32% Increase in the Indicated Resource to 1,538,000 Ounces of Gold
95% Increase in the Inferred Resource to 458,000 Ounces of Gold
TORONTO, Feb. 04, 2025 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is providing minor corrections to yesterday's press release. Please note that the resource statements remain unchanged. The corrections are related to Table 2 numbers, specifically the percentage differences between 2021 and December 2024. In addition, the price of gold used in 2021 was $1,725, not $1,750 (in the third paragraph) and the recovery rate for 2021 was 85%, not 90% (in the Footnotes to Tables 1-3).
McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is pleased to report a significant increase in the estimated gold (Au) resources at the Fox Complex's Grey Fox deposit to December 31st, 2024, compared to the last estimate in the 2021 Fox Complex PEA (refer to Table 1). The discovery cost of this increase was US $14.46 per ounce (oz). The deposit itself is subdivided into six different zones: Contact, 147, 147 NE, Grey Fox South (GFS), Gibson & Whiskey-Jack (WJ), shown as yellow stars in Figure 1. An intriguing historic public government record reports that a bulk sample of 8,000 tonnes taken in 1989 from the Gibson zone ramp yielded an average grade in excess of 27 g/t gold. Mineralization at Grey Fox is in close proximity to the highly prolific Porcupine-Destor fault, which historically has been associated with the production of some 110 million ounces of gold. A complete update of the mineral resources at the Fox Complex will be published in the coming weeks.
The increase in resources at Grey Fox can be attributed to a number of factors: exploration drilling discovering and extending new and existing gold lenses; a higher gold price used to calculate the resource, from US$1,725, used in 2021 to US$2,000 today that allowed for a lower cut-off grade, from 2.30 g/t Au to 1.60 g/t Au, which also benefited from foreign exchange rates, used in the evaluation of potential underground mining scenario shapes.
Rob McEwen, Chairman and Chief Owner, said, "Our investment in exploration on the Fox Complex properties has successfully expanded our gold resources, which will enable us to both increase annual production and extend the mine life. Grey Fox is one of several exploration targets contributing to the growth of gold resources and enhancing the future production at our Fox Complex.”
Table 1. Grey Fox Mineral Resource Update as of December 31st, 2024
| Resource | Cut-off Grade | Quantity | Grade Gold | Contained Metal |
| Classification | Gold (g/t) | ('000 t) | (g/t) | Gold (oz) |
| Measured | 1.60 | - | - | - |
| Indicated | 1.60 | 13,135 | 3.64 | 1,538,000 |
| Total Measured + Indicated | 1.60 | 13,135 | 3.64 | 1,538,000 |
| Inferred | 1.60 | 4,319 | 3.30 | 458,000 |
| Total Inferred | 1.60 | 4,319 | 3.30 | 458,000 |
Figure 1. Plan View Map of the Eastern Fox Complex
Referring to Table 2 below it can be seen that the 2024 resource update resulted in an increase (compared to the 2021 PEA) in contained gold for the zones, for both the Indicated and Inferred categories, except for a slight decrease in Indicated at the South Zone. Of particular interest are the increases at Gibson because of the historical Gibson Ramp which, when recommissioned, could provide access for early production ounces from Grey Fox. Gibson's Indicated resource increased 109% from 139,000 oz to 290,000 oz gold and its Inferred resource increased 96% from 125,000 oz to 245,000 oz gold.
