El Gallo Complex Exploration Update

Tue Nov 6, 2012 7:30am EST

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

  TORONTO, ONTARIO, Nov 06 (MARKET WIRE) --
McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) is pleased to announce
exploration drill results from two locations within its 100% owned El
Gallo complex, Sinaloa, Mexico. The first location is at El Gallo Phase
1, where production commenced in September. The second is Mina Grande,
located in the north portion of the property (Fig. 1). Results from both
areas continue to impress.

    EXPLORATION HIGHLIGHTS 


--  Drilling has returned high-grade gold mineralization from El Gallo Phase
    1, beyond the currently defined resource: 
    
    --  El Gallo Phase 1: 7.4 gpt gold / 11.8 m, including 64.7 gpt gold /
        1.3 m 
        
--  Drilling between 45 and 100 m below the planned pit in El Gallo Phase 1
    has intersected 3.0 gpt gold / 12.8 m and 2.5 gpt gold / 9.4 m,
    demonstrating that the zone continues deeper. 
    
--  Drilling 100 m southwest of the planned pit at El Gallo Phase 1 has
    intersected 1.1 gpt gold over 10.3 m. This hole helps extend the mineral
    zone closer to surface.  
    
--  Mina Grande delivers multiple intersections of high-grade gold
    mineralization. Exciting new regional exploration target developing.  
    
    --  Mina Grande: 10.6 gpt gold / 7.5 m, 18.6 gpt gold / 1.3 m, and 11.1
        gpt gold / 4.0 m.  


    El Gallo Phase 1 Mine Exploration Results 

    Exploration drilling at the mine continues to be focused on extending the
resource below and southwest of the planned open pit. Assay results since
drilling re-commenced in June have been exceeding expectations. Holes
MLX-50, 53, 54 and 55 have intersected, narrow, high-grade gold, with
three of the intercepts occurring inside a lower grade envelope (Fig. 2).
An example would be MLX-054, which returned 7.4 gpt gold over 11.8 m,
including a high-grade core that assayed 64.7 gpt gold over 1.3 m. The
drill intersections from these holes occur approximately 45 to 100 m
below the currently designed pit. There appears to be good potential to
extend the mineralization at depth. 

    MLX-056 was drilled 100 m southwest of the proposed pit (Fig. 2). The
hole was designed to extend mineralization closer to surface. This hole
returned 1.1 gpt gold over 10.3 m and successfully completed its
objective. Highlights from El Gallo Phase 1 are located below in Table 1.



              TABLE 1. EL GALLO PHASE 1 EXPLORATION HIGHLGHTS    
                                                                 
          -------------------------------------------------------
                           From     To    Thickness   Gold Grade 
          Hole              (m)     (m)       (m)        (GPT)   
          -------------------------------------------------------
          MLX-050          147.1   156.5      9.4         2.5    
          Including        148.4   149.3      0.9        18.3    
          -------------------------------------------------------
          MLX-053          123.0   123.9      0.9        18.4    
          -------------------------------------------------------
          MLX-054          103.1   114.9     11.8         7.4    
          Including        107.2   108.5      1.3        64.7    
          -------------------------------------------------------
          MLX-055          131.3   144.1     12.8         3.0    
          Including        131.3   132.4      1.1        23.3    
          -------------------------------------------------------
          MLX-056          70.0    88.1      18.1         0.8    
          Including        71.0    81.3      10.3         1.1    
          -------------------------------------------------------


    Mina Grande Exploration Results 

    High-Grades Continue Deeper

    The second area where exploration drilling took place within the El Gallo
complex is called Mina Grande. It is located 15 km north of El Gallo
Phase 1 (heap leach) and 10 km from Phase 2 (proposed mill site) (Fig.
1). Mina Grande currently has an inferred resource of 3.8 million tonnes
grading 0.6 gpt gold and 23.5 gpt silver for a total of 74,000 ounces
gold and 2.9 million ounces silver. 

