Mcewen Inc. · NYSE:MUX
Mcewen — McEwen Mining — Investor Day (September 2018)
157 slides from Mcewen's investor day presentation, Sep 6, 2018
Slide 1: Agenda
Agenda 2 Introduction: Rob McEwen, Chief Owner, Chairman Exploration: Sylvain Guerard, Senior Vice President - Exploration Ken Tylee, Exploration Manager - Black Fox Charles Sulfrian, Exploration Manager - Gold Bar Operations: Chris Stewart, President and Chief Operating Officer Chris Price, Busines
Slide 2: Bios
Bios 3 Rob McEwen, Chairman and Chief Owner of McEwen Mining Inc. Rob is the founder and former Chairman and CEO of GoldCorp Inc., which is, by market capitalization, the largest gold producer in the world. In 1990, Rob jumped from the investment industry into the mining industry. By 1993, he had be
Slide 3: Bios
Bios 4 Donald Brown, Sr. Vice President - Projects Donald is a seasoned mining professional having previously held roles as Vice President of Projects for Glencore and Construction Manager for Bechtel Mines and Metals. He has worked on many large scale mining projects in all stages of feasibility, d
Slide 4: Bios
Bios 5 Ken Tylee, Exploration Manager – Black Fox Ken is a P. Geo who has been conducting gold exploration programmes within the Porcupine Mining Camp since 1984. He was employed for 20+ years with the Kinross-Placer-Goldcorp transition of mining operations within Timmins, supervising exploration te
Slide 5: Bios
6 Chris Price, Business Manager - Black Fox Chris is a mining professional with more then ten years of experience in the gold and copper extraction sectors. He has held senior roles in safety, administration and finance. Chris holds a degree in Pre-Law Studies from Nipissing University and an Execut
Slide 6: Cautionary Statement
Cautionary Statement 7 This presentation 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 expressed, as at the date of this pr
Slide 7: Black Fox Mine Resource Block Model
Black Fox Mine Resource Block Model > 3 g/t 8 Au 3 - 5 g/t Au > 5 g/t Pit Outline
Slide 8: Black Fox Mine Resource Block Model
Black Fox Mine Resource Block Model > 10 g / t 9 Au > 10 g/t Pit Outline
Slide 9: Black Fox Mine Resource Block Model
Black Fox Mine Resource Block Model > 30 g / t 10 Au > 30 g/t Pit Outline
Slide 10: Black Fox Mine Resource Block Model
Black Fox Mine Resource Block Model > 50 g / t 11 Au > 50 g/t Pit Outline
Slide 11: Chris Stewart, President & COO
12 Chris Stewart President & COO
Slide 12: Our Assets
Our Assets 13 Ontario – Timmins Complex = Black Fox, Stock & Fuller/Lexam properties – located right along the Destor-Porcupine Fault Nevada – Gold Bar mine under construction – located right on top of the Battle Mountain Cortez Trend Mexico – Project Fenix – looking to add 12 years of mine life to
Slide 13: Structured Approach
Structured Approach 14 Exploration – Resource Growth in areas that can add mine life in the short to medium term Operations – Looking to convert resources over to reserves in coordination with Exploration work Cost Reduction Efforts – Drive down our cost/ounce while optimizing the operations Innovat
Slide 14: Our People
Our People 15 Black Fox Mine – Richard (Rick) Anderson and Chris Price Gold Bar – Simon Quick and Jeff Snyder Mexico – Adrian Blanco Saenz Los Azules – Donald Brown Fuller & Lexam Propeties – Nigel Fung Innovation – Nathan Stubina
Slide 15: Rick Anderson and Chris Price, Black Fox
16 Rick Anderson General Manager, Black Fox Black Fox Chris Price Business Manager, Black Fox Black Fox
Slide 16: Historic Mining Camp
17 Historic Mining Camp +70 Million ounces produced Fuller Davidson Tisdale Stock East Froome Black Fox Grey Fox Stock Mill Hwy 101 0 5 10 km TIMMINS MATHESON INDICATED INFERRED PROBABLE 2,930,500 OZ AU 1,073,200 OZ AU 113,000 OZ AU 1Resource & reserves, see www.mcewenmining.com/operations/reserves-
Slide 17: Black Fox Deposits Indicated Resource
18 Black Fox Deposits Indicated Resource Black Fox 576Koz @ 7.9 g/t Au Froome 181Koz @ 5.1 g/t Au Tamarack 126Koz @ 5.08 g/t AuEq Grey Fox 465Koz @ 5.5 - 7.5 g/t Au 1,348,000oz Au & AuEq Indicated Resources 1Resource & reserves, see www.mcewenmining.com/operations/reserves-and-resources/default.aspx
Slide 18: Timmins Complex Production Plan
19 Timmins Complex Production Plan Target 4-5 Mines Feeding Central Mill Black Fox Reserves Ounces Added from Exploration Froome Current Resources Fuller Grey Fox Expected Production Stock Tamarack Expected Production 2018 2019 2020 2021 2022 2023 2024 & Beyond Based on internal estimates
Slide 19: Cost Reduction Impact
Cost Reduction Impact Initiatives Impact – Cost per Ounce 20 Current Initiatives Decrease in Cash Cost / Ounce Capex Payback Energy Conservation Initiatives ~ $39 No capital required N/A Automated Ventilation ~ $17 $145K ~2 Months Backfill Plant Upgrades ~ $3 No capital required N/A Engineered Backf
Slide 20: Cost Reduction Efforts
Cost Reduction Efforts Lower Trending Cost per Ounce Since McEwen Purchase 21 2018 based on internal estimates $- $200 $400 $600 $800 $1,000 $1,200 Primero 4- Year Avg Oct Nov Dec Jan-18 Feb Mar Apr May Jun Jul 2018 Forecast Cash Cost / Ounce (USD)
Slide 21: Froome Project Conceptual Mine Design
22 Froome Project Conceptual Mine Design Conceptual Ramp Froome Resource1: 181K oz’s @ 5.1g/t Froome Footwall Au Occurrence Black Fox 850m 1 Press release “McEwen Mining Intersects 53.9 g/t Gold Over 8.3 m at the Froome Footwall”, Sep 6, 2018.
