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McEwen Mining Inc. (MUX.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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1.4400-0.0900 (-5.88%)
At close: 3:59PM EST
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Previous Close1.5300
Open1.5100
Bid1.4300 x 0
Ask1.4500 x 0
Day's Range1.4100 - 1.5200
52 Week Range0.7600 - 2.0200
Volume427,912
Avg. Volume614,286
Market Cap649.096M
Beta (5Y Monthly)1.12
PE Ratio (TTM)N/A
EPS (TTM)-0.3930
Earnings DateN/A
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateMar. 07, 2019
1y Target Est2.75
  • Silver Mountain Mines Executes Definitive Agreement with Nevgold To Create A Strong Diversified Exploration and Development Company
    GlobeNewswire

    Silver Mountain Mines Executes Definitive Agreement with Nevgold To Create A Strong Diversified Exploration and Development Company

    CALGARY, Alberta, Feb. 23, 2021 (GLOBE NEWSWIRE) -- Silver Mountain Mines Inc. (TSXV: “SMM”) (“Silver Mountain” or the “Company”) announces that further to its news release dated January 19, 2021 in connection with signing a Letter of Intent (the “LOI”), it has executed a binding Definitive Agreement (the “Agreement”) dated February 17, 2021 with Nevgold Corp. (“Nevgold”) with respect to a proposed transaction (the “Proposed Transaction”) whereby Silver Mountain will acquire all of the issued and outstanding common shares in the capital of Nevgold (the “Nevgold Shares”). Nevgold is a private British Columbia company which holds the right to acquire the Limousine Butte and Cedar Wash Projects in Nevada (the “Properties”) from McEwen Mining Inc. (NYSE: “MUX”, TSX: “MUX”) (“McEwen”). The Proposed Transaction has been unanimously approved by the Board of Directors of SMM and Nevgold and is expected to close in Q2-2021. Trading in common shares of the Company will remain halted until the resumption of trading is approved by the TSX Venture Exchange (the “TSXV”) in connection with the completion of the Proposed Transaction. The Proposed Transaction will constitute an arm’s length reverse take-over pursuant to the policies of the TSXV, and following the Proposed Transaction, it is anticipated that the Company will be a Tier 2 Mining Issuer on the TSXV. “The combination of the Silver Mountain Mines and Nevgold assets will add value for all shareholders and expand our assets across North America in well established mining camps. With the new leadership team, asset portfolio, and recapitalization plan, the company should be in a great position for success as the market for commodities continues to grow,” says Steve Konopelky, Director of the Company. Brandon Bonifacio, incoming President, CEO, and Director of Nevgold: “We are very excited to form a new North American focused precious metals exploration and development company with assets in Nevada and British Columbia that will attract a premium market valuation. Our leadership group will leverage our strong operational track record of project development success to deliver value for all of our stakeholders. We look forward to updating our current and future investor base on the transaction close and our planned 2021 work programs.” Transaction SummaryNevgold is a private company incorporated under the Business Corporations Act (British Columbia). Nevgold entered into an asset purchase and sale agreement dated December 14, 2020 (the “Asset Purchase Agreement”) with McEwen and certain of McEwen’s affiliates (collectively, the “Vendors”) pursuant to which Nevgold has agreed to acquire the Properties from the Vendors immediately prior to or concurrently with the Proposed Transaction (the “Closing Date”) on the terms as previously outlined in the January 19, 2021 news release. It is anticipated that prior to the closing of the Proposed Transaction, Nevgold will complete a private placement (the “Concurrent Financing”) of subscription receipts of Nevgold (each, a “Subscription Receipt”) for aggregate gross proceeds of up to C$5,000,000 or such greater amount up to C$10,000,000, at a price per Subscription Receipt to be determined in the context of the market. The Proposed Transaction is subject to several terms and conditions, including, but not limited to: (i) Nevgold having prepared a technical report at Limousine Butte in accordance with the requirements of National Instrument 43-101 (ii) all financial statements of Nevgold having been prepared (iii) as at the closing of the Proposed Transaction, the Company will have no payables (less cash) other than ordinary course trade payables (iv) any change of control obligations of the Company associated with the Proposed Transaction shall have been settled (v) completion of the Concurrent Financing and receipt of proceeds thereunder (vi) the approval of the TSXV in respect of the Proposed Transaction and the Resulting Issuer meeting the applicable minimum listing requirements of the TSXV (vii) approval of the shareholders of Nevgold and the Company to the Proposed Transaction (viii) receipt of any required third party consents In connection with completion of the Proposed Transaction, it is anticipated that the Company will change its name to “Nevgold Corp.” and will adopt the ticker symbol “NAU”. Proposed Management and Board of Directors CompositionUpon closing of the Proposed Transaction, the management