    The objective of the recent drilling was to extend a high-grade gold
shoot within the Mina Grande set of veins that was discovered early in
2012. The initial results (May 14, 2012) from this vein returned 27.5 gpt
gold over 2.1 m and 24.8 gpt gold over 0.7 m. New drilling has
encountered additional high-grades extending the extent of the
mineralization by 50 m. 


                TABLE 2. MINA GRANDE EXPLORATION HIGHLIGHTS              
                                                                         
  -----------------------------------------------------------------------
                    From     To    Thickness   Gold Grade   Silver Grade 
  Hole               (m)     (m)       (m)        (GPT)        (GPT)     
  -----------------------------------------------------------------------
  MGX-087           59.2    63.2       4.0        11.1          18.1     
  Including         59.2    60.2       1.0        16.8          16.2     
  Including         62.4    63.2       0.8        26.9          42.5     
  -----------------------------------------------------------------------
  MGX-090           113.7   114.0      0.3         6.1          17.0     
  And               115.3   115.6      0.3         7.4          19.5     
  -----------------------------------------------------------------------
  MGX-091           119.7   120.1      0.4         6.9          26.7     
  -----------------------------------------------------------------------
  MGX-093           45.6    53.1       7.5        10.6          21.1     
  Including         49.1    50.3       1.2        49.0          53.1     
  And               139.9   140.5      0.6         9.2          13.4     
  -----------------------------------------------------------------------
  MGX-097           58.6    59.9       1.3        18.6          17.8     
  -----------------------------------------------------------------------


    About El Gallo

    The El Gallo complex is located in Sinaloa State, Mexico. Phase 1
construction was completed in September and the mine is now producing
gold and is expected to average 30,000 ounces of gold per year. Phase 2,
where a feasibility study was recently completed, is forecasted to add an
additional 105,000 ounces of gold equivalent once in production.
Combined, both phases are scheduled to produce approximately 135,000
ounces of gold equivalent. 

    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 quality, 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 Copper project in San Juan, Argentina and a large
portfolio of exploration properties in Argentina, Nevada and Mexico. 

    McEwen Mining has 268,495,751 shares issued and outstanding (comprised of
190,516,797 Common Shares and 77,987,621 Exchangeable Shares). Rob
McEwen, Chairman and Chief Owner, owns approximately 25% of the shares of
McEwen Mining (assuming all outstanding Exchangeable Shares are exchanged
for an equivalent amount of Common Shares). 

    TECHNICAL INFORMATION: 

    This news release has been viewed and approved by John Read, CPG, McEwen
Mining's consulting geologist, who is a Qualified Person as defined by
National Instrument 43-101 and is responsible for program design and
quality control of exploration undertaken by the Company at its Mexican
exploration properties. Samples from the core drilling were split on-site
at the Company's El Gallo complex. One half of the split drill core is
shipped to ALS Chemex for sample preparation and analysis by fire assay
for gold and 4-acid digestion with ICP determination for silver. Samples
returning greater than 10 ppm gold or 1500 ppm silver were re-analyzed
using gravimetric fire assay. Standards and blanks were inserted every 20
samples. All holes were drilled with HQ bits and reduced to NTW where
required. Samples were taken based on lithologic and/or mineralized
intervals and vary in length. In some cases the true width of the mineral
zones has not been determined. For additional information see the
technical report titled "El Gallo Complex Phase II Project, NI 43-101
Technical Report Feasibility Study, Mocorito Municipality, Sinaloa,
Mexico" with an effective date of September 10, 2012, prepared by M3
Engineering along with a team of associates (the "Phase II Report"). The
Phase II Report is available under the Corporation's profile on SEDAR
(www.sedar.com). The authors of the Phase 2 Report, Stan Timler - M3
Engineering, Mike Hester - Independent Mining Consultants (Reserves),
Dawn Garcia - SRK Consulting (Environmental), Richard Kehmeier and Brian
Hartman - Pincock Allen & Holt (El Gallo Deposit Resource), John Read -
McEwen Mining consultant (Palmarito Insitu, Historic Waste Dumps and
Historic tailings Resource), all of whom are qualified persons and all of
whom but John Read are independent of McEwen Mining, each as defined by
NI 43-101.

