Mcewen Inc. · NYSE:MUX
Mcewen — McEwen Mining — Technical Presentation (October 2018)
34 slides from Mcewen's technical presentation, Oct 16, 2018
Slide 1: 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 in Surface Exploration 94,000+ m drilled 9 NEW Gold Occurrences Black Fox & Stock – Summary of 2018 Activities 2 Excellent Progress Visible Gold 1Resource & r
Slide 2: Black Fox Complex: All the Right Ingredients
1 Mine + 1 Mill 48,000 oz gold production (2018, 2019) + 1.25 Moz Au M&I resource Exploration potential US$180 million tax pools Total of $560M invested by previous owners1 MUX paid $35M for acquisition On the Golden Highway Black Fox Complex Acquired: Oct 2017 3 All the Right Ingredients: Strategic
Slide 3: Stock Mine/Mill Great Location
Stock Mine/Mill Great Location The Key: Numerous Generations of Structural Preparation & Fluid Entry Black Fox Mine 4
Slide 4: Black Fox Mine Site: Limited Exploration pre-MUX
Black Fox Mine Site: Limited Exploration pre-MUX Restricted to 3 Clusters 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 5
Slide 5: Converting Resources to Reserves
Converting Resources to Reserves Black Fox Mine - Underground Extend Life of Mine >10 g/t Au 6 30,000m Drilled UG YTD
Slide 6: 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 7
Slide 7: 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 8
Slide 8: 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 9 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 Drill
Slide 9: Black Fox Mine Site: Growing Resources in 2018 – Underground
Open Pit Black Fox Mine Site: Growing Resources in 2018 – UNDERGROUND 10 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 INFILL campaign from 490mL now UNDERWAY OPEN OPEN OP
Slide 10: Tamarack multi-metal: A Unique Opportunity
2) Tamarack multi-metal A Unique Opportunity <50 DDH 2004-2016 Gold-Silver Lead-Zinc upper lens w/in 200m of Surface #17BF-621: 9.46 g/t AuEq over 3m CL from 7.5% Zn, 5%Pb & 92 g/t Ag -150m Vertical 11
Slide 11: Tamarack multi-metal Au & Ag phase
2) Tamarack multi-metal Au & Ag phase: #18BF-636 @ -100m Vert. 22.2 g/t Au & 20.5 g/t Ag over 1m CL 12
Slide 12: Tamarack: First MUX Resource
Black Fox Mine Ramp FIRST MUX RESOURCE SRK Consulting, May‘18: 127Koz @ 5.08 g/t Au Equivalent Metallurgical Studies Underway 2) Tamarack BM Taking Advantage of an over-looked opportunity to ADD multi-metal revenues 13 500m East of Main Ramp
Slide 13: 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 14 ? ? ?
Slide 14: Growing the Profitability of the Froome Deposit
150m NE of Expanded Froome resources 3) Growing the 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 15
Slide 15: 22K OZ Expansion of Froome & Addition of FW Occurrence
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 16
Slide 16: Summary: Black Fox Resources Growth Since 2017 Acquisition
17 SUMMARY: Black Fox Resources Growth Since 2017 Acquisition Indicated Resources 1Resource & reserves, see www.mcewenmining.com/operations/reserves-and-resources/default.aspx for tonnage, grade, ounces, open pit and underground & press release “McEwen Mining Intersects 53.9 g/t Gold Over 8.3 m at t
Slide 17: Black Fox Mine Site Limited Exploration pre-MUX
Black Fox Mine Site Limited Exploration pre-MUX Restricted to 3 Clusters High-Definition Infill ONLY Froome 2016: $4.65M USD spent 300 DDHs = 159k OZ Grey Fox 2008-2014 1050 DDHs Black Fox Mine 576k OZ @ 7.9 g/t Au 18
