McEwen Copper: Los Azules Progress Report

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TORONTO, December 22, 2021 (GLOBE NEWSWIRE) – McEwen Copper Inc., a subsidiary of McEwen Mining Inc. (NYSE: MUX) (TSX: MUX), is pleased to present a summary of the work on the Los Azules copper project in San Juan, Argentina, which began in earnest in July 2021. Our two immediate goals on our path to planning and building the copper mine of the future are:

  1. Moving Los Azules from its Preliminary Economic Assessment (PEA) stage to a Pre-Feasibility Study (PFS); and
  2. Build a new road that ‘Northern access road ‘which provides important access to Los Azules all year round. The current ‘Exploration Road ‘ Due to the wintry weather, it can usually only be used five months a year.

Below you will find a photographic representation of our previous activities.

background

On July 6, 2021, we announced the formation of McEwen Copper and our intention to raise $ 80 million in a private offering of 8,000,000 shares priced at $ 10.00 per share. We closed the first tranche of the $ 40 million placement with Rob McEwen in August, and the remainder of the financing is expected to close in January 2022. Assuming the completion of the $ 80 million financing, McEwen Mining will retain 69% of the shares in McEwen Copper and new shareholders will own 31%. McEwen Copper will continue to own 100% of the Los Azules Project.

Los Azules is one of the largest undeveloped copper porphyry deposits in the world. It is located along the fertile Andean copper belt as shown in the location map below:

Photo 1 – Working from July to open the Exploration Road.

Photo 1Photo 2 – Until September 27ththat, we opened them again Exploration Road to Los Azules, and the camp provider and caterer (Caterwest) had started setting up our work campsites. Below is a picture of the Exploration Road be improved. If you look closely, you can see the road beyond the front loader.

Photo 2Photo 3 – Upon opening the Exploration road, on July 19ththat we also started building the Northern access road. Pictured here is the beginning of the eastern end of this new road. A well-known road construction company based in San Juan (Zlato) is building the road for us. The construction of the road is divided into five sections.

Photo 3Photo 4 – By the end of November, we had completed Section 5 and approximately 50% of Section 4. We are awaiting permits, expected in the first quarter of 2022, to advance construction of the remaining sections. The expected completion date of the Northern access road is mid-2022.

Photo 4Photo 5 – Back on that Exploration road, the road to our first Candidito labor camp was opened on August 25ththat on the road to Los Azules.

Photo 5Photo 6 – October 1stst, the final destination was achieved and Camp Los Azules was ready for action.

Photo 6Photo 7 – November 4ththat, Embarrada Second Labor Camp was in operation.

Photo 7

December 1stst, the medical service and the rescue workers were on site and exploration drilling platforms were built.

Until December 20ththat, 36 drilling platforms were built and 2 of the 10 exploration drills had arrived on site. The other 8 drills are expected to arrive in January and through February. Drilling will begin on January 4ththat. The first phase of our drill program will be a 174,000 foot (53,000 m) program. It was designed to convert the Inferred Mineral Resources to the indicated category and to test deeper exploration targets where historical drilling had resulted in strong copper mineralization.

McEwen Copper currently has 282 employees supporting the Los Azules exploration drilling program, approximately 85% of which is from San Juan.

Photo 8 and 9 – The first two exploration wells arriving at the site.Photos 8 & 9

Photo 10 – At Los Azules, McEwen geologists orient Major Drilling’s drills based on the rock conditions they will encounter.Photo 10

Project development workshop

Last week, December 14ththat until 16that, we held an intensive workshop with senior management from McEwen Mining and McEwen Copper and a strong group of consultants and advisors. A total of 30 people who are very familiar with the planning, construction and operation of copper mines, especially in South America, came together physically and virtually from Argentina, Chile, the USA, Canada, Australia and New Zealand.

The workshop started with a presentation by Whittle Consulting from Australia who have evaluated various development scenarios for the Los Azules project over the past three months. Your work suggests that there is significant scope to improve the economics of the project.

Companies involved in the move from Los Azules to PFS are:

  • Bechtel Corporation, the largest construction company in America with a long history of designing, building and developing large copper concentrators and infrastructure projects around the world, including the recent feasibility study update for the El Pachon project approximately 75 km south of Los Azules; and
  • Samuel Engineer, who will assist in overseeing project management, controls, metallurgy and design of processing equipment, is a multidisciplinary full-service project development and execution company that has a team with extensive experience on large copper projects in South America, including past involvement in Los Azules project, brings together; and
  • Stantec, a full service engineering and consulting firm with offices in Argentina, Chile and Peru, including selected subcontractor consultants, will specialize in geology, resource and reserve estimates, mining engineering, hydrology, geotechnical engineering and the planning of overburden, waste and Concentrate on water management systems.

Our overall goal is to design a mine that will be the model for copper mining in the 21st century.st Century. One that provides the raw material to enable a greener world, while at the same time using renewable energy sources for a low carbon footprint and using technological innovations to create an energy efficient mine.

At several points during the workshop, Jason F. McLennan from McLennan design in Seattle, a prominent figure in the field of architecture and the green building movement, shared his thoughts on technologies, visions, and attitudes about how mining could transform to contribute to a healthy world and how those mined in other industries Insights could be applied to transform certain elements of mine operations, infrastructure and facilities.

We all left the meeting full of energy, believing that the future of mining will be exciting, new and groundbreaking. In order for the world to make significant strides toward a lower carbon world, the world needs responsible mining to provide the materials to make it happen.

At McEwen Copper, we work with our consultants to design, build and operate a facility, a community that will be at the forefront of a changing mindset in mining to protect our planet.

To view a PDF file of this press release, click here: http://mcewenmining.com/files/doc_news/archive/2021/20211222_McEwen_Copper_Update.pdf

CAUTION ABOUT FORWARD LOOKING STATEMENTS

This press 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 contained in this press release contain estimates, forecasts, projections, expectations or beliefs by McEwen Mining Inc. (the “Company”) with respect to future events and results. Forward-looking statements and information are necessarily based on a number of estimates and assumptions that, although believed to be reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies, and no assurance can be given that such statements and information will prove to be correct. As a result, 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 in 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 , Risks to the mining industry, political, economic, social and security risks related to overseas activities, the company’s ability to timely obtain or obtain permits or other permits required in connection with its operations, risks related to the construction of Mining companies and start of production and their anticipated costs, risks related to litigation, state of capital markets, environmental risks and hazards, uncertainty in the calculation of mineral resources and reserves and other risks. Readers are cautioned not to place undue reliance on any forward-looking statements or information contained herein, which speak only as of the date of this release. The company undertakes no obligation to republish or update any forward-looking statements or information as a result of new information or events after the date of this announcement, except as required by law. Additional information regarding risks, uncertainties and other factors relating to the forward-looking statements and information about the company. All forward-looking statements and information in this press release are restricted by this cautionary notice.

The NYSE and TSX have not reviewed and accept no responsibility for the adequacy or accuracy of the contents of this press release, which has been prepared by the management of McEwen Mining Inc.



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