and board of directors of the Resulting Issuer is expected to consist of Giulio Bonifacio, Brandon Bonifacio, Vic Bradley, Greg French, Tim Dyhr, Steve Konopelky, and Morgan Hay. Name Past Experience Giulio BonifacioNon-Executive Chairman Mr. Giulio Bonifacio is a Chartered Professional Accountant with over 35 years of experience in senior executive roles in the mining industry. Mr. Bonifacio is the Founder and former Director, President & CEO of Nevada Copper Corp. since its inception in 2005 until his retirement in 2018. Among his many accomplishments Mr. Bonifacio has raised over $700 million through equity and project debt financings as well as being involved in corporate transactions aggregating in excess of a billion dollars. Mr. Bonifacio has led and directed efforts at every stage of development including exploration, engineering, permitting, and construction. Brandon BonifacioPresident, CEO, and Director Mr. Brandon Bonifacio is a mining executive with over 10 years of experience in project development, mergers and acquisitions, and project evaluations. Mr. Bonifacio was most recently the Finance Director of the Norte Abierto Joint Venture (Cerro Casale/Caspiche) in the Maricunga Region, Chile and a member of the Corporate Development team at Goldcorp Inc. (now Newmont Corporation). Mr. Bonifacio holds a MASc – Mining Engineering and MBA from the University of Nevada, Reno and a Bachelor of Commerce - Finance from the University of British Columbia. Vic BradleyIndependent Director Mr. Bradley is a Chartered Professional Accountant with more than 50 years of experience in the mining industry. Over the past 30 years he has founded, financed, and operated several mining and advanced stage exploration and development companies including the original Yamana Gold Inc., Aura Minerals Inc. and Nevoro Inc. (sold to Starfield Resources). Vic founded the original Yamana in 1994 and served as President and CEO, and subsequently Chairman of the Board and Lead Director until 2008. He served as Chairman of Osisko Mining Corp. from 2006 until its sale for $4.1 billion to Agnico Eagle and Yamana in 2014. He served as a director of Osisko Gold Royalties Ltd. from 2014 to 2018 and as Chairman of Nevada Copper Corp. from 2012 to 2017. He now serves as Chairman of Osisko Bermuda Ltd., Chairman of BTU Metals Corp., and Director of PJX Resources Inc. Greg FrenchIndependent Director Mr. French is a geologist with over 35 years of exploration experience in Western USA and Canada. His current role is Nevada Copper’s VP, Head of Exploration, where he has been responsible for every stage of development from exploration to production since 2006. His prior roles include various capacities for Homestake Mining Inc., Atlas Precious Metals, and Cornerstone Industrial Minerals. Mr. French has a Nevada gold discovery to his credit and extensive project development experience including two projects taken through feasibility and into production. Tim DyhrIndependent Director Mr. Dyhr has over 35 years of experience in mining with expertise in environmental, permitting, and government relations in the United States. His most recent success was directing the successful permitting of Nevada Copper’s Pumpkin Hollow Project in Yerington, Nevada which is now in production. His prior roles include directing the initial permitting of Magma Copper’s Robinson Mine near Ely, Nevada, Chairman of the Nevada Mining Association from 2017-2018, and other various senior capacities with multinational mining companies including Magma Copper and BHP Copper. Steve KonopelkyIndependent Director Mr. Konopelky has spent the last 25 years developing a broad range of experience in building start-up companies, effectively streamlining financials, raising capital, and leading operational initiatives across various industries. He is currently the President & CEO of ELM Inc. a leading environment liability management company which supports the mining, oil & gas and industrial industries. He is also the founder, and current, Director, President & CEO of Silver Mountain Mines Inc. Morgan HayIndependent Director Morgan Hay is a partner of Maxis Law Corporation, a Vancouver-based securities and corporate finance law firm. Since 2007 he has been advising companies listed on Canadian stock exchanges, principally in the natural resources sector, and has expertise in corporate finance, mergers and acquisitions, and corporate governance. Asset Information - Limousine Butte – Drill Ready Resource Expansion in Nevada Limousine Butte is a past-producing, Carlin-type gold district in Ely, Nevada consisting of 821 unpatented mining claims on federal Bureau of Land Management (“BLM”) land covering approximately 66.5 square kilometers. The property covers a large hydrothermal gold system that exhibits alteration features indicative of sediment and structurally hosted gold deposits found on the Carlin Trend and elsewhere in Nevada. Gold is predominately associated with hydrothermal alteration of carbonate host rocks including extensive jasperoid development. Gold mineralization is known to occur along the roughly 20km north-east trending fault structure with cross-cutting northwest trending fault intersections also acting as favorable controls for mineralization. Historical production from 1987-1989 by Alta Gold Corp. was approximately 91,000 ounces