McEwen Mining Announces Record Resource Estimate at the San Jose Mine in Argentina

Mon Mar 18, 2013 7:30am EDT

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

  TORONTO, ONTARIO, Mar 18 (MARKET WIRE) --
McEwen Mining Inc. (NYSE:MUX)(TSX:MUX) 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 Jose 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 Jose 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 Jose 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 JOSE MINE - BIGGER & HIGHER GRADE!

    The San Jose 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 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 Jose 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. 

    EXPLORATION IN 2013

    The 2013 exploration budget for the San Jose mine is US$8 million. The
goal is to complete 39,250 meters of diamond drilling. The majority of
this drilling will be targeting new resources located south-east of the
mine area. The balance of the drilling will be for infill drilling
designed to convert a portion of the Inferred resources to the Measured
and Indicated resource categories.


Table 1- Audited San Jose Mineral Resource Estimate, December 31, 2012      
                                                                            
----------------------------------------------------------------------------
                                      Tonnes     Au      Ag       Au      Ag
Category                             (000's)   (g/t)   (g/t)  (K oz)  (M oz)
----------------------------------------------------------------------------
Measured                               1,289    8.15     559   337.8   23.17
----------------------------------------------------------------------------
Indicated                              3,098    6.56     453   653.4   45.12
----------------------------------------------------------------------------
Measured and Indicated                 4,387    7.03     484   991.2   68.29
----------------------------------------------------------------------------
Inferred                               2,099    7.37     476   497.4   32.12
----------------------------------------------------------------------------
Notes:                                                                      
1. Represents 100% of the resources. McEwen Mining Inc. has a 49%           
   attributable interest in the San Jose property.                          
2. Mineral resources, which are not mineral reserves, do not have           
   demonstrated economic viability.                                         
3. Mineral resources are reported inclusive of mineral reserves.            
4. The quantity and grade of reported Inferred resources are uncertain in   
   nature and there has been insufficient exploration to classify these     
   Inferred resources as Measured or Indicated, and it is uncertain if      
   further exploration will result in upgrading them to an Indicated or     
   Measured category.                                                       
5. Mineral Resources were estimated by Hochschild Mining Plc using the CIM  
   Standards on Mineral Resources and Reserves, Definitions and Guidelines  
   prepared by the CIM Standing Committee on Reserve Definitions. P&E Mining
   Consultants Inc have audited the resource estimates and found that they  
   meet both the requirements for Canadian disclosure under NI 43-101 and   
   the Joint Ore Reserves Committee of the Australian Institute of Mining   
   and Metallurgy ("JORC").                                                 
6. Resource estimations utilized inverse distance and ordinary kirging      
   methods depending upon data density.                                     
7. Metal prices used were $1200/oz for Au and $20/oz for Ag.                
8. Resources were defined at a cut-off grade of 213 g/t AgEq, which is      
   equivalent to a cut-off value of $92.88/tonne. The cut-off value was     
   increased from $88.31/tonne used for the December 31, 2011 estimate      
   reflecting higher operating costs due to local inflation.                
                                                                            
Table 2- Audited Mineral Reserve Estimate, December 31, 2012                
                                                                            
----------------------------------------------------------------------------
                                      Tonnes      Au      Ag      Au      Ag
Category                             (000's)   (g/t)   (g/t)  (K oz)  (M oz)
----------------------------------------------------------------------------
Proven                                   830    6.73     470   179.6   12.54
----------------------------------------------------------------------------
Probable                                 942    6.19     471   187.5   14.26
----------------------------------------------------------------------------
Proven and Probable                    1,772    6.44     470   367.1   26.80
----------------------------------------------------------------------------
Notes:                                                                      
1. Represents 100% of the reserves. McEwen Mining Inc. has a 49%            
   attributable interest in the San Jose property.                          
2. Metal prices used were $1200/oz for Au and $20/oz for Ag (same as for    
   resources).                                                              
3. Reserves were defined at a cut-off $92.88/tonne, which is the same cutoff
   value used for resources. The cut-off value is based on historical       
   January to November 2012 geologic, mining, plant and mine administration 
   variable and fixed cost, and December 2012 estimated costs. P&E considers
   these costs to reasonable as a basis for estimating mineral reserves.    
4. Average internal dilution was 8%. Average mining and geotechnical        
   dilution was 27%.                                                        
5. Mineral Reserves were estimated by Hochschild Mining Plc using the CIM   
   Standards on Mineral Resources and Reserves, Definitions and Guidelines  
   prepared by the CIM Standing Committee on Reserve Definitions. P&E Mining
   Consultants Inc have audited the reserve estimates and found that they   
   meet the requirements for disclosure as reserves under NI 43-101 and the 
   Joint Ore Reserves Committee of the Australian Institute of Mining and   
   Metallurgy ("JORC") as well as the US Securities and Exchange Commission 
   Industry Guide 7.                                                        