Table 2. Comparison by Zone Between the 2021 PEA Resource and the December 31st, 2024 Resource Update
| Classification | Zone | Quantity ('000 t) | Grade Gold (g/t) | Contained Metal - Gold (oz) | ||||||||||||||||
| PEA 2021 | Dec
2024 | % Change | PEA 2021 | Dec 2024 | % Change | PEA 2021 | Dec 2024 | % Change | ||||||||||||
| Indicated | Contact Zone | 2,346 | 3,449 | +47 | % | 5.06 | 3.61 | -29 | % | 382,000 | 400,000 | +5 | % | |||||||
| 147 Zone | 1,952 | 3,159 | +62 | % | 4.89 | 3.85 | -21 | % | 307,000 | 391,000 | +28 | % | ||||||||
| 147NE Zone | 863 | 1,247 | +44 | % | 5.40 | 4.01 | -26 | % | 150,000 | 161,000 | +7 | % | ||||||||
| South Zone | 1,267 | 1,547 | +22 | % | 4.69 | 3.62 | -23 | % | 191,000 | 180,000 | -6 | % | ||||||||
| Gibson Zone | 1,137 | 3,097 | +172 | % | 3.79 | 2.91 | -23 | % | 139,000 | 290,000 | +109 | % | ||||||||
| WJ Zone | - | 636 | - | - | 5.69 | - | - | 116,000 | - | |||||||||||
| Inferred | Contact Zone | 259 | 609 | +135 | % | 4.58 | 3.34 | -27 | % | 38,000 | 65,000 | +72 | % | |||||||
| 147 Zone | 246 | 532 | +116 | % | 4.85 | 4.23 | -13 | % | 38,000 | 72,000 | +89 | % | ||||||||
| 147NE Zone | 64 | 120 | +88 | % | 7.51 | 5.28 | -30 | % | 15,000 | 20,000 | +33 | % | ||||||||
| South Zone | 135 | 460 | +241 | % | 4.38 | 3.52 | -20 | % | 19,000 | 52,000 | +174 | % | ||||||||
| Gibson Zone | 982 | 2,587 | +164 | % | 3.95 | 2.94 | -25 | % | 125,000 | 245,000 | +96 | % | ||||||||
| WJ Zone | - | 11 | - | - | 9.40 | - | - | 3,000 | - | |||||||||||
| Note: Numbers may not sum due to rounding. | ||||||||||||||||||||
The discovery cost per ounce of gold (since the 2021 PEA resource estimate) was US $14.46. This low cost is principally due to intercepting multiple lenses of mineralization, often with a single drillhole, and to the Exploration team's optimized drill programs, which resulted from continued improvements to the geological understanding of the Grey Fox deposit.
Table 3 provides a comparison of the 2021 PEA resource estimate with the December 31st, 2024 resource update. The decrease in grade reflects the lower cut-off used in the calculation of mineral resources using potential underground mining scenario shapes due to an increase in the gold price used, which has risen from US$ 1,725/oz Au to US$ 2,000/oz Au. This is more than offset by the extension of existing lenses and the discovery of new ones, adding new tonnes and ounces to the resource.
Table 3. Comparison of the 2021 PEA Resource Estimate to the Year-End 2024 Resource Estimate
| PEA 2021 | ||||
| Classification | Cut-off Grade | Quantity | Grade Gold | Contained Metal |
| Gold (g/t) | ('000 t) | (g/t) | Gold (oz) | |
| Measured Resource | 2.30 | - | - | - |
| Indicated Resource | 2.30 | 7,566 | 4.80 | 1,168,000 |
| Total Measured + Indicated | 2.30 | 7,566 | 4.80 | 1,168,000 |
| Inferred Resource | 2.30 | 1,685 | 4.36 | 236,000 |
| Total Inferred | 2.30 | 1,685 | 4.36 | 236,000 |
| Grey Fox Mineral Resource Update as of December 31st, 2024 | ||||
| Classification | Cut-off Grade | Quantity | Grade Gold | Contained Metal |
| Gold (g/t) | ('000 t) | (g/t) | Gold (oz) | |
| Measured Resource | 1.60 | - | - | - |
| Indicated Resource | 1.60 | 13,135 | 3.64 | 1,538,000 |
| Total Measured + Indicated | 1.60 | 13,135 | 3.64 | 1,538,000 |
| Inferred Resource | 1.60 | 4,319 | 3.30 | 458,000 |
| Total Inferred | 1.60 | 4,319 | 3.30 | 458,000 |
| Changes in the Elements of the Resource Estimation - December 31st, 2024 vs. PEA 2021 | ||||
| Classification | Quantity | Grade Gold | Contained Metal | |
| ('000 t) | (g/t) | Gold (oz) | ||
| Measured Resource | - | - | - | |
| Indicated Resource | +74% | -24% | +32% | |
| Total Measured + Indicated | +74% | -24% | +32% | |
| Inferred Resource | +156% | -25% | +95% | |
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