                
----------------------------------------------------------------------------
SJD-462   78.40  79.40    1.00   0.08   1.00   0.86  0.08    1.00   Emilia  
----------------------------------------------------------------------------
SJD-468   74.15  75.08    0.93   0.08   2.62   0.80  0.08    2.62   Emilia  
----------------------------------------------------------------------------
SJD-469  167.98  168.50   0.52   0.08   1.00   0.69  1.52    1.00   Emilia  
        --------------------------------------                              
         168.50  168.80   0.30   4.03   1.00                                
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SJD-496   75.15  76.15    1.00   2.90  330.72  0.53  22.82 3403.12  Emilia  
        --------------------------------------                              
          76.15  77.15    1.00   46.37 6951.02                              
        --------------------------------------                              
          77.15  77.45    0.30   10.70 1818.15                              
----------------------------------------------------------------------------
SJD-500  222.80  223.80   1.00   0.08   1.00   1.11  0.08    1.31   Emilia  
        --------------------------------------                              
         223.80  224.11   0.31   0.08   2.31                                
----------------------------------------------------------------------------
SJD-1158 254.35  255.35   1.00   8.25  249.05  0.63  8.25   249.05  Emilia  
----------------------------------------------------------------------------
SJD-1220 109.15  110.00   0.85   2.27  839.74  0.58  2.27   839.74  Emilia  
----------------------------------------------------------------------------
SJD-1222  78.77  79.45    0.68   0.01   2.00   0.46  0.01    1.00   Emilia  
        --------------------------------------                              
          79.45  79.80    0.35   0.01   2.00                                
----------------------------------------------------------------------------
SJD-1238 284.45  285.20   0.75   0.02   3.13   0.38  0.02    3.13   Emilia  
----------------------------------------------------------------------------
SJD-1246 285.30  286.30   1.00   71.31 3579.34 0.73  44.51 2205.76  Emilia  
        --------------------------------------                              
         286.30  286.95   0.65   3.29   92.57                               
----------------------------------------------------------------------------
SJD-1252 131.20  132.00   0.80   0.02   12.88  0.50  0.38   135.89  Emilia  
        --------------------------------------                              
         132.00  132.45   0.45   1.01  354.57                               
----------------------------------------------------------------------------
SJD-1260 142.40  143.10   0.70   10.45 782.43  0.62  4.37   330.35  Emilia  
        --------------------------------------                              
         143.10  144.10   1.00   0.11   13.90                               
----------------------------------------------------------------------------
SJD-1264  96.35  97.10    0.75   13.54 758.35  0.56  86.36 1040.74  Emilia  
        --------------------------------------                              
          97.10  98.00    0.90  147.04 1276.06                              
----------------------------------------------------------------------------
SJD-1269 152.00  153.00   1.00   21.33 120.92  0.89  11.60  86.43   Emilia  
        --------------------------------------                              
         153.00  154.00   1.00   30.38 212.13                               
        --------------------------------------                              
         154.00  154.70   0.70   3.03   78.04                               
        --------------------------------------                              
         154.70  155.70   1.00   0.46   10.12                               
        --------------------------------------                              
         155.70  156.70   1.00   0.21   8.42                                
----------------------------------------------------------------------------
SJD-1272 126.00  126.30   0.30   0.07   5.36   1.17  0.02    2.01   Emilia  
        --------------------------------------                              
         126.30  127.30   1.00   0.01   1.00                                
----------------------------------------------------------------------------
SJD-1274 154.10  154.50   0.40   0.01   2.86   0.95  0.02    2.94   Emilia  
        --------------------------------------                              
         154.50  155.25   0.75   0.02   2.99                                
----------------------------------------------------------------------------
SJD-1276 191.85  192.35   0.50   0.02   3.91   0.77  1.31   59.65   Emilia  
        --------------------------------------                              
         192.35  192.70   0.35   3.15  139.28                               