Slide 22: Grey Fox Project
23 Grey Fox Project 147, Contact & South Zones
Slide 23: Zone Conceptual Mine Design
147 Zone Conceptual Mine Design 24
Slide 24: Black Fox Production Summary
Black Fox Production Summary: 25 High Grade (visible gold) Material from Remnant Mining Lower Trending Production Costs Increasing Production Near Term - Value Added Projects Extending Mine Life
Slide 25: Simon Quick, Gold Bar Operations
26 Simon Quick Vice President, Projects Gold Bar Operations
Slide 26: Gold Bar Project
Gold Bar Project 27 Gold Bar Area Shown Nevada USA Las Vegas Reno Eureka Elko
Slide 27: Gold Bar Project: Next Mining Operation
Gold Bar Project 28 McEwen Mining’s Next Mining Operation, Nevada USA $55MM Spent to Date Construction Completion in 2018 First Gold Scheduled for Q1, 2019 On Schedule for 55,000 oz Gold in 2019, 60,000 oz Gold 2020
Slide 28: Gold Bar: General Site Layout
29 Gold Bar: General Site Layout Power Generation Plant Process Ponds Gold Recovery Plant Crusher & Overland Conveyor Heap Leach Pad
Slide 29: Gold Bar: Construction Progress
Gold Bar: Construction Progress On Schedule & Budget 30 Gold Recovery Plant 45% Complete Crushing Plant 70% Complete
Slide 30: Gold Bar: Construction Progress
Gold Bar: Construction Progress 31 Power Generation Plant 65% Complete Heap Leach Pad 85% Complete
Slide 31: Gold Bar: Gold Pick & Cabin Deposit Development
Gold Bar: Gold Pick & Cabin Deposit Development Commercial Production Q1 2019, Forecasting 55,000 Gold oz in 2019 32 Ore Stock Pile First Ore Bench, Cabin Pit Crusher
Slide 32: Gold Bar Resource Growth
Gold Bar Resource Growth: Property Purchase + Mine Exploration Mine Life Extension: Goal is a 10 Year Operation 33 MUX Property Outline 2015 $450,000 Ind. 100,000 oz Gold ~$15MM cashflow1 2017 $2MM M&I 92,000 oz Gold Inf. 82,000 oz Gold ~$25MM cashflow1 1 Assumes 75% recovery & $200 operating margin
Slide 33: Resource Evolution at Gold Bar
Resource Evolution at Gold Bar: Growth! 34 FS1 Gold Bar South Purchase2 Model Optimization3 Exploration Now 4 Measured & Indicated 611 101 18 92 822 Inferred 111 5 4 82 202 1 NI 43-101 Technical Report Gold Bar Project Feasibility Study, Eureka County, Nevada, Dec 6, 2015. 2 McEwen Mining Acquires P
Slide 34: Gold Bar: Near Pit Resource Expansion
Gold Bar: Growth Opportunities: Near Pit Resource Expansion Updated Mine Plan Q1, 2019 Old Resource Estimate New Resource Estimate New Pit Growth
Slide 35: Gold Bar: Near Pit Resource Expansion
Gold Bar: Growth Opportunities: Near Pit Resource Expansion Updated Mine Plan Q1, 2019 Old Resource Estimate New Resource Estimate New Pit Growth
Slide 36: Working Smarter in Nevada
Working Smarter in Nevada: Utilizing Technology To Maximize Recovery Heap Leach Pad Sensors 37 Recovery % Data Measured: [Moisture, Drip Tube Coverage]
Slide 37: Exploration
38 Sylvain Guerard Senior Vice President, Exploration Exploration
Slide 38: Exploration: Key Component of Vision & Strategy
San José Argentina Black Fox Canada Los Azules Argentina El Gallo Mexico Gold Bar Nevada Exploration 39 Key component of McEwen Mining’s Vision & Strategy Focus Timmins & Nevada Black Fox & Gold Bar upside potential
Slide 39: Black Fox Complex
Acquisition October 2017 1 Mine, 1 Mill +1.2Moz Au Indicated resource Exploration potential Black Fox Complex 40 All the right ingredients: Under-explored High grade & high gold endowment 4 deposits (different structures) Gold hosted in all type of rocks BF Mine Stock Mill +70Moz gold
Slide 40: Black Fox Complex Progress
Black Fox Complex 41 Oct 2017 Acquisition 1 Mine, 1 Mill +1.2Moz Au resource Exploration potential Progress Budget & Team Geology & targets definition (workshops) Black Fox & Stock Exploration system Drilled 80,000m YTD
Slide 41: Black Fox Complex 2018 YTD Results
Black Fox Complex 42 Oct 2017 Acquisition 1 Mine, 1 Mill +1.2Moz Au resource Exploration potential 2018 YTD Results Black Fox (Indicated Resources): Tamarack: 127Koz @ 5.08g/t AuEq Froome: +22Koz @ 5.09g/t Au Stock East (Inferred Resources): Open Pit: 40Koz @ 1.58g/t Au Undergound: 73Koz @ 3.85g/t A
Slide 42: Gold Bar - Exploration
Gold Bar - Exploration 43 Exploration reactivated Q4 2017 Main objectives: Extend Mine Life (near-pit resources, Gold Bar South, waste dumps) Make new discoveries (team, data, drilling for oxide & sulfide)
Slide 43: McEwen Mining Exploration
McEwen Mining Exploration 44 Excellent progress & results on key projects Right team, right approach, right places Destor Porcupine Fault Stock Mine Stock East Stock Gap Froome Black Fox Tamarack Black Fox Pike River Gibson Gibson SW 147 NE Froome FW Gold Pick Cabin Creek Gold Ridge Gold Bar
Slide 44: Black Fox Exploration
45 Ken Tylee Exploration Manager - Black Fox Black Fox Exploration
Slide 45: Black Fox & Stock Mine Properties 2018 Exploration Update
46 Black Fox & Stock Mine Properties 2018 Exploration Update 46
Slide 46: Black Fox & Stock – Summary of 2018 Activities
