Updated Gold Bar Resource and Reserve Estimates

TORONTO , Jan. 07, 2021 (GLOBE NEWSWIRE) — McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is happy to announce an up to date Indicated Useful resource Estimate of 499,000 contained gold ounces and Possible Reserve Estimate of 302,000 recoverable gold ounces for the Gold Bar Mine in Nevada (“Gold Bar”). See Tables 1-Three for the up to date estimates.

Gold Bar’s estimated after-tax internet current worth (NPV) discounted at 8% and utilizing a gold worth of $1,500/ouncesis within the vary of $62 to $76 million; whereas the upside case at a gold worth of $1,900/ouncesis within the vary of $150 to $170 million. Potential mine life is within the vary of 5 to 7 years primarily based on at the moment estimated reserves.

In Q1 2020, the Firm reported {that a} vital discount in contained ounces at Gold Bar was seemingly. Since that point vital work, as described beneath, has been accomplished to find out the extent of the discount and mitigate it. To offer perspective on the adjustments which have occurred at Gold Bar, think about that in 2019, once we began mining, the Reserve estimate was 430,000 gold ounces. Cumulative mine manufacturing to December 2020 is 58,600 gold ounces, and the Reserve estimate introduced at present is 302,000 gold ounces. The online discount of 16%⁽¹⁾ is pushed by adjustments to the geologic mannequin, metallurgical restoration, extra drilling info, and better gold costs.

A feasibility examine can be printed inside 45 days from the date of this press launch.

Work accomplished in 2020 to reach on the up to date useful resource and reserve estimates:

• 110,500 ft (33,700 m) of drilling and extra metallurgical testing was integrated into the Useful resource and Reserve estimates. The drilling program included 64,000 ft (19,500 m) on the Choose deposit, 35,000 ft (10,700 m) at Gold Bar South (“GBS”), and an ongoing drill program on the Gold Ridge deposit (“Ridge”) with 11,500 ft (3,500 m) drilled to this point.

• The Choose, Ridge, and GBS geological fashions and useful resource estimates have been up to date by McEwen Mining technical workers. The Cabin useful resource estimate was up to date by Mine Technical Companies (MTS). The geologic interpretations have been up to date to incorporate structural modeling for all deposits. All useful resource estimates have been topic to unbiased third-party overview for high quality assurance.

• Specialists within the subject of heap leach know-how have been engaged to overview ore processing and really useful enhancements primarily based on take a look at work and web site observations, which embody ending agglomeration, revised restoration estimates for all assets, and categorization of assets primarily based on metallurgical attributes and clay content material.

Desk 1. Indicated Useful resource Estimate⁽²⁾⁽³⁾ ($1,725 per Ounce Gold, Efficient Dec 1^st, 2020)

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Desk 2. Inferred Useful resource Estimate⁽³⁾⁽⁴⁾ ($1,725 per Ounce Gold, Efficient Dec 1^st, 2020)

Desk 3. Possible Reserve Estimate⁽³⁾⁽⁵⁾ ($1,500 per Ounce Gold, Efficient Dec 1^st, 2020)

Notes:

1. Mine Previous Manufacturing (58,600 ouncesAu) + Present Reserves (302,000 ouncesAu) = 360,600 ouncesAu is 16.1% decrease that 430,000 ouncesAu

2. Mineral Assets have been estimated at a worth of $1,725/ounce Au and are inclusive of Mineral Reserves. Mineral Assets are usually not Mineral Reserves and shouldn’t have demonstrated financial viability. There isn’t a certainty that any a part of the Mineral Assets estimated can be transformed right into a Mineral Reserves estimate. Mineral Assets have been estimated utilizing the rules set out within the CIM Definition Requirements for Mineral Assets. Mineral Assets as said are contained inside an optimised pit shell that demonstrates cheap prospects for eventual financial extraction.

3. Numbers within the tables have been rounded to mirror the accuracy of the estimates and should not sum resulting from rounding.

4. The Inferred Mineral Useful resource in these estimates has a decrease stage of confidence than that utilized to an Indicated Mineral Useful resource and should not be transformed to a Mineral Reserve. It’s moderately anticipated that almost all of the Inferred Mineral Useful resource might be upgraded to an Indicated Mineral Useful resource with continued exploration. Amount and grade of reported Inferred assets are unsure in nature and there was inadequate exploration to categorise these Inferred assets as Measured or Indicated.

5. Reserves have been estimated at a worth of $1,500/ounce Au and are contained inside an engineered pit design primarily based on a Lerch Grossman Algorithm.