----------------------------------------------------------------------------
SJD-1278  94.80  95.60    0.80   0.01   9.17   0.53  0.01    6.44   Emilia  
        --------------------------------------                              
          95.60  96.20    0.60   0.01   2.79                                
----------------------------------------------------------------------------
SJD-1279 202.35  203.10   0.75   0.08   7.42   0.48  0.08    7.42   Emilia  
----------------------------------------------------------------------------
SJD-1283 124.80  125.65   0.85   0.35   3.28   0.71  0.35    3.28   Emilia  
----------------------------------------------------------------------------
SJD-1284 187.70  188.70   1.00   0.01   3.39   0.89  0.01    3.39   Emilia  
----------------------------------------------------------------------------
SJD-1287 219.70  220.40   0.70   0.01   1.00   0.89  0.01    1.00   Emilia  
        --------------------------------------                              
         220.40  220.70   0.30   0.01   1.00                                
----------------------------------------------------------------------------
SJD-1288  40.50  41.00    0.50   0.15  136.10  0.40  1.08   388.36  Emilia  
        --------------------------------------                              
          41.00  41.50    0.50   2.00  640.61                               
----------------------------------------------------------------------------
SJD-1158 143.00  144.00   1.00   0.92   66.76  0.45  1.08   64.48   Estela  
        --------------------------------------                              
         144.00  144.40   0.40   1.48   58.79                               
----------------------------------------------------------------------------
SJD-1220  44.10  44.55    0.45   1.18   11.62  0.31  1.18   11.62   Estela  
----------------------------------------------------------------------------
SJD-1238 329.35  329.85   0.50   0.03   3.45   0.24  0.03    3.45   Estela  
----------------------------------------------------------------------------
SJD-1279 155.60  156.60   1.00   5.38  872.73  1.16  4.41   614.56  Estela  
        --------------------------------------                              
         156.60  157.50   0.90   3.33  327.70                               
----------------------------------------------------------------------------
SJD-367  292.33  293.13   0.80   2.34   23.00  0.31  2.34   23.00   Estela  
----------------------------------------------------------------------------
SJD-1158 286.00  287.00   1.00   2.38   32.76  0.74  2.38   32.76  Esperanza
        --------------------------------------                              
         287.00  287.95   0.95   1.51   20.14                               
        --------------------------------------                              
         287.95  288.95   1.00   1.10   14.99                               
        --------------------------------------                              
         288.95  289.20   0.25   0.13   2.93                                
----------------------------------------------------------------------------
SJD-1220 130.45  131.00   0.55   0.01   3.92   0.67  0.02    5.08  Esperanza
        --------------------------------------                              
         131.00  131.30   0.30   0.05   7.20                                
----------------------------------------------------------------------------
SJD-1238 163.80  164.40   0.60   12.69 174.16  0.93  3.88   100.94 Esperanza
        --------------------------------------                              
         164.40  165.10   0.70   0.62   56.01                               
        --------------------------------------                              
         165.10  165.40   0.30   6.76   59.34                               
----------------------------------------------------------------------------
SJD-1239 235.05  236.05   1.00   0.01   2.00   0.77  0.01    2.00  Esperanza
----------------------------------------------------------------------------
SJD-1276  76.75  77.35    0.60   5.63   6.61   0.40  5.63    6.61  Esperanza
----------------------------------------------------------------------------
SJD-506   88.77  89.77    1.00   0.77  208.35  1.80  1.22   273.81 Esperanza
        --------------------------------------                              
          89.77  90.61    0.84   0.30   78.79                               
        --------------------------------------                              
          90.61  91.23    0.62   3.20  643.62                               
----------------------------------------------------------------------------



    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)
info@mcewenmining.com
www.mcewenmining.com

Mailing Address
181 Bay Street Suite 4750
Toronto, ON M5J 2T3
PO box 792
Facebook: www.facebook.com/McEwenRob
Twitter: www.twitter.com/McEwenMining

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