ADDITION of 22k OZ Au Resources at Froome UPDATED 127k OZ AuEq Resources at Tamarack NEW 114k OZ Au Resource at Stock East Zone 300% Increase over Previous Exploration Levels 9 NEW Gold Occurrences Black Fox & Stock – Summary of 2018 Activities 47 Excellent Progress Visible Gold 1Resource & reserves
Slide 47: Short Drive from the Famous Porcupine Mining Camp
Short Drive from the Famous Porcupine Mining Camp 48 Stock Taylor Matheson Destor-Porcupine Fault Lexam Black Fox Timmins Timmins-Matheson Region +70Moz gold
Slide 48: Stock Mine/Mill Great Location
Stock Mine/Mill Great Location The Key: Numerous Generations of Structural Preparation & Fluid Entry Black Fox Mine 49
Slide 49: Black Fox Mine Site: Limited Exploration pre-MUX
Black Fox Mine Site: Limited Exploration pre-MUX Restricted to 3 Clusters High-Definition Infill ONLY 6 Owners since 1990 Large Gaps within fertile Structural Corridors Froome 2016: $4.65M USD spent 300 DDHs = 159k OZ Grey Fox 2008-2014 1050 DDHs = 465k OZ Black Fox Mine 576k OZ @ 7.9 g/t Au 50
Slide 50: Black Fox Mine - Underground
1-2 rigs throughout 2018 Devoted to Converting Resources to Reserves 26,000m Drilled YTD Black Fox Mine - Underground JOB #1: EXTEND LIFE of MINE Remaining Resource Blocks >10 g/t Au
Slide 51: Growing Resources Adjacent to Operations
Gibson-Kelore structure Black Fox structure GROWING RESOURCES ADJACENT TO OPERATIONS Top 3 Targets: 1) In-Mine = Deep Central Zone 2) Tamarack = Base Metal – Gold 3) Froome Area = Expansion A simple plan for 2018: GRAB the Opportunities! Black Fox MINE 1 2 3 52
Slide 52: Longitudinal Section - Looking NE
Longitudinal Section - Looking NE 7.24gpt Au / 3.9m 4.5gpt Au / 3.79m 21.6gpt Au / 0.8m ~800m DCZ HQV FW CENTRAL Froome Resource Reserve Mined out 2015-2016 Focus = 159K Oz @ 5.26 g/t Au Historic UG Exploration rarely 100m ahead of Mining faces BLACK FOX Mine before McEwen 53
Slide 53: Verified Down-Plunge Extensions
Verified Down-Plunge Extensions: High Quartz Zone Deep Central Zone Still OPEN to Depth Longitudinal Section - Looking NE Resource Reserve Open Pit 1) Black Fox – UNDERGROUND 54 55.1gpt Au / 1.2m 44.4gpt Au / 7.5m 141.2gpt Au / 2.4m 320.7gpt Au / 0.6m 1-2 rigs devoted to Exploration: 21,000m UG Dril
Slide 54: Black Fox Mine Site: Growing Resources in 2018
Open Pit Black Fox Mine Site: Growing Resources in 2018 – UNDERGROUND 55 55.1g/t Au / 1.2m a) Expand Hi-Grade Resources by YE b) Explore Down-Plunge Extensions in 2019 Excavation of 810mL Drill Drift now UNDERWAY 12-Hole INFILL drilling >Sept 15th Deep Central Zone: ~120m strike * 200m vertical ~730
Slide 55: Tamarack multi-metal
2) Tamarack multi-metal A Unique Opportunity <50 DDH 2004-2016 Gold-Silver Lead-Zinc 500m East of Main Ramp upper lens w/in 200m of Surface #18BF-636: 22.2 g/t Au & 20.5 g/t Ag over 1m CL -100m Vertical #17BF-621: 9.46 g/t AuEq over 3m CL from 7.5% Zn, 5%Pb & 92 g/t Ag -150m Vertical 56
Slide 56: Tamarack
Black Fox Mine Ramp FIRST MUX RESOURCE SRK Consulting, May‘18: 127Koz @ 5.08 g/t Au Equivalent Metallurgical Studies Underway 2) Tamarack Taking Advantage of an over-looked opportunity to ADD multi-metal revenues 57
Slide 57: Black Fox Mine Site: 2019 Search for Replicas
Black Fox Mine Site: 2019: Search for Replicas Intense metal enrichment in structurally-controlled contact zone Gibson-Kelore structure Black Fox MINE Black Fox structure 58
Slide 58: Growing the Profitability of the Froome Deposit
3) Growing the Profitability of the Froome Deposit: 22K OZ Expansion of Froome & Addition of FW Occurrence Froome FW Zone 116.6g/t Au / 4.5m CL Conceptual development NEW ! Froome’s Indicated Resource = 181k OZ @ 5.1 g/t Au Looking to NW 59
Slide 59: Growing Profitability of the Froome Deposit
150m NE of Expanded Froome resources 3) Growing Profitability of the Froome Deposit #663: 7.9 / 4m CL @ -45m Vertical #G279: 53.93/9.9m CL Inc. 116.6/4.5m CL @ -75m Vertical Froome Deposit: 181K Oz @ 5.1 g/t Au 60
Slide 60: Black Fox Surface Exploration
Black Fox Surface Exploration: Limited Exploration pre-MUX – Restricted to 4 Clusters 22 Sites Prioritized Large Gaps within fertile Structural Corridors Froome 2016 Grey Fox 2008-2014 1050 DDHs 61
Slide 61: Property-Scale Exploration: Aggressive Targeting
PROPERTY-SCALE exploration: Aggressive Targeting simple YES/NO Assessment by Drilling Results-Driven follow-up 9 Surface Rigs 64,000m drilled YTD 30,000 samples shipped Gibson-Kelore structure Black Fox structure 62
Slide 62: Property-Scale Exploration: Successful 1st Pass
Black Fox MINE Froome Resources Tamarack BM-Au PROPERTY-SCALE exploration: Successful 1st Pass ! ADDITIONAL Drilling Required Gibson-Kelore structure 7 NEW Gold Occurrences! follow-up planned QTR-4 and 2019 Grey Fox Resources 63
Slide 63: New Zones of Gold Mineralization in 2018
Property-Scale Exploration: 4 NEW Zones of Gold Mineralization in 2018 Gibson-Kelore structure GIBSON Deep PIKE RIVER GIBSON SW Black Fox MINE Black Fox structure 147 NE Zone 64
Slide 64: Site-Wide Exploration: Gibson SW
Site-Wide Exploration 1) GIBSON SW 200m off of the known Corridor DDH #1062: 639gpt Au / 1.2m CL at 79m Depth Gibson SW 639gpt Au / 1.2m CL Structure is OPEN in all directions 65