of near-surface oxide gold at the Golden Butte mine. Historical work that would cost over US$45 million to replicate today includes over 900 drill holes and 120,000 meters of both reverse circulation (“RC”) and core drilled by previous operators, and other geophysical and geochemical studies. The project has a mineral resource estimate stated by McEwen (“McEwen Estimate”) of Measured & Indicated of 241,000 ounces of gold at 0.78 grams per tonne gold (9.6Mt) [Measured of 168,000 ounces of gold at 0.89 grams per tonne gold (5.9Mt), Indicated of 73,000 ounces of gold at 0.61 grams per tonne gold (3.7Mt)], and Inferred of 51,000 ounces of gold at 0.70 grams per tonne gold (2.2Mt). The foregoing categories comply with the Canadian Mineral Resource and Reserve Definitions as published by the Canadian Institute of Mining Metallurgy and Petroleum, in effect as at the date of the McEwen Estimate. The McEwen Estimate incorporated three of the more advanced gold targets within the large land package, and was disclosed in NI 43-101 Technical Report for the Limousine Butte Project, White Pine County, Nevada prepared by Telesto Nevada Inc. as of July 1, 2009 for US Gold Corporation. A qualified person has not done sufficient work to classify the McEwen Estimate as current, and the Company is not treating the McEwen Estimate as current mineral resources. Nevgold has completed an updated NI 43-101 Technical Report to re-interpret the historical data and programs completed on Limousine Butte. Historical drill intercepts include: Hole ID From (m)To (m)Length(m)Au g/tBPD-2 35.0586.8751.823.31BPD-2inc.38.1041.153.056.62BPD-2inc.47.2454.867.624.16BPD-2inc.60.9686.8725.914.01BDD-4 9.1424.0814.944.78BDD-4inc.12.1922.2510.066.63BDD-5 37.9553.9516.001.13BDD-5 58.8387.1728.351.34BDD-5inc.65.2371.936.711.95BDD-5inc.73.4676.202.741.63BDD-5inc.80.7787.176.401.70BDR-9 28.9685.3456.395.02BDR-9inc.35.0554.8619.8112.70BDR-9inc.73.1583.8210.672.15LB023 44.2056.3912.196.79LB023inc.44.2048.774.578.04LB023inc.50.2954.864.579.53LB080 228.60274.3245.722.06LB080inc.252.98274.3221.342.77LB084 224.03251.4627.431.49LB084inc.236.22242.326.101.87LB084 245.36251.466.102.00LB119 170.69204.2233.531.67LB119inc.170.69182.8812.192.44LB119inc.192.02202.6910.672.23LB120 216.41230.1213.722.01LB120inc.217.93222.504.574.50LB120 236.22254.5118.292.10LB120inc.240.79246.896.102.97LB120inc.249.94252.983.054.95LB121 249.94275.8425.913.86LB121inc.249.94259.089.144.08LB121inc.263.65275.8412.195.00LB122 249.94262.1312.194.85LB122inc.251.46259.087.627.72LIM-45 22.8636.5813.723.24 Averages are calculated on intervals greater than 1.0 g/t Au. The above assays are from the assay database provided by McEwen. Asset Information - Cedar Wash – Untapped Exploration Potential in Nevada Cedar Wash consists of 239 unpatented mining claims on federal BLM land covering approximately 19.3 square kilometers located in Lincoln County, Nevada. The project was a grassroots exploration discovery made by the McEwen’s Exploration Group in 2016. Surface reconnaissance geology has been completed on parts of the land package including soil and rock chip sampling, which identified an extensive gold soil trend spanning over 2 kilometers. The project was drilled in 2017 with approximately 7,000 meters of RC drilling completed. Drill results in the shallow RC holes showed positive signs of mineralization and will be further tested by Nevgold. The project is located approximately 20 kilometers from Liberty Gold’s Goldstrike Project in Utah and has similar geological characteristics. Initial work at Cedar Wash will focus on completing all surface reconnaissance geology in the first half of 2021, followed by drill testing the identified targets within the large, consolidated land package in the second half of the year. Asset Information - Ptarmigan Mine – High Grade Exploration in British Columbia Ptarmigan is a 100% owned property covering 93 square kilometers (9,300 hectares) centered on the historical silver rich Ptarmigan Mine located approximately 50 kilometers from Radium in southeast British Columbia. The property hosts silver rich, high-grade polymetallic epithermal veins and manto style massive and semi-massive sulphide mineralization. Ptarmigan had historical results reported of 1,171 g/t Ag (34 oz/T Ag), 0.96 g/t of Au, 0.30% Cu and 29.7% Pb. The project is situated in a high-grade area of historical mining camps including Bluebell, Mineral King, and Paradise Mines. Ptarmigan past production of 645 tonnes included 89,000 oz Ag with average mined grade of 4,215 g/t Ag, 5.4 g/t Au, 0.58% Cu, 0.54% Pb, 0.13% Zn including 32 tonnes mined from Adit #1 averaging 2,638 g/t Ag and 1.7 g/t Au. Previously reported drill intercepts include: PT14-118 released October 7, 2014: 1,949 g/t Ag over 4.6 meters, including 5,919 g/t Ag over 1.49 meters, and 22,945 g/t Ag over 0.33 metersPT14-128 released October 15, 2014: 37.3 g/t Au over 0.77 metersPT14-108 released September 9, 2014: 2,315 g/t Ag, 1.64 g/t Au, and 1.10% Cu over 1.16 meters Nevgold continues to review the historical work completed at the project by SMM including surface and soil mapping, geophysics, geochemical analysis, and approximately 14,000 meters of diamond drilling. The historical data compilation will form the basis of the 2021 summer exploration program. Shareholder ApprovalsThe Company and Nevgold