Gold in the Sediments at Grey Fox
TORONTO, Nov. 28, 2022 — McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is pleased to report that our ongoing exploration program has identified four new gold veins in the Grey Fox area within the Fox Complex. Drilling results reveal significant gold mineralization in veins within sedimentary rocks with good gold grades near surface and high-grade gold values encountered at depth.
“ What we find exciting about this discovery is that the host rock of these veins is very different than the host rock for 98% of Grey Fox’s estimated gold resources of 1.2 million ounces Indicated and 240,000 ounces Inferred. These newly discovered veins are in the sparsely explored sedimentary rocks. Such rocks are the same primary gold-bearing host rock as our Froome mine, 3 miles north of Grey Fox, and are also one of the important host rocks of some of the largest gold mines in Timmins such as Newmont Mining’s Pamour, Hollinger and Dome mines, ” stated Stephen McGibbon, SVP Exploration.
At Grey Fox, gold zones are stacked parallel to a southeast-trending regional flexure in the Destor-Porcupine Fault Zone (DPFZ) ( Figure 1 ). This important regional feature is associated with approximately 3.5 million ounces of gold (past production plus current mineral resources) in the immediate area of Grey Fox.
Figure 1 – Grey Fox – Gibson Target Area Within the Southeast Trending Flexure of the DPFZ
The four new Grey Fox – Gibson zone veins occur as shallow as 150 meters (m) below surface and, so far, have been traced down to 330 m. The drill core values (assays) are robust and include near surface intersections of 13.1 grams per tonne (g/t) gold (Au) over 7.3 m and 6.3 g/t Au over 5.0 m; and at depth of 29.1 g/t Au over 1.8 m. The advantages of such a shallow location are reduced time and expense for establishing mineral resources and for future mine development.
In our 2021 drilling, hole 21GF-1333 assayed 5.6 g/t Au over 10.2 m in sediments, and 250 m to the southwest, hole 21GF-1356 assayed 5.2 g/t Au over 3.1 m core length also in sediments. Five drill holes from this year’s program have encountered high-grade intercepts or visible gold outside the boundary of our existing gold resources ( Table 1 ). These collective results appear to be on strike and have opened a large corridor of prospective ground. Interpreted dimensions of the Gibson target area extends at least 475 m along strike and to at least 300 m depth. Such dimensions represent a meaningful opportunity for significant resource additions (Figure 2 and 3).
Drilling has encountered multiple quartz veins hosting visible gold and up to 3% sulfides within sericite and carbonate-altered sediments. In some cases, the veins are brecciated and have crustiform (layered or void-filling) textures that are characteristic of Grey Fox. These observations support our interpretation that the veins are an extension of the Grey Fox deposit, are steeply NW-dipping and trending in a NE-SW direction.
Located within the Gibson target area is a surface ramp constructed more than 30 years ago that was used by a previous operator to take a bulk sample and recovered 2,900 oz from 8,500 tonnes with a reported grade of more than 10 g/t Au. The low gold price at that time likely discouraged further development.
This area will be one of our exploration priorities in 2023.
Figure 2 – Plan View of Grey Fox – Gibson Target Area Including Historic Ramp
Figure 3 – Cross Section of Grey Fox – Gibson Target Area with Interpreted Vein Sets
Table 1 Highlight Drill Intercepts from the Grey Fox Deposit Program
|Hole ID||From (m)||To (m)||Length (m)||True Width (m)||Au (g/t)|
|* = Previously Released|
For a complete list of drill results at Grey Fox since April 25 th , 2022, including hole location and alignment, click here: https://www.mcewenmining.com/files/doc_news/archive/2022/2022_11_FoxComplex/Drill_Intercepts_from_the_Grey_Fox_Program.xlsx
Technical information pertaining to the Fox Complex exploration contained in this news release has been prepared under the supervision of Sean Farrell, P.Geo., a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 “Standards of Disclosure for Mineral Projects.” Fox Complex drilling (including the Grey Fox Program) was supervised by McEwen’s Geology Department. All exploration drill core samples at the Grey Fox were submitted as 1/2 core. Analyses reported herein were usually performed by the fire assay method by the independent laboratories: Pangea Laboratorio (NMX-EC-17025-IMNC-2018, ISO /IEC 17025:2017),
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ABOUT MCEWEN MINING
McEwen Mining is a gold and silver producer with operations in Nevada, Canada, Mexico and Argentina. In addition, it owns 68% of McEwen Copper which owns the large, advanced stage Los Azules copper project in Argentina. The company’s goal is to improve the productivity and life of its assets with the objective of increasing its share price and providing a yield. Its Chairman and Chief Owner has personally provided the company with $220 million and takes an annual salary of $1.