    CAUTIONARY NOTE TO US INVESTORS 

    McEwen Mining prepares 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. The estimation of measured
resources and indicated resources involve greater uncertainty as to their
existence and economic feasibility than the estimation of proven and
probable reserves. U.S. investors are cautioned not to assume that any
part of measured or indicated resources will ever 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, 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. 


Table 3. All Holes From El Gallo Phase 1                                    
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                  Gold                                      
           From    To  Thickness  Grade    Dip     Azimuth  Easting Northing
Hole        (m)    (m)     (m)    (GPT) (Degrees) (Degrees)  (UTM)   (UTM)  
----------------------------------------------------------------------------
----------------------------------------------------------------------------
MLX-50     147.1  156.5    9.4     2.5     -55       315    218013  2836463 
Including  148.4  149.3    0.9    18.3                                      
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
MLX-051    135.7  149.8   14.1     0.5     -55       325    217532  2836099 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
MLX-052    141.9  146.9    5.0     0.5     -50       325    217704  2836196 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
MLX-053    123.0  123.9    0.9    18.4     -55       325    217570  2836085 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
MLX-054    103.1  114.9   11.8     7.4     -50       325    217659  2836177 
Including  107.2  108.5    1.3    64.7                                      
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
MLX-055    131.3  144.1   12.8     3.0     -55       325    217908  2836352 
Including  131.3  132.4    1.1    23.3                                      
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
MLX-056     70.0  88.1    18.1     0.8     -50       325    217520  2836154 
Including   71.0  81.3    10.3     1.1                                      
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Table 4. All Holes From Mine Grande Vein                                    
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                               Gold                                         
          From   To  ThicknessGrade Silver   Dip    Azimuth Easting Northing
Hole       (m)   (m)    (m)   (GPT) (GPT) (Degrees)(Degrees) (UTM)   (UTM)  
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
MGX-087    59.2 63.2    4.0    11.1  18.1    -50      240    216603 2851694 
                                                                            
Including  59.2 60.2    1.0    16.8  16.2                                   
                                                                            
Including  62.4 63.2    0.8    21.5  42.5                                   
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                                                            
MGX-088     -     -      -      -     -      -50      300    216593 2851516 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                                                            
MGX-089     -     -      -      -     -      -60      300    216643 2851585 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                                                            
MGX-090   113.7 114.0   0.3    6.1   17.0    -50      240    216636 2851663 
                                                                            
Including 115.3 115.6   0.3    7.4   19.5                                   
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                                                            
MGX-091   119.7 120.1   0.4    6.9   26.7    -50      240    216654 2851674 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                                                            
MGX-092     -     -      -      -     -      -50      240    216632 2851693 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                                                            
MGX-093    45.6 53.1    7.5    10.6  21.1    -50      240    216619 2851709 
                                                                            
Including  49.1 50.3    1.2    49.0  53.1                                   
                                                                            
And       139.9 140.5   0.6    9.2   13.4                                   
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                                                            
MGX-094    23.3 23.9    0.6    3.5   23.4    -50      240    216586 2851742 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                                                            
MGX-096     -     -      -      -     -      -55      240    216674 2851692 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                                                            
MGX-097    58.6 59.9    1.3    18.6  17.8    -55      240    216642 2851727 
----------------------------------------------------------------------------
----------------------------------------------------------------------------


    To see the figures associated with this release, please visit the
following link:

    Figure 1: http://media3.marketwire.com/docs/McEwenfigure1.pdf 

    Figure 2: http://media3.marketwire.com/docs/McEwenfigure2.pdf 

    Figure 3: http://media3.marketwire.com/docs/McEwenfigure3.pdf 

    Figure 4: http://media3.marketwire.com/docs/McEwenfigure4.pdf 

    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)
www.mcewenmining.com

McEwen Mining Inc.
Mailing Address
181 Bay Street Suite 4750
Toronto, ON M5J 2T3
PO box 792
info@mcewenmining.com

Facebook: www.facebook.com/McEwenRob
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