intend to seek shareholder approval for the Proposed Transaction and related matters as, and to the extent, required in accordance with the policies of the TSXV and applicable corporate and securities laws. About Silver Mountain Mines Inc. (TSX-V: SMM) Silver Mountain Mines Inc. is a Canadian based exploration and development company with 100% ownership of a 9,300 hectare property centered on the historical silver rich Ptarmigan Mine in south eastern, British Columbia. The property hosts two styles of mineralization: silver rich, high-grade polymetallic epithermal veins and manto style massive / semi-massive sulphide mineralization. ON BEHALF OF THE BOARD“Signed”Steve KonopelkyDirector For further information on Silver Mountain Mines Inc. please visit the Company’s website http://www.silvermountainmines.com and SEDAR (www.sedar.com) or contact Mr. Steve Konopelky, at 403-229-9140. Bill Fleshman FAusIMM(CP) 107342, Consulting Geologist, a qualified person as defined by National Instrument 43-101 has reviewed and approved the scientific and technical disclosure in this press release related to the Limousine Butte and Cedar Wash Projects. This news release does not constitute an offer to sell and is not a solicitation of an offer to buy any securities in the United States. The securities of the Company and Nevgold have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws unless pursuant to an exemption from such registration. Completion of the Proposed Transaction is subject to a number of conditions, including but not limited to, TSXV acceptance and shareholder approval of the Proposed Transaction. The Proposed Transaction cannot close until all necessary shareholder approvals are obtained. There can be no assurance that the Proposed Transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Proposed Transaction, any information released or received with respect to the Proposed Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of the Company should be considered highly speculative. The TSXV has in no way passed upon the merits of the Proposed Transaction and has neither approved nor disapproved the contents of this news release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Cautionary Note Regarding Forward Looking StatementsThis news release contains certain forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or does not expect”, “is expected”, anticipates” or “does not anticipate” “plans”, “estimates” or “intends” or stating that certain actions, events or results “ may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be “forward-looking statements”. Forward-looking statements contained in this news release may include, but are not limited to, the terms, structure and completion of the Proposed Transaction, the terms and completion of the Concurrent Financing including the pricing and closing date thereof, Nevgold completing the acquisition of the Properties pursuant to the Asset Purchase Agreement, the management and board of directors of the Resulting Issuer on completion of the Proposed Transaction. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements. These risks and uncertainties include, but are not limited to: liabilities inherent in mine development and production; geological risks, risks associated with the effects of the COVID-19 virus, the financial markets generally, the satisfaction or waiver of the conditions precedent to the Proposed Transaction, the ability of Nevgold to complete the Concurrent Financing and the acquisition of the Properties pursuant to the Asset Purchase Agreement, and the ability of the Company and Nevgold to complete the Proposed Transaction and obtain requisite TSXV acceptance and shareholder approvals. There can be no assurance that forward-looking statement will prove to be accurate, and actual results and future events could differ materially from those anticipate in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

  • McEwen Mining: Gold Bar Updated Feasibility Study Report Filed
    GlobeNewswire

    McEwen Mining: Gold Bar Updated Feasibility Study Report Filed

    TORONTO, Feb. 22, 2021 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) (“McEwen” or the “Company”) is pleased to announce the filing of an updated technical report prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), for the Gold Bar Mine (the “Feasibility Study” or “FS”). The technical report is available on SEDAR under the Company's profile at www.sedar.com. Financial Analysis The FS Base Case using a gold price assumption of $1,500/oz generates a life-of-mine (LoM) discounted after-tax value of $55.2 million at an 8% discount rate. A summary of key economic metrics is provided in Table 1. Table 1. After-Tax Economic Sensitivity (2020 FS) Base Case$1,500/oz goldUpside Case$1,800/oz goldNPV (8% Discount Rate)(1)$55.2 million$125.7 millionAverage Annual Cash Flow$14.4 million$28.8 millionAverage Operational Margin $/oz Au$407$707Total Cash Costs $/oz Au$1,093All-In Sustaining Costs (AISC) $/oz Au$1,213 Over the 6-year mine life, production will total 17.2 million tons of ore at a diluted gold grade of 0.025 oz/t (0.84 g/t) for a total payable gold of 302,000 oz as at Dec. 1st, 2020. A summary of the gold production for the 6-year mine life included in the FS is described in Table 2. Table 2. Estimated Gold Production by Year (2020 