Slide 65: Site-Wide Exploration: Pike River
Site-Wide Exploration: 2) PIKE RIVER Shallow High-grade Intercept Another Over-Looked Opportunity 18PR-032: 35.03/3.3m CL Incl. 50.85/2m CL DDH #18PR-032: 35.03 g/t Au over 3.3m at 70m Depth 4 consecutive samples: 21.5 / 80.2 / 6.55 / 15.55 g/t Au Structure is OPEN in all directions 66
Slide 66: Site-Wide Exploration: NE Zone
Black Fox MINE Site-Wide Exploration: 3) 147 NE Zone SHALLOW Vein Set – perpendicular to typical Grey Fox orientation 17 new Intercepts over 140m Strike at 3-125m Vertical Depth Potential Ramp Access Adjacent to 466k OZ Resources at Grey Fox 16.11 g/t over 3m CL 147 NE Zone: 16.11 / 3m CL 4.26 / 8m
Slide 67: Site-Wide Exploration: Gibson Deep
Bulk Zone @ -500mL: 3.1/34m CL incl. 9.7 / 7m 3.1 g/t Au over 34m CL at 500m Depth Hi-Grade center zone: 9.7 g/t over 7m CL Site-Wide Exploration: 4) GIBSON Deep: NEW style of deep BULK Mineralization Structure is OPEN in all directions 68
Slide 68: Surface Exploration Drilling at Stock
Surface Exploration Drilling at STOCK: 10,000m (original) 22,800m (YTD) 25,000 (YE estimate) Stock Mine/Mill Ideal Setting All the Ingredients for Discovery 69
Slide 69: Stock: Significant Mineralization Confirmed
DEEP Mine Gap Stock EAST 2km 137k OZ Past Production avg 5.5 g/t Au STOCK: Significant mineralization confirmed 70
Slide 70: Excellent Drill Results YTD
Excellent drill results YTD: Over 2km strike length New style of Porphyry-Hosted mineralization south of main Volcanic system Gap Stock East 4.82gpt Au / 16.3m Inc. 19.23g/t Au / 2.9m 2.38gpt Au / 20.4m Inc. 3.89g/t Au / 9m 3.05g/t Au / 14m CL Inc. 9.51g/t Au / 1m & 4.02g/t Au / 6.5m 10.85g/t Au / 1
Slide 71: Gap Stock East Inferred Resource
Gap Stock East Inferred Resource Sept. 5 10.85g/t Au / 1m Porphyry 0.92g/t Au / 33.1m 5.58g/t Au 3.30m Inc. 14.80g/t Au / 1m 7.01g/t Au / 3.80m Inc. 30.10g/t Au / 0.80m Stock Deposit Au gxm Range 0.78g/t Au / 35.1m >10 gxm contour gxm = grade x thickness O/P Inferred (0.25 g/t cut): 40k OZ Au avg 1.
Slide 72: Plenty of Room to Advance & Grow Resources
Plenty of Room to Advance & Grow Resources Gap Stock East Stock Deposit - Infill Drilling UNDERWAY Au gxm OPEN OPEN gxm = grade x thickness Stock Property – Expand Opportunities! 73
Slide 73: Depth of Archean Gold Deposits
Depth of Archean Gold Deposits 74 “Kilometric” vertical continuity Black Fox & Stock Low exploration maturity level Still early days Core display 1,000m 2,000m Black Fox Williams Golden Giant David Bell HG Young Campbell Red Lake Macassa Kirkland Teck Hughes Lake Shore Wright- Hargreaves Sylvanite T
Slide 74: Excellent Progress in only Months
Excellent Progress in only 8 Months 75 127k OZ AuEq Indicated Resource at TAMARACK Expanded FROOME’s Indicated Resources by 22k OZ Au NEW Inferred Resources at STOCK = 114k OZ Au Rapid Escalation to 11 Rigs Focused on Results-Driven Exploration 9 New Gold Occurrences YTD Numerous High-Quality target
Slide 75: Gold Bar Exploration
76 Charles Sulfrian Exploration Manager, Gold Bar Gold Bar Exploration
Slide 76: Gold Bar Mine - A Carlin Gold Deposit on the Cortez Trend
Cortez Trend Gold Bar Mine - A Carlin Gold Deposit in the heart of the Cortez Trend 77 Jerritt Canyon Goldstrike/Meikle Carlin Gold Quarry Pipeline Cortez Hills Four Mile/ Goldrush Ruby Hill Twin Creeks Getchell/ Turquoise Ridge Gold Bar Carlin Trend Getchell Trend Carlin Type Deposit Highways > 200
Slide 77: Gold Bar Project vs. Cortez Complex
MUX Tonkin 1.6Moz MUX Gold Bar 0.73Moz Cortez Fault Gold Bar Project vs. Cortez Complex 78 Along the same “trend” Equivalent host rocks Alteration & mineralization Proximity to intrusions Multiple stratigraphic horizons Gold Bar deep exploration potential remains untested Cortez Hills Barrick 50Moz
Slide 78: Gold Bar Project vs. Cortez Complex
MUX Tonkin 1.6Moz MUX Gold Bar 0.73Moz Cortez Fault Gold Bar Project vs. Cortez Complex 79 Along the same “trend” Equivalent host rocks Alteration & mineralization Proximity to intrusions Multiple stratigraphic horizons Gold Bar deep exploration potential remains untested Cortez Hills Pipeline Fourm
Slide 79: Gold Bar Exploration: 2018 H1 Program
Gold Bar Exploration: 80 2018 H1 Program brought all the pieces together: Extension of known deposits Pit Delineation New gold targets both shallow and deep Target-Rich Environment Top of Gold Pick Pit looking SE towards Cabin Creek and ML Gold Pick Pit Cabin Creek ML Gold Bar South
Slide 80: Gold Bar – H1 2018 Exploration Reactivation Results
Gold Bar – H1 2018 “Exploration Reactivation” 81 Results Drilling Phase 1 13,000 m RC drilling Positive drill intersections Near-pit resource expansion of 60,000 oz (M & I plus Inf) LOM extension: Resource upgrade & Gold Bar South Fault Fault Gold Bar South Ind. 101 koz Au Phase 1 2.1 g/t Au / 38.1m
Slide 81: Potential for Discovery: Priority Areas
