McEwen Mining Inc.: Exploratory Drilling at El Gallo 1 Mine Shows Potential to Expand Gold Resource & Mine Life

Thu Apr 11, 2013 4:01pm EDT

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

  TORONTO, ONTARIO, Apr 11 (Marketwired) --
McEwen Mining Inc. (NYSE:MUX)(TSX:MUX) is pleased to announce that a new
gold zone is emerging at its El Gallo 1 Mine in Sinaloa, Mexico (Fig. 1).
Nine core holes were drilled in a new area called "Central". Drilling has
returned encouraging grades and widths between two planned open pits and
has opened up a large area for additional exploration. These results have
the potential to both increase the size of the gold resource and extend
the mine life. In addition, two holes encountered some of the deepest
mineralization to date at El Gallo 1, demonstrating the potential for
higher-grade underground mining. The Central Zone is open laterally
(along strike) and at depth.


                    Table 1. Exploration Highlights from                    
                        El Gallo 1 Mine- Central Zone                       
----------------------------------------------------------------------------
                From      To      Thickness     Gold Grade                  
Drill hole       (m)      (m)         (m)          (GPT)       Target Type  
----------------------------------------------------------------------------
MLX072           99.5    155.9       56.4           1.8         Open Pit    
Including        99.5    101.3        1.8          34.8                     
Including       100.7    101.3        0.7          73.4                     
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
MLX073           98.0    149.8       51.8           1.9         Open Pit    
Including       102.7    108.2        5.5           8.5                     
Including       102.7    103.7        1.0          39.4                     
Including       122.9    124.1        1.2          11.9                     
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
MLX074           43.0     93.8       50.8           1.5         Open Pit    
Including        64.7     69.0        4.4           7.1                     
Including        80.3     81.2        0.9           7.7                     
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
MLX076           73.5    116.8       43.3           1.9         Open Pit    
Including        76.0     77.8        1.9          10.2                     
Including        91.1     91.8        0.7          33.0                     
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
MLX077          131.0    173.8       42.8           2.9         Open Pit    
Including       132.1    137.0        4.9          10.3                     
Including       132.9    133.6        0.7          33.2                     
Including       146.4    149.0        2.7          11.6                     
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
MLX069          199.9    205.5        5.7           5.6        Underground  
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
MLX078          234.0    236.6        2.7          10.3        Underground  
----------------------------------------------------------------------------


    "Despite the steep fall in our share price and that of all precious metal
companies we remain committed to actively exploring our properties. In
Mexico, we are very pleased with our continuing exploration success. On
April 2nd we announced a new high-grade gold discovery named Twin Domes
which is located near our existing (El Gallo 1) and planned mining
operations (El Gallo 2). Today, we have more good news. At El Gallo 1
drilling has extended the mineralization to connect two planned open pits
with the result of potentially increasing the gold resource and life of
the mine. An update resource estimate of our El Gallo Complex will be
released in Q2 of this year," stated Rob McEwen, Chief Owner. 

    The Central Zone is located between two known resources, Sagrado and
Lupita (Fig. 2). Mining at Sagrado started on April 1st and it is
expected to begin at Lupita later this year. A distance of 1,000 meters
separates these two planned open pits. Based on the results contained in
this news release plus holes drilled during the second half of 2012,
there appears to be good potential to mine the area as one enlarged open
pit rather than as two separate pits. 

    In the 1990's, there was limited near surface drilling in Central, which
encountered weak near surface gold mineralization. McEwen Mining's
drilling tested below the previous exploration (Fig. 3-6). This new
drilling has successfully confirmed the presence of a strongly
mineralized system at depth. Our initial holes were spaced 200 meters
apart, with subsequent holes drilled 30 meters apart in order to
establish continuity and the orientation of the mineralization. The zone
remains open along strike and at depth. 

    About El Gallo

    The El Gallo Complex is located in Sinaloa, Mexico. Phase 1 achieved
commercial production in early January. It is forecasted to produce
30,000 ounces of gold per year. Phase 2, where a feasibility study was
completed in 2012, is forecasted to add an additional 5,200,000 ounces of
silver (105,000 ounces of gold equivalent) once in production. Combined,
both phases are scheduled to produce approximately 135,000 ounces of gold
equivalent annually. 

    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 March 31, 2013, McEwen
Mining had cash and liquid assets of approximately US$55 million and is
debt free.

    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. The true width of the mineral zone 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 news 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 news
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, 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. 


                                                                            
Table 2. El Gallo 1 Mine - Drill Hole Results                               
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                           From        To      Thickness      Gold Grade    
Hole                      (meters)   (meters)   (meters)  (Grams per Tonne) 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
MLX069                     199.9      205.5       5.7            5.6        
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
MLX070                       -          -          -              -         
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
MLX071                     119.0      125.1       6.1            1.5        
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
MLX072                      99.5      155.9       56.4           1.8        
Including                   99.5      101.3       1.8            34.8       
Including                  100.7      101.3       0.7            73.4       
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
MLX073                      98.0      149.8       51.8           1.9        
Including                  102.7      108.2       5.5            8.5        
Including                  102.7      103.7       1.0            39.4       
Including                  122.9      124.1       1.2            11.9       
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
MLX074                      43.0       93.8       50.8           1.5        
Including                   64.7       69.0       4.4            7.1        
Including                   80.3       81.2       0.9            7.7        
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
MLX076                      73.5      116.8       43.3           1.9        
Including                   76.0       77.8       1.9            10.2       
Including                   91.1       91.8       0.7            33.0       
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
MLX077                     131.0      173.8       42.8           2.9        
Including                  132.1      137.0       4.9            10.3       
Including                  132.9      133.6       0.7            33.2       
Including                  146.4      149.0       2.7            11.6       
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
MLX078                     234.0      236.6       2.7            10.3       
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                                                           
Table 2. El Gallo 1 Mine - Drill Hole Results                              
                                                                           
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                          Dip (1)     Azimuth (2)  Easting (3) Northing (3)
Hole                     (Degrees)     (Degrees)      (UTM)       (UTM)    
---------------------------------------------------------------------------
---------------------------------------------------------------------------
MLX069                      -55           325         217594     2836053   
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
MLX070                      -50           325         217315     2835961   
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
MLX071                      -50           325         217164     2835871   
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
MLX072                      -50           325         217045     2835780   
Including                                                                  
Including                                                                  
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
MLX073                      -50           325         217013     2835774   
Including                                                                  
Including                                                                  
Including                                                                  
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
MLX074                      -50           325         217022     2835824   
Including                                                                  
Including                                                                  
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
MLX076                      -50           325         217065     2835813   
Including                                                                  
Including                                                                  
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
MLX077                      -50           325         217065     2835757   
Including                                                                  
Including                                                                  
Including                                                                  
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
MLX078                      -50           325         217610     2836030   
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                                            
(1) Dip = Angle of drill hole, (2) Azimuth = Direction of drill hole, (3)   
Coordinates                                                                 


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    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)

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

McEwen Mining Inc.
Facebook: www.facebook.com/mcewenrob
Twitter: www.twitter.com/mcewenmining
Store: www.mcewenmining.com/store

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