FS) Gold Production(2)FY2021FY2022FY2023FY2024FY2025FY2026FY2027Total (,000 oz Au)37.538.251.237.647.660.125.0 Background In Q1 2020, the Company reported that a significant reduction in contained ounces at Gold Bar was likely. Since that time significant work, as described below, has been completed to determine the extent of the reduction and mitigate it. To provide perspective on the changes that have occurred at Gold Bar, consider that in 2019, when we started mining, the Reserve estimate was 430,000 gold ounces. Cumulative mine production through December 2020 was 58,600 gold ounces, and the Reserve estimate announced today is 302,000 gold ounces. The net reduction of 16%(3) is driven by improvements to the geologic model, metallurgical recovery, additional drilling information, and higher gold prices. Work completed in 2020 to arrive at the updated resource and reserve estimates: 110,500 feet (33,700 m) of drilling and additional metallurgical testing was incorporated into the Resource and Reserve estimates. The drilling program included 64,000 feet (19,500 m) at the Pick deposit and 35,000 feet (10,700 m) at Gold Bar South (“GBS”). An ongoing drill program at the Gold Ridge deposit (“Ridge”) with 13,000 feet (4,000 m) drilled to date will be incorporated in a future resource update.The Pick, Ridge, Cabin, and GBS geological models and resource estimates were updated by McEwen Mining technical staff. The geologic interpretations were updated to include structural modeling for all deposits. All resource and reserve estimates were subject to independent third-party review for quality assurance.Experts in the field of heap leach technology were engaged to review ore processing and recommended improvements based on test work and site observations, which include ending agglomeration, revised recovery estimates for all resources, and categorization of resources based on metallurgical attributes and clay content. Metallurgical testing is underway to assess an expected increase in leaching of run-of-mine (ROM) ores and its potential to improve the economics. Mining and Processing The FS calls for oxide ore to be mined from three open pits and transported by 100-ton haul trucks to be processed, either by crushing and conveying to the heap leach pad, or by using trucks to place run-of-mine (ROM) ore on the heap leach pad. The study assumes the continued use of a contract mining fleet. The existing adsorption-desorption recovery (ADR) carbon plant will continue to produce a final gold-silver doré product. A summary of the design criteria for the FS are provided in Table 3. Table 3. Metallurgical and Operating Cost Estimates Used 2020 FS Update Gold Price ($/oz Au)$1,500 Reserves$1,725 ResourcesOverall Process Recovery72%(4)Mining Cost $2.28/t movedProcess Cost$4.32/ton oreG&A Cost$3.27/ton oreSales Cost $2.01/oz Au sold Explanation of Variances The 2020 FS update generates an NPV@8% of $55.2 million using a gold price of $1,500/oz and of $149.2 million for a gold price of $1,900/oz(5). The NPV estimates provided on January 7th, 2021 were in the range of $62 to $76 million using a gold price of $1,500/oz and of $150 to $170 million for a gold price of $1,900/oz. The estimates provided on January 7th were based on the most accurate and complete information available to management at the time. The FS economic model was adjusted, including a reduction of 1,500 oz in the planned placed ounces, and an increase of $0.09/ton in fuel cost based on haulage simulations. Resources and Reserves Updated Resource and Reserve Estimates are provided in Tables 4 to 6. Table 4. Indicated Resource Estimate(6)(7) ($1,725 per Ounce Gold, Effective Dec 1st, 2020) PitkTonsGold (oz/ton)Gold Grade (g/t)Recoverable Grade (g/t)Contained (k-oz)Recoverable (k-oz)Pick13,9500.0270.910.67370.2270.7GBS2,5730.0290.990.6074.445.4Ridge1,5270.0260.880.6839.330.5Cabin4200.0240.810.609.97.4Total18,4700.0270.920.66493.7353.9 Table 5. Inferred Resource Estimate(7)(8) ($1,725 per Ounce Gold, Effective Dec 1st, 2020) PitkTonsGold (oz/ton)Gold Grade (g/t)Recoverable Grade (g/t)Contained (k-oz)Recoverable (k-oz)Pick1,0800.0250.850.6426.620.0Ridge7510.0190.650.5014.311.0GBS3620.0311.060.6511.26.9Total2,1930.0240.820.5952.137.8 Table 6. Probable Reserve Estimate(7)(9) ($1,500 per Ounce Gold, Effective Dec 1st, 2020) PitkTonsGold (oz/ton)Gold Grade (g/t)Recoverable Grade (g/t)Contained (k-oz)Recoverable (k-oz)Pick13,9270.0240.810.59327.3238.5Ridge1,1860.0250.870.6830.223.4GBS2,1350.0311.050.6465.740.1Total17,2490.0250.840.60423.1302.0 Notes:1) NPV is discounted to December 1, 2020.2) Table 2 excludes production in Dec. 2020 and from residual leaching in 2028.3) Mine Past Production (58,600 oz Au) + Current Reserves (302,000 oz Au) = 360,600 oz Au is 16.1% lower than 430,000 oz Au4) 2020 FS assumes 78% for crushed oxide, 50% for crushed mid-carb., 72% for Pick/Ridge ROM, and 61% for GBS ROM.5) Upside Case gold price used in the 2020 FS is $1,800/oz. NPV at $1,900/oz gold is provided for comparison to the Jan. 7th, 2021 disclosure only.6) Mineral Resources were estimated at a price of $1,725/ounce Au and are inclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that any part of the Mineral Resources estimated will be converted into a Mineral Reserves estimate. Mineral Resources were estimated using the guidelines set out in the CIM Definition Standards for Mineral Resources. Mineral Resources as stated are contained within an optimised pit shell that demonstrates reasonable prospects for eventual economic extraction.7) Numbers in the tables have been rounded to reflect the accuracy of the estimates and may not sum due to rounding.8) The Inferred Mineral Resource in these estimates has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration. 