Potential for Discovery: Priority areas 5 km each Wall Fault Roberts Creek Fault 5 km 5.5 km Gold Bar – H1 2018 “Drill Target Definition” Gold Bar South Ind. 101 koz Au Gold Bar M&I 629 koz Au 82 MUX Property Outline Fault Priority Area Axis of Anticline
Slide 82: Potential for Discovery
Potential for Discovery Wall Fault Roberts Creek Fault 5 km 5.5 km Gold Bar – H1 2018 “Drill Target Definition” Gold Bar South Ind. 101 koz Au Gold Bar M&I 629 koz Au 83 MUX Property Outline Fault Priority Area Axis of Anticline H1 Program Included: Geochemical Surveys Geophysical Surveys Geologic M
Slide 83: Potential for Discovery: Target Areas
Potential for Discovery: Target Areas: ML Wall Fault Roberts Creek Fault Gold Bar – H1 2018 “Drill Target Definition” ML 84 MUX Property Outline Target Area Fault Axis of Anticline
Slide 84: ML Cross Section
Cross Section Secondary Down-Dip Target Area (Red dashed line) Roberts Creek Fault Zone Primary ML Target Area - Outcropping Alteration & Mineralization 1. ML - Shallow Oxide Targets Along NNW-SSE fault Surface mineralization Target outcrops & extends down dip Never drilled 400 m 800 m 85
Slide 85: ML - Shallow Oxide Targets
1. ML - Shallow Oxide Targets Roberts Creek Fault Zone W ML Cross Section Looking north Similar Hosts Rock to other deposits Drilling to start early – mid-September Secondary Down Dip Target Zone Never drilled before 400 m meters E 0 150 300 86 Primary Target Area
Slide 86: Potential for Discovery: Target Areas ML, Cabin Creek
Gold Bar – H1 2018 “Drill Target Definition” 87 Potential for Discovery: Priority areas >5 km each Target Areas: ML Cabin Creek Drilling started mid-August at Cabin Creek Wall Fault Roberts Creek Fault Cabin Creek MUX Property Outline Target Area Fault Axis of Anticline
Slide 87: Cabin Creek - Extending Mineralization
2. Cabin Creek - Extending Mineralization 88 Along NE-SW trend Open along strike & down dip Targets extensions to mineralization or gaps in drilling Cabin Creek Designed Pit 600 m Orebody Current Drilling Deposit Open Target Area (no drilling)
Slide 88: Cabin Creek - Extending Mineralization
2. Cabin Creek - Extending Mineralization 89 Higher grades within known oxide deposit may extend beyond deposit 600 m Current Drilling Deposit Open Target Area (no drilling) 3.03 g/t Au / 16.6 m oxide 7.55 g/t Au 6.81 g/t Au 5.15 g/t Au 6.95 g/t Au
Slide 89: Gold Bar South Development & Exploration
Roberts Creek Fault Zone 300 m 1.0 Km 800 m Gold Bar South Deposit 3. Gold Bar South Development & Exploration 91 Deposit is open along strike and at depth Good results away from projected pit Deeper drilling planned on new targets Line 26 Target Area Fault
Slide 90: Gold Bar South Development & Exploration
Line 26 Roberts Creek Fault Zone 300 m 1.0 Km 800 m Gold Bar South Deposit 3. Gold Bar South Development & Exploration 92 Deposit is open along strike and at depth Good results away from projected pit Deeper drilling planned on new targets Target Area Fault
Slide 91: Potential for Discovery: Deep Targets
Gold Bar – H1 2018 “Drill Target Definition” 93 Potential for Discovery: Priority areas >5 km each Target Areas: ML Cabin Creek Gold Bar South Deep Targets Wall Fault Roberts Creek Fault Deep Target Zones Drill Hole MUX Property Outline Target Area Fault Axis of Anticline
Slide 92: Deep Targets
Typical sulphide mineralization targeted. From the Cabin Creek area. 4. Deep Targets 94 Over 10 Km strike length of deep targets remain unexplored Deeper, Higher Grade Deposits are Typical of Carlin Systems 8.55 g/t Au 9.98 g/t Au Proposed core holes
Slide 93: Target Rich Environment
Gold Bar – H1 2018 “Drill Target Definition” 95 Target Rich Environment Potential for Discovery: Priority areas >5 km each Drilling these targets may: Extend mine life Result in a deep, large discovery Wall Fault Roberts Creek Fault Deep Target Zones Gold Bar South ML Cabin Creek MUX Property Outlin
Slide 94: McEwen is just scratching the surface
Cortez Hills > 10 Million Ounces Gold Gold Bar Goldstrike > 50 million Ounces Gold McEwen is just scratching the surface ? 0 m -300 m -600 m -900 m Targets for deeper large higher-grade discoveries 96 Shallow Oxide Deposits Deeper Higher Grade Deposits Deeper Higher Grade Deposits
Slide 95: Timmins (Lexam) Properties
97 Nigel Fung Director, Mine Planning Timmins (Lexam) Properties
Slide 96: Properties in Timmins District
Properties in Timmins District 98 Tahoe Resources Goldcorp McEwen McEwen 1 3 2 4 Timmins- Matheson Region +70Moz gold2 Timmins (Lexam) Projects 1. Fuller 2. Davidson Tisdale 3. Paymaster 4. Buffalo-Ankerite Open Pit & Underground Resource1 M&I: 1,468,500 oz Au Inferred: 954,200 oz Au 1NI 43-101 Reso
Slide 97: Properties in Timmins District
Properties in Timmins District 99 Tahoe Resources Goldcorp McEwen McEwen 1 3 2 4 Timmins Timmins- Matheson Region +70Moz gold Timmins Projects 1. Fuller 2. Davidson Tisdale 3. Paymaster 4. Buffalo-Ankerite 1. Additional Mill Feed 2. Reduce Cost per Ounce 1NI 43-101 Resource, 2013, see www.mcewenmini
Slide 98: Fuller Is a Real Gift