CAUTIONARY NOTE TO US INVESTORS REGARDING RESOURCE ESTIMATION

McEwen Mining presently prepares its useful resource estimates in accordance with requirements of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in Canadian Nationwide Instrument 43-101 (NI 43-101). These requirements are totally different from the requirements permitted in studies filed with the SEC underneath Business Information 7 (“Information 7”). Underneath NI 43-101, McEwen Mining studies measured, indicated and inferred assets, measurements, that are usually not permitted in filings made with the SEC underneath Information 7. The estimation of measured assets and indicated assets contain better uncertainty as to their existence and financial feasibility than the estimation of confirmed and possible reserves. U.S. traders are cautioned to not assume that any a part of measured or indicated assets will ever be transformed into economically mineable reserves. The estimation of inferred assets entails far better uncertainty as to their existence and financial viability than the estimation of different classes of assets.

Underneath NI 43‑101, we report measured, indicated and inferred assets, that are measurements which are usually not permitted in filings made with the SEC. The estimation of measured assets and indicated assets contain better uncertainty as to their existence and financial feasibility than the estimation of confirmed and possible reserves underneath Business Information 7. U.S. traders are cautioned to not assume that any a part of measured or indicated assets will ever be transformed into economically mineable reserves. The estimation of inferred assets entails far better uncertainty as to their existence and financial viability than the estimation of different classes of assets. Inferred Mineral Assets might be upgraded to Indicated Mineral Assets with continued exploration. Due to this fact, U.S. traders are additionally cautioned to not assume that each one or any a part of inferred assets exist, or that they are often legally or economically mined.

Canadian laws allow the disclosure of assets when it comes to “contained ounces” offered that the tonnes and grade for every useful resource are additionally disclosed; nonetheless, the SEC solely permits issuers to report “mineralized materials” in tonnage and common grade regardless of contained ounces. Underneath U.S. laws, the tonnage and common grade described herein can be characterised as mineralized materials. We offer such disclosure about our properties to permit a way of evaluating our tasks to these of different corporations within the mining trade, a lot of that are Canadian and report pursuant to NI 43‑101, and to adjust to relevant disclosure necessities.

TCHNICAL INFORMATION
The technical content material of this information launch has been reviewed and accredited by Peter Mah, P.Eng., COO of McEwen Mining and a Certified Particular person as outlined by Canadian Securities Directors Nationwide Instrument 43-101 “Requirements of Disclosure for Mineral Initiatives.”

The technical info on this information launch associated to useful resource and reserve estimates has been reviewed and accredited by Luke Willis, P.Geo., McEwen Mining’s Director of Useful resource Modelling and Certified Particular person as outlined by Canadian Securities Directors Nationwide Instrument 43-101 “Requirements of Disclosure for Mineral Initiatives.”

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This information launch accommodates sure forward-looking statements and data, together with “forward-looking statements” inside the which means of the Non-public Securities Litigation Reform Act of 1995. The forward-looking statements and data expressed, as on the date of this information launch, McEwen Mining Inc.’s (the “Firm”) estimates, forecasts, projections, expectations or beliefs as to future occasions and outcomes. Ahead-looking statements and data are essentially primarily based upon plenty of estimates and assumptions that, whereas thought of cheap by administration, are inherently topic to vital enterprise, financial and aggressive uncertainties, dangers and contingencies, and there may be no assurance that such statements and data will show to be correct. Due to this fact, precise outcomes and future occasions may differ materially from these anticipated in such statements and data. Dangers and uncertainties that might trigger outcomes or future occasions to vary materially from present expectations expressed or implied by the forward-looking statements and data embody, however are usually not restricted to, results of the COVID-19 pandemic, fluctuations out there worth of valuable metals, mining trade dangers, political, financial, social and safety dangers related to overseas operations, the flexibility of the company to obtain or obtain in a well timed method permits or different approvals required in reference to operations, dangers related to the development of mining operations and graduation of manufacturing and the projected prices thereof, dangers associated to litigation, the state of the capital markets, environmental dangers and hazards, uncertainty as to calculation of mineral assets and reserves, and different dangers. Readers mustn’t place undue reliance on forward-looking statements or info included herein, which converse solely as of the date hereof. The Firm undertakes no obligation to reissue or replace forward-looking statements or info because of new info or occasions after the date hereof besides as could also be required by legislation. See McEwen Mining’s Annual Report on Type 10-Ok for the fiscal 12 months ended December 31, 2019 and different filings with the Securities and Trade Fee, underneath the caption “Threat Elements”, for extra info on dangers, uncertainties and different components regarding the forward-looking statements and data relating to the Firm. All forward-looking statements and data made on this information launch are certified by this cautionary assertion.

The NYSE and TSX haven’t reviewed and don’t settle for duty for the adequacy or accuracy of the contents of this information launch, which has been ready by administration of McEwen Mining Inc.

ABOUT MCEWEN MINING

McEwen Mining is a diversified gold and silver producer and explorer targeted within the Americas with working mines in Nevada, Canada, Mexico and Argentina. It additionally owns a big copper deposit in Argentina.