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.9) Reserves were estimated at a price of $1,500/ounce Au and are contained within an engineered pit design based on a Lerch Grossman Algorithm. CAUTIONARY NOTE TO US INVESTORS REGARDING RESOURCE ESTIMATIONMcEwen Mining presently 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 permitted in reports filed with the SEC under Industry Guide 7 (“Guide 7”). Under NI 43-101, McEwen Mining reports measured, indicated and inferred resources, measurements which are generally not permitted in filings made with the SEC under Guide 7. The estimation of measured 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. Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. Therefore, U.S. investors are also cautioned not to assume that all or any part of inferred resources exist, or that they can be legally or economically mined. Canadian regulations permit the disclosure of resources in terms of “contained ounces” provided that the tonnes and grade for each resource are also disclosed; however, under Guide 7, the SEC only permits issuers to report “mineralized material” in tonnage and average grade without reference to contained ounces. Under Guide 7, the tonnage and average grade described herein would be characterized as mineralized material. We provide such disclosure about our properties to allow a means of comparing our projects to those of other companies in the mining industry, many of which are Canadian and report pursuant to NI 43-101, and to comply with applicable disclosure requirements. TECHNICAL INFORMATIONThe technical content of this news release has been reviewed and approved by Peter Mah, P.Eng., COO of McEwen Mining and a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 "Standards of Disclosure for Mineral Projects." The technical information in this news release related to resource and reserve estimates has been reviewed and approved by Luke Willis, P.Geo., McEwen Mining’s Director of Resource Modelling and Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 "Standards of Disclosure for Mineral Projects." CAUTION CONCERNING FORWARD-LOOKING STATEMENTSThis 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, effects of the COVID-19 pandemic, fluctuations in the market price of precious metals, mining industry risks, political, economic, social and security risks associated with foreign operations, the ability of the corporation to receive or receive in a timely manner permits or other approvals required in connection with 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, 2019 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. ABOUT MCEWEN MINING McEwen Mining is a diversified gold and silver producer and explorer focused in the Americas with operating mines in Nevada, Canada, Mexico and Argentina. It also owns a large copper deposit in Argentina. CONTACT INFORMATION: Investor Relations:(866)-441-0690 Toll Free(647)-258-0395Mihaela Iancu ext. 320info@mcewenmining.comWebsite: www.mcewenmining.comFacebook: facebook.com/mcewenminingFacebook: facebook.com/mcewenrobTwitter: twitter.com/mcewenminingTwitter: twitter.com/robmcewenmuxInstagram: instagram.com/mcewenmining150 King Street WestSuite 2800, P.O. Box 24Toronto, ON, CanadaM5H 1J9

  • McEwen Mining: Fenix Project Feasibility Study Report Filed
    GlobeNewswire

    McEwen Mining: Fenix Project Feasibility Study Report Filed

    TORONTO, Feb. 16, 2021 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) (“McEwen” or the “Company”) is pleased to announce the filing of a technical report prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), for its 100%-owned Fenix Project (the “Project”), which is located in the State of Sinaloa, Mexico. The technical report is available on SEDAR under the Company's profile at www.sedar.com. “The Fenix Feasibility Study envisions a 9.5-year mine life with an attractive after-tax IRR of 28% using $1,500/oz gold and $17/oz silver. At $1,800/oz gold and $25/oz silver the project generates a 51% After-Tax IRR and a $91 million NPV@8%. The project will incorporate an environmentally progressive method of tailings management, using in-pit storage that creates multiple benefits such as improved safety, smaller environmental footprint, lower capital and operating costs, and improved reclamation outcomes. Average annual production is projected at 26,000(1) oz gold in Phase 1 and 4,500,000(4) oz silver equivalent in Phase 2. The critical path environmental permits are in hand for the first phase of production. In addition, the El Gallo Complex infrastructure remains in place, as well as an established, well-experienced local workforce. Our next steps will involve detailed engineering, assessment of procurement options, and the evaluation of financing alternatives,” said Rob McEwen, Chairman and Chief Owner. Fenix FS Highlights Base Case(1)$1,500/oz Gold,$17/oz SilverSpot Case$1,800/oz Gold,$25/oz SilverUpside Case$1,900/oz Gold,$25/oz Silver After-Tax IRR28%51%56% After-Tax NPV (8% discount)$32 million$91 million$98 million After-Tax Payback Period3.6 years2.9 years2.8 years Average After-Tax Cash Flow per Year of Full Production$12 million$25 million$26 million The FS for project Fenix development involves two phases: Phase 1: Years 1 to 6, Gold Production •Average Annual Gold Production 26,000 oz Au •$42 million initial capex •$1,037 cash cost(2) and $1,045 AISC(3) per oz Au Phase 2: Years 7 to 9.5, Silver Production •Average Annual Silver Production 4,500,000 oz AgEq.