Properties in Timmins District 100 Tahoe Resources Goldcorp McEwen McEwen 1 3 2 4 Timmins- Matheson Region +70Moz gold FULLER IS A REAL GIFT Goal is to start Mining in 2021 2 4 Dome Mine Timmins
Slide 99: Fuller Site Today
101 Fuller Site Today Access Road Ventilation Raise FUNCTIONAL PORTAL & RAMP EXISTING INFRASTRUCTURE LEFT BEHIND IS A REAL GIFT Aerial Photo
Slide 100: Fuller Mine – Ramp & Existing Underground Workings
102 FULLER MINE – RAMP & EXISTING UNDERGROUND WORKINGS >5km of Existing Development into Mineable Stopes
Slide 101: Fuller Site During Operations
103 Fuller Site During Operations 1986-1989: Operations Halted due to Financial Difficulty – Stopes Left Ready to Mine Portal Power Maintenance Shop
Slide 102: Fuller Mine – Longitudinal Stope Sections
FULLER MINE – LONGITUDINAL STOPE SECTIONS Map Circa 2000 & 2008 Existing Ramp 150’ Level Existing Level Development & Sills 275’ Level 375’ Level 500’ Level 600’ Level 650’ Level STOPE STOPE STOPE STOPE STOPE STOPE STOPE Portal STOPE STOPE
Slide 103: Adrian Blanco, Mexico
105 Adrian Blanco General Manager, Mexico Mexico
Slide 104: Fenix Project
Fenix Project Long Mine Life of 12 years. Low Capital Investment – Total of US$ 71 million. NPV5% of $60M & IRR after-tax of 28%. Sinaloa State Mexico El Gallo District & Fenix Project NPV and IRR from Preliminary Economic Assessment (PEA) Base Case using $1,250/oz Au and $16/oz Ag. Published Jul 9,
Slide 105: Fenix Project: 12 Year Mine Life
7 km MUX Property Outline Fenix Project Palmarito El Gallo Silver El Encuentro El Gallo Silver 9 km 2 km ? ? El Gallo Gold Mine 8 km Fenix Project : 60% Silver + 40% Gold El Gallo Gold mine 500m 250m 0m -250m Fenix Project – 12 Year Mine Life Project Sequence: Phase 1 : El Gallo Gold Heap Leach Re-P
Slide 106: Fenix Project Phases and CapEx
Phase 1 – El Gallo Gold - CapEx $41M. 1/3 of gold remaining in existing heap leach. Re-process the heap leach material through a traditional CIL (Carbon-In-Leach) Mill circuit. Phase 2 – El Gallo Silver and other 3 Deposits - CapEx $30M. El Gallo Silver --> Palmarito --> El Encuentro --> Carrisalejo
Slide 107: After-Tax Financials
After-Tax Financials USD Downside Case $1,150 / oz Gold $14.5 / oz Silver Current Prices Case $1,200 / oz Gold $15 / oz Silver Base Case from 2018 PEA $1,250 / oz Gold $16 / oz Silver Phase 1 CapEx $41 M $41 M $41 M Phase 2 CapEx $30 M $30 M $30 M IRR 19% 23% 28% NPV @ 5% Rate $34 M $44 M $60 M Payb
Slide 108: Fenix Project – Conceptual In-Pit Tailings Disposal
110 Present Day After In-Pit Tailings Deposited Fenix Project – Conceptual In-Pit Tailings Disposal Reclaimed In Pit Tailings concept being introduced in Mexico. Currently used by mining operations successfully in Australia. Benefits : Minimize enviromental impact on surface landscape. Maximize re-u
Slide 109: Next Steps: Fenix Project
Next Steps : Preliminary Economic Assessment (PEA) was completed July 9th 2018. Permits expected : Phase 1 in Q1 2019, Phase 2 in Q2 2020. Feasibility Study in Q2 2019. Target Construction Decision for Phase 1 in Q4 2019. Fenix Project – Silver & Gold Fenix Mexico 111
Slide 110: Los Azules
112 Donald Brown Senior Vice President, Projects Los Azules
Slide 111: The Los Azules Copper Project is located in Argentina
The Los Azules Copper Project is located in Argentina 113 McEwen Mining 100% Owns the Los Azules Copper Project, One of the world's largest undeveloped, higher-grade, open pit copper deposits Project Engineering Permitting 20.1% IRR $2.2 billion NPV McEwen Mining - Focus on Growth in the Americas Lo
Slide 112: In a Nutshell – The Los Azules 2017 PEA
In a Nutshell – The Los Azules 2017 Preliminary Economic Assessment (PEA) 114 Attributes: Compelling Financials World Class Copper Producer for 38 years Mining Operations in Argentina Project and Operational Logistics through Chile Main Concerns: Needs De-Risking Access Challenged Power Supply Chall
Slide 113: Compelling Financial Attributes
Compelling Financial Attributes 115 IRR 20.1 % - Assumes Copper at $3.00/lb NPV8% $2.2 billion Peak Capex $2.4 billion Capex Payback Period 3.6 years – from early higher grade ore C1 Costs $1.13 / lb for first 13 years Operating Life 38 + years Ore Throughput 80,000 tpincreasing to 120,000 after 5 y
Slide 114: Compelling Financial Attributes
Compelling Financial Attributes 116 IRR 20.1 % - Assumes Copper at $3.00/lb NPV8% $2.2 billion Peak Capex $2.4 billion Capex Payback Period 3.6 years C1 Costs $1.13 / lb for first 13 years Operating Life 38 + years Ore Throughput 80,000 tp increasing to 120,000 after 5 years. Low Stripping Ratio of
Slide 115: Compelling Financial Attributes
Compelling Financial Attributes 117 IRR 20.1 % - Assumes Copper at $3.00/lb NPV8% $2.2 billion Peak Capex $2.4 billion Capex Payback Period 3.6 years – from early higher grade ore C1 Costs $1.13 / lb Low Stripping Ratio of 1 : 1 Operating Life 38 + years Ore Throughput 80,000 tpd increasing to 120,0
Slide 116: Los Azules: World Top 25 Copper Producer
Extract from the 2017 Los Azules Preliminary Economic Assessment : Los Azules Copper Project will be a World Top 25 Copper Producer 118 186,000 tpa Copper in Concentrates