    Table 3 - Comparison of San Jose Mine Reserve Estimates (100% Basis)


              December 31, 2012 Reserve Estimate              
--------------------------------------------------------------
                    Tonnes(000      Au      Ag      Au      Ag
Category                   's)   (g/t)   (g/t)  (K oz)  (M oz)
--------------------------------------------------------------
Proven                     830    6.73     470   179.6   12.54
--------------------------------------------------------------
Probable                   942    6.19     471   187.5   14.26
--------------------------------------------------------------
Proven & Probable        1,772    6.44     470   367.1   26.80
--------------------------------------------------------------
December 31, 2011 Reserve Estimate                         
-----------------------------------------------------------
                     Tonnes      Au      Ag      Au      Ag
Category            (000's)   (g/t)   (g/t)  (K oz)  (M oz)
-----------------------------------------------------------
Proven                  805    6.99     475     181   12.29
-----------------------------------------------------------
Probable                876    5.79     354     163    9.97
-----------------------------------------------------------
Proven & Probable     1,681    6.36     412     344   22.26
-----------------------------------------------------------


    Table 4 - Comparison of San Jose Mine Resource Estimates (100% Basis) 


December 31, 2012 Resource Estimate                         
------------------------------------------------------------
                      Tonnes      Au      Ag      Au      Ag
Category             (000's)   (g/t)   (g/t)  (K oz)  (M oz)
------------------------------------------------------------
Measured               1,289    8.15     559   337.8   23.17
------------------------------------------------------------
Indicated              3,098    6.56     453   653.4   45.12
------------------------------------------------------------
Measured & Indicated   4,387    7.03     484   991.2   68.29
------------------------------------------------------------
Inferred               2,099    7.37     476   497.4   32.12
------------------------------------------------------------
December 31, 2011 Resource Estimate                         
------------------------------------------------------------
                      Tonnes     Ag      Au       Au      Ag
Category             (000's)   (g/t)   (g/t)  (K oz)  (M oz)
------------------------------------------------------------
Measured               1,155    8.21     560     305   20.80
------------------------------------------------------------
Indicated              3,513    6.53     423     738   47.78
------------------------------------------------------------
Measured & Indicated   4,668    6.95     457    1043   68.58
------------------------------------------------------------
Inferred               1,813    5.30     384     309   22.38
------------------------------------------------------------


    To view figure 1, "Historical Mineral Resource Estimates (100% Basis)",
please visit the following link:
http://media3.marketwire.com/docs/MUX315fig1.pdf.

    To view figure 2, "Historical Mineral Reserve Estimates (100% Basis)",
please visit the following link:
http://media3.marketwire.com/docs/MUX315fig2.pdf. 

    To view figure 3, "Historical Production of Gold Equivalent Ounces (100%
Basis)", please visit the
http://media3.marketwire.com/docs/MUX315fig3.pdf. 

    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 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,
Mexico and Nevada.

    McEwen Mining has 296,024,859 shares issued and outstanding. Rob McEwen,
Chairman, President and Chief Owner, owns 25% of the shares of the
Company (assuming all outstanding Exchangeable Shares are exchanged for
an equivalent amount of Common Shares). As of December 31, 2012, McEwen
Mining had cash and liquid assets of approximately US$79 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. 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. Although the Company has independently verified reserve and
resource estimates, 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 content of this news release has been reviewed and approved
by Eugene Puritch, P. Eng., President of P&E Mining Consultants Inc.
Under the direction of Mr. Puritch, Al Hayden, P. Eng., James L. Pearson,
P. Eng., and Fred H. Brown, CPG, P.Geo. performed an independent audit of
the December 31, 2012 resource and reserve estimates. Each of the
foregoing is a Qualified Person and independent of the Corporation, in
each case, within the meaning of Canadian National Instrument 43-101 (NI
43-101). Each of the Qualified Persons visited the site on February 23rd
and 24th, 2013, where resource modeling techniques were reviewed, the
drill hole database was inspected and independent drill core samples were
collected for verification of Au and Ag grades. Site visit data review
and sampling revealed no issues of concern regarding the resource
estimate. For additional information about the San Jose Mine, see the
technical report dated August 15, 2012 titled "Technical Report on the
San Jose Silver-Gold Mine, Santa Cruz, Argentina" prepared by Eugene J.
Puritch, P.Eng., Alfred S. Hayden, P.Eng., James L. Pearson, P.Eng, Fred
H. Brown, CPG, P.Geo., and David Burga, P.Geo. all of P&E Mining
Consultants Inc. and each a "Qualified Person" and "independent" of
McEwen Mining, in each case, within the meaning of NI 43-101. 

    The foregoing news release and technical report are available under the
Corporation's profile on SEDAR (www.sedar.com).

    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,
political 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 the cost of transferring or otherwise allocating
funds between operating jurisdictions, 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 and permitting
of mining operations and commencement of production and the projected
costs thereof, risks related to litigation, 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, 2012
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. 

    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)

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

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