(4) •$24 million incremental capex in Year 6. •$14.22 cash cost(2) and $14.30 AISC(3) per oz AgEq.(4) Feasibility Study Report The complete Fenix Project FS NI 43-101 Technical Report is available on www.sedar.com and www.mcewenmining.com. The FS was prepared by GR Engineering Services Limited (“GRES”) in accordance with the requirements of Canadian National Instrument 43-101 “Standards of Disclosure for Mineral Projects” (“NI 43-101”) and SEC Industry Guide 7. Permits The current operation at El Gallo Gold is a fully permitted site; permit for the Phase 1 was granted by the Federal Environmental Authority (SEMARNAT) in September 2019, for the addition of a mill and leach circuit in the location of the existing facilities for the reprocessing of the heap leach pad material. The permit amendment also includes the backfilling of a previously mined pit with mill tailings, as part of an integrated concurrent closure plan for the El Gallo Gold Mine. In-pit tailings storage provides a number of key benefits to the project, including: Lower construction and operating cost compared to a conventional tailings dam or dry-stack facility.Much improved safety and long-term tailing and pit stability.Reduced footprint minimizes surface disturbance and maximizes reclamation results.Promotes the re-use of process water, reducing groundwater demand.Reduces reclamation and management costs. Further project advancement for Phase 2 is subject to permit approvals. Phase 2 project permitting will require authorization to expand the process plant footprint at El Gallo Gold and the haul road, and to augment the tailings volume to be deposited at the depleted pit. The Fenix Project has CONAGUA approval for the extraction of groundwater and land-use permits for the construction of wells required for the life of Fenix Project. Resource Estimates Estimated resources for the Fenix Project are comprised only of material within the boundaries of conceptual pit shells, except for the El Gallo heap leach pad, which is considered completely available for reprocessing. For the purposes of mine scheduling, the contained gold ounces in the Heap Leach Material have been depleted from the drill-defined resource model estimate by an amount of 23 koz Au, to account for the production from heap leach operations and gold in circuit assessments between the timing of the resource estimate up until the reserve estimate date of December 2020. Table 1: Fenix Project Resources Estimate(5)(6) Heap Leach Material(7)TonnesSilver GradeSilverGold GradeGoldPotential COG = 0 g/t AuMt(g/t)koz(g/t)kozMeasured8.824510.59167Indicated1.22670.6023Measured and Indicated10.025180.59190Inferred0.1270.663El Gallo Silver In Optimized Pit Shell TonnesSilver GradeSilverGold GradeGoldPotential COG = 58 g/t AgMt(g/t)koz(g/t)kozMeasured1.01554,7910.083Indicated3.512714,2280.1315Measured and Indicated4.513319,0190.1218Inferred0.11292860.140.3 COMBINED RESOURCES In Optimized Pit ShellsTonnesSilver GradeSilverGold GradeGoldPotential COGs variableMt(g/t)koz(g/t)kozMeasured9.8175,2420.54170Indicated4.79514,2950.2538Measured and Indicated14.54219,5360.45208Inferred0.2472930.483 Table 2: Fenix Project Reserves Estimate December 31, 2020 (8) Heap Leach MaterialTonnesSilver GradeSilverGold GradeGoldMt(g/t)koz(g/t)kozProven8.924510.52149Probable1.22670.5220Proven + Probable10.125180.52170El Gallo Silver Proven0.71663,7080.051Probable3.712715,0170.1316Proven + Probable4.413318,7250.1217COMBINED RESERVES Proven9.6134,1590.48150Probable4.99515,0840.2336Proven + Probable14.54119,2430.39187 Table 3: Assumptions for Heap Leach Pad and El Gallo Silver Pit Optimization Phase 2 (6)(9) Assumptions for Resource Pit Shell Optimizations DepositsValuesGold PriceAll$1,300/ozSilver PriceAll$16.00/ozMining CostHeap Leach Pad$0.53/t El Gallo Silver$12.06/tProcessing and G&AHeap Leach Pad$12.88/t El Gallo Silver – Oxides$26.90/t El Gallo Silver– Sulfides$25.93/tRecovery - AuHeap Leach Pad85.90% El Gallo Silver79.40%Recovery - AgHeap Leach Pad45.0% El Gallo Silver – Oxides82.5% El Gallo Silver– Sulfides88.1%Cut-Off GradeHeap Leach Pad0 g/t Au El Gallo Silver58 g/t AgInter-Ramp Pit Slope AngleEl Gallo Silver45 degrees FOOTNOTES(1)The Base Case utilizes the three-year moving average prices for gold and silver (approximate value). Estimated 26,000 oz Au per annum production assumes full production from years 2023 to 2027. Average after-tax cash flow per annum from full production years 2023 to 2031 is approximately $12 million per annum. Average after-tax cash flows per annum for the period from start-up of production to closure (2022 to 2032) is approximately $8.5 million per annum. These cash flows assume the use of all eligible tax loss carry forwards from the El Gallo Gold Mine.