Slide 117: Los Azules: Lowest Cost Quartile Copper Producer
119 Extract from the 2017 Los Azules Preliminary Economic Assessment : Los Azules Copper Project will be a Lowest Cost Quartile Copper Producer C1 = $1.13c / lb
Slide 118: Analysts are awakening to the Los Azules Copper Project
Analysts are awakening to the Los Azules Copper Project Draft Evaluation by Goldman Sachs 120 High Quality Financials IRR = 24% Infrastructure Concerns Argentina Country Concerns NPV = $2.9billion
Slide 119: Los Azules Advancing Up the Value Curve
Los Azules Copper Project is Advancing Up the Value Curve Phase 1 $ VALUE Resource Upgraded to Indicated Project De-Risking Project & Financial Definition Publication of 2017 PEA Develop Environment Permit Project Enhancements Infill Drilling 2018 2017 “Next Steps” for 2017 & 2018 Project De-Risking
Slide 120: Project De-Risking - Panorama of Site
Project De-Risking - Panorama of Los Azules Copper Project site. A Natural Elevated Site for the Concentrator Facility in Proximity to the Open Pit Mine The Elevated Site Enables the Gravity Deposition of tailings for the Life of Mine Elevated Process Facility Platform Open Pit Mine 122
Slide 121: Project De-Risking - Primary Crusher
Project De-Risking The Primary Crusher near the Mouth of Mine for Optimal Truck Haulage Linked to the Process Facility by an Elevated Overland Coarse Ore Conveyor Elevated Process Facility Platform Open Pit Mine Coarse ore Overland Conveyor Primary Crusher 123
Slide 122: Project De-Risking - Proposed Tailings Dam
Project De-Risking The Proposed Tailings Dam – Closes the Watershed. Sealing the Mine and Mine Facilities from the Natural Environment. Delivers Excellent Robust Environmental Security Elevated Process Facility Platform Open Pit Mine Coarse ore Overland Conveyor Primary Crusher Tailings Dam 124
Slide 123: Project De-Risking - Waste Rock Storage Facility
Project De-Risking The Waste Rock Storage Facility is in Proximity to the Mine. All project drainage including any Acid Mine Drainage reports by gravity to the Tailings Storage Facility as Process Water. Elevated Process Facility Platform Open Pit Mine Coarse ore Overland Conveyor Primary Crusher Ta
Slide 124: Project Facilities - Superior Attributes
Project Facilities - Superior Attributes 126 Compact Footprint – Optimal for Materials Handling Primary Crusher located alongside the Mouth of Mine Elevated Concentrator Plant – Enables Gravity Deposition of Tailings Water Supply from within the Project Footprint All contact water reports by gravity
Slide 125: Next Steps - Project Re-Risking
Next Steps 1 - Project Re-Risking 127 Objective : Confirm the Proposed Los Azules Facility Layout is Viable 70+ Geotechnical Investigation Drill Holes - completed In-Situ Geotechnical Testing - completed 24 Seismic Lines - completed Geological Mapping - completed at the sites Photogrammetry & Survey
Slide 126: Next Steps – Project Enhancements
Next Steps 2 – Project Enhancements 128 ARGENTINA Define an Airstrip Evaluate a New Alternative All-Year Access Road Define a High Voltage Power Transmission Route CHILE Define the Project Logistics through Chile – large equipment imports – copper concentrate exporting Develop the Port Solution in C
Slide 127: The Los Azules Airstrip Site
The Los Azules Airstrip Site Location of Airstrip Confirmed 5 kms from the Tailings Dam and 2kms from the Camp Survey Completed Preliminary Designs Completed Permitting Commenced Detailed Engineering in 2019 Commencement of Airstrip Formation Works in 2019 or 2020 129
Slide 128: Northern Access Route to Los Azules
Northern Access Route to Los Azules Photogrammetry Expeditions on Horseback Helicopter Reviews A Low-Altitude Route within a Deep Valley Only 1 river crossing 20kms of Challenging Terrain 70kms Straightforward Terrain All Year Access Confirmed by Satellite Imagery Confirmed as the New Access into Lo
Slide 129: High Voltage Power Transmission Line Solution
High Voltage Power Transmission Line Solution Follows the Northern Access Route A Low-Altitude Route within a Deep Valley No High Mountain Passes 30 kms shorter Straightforward to construct in close proximity to future Northern Route Access Transmission Line Connects to Existing Substaion. Confirmed
Slide 130: Chile Freight & Copper-Concentrate Logistics
132 Chile Freight & Copper-Concentrate Logistics. Final Road Alignment Defined after detailed site reviews and stakeholder interfaces. 50% National Highway 25% Improved Regional Roads 25% Track Upgrades through Private Lands Framework Agreement in progress with Regional Authorities
Slide 131: Objective: Complete Permitting
Objective : Complete Permitting Los Azules to revise from Exploration Permit to Exploitation Permit Environmental Baseline Studies – 98% completed Archaeology Clearances – 95% completed Geotechnical Investigations - completed Preliminary Engineering - completed Engineering for Tailings & Water Manag
