Exploration – New High Grade Results
The San José mine has not been fully explored. The property encompasses approximately 123,000 acres, and there is good potential for additional resource and reserve expansion.
On October 18, 2012, the Company announced the discovery of another new vein system at the San José mine. This result is part of the largest exploration program ever being conducted at the mine this year ($14 million budget). The new discovery is the high-grade gold/silver Emilia vein, located within the known San José area. The Emilia vein has been traced over a strike length of more than 1,000 meters and it is open to the east and at depth. The discovery of this new vein system is encouraging and illustrates the prospective nature of the San José mine and the surrounding land package.
Drilling Highlights - Emilia Vein
|
Drill Hole
|
Intercept
(m)
|
True Width
(m)
|
Au
(g/t)
|
Ag
(g/t)
|
|
SJD-496
including
|
2.30
1.00
|
0.53
0.23
|
22.8
46.4
|
3,403
6,951
|
SJD-1220
|
0.85
|
0.85
|
2.3
|
840
|
|
SJD-1246
including
|
1.65
1.00
|
0.73
0.31
|
44.5
71.3
|
2,251
3,579
|
|
SJD-1264
including
|
1.65
0.90
|
0.56
0.31
|
86.4
147.0
|
1,041
1,276
|
|
SJD-1269
including
|
4.70
1.00
|
0.89
0.19
|
11.6
30.4
|
86
212 |
San José technical information on this page is the news release titled “McEwen Mining Third Quarter 2012 Production Results and Discovery of New Vein System at the San José Mine in Argentina” released on October 18, 2012 by McEwen Mining. To access the news release click here.
For additional technical information on San José, please see report titled "Technical Report on the San José Silver-Gold Mine, Santa Cruz, Argentina" with an effective date of December 31, 2011. The report was prepared by Eugene Puritch, P. Eng., David Burga, P. Geo, Alfred Hayden, P. Eng. And Fred Brown, CPG, Pr.Sci.Nat., all of who are considered independent of the Company as defined in Section 1.5 of NI 43-101. To access the report click here.
Cautionary Notes
McEwen Mining reports its resource estimates in accordance with standards of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in Canadian National Instrument 43-101 ("NI 43-101"). These standards are different from the standards generally permitted in reports filed with the SEC. Under NI 43-101, McEwen Mining reports measured, indicated and inferred resources, measurements which are generally not permitted in filings made with the SEC. According to Canadian NI 43-101 criteria, the estimation of measured resources and indicated resources involve greater uncertainty as to their economic feasibility than the estimation of proven and probable reserves. Under SEC Industry Guide 7 criteria, measured, indicated and inferred resources are considered Mineralized Material. The SEC considers that in addition to greater uncertainty as to the economic feasibility of Mineralized Material compared to proven and probable reserves, there is also greater uncertainty as to the existence of Mineralized Material. U.S. investors are cautioned not to assume that measured or indicated resources will be converted into economically mineable reserves. The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources.
Mineral resources which are not mineral reserves do not have demonstrated economic viability.