(2)Cash cost is calculated by dividing total life-of-mine production costs, general and administrative expenses and royalties by total ounces produced.(3)All-in sustaining costs (AISC) are calculated by dividing the sum of all cash costs plus sustaining capital and reclamation costs by total ounces produced.(4)All references to AgEq are based on an 88 Ag oz to 1 Au oz ratio. For Phase 1 silver accounts for <2% of total production. For Phase 2 gold accounts for approximately 9% of total production. Average annual AgEq production is from years 2028 to 2031.(5)Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves. Numbers in the table have been rounded to reflect the accuracy of the estimate and may not sum due to rounding.(6)Resources stated as contained within a potentially economically minable open pit; pit optimization parameters are, USD$1,300/oz Au, and USD$16.00/oz Ag. In-pit resource estimates have been developed based on gold and silver recoveries from both historical and recent testwork programs. Resource estimates are effective as of Oct 31, 2018 for the Heap Leach Material and June 1, 2019 for El Gallo Silver. Resources are inclusive of reserves.(7)The heap leach pad spent ore resource number assumes a cut-off grade that permits processing of the entire pad, whereas blocks within the leach pad model will be mobilized while mining, which will make them difficult to segregate; sub-cut-off leach pad material will inherently have potential acid generating sulfide liabilities if placed in our waste dumps and so it will be prudent to process the entire leach pad and place tailings in a previously mined pit at an overall environmental and economic benefit.(8)The reserves stated here satisfy the requirements of the CIM Definition Standards, and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines of November 2019, and have been converted only from those portions of the Mineral Resources that are classified as Measured or Indicated Mineral Resource categories after having been evaluated with consideration of all known modifying factors affecting economic viability. The reserves cut-off grade and cashflow models are based on $1,500/oz Au, and USD$17.00/oz Ag.(9)Cut-off grades vary by pit according to economic, recovery and metallurgical parameters. The technical contents of this news release has been reviewed and approved by G. Peter Mah, P.Eng., COO of McEwen Mining and a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 "Standards of Disclosure for Mineral Projects." The technical information in this news release related to resource and reserve estimates has been reviewed and approved by Luke Willis, P.Geo., McEwen Mining’s Director of Resource Modelling and Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 "Standards of Disclosure for Mineral Projects." CAUTIONARY NOTE TO US INVESTORS REGARDING RESOURCE ESTIMATIONMcEwen Mining presently 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 permitted in reports filed with the SEC under Industry Guide 7 (“Guide 7”). Under NI 43-101, McEwen Mining reports measured, indicated and inferred resources, measurements which are generally not permitted in filings made with the SEC under Guide 7. The estimation of measured 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. Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. Therefore, U.S. investors are also cautioned not to assume that all or any part of inferred resources exist, or that they can be legally or economically mined. Canadian regulations permit the disclosure of resources in terms of “contained ounces” provided that the tonnes and grade for each resource are also disclosed; however, under Guide 7, the SEC only permits issuers to report “mineralized material” in tonnage and average grade without reference to contained ounces. Under Guide 7, the tonnage and average grade described herein would be characterized as mineralized material. We provide such disclosure about our properties to allow a means of comparing our projects to those of other companies in the mining industry, many of which are Canadian and report pursuant to NI 43-101, and to comply with applicable disclosure requirements. CAUTION CONCERNING FORWARD-LOOKING STATEMENTSThis 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, contain 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, effects of the COVID-19 pandemic, fluctuations in the market price of precious metals, mining industry risks, political, economic, social and security risks associated with foreign operations, the ability of the corporation to receive or receive in a timely manner permits or other approvals required in connection with 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, 2019 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. ABOUT MCEWEN MINING McEwen Mining is a diversified gold and silver producer and explorer focused in the Americas with operating mines in Nevada, Canada, Mexico and Argentina. It also owns a large copper deposit in Argentina. CONTACT INFORMATION: Investor Relations:Website: www.mcewenmining.com150 King Street West(866)-441-0690 Toll Free Suite 2800, P.O. Box 24(647)-258-0395 Facebook: facebook.com/mcewenmining Toronto, ON, Canada Facebook: facebook.com/mcewenrob M5H 1J9Mihaela Iancu ext. 320 Twitter: twitter.com/mcewenmining info@mcewenmining.com Twitter: twitter.com/robmcewenmux Instagram: instagram.com/mcewenmining