Slide 132: Achievements last months - Project Transforming
Achievements last 12 months - Project Transforming ! 134 All-Year Road Access - Defined Reliable HV Power Transmission Line - Defined Airstrip - Defined Project Facility configuration - Confirmed Environmentally Security from Tailings Dam - Confirmed Superior Community Relations – Confirmed Logistic
Slide 133: In a Nutshell - The Published Los Azules 2017 PEA
In a Nutshell - The Published Los Azules 2017 Preliminary Economic Assessment (PEA) 135 Attributes Compelling Financials World Class Copper Producer for 38 years Mining Operations in Argentina Project and Operational Logistics through Chile Main Concerns: Needs De-Risking COMPLETED Access Challenged
Slide 134: In a Nutshell - The Published Los Azules 2017 PEA
In a Nutshell - The Published Los Azules 2017 Preliminary Economic Assessment (PEA) 136 Attributes Compelling Financials World Class Copper Producer for 38 years Mining Operations in Argentina Project and Operational Logistics through Chile Main Concerns: Needs De-Risking COMPLETED Access Challenged
Slide 135: Los Azules - The Next Months
Los Azules - The NEXT 12 months 137 Commence Northern-Access Pioneer Road Formation Complete Environmental Permit Application Receive the Permit Detailed Design of Northern Access and Power Transmission Line Develop Power Supply Agreement Continue Evaluating Value Adding opportunities, there are sev
Slide 136: Value-Adding Will Continue for Los Azules in 2019 and 2020
Value-Adding Will Continue for Los Azules in 2019 and 2020 $ VALUE Power and Access Solutions Permitted Pay-back Pit Upgraded to Measured Category EIA Permit Received = Project Certainty 25,000m Infill Drilling = Early Resource Certainty Front End Engineering = Scope Certainty Early Works Commenced
Slide 137: Pre-production transactions for Base Metal assets since 2015
Pre-production transactions for Base Metal assets since 2015 30 billion lbs Contained Copper $0.01 / lb $0.02 / lb $0.03 / lb Potential Transaction Range $300 million $600 million $900 million Los Azules Intrinsic Value Benchmarking 139
Slide 138: Nathan Stubina, Innovation
140 Nathan Stubina Managing Director, Innovation Innovation
Slide 139: Nathan Stubina, Innovation
Nathan Stubina Managing Director, Innovation Innovation 140
Slide 140: Research is the transformation of $ into knowledge
Research is the transformation of $ into knowledge Innovation and imagination are the transformation of knowledge into $ Improvement is doing things better; innovation is doing things differently 142
Slide 141: Innovation = need + idea + implementation
Innovation = need + idea + implementation 143
Slide 142: There's a myth that innovation is capital intensive
There’s a myth that innovation is capital intensive There’s never a shortage of good ideas or creativity; innovation fails because it doesn’t get implemented 144
Slide 143: This isn't a billboard. It's a power plant.
This isn’t a billboard. It’s a power plant. mannose There’s a myth that innovation is capital intensive There’s never a shortage of good ideas or creativity; innovation fails because it doesn’t get implemented
Slide 144: Improvement is doing things better. Innovation is doing things differently
Improvement is doing things better. Innovation is doing things differently 146
Slide 145: The electric light did not come from the candle
The electric light did not come from the continuous improvement of the ¢andle. ~ Oren Harari Improvement is doing things better. Innovation is doing things differently
Slide 146: Sensors, Machine Learning, AI
Sensors Machine Learning AI 148
Slide 147: Sensors, Machine Learning, AI, Digital Twins, Bioleaching
Sensors Machine Learning AI Digital Twins Bioleaching 149
Slide 148: Sensors, Machine Learning, AI, Digital Twins, Bioleaching, Tailings
Sensors Machine Learning AI Digital Twins Bioleaching Tailings 150
Slide 149: How Do You Turn A Liability Into An Asset?
151 ? How Do You Turn A Liability Into An Asset?
Slide 150: How Do You Turn A Liability Into An Asset?
152 2012 Feasibility Study (El Gallo Ag) 2018 PEA (Fenix) Design Dry Stack TSF In-Pit Slurry TSF Initial Capex (TSF) $17,350,000 $4,650,000 How Do You Turn A Liability Into An Asset?
Slide 151: How Do You Turn A Liability Into An Asset?
153 ? How Do You Turn A Liability Into An Asset?
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Slide 153: Estimation, Inspection and Monitoring
Estimation Real-time, fragmentation analysis Inspection and monitoring Hyperspectral analysis 155
Slide 154: Estimation, Inspection and Monitoring
Estimation Real-time, fragmentation analysis Inspection and monitoring Hyperspectral analysis
Slide 155: Innovation and imagination are the transformation of knowledge into $
157 Innovation and imagination are the transformation of knowledge into $
Slide 156: Rob McEwen, Closing Remarks, Q&A
158 Rob McEwen Chief Owner & Chairman Closing Remarks, Q&A
Slide 157: Rob McEwen, Closing Remarks, Q&A
Rob McEwen Chief Owner & Chairman Closing Remarks, Q&A