Slide 18: Black Fox Surface Exploration: Target Sites Prioritized
Black Fox Surface Exploration: Dec‘17: 22 Target Sites Prioritized Large Gaps within under-explored, fertile Structural Corridors: Gibson-Kelore Black Fox Destor-Porcupine Regional Froome 2016 Grey Fox 2008-2014 1050 DDHs 19
Slide 19: Property-Scale Exploration: Aggressive Targeting
PROPERTY-SCALE exploration: Aggressive Targeting simple YES/NO Assessment by Drilling Results-Driven follow-up up to 9 Surface Rigs @ Black Fox > 64,000m drilled YTD 35,000 samples shipped Gibson-Kelore structure Black Fox Trend 20 Regional DPFZ
Slide 20: 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 21
Slide 21: New Styles of Gold Mineralization in 2018
Property-Scale Exploration: 4 Examples: New styles of Gold Mineralization in 2018 Gibson-Kelore structure GIBSON Deep PIKE RIVER GIBSON SW Black Fox MINE Black Fox structure 147 NE Zone 22
Slide 22: Site-Wide Exploration: Gibson SW Hi-Grade Veining
Site-Wide Exploration 1) GIBSON SW Hi-Grade Veining 200m off of the GK Corridor DDH #1062: 639gpt Au / 1.2m CL at 79m Depth Gibson SW 639gpt Au / 1.2m CL Structure is OPEN in all directions 23
Slide 23: NE Zone Shallow Vein Set
Black Fox MINE 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 465k OZ Resources at Grey Fox 16.11 g/t over 3m CL 147 NE Zone: 16.11 / 3m CL 4.26 / 8m CL Grey Fox Resources 4
Slide 24: Gibson Deep: Structural Zone Bulk Mineralization
Bulk Zone @ -500mL: 3.1/34m CL incl. 9.7 / 7m 3.1 g/t Au over 34m CL at 500m Depth Higher-Grade central shoot: 9.7 g/t over 7m CL 4) GIBSON Deep: Structural Zone = deep BULK Mineralization Breccia Structure is OPEN in all directions 26
Slide 25: Surface Exploration Drilling at Stock
Surface Exploration Drilling at STOCK: 10,000m (original) >28,733m (end Q3) Stock Mine/Mill Ideal Setting: All the Ingredients for Discovery 27
Slide 26: Stock: Significant Mineralization Confirmed
DEEP Mine Gap Stock EAST 2km 137k OZ Past Production avg 5.5 g/t Au STOCK: Significant mineralization confirmed 28
Slide 27: Deepest Intercept: East Zone
30 #S18-56 @ -375mL = deepest intercept by Aug’18 Brecciated QCVs cutting bleached , altered (sericite-carbonate-fuchsite), & pyritic (20%) Mafic Volcanics East Zone 6.65 g/t Au over 2.9m CL (from 473.1-479.95m)
Slide 28: Excellent Drill Results YTD: Over 2km Strike Length
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 29: Gap Stock East Inferred Resource
Gap Stock East Inferred Resource Sept. 5 10.85g/t Au / 1m 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 1.58 g/t UG Inferred (2.4 g/t cut): 73k OZ avg 3.85 g/t Stock Property – Building a New Resource in 2018 32 East
Slide 30: Plenty of Room to Advance & Grow Resources in 2019
Plenty of Room to Advance & Grow Resources in 2019 Gap Stock East Stock Deposit OPEN OPEN Stock Property – Expand Opportunities! 33 OPEN 2KM OPEN 2KM OPEN
Slide 31: Summary: Excellent Progress in only Months at Stock and Black Fox
Summary : Excellent Progress in only 9 Months at STOCK and BLACK FOX 34 127k OZ AuEq Indicated Resource at TAMARACK Expanded FROOME’s Indicated Resources by 22k OZ Au NEW Inferred Resources at STOCK = 114k OZ Au Confirmed Plunge Potential >800mL at BLACK FOX Operations 9 New Gold Occurrences YTD Num
Slide 32: Depth of Archean Gold Deposits: Still Early Days
Depth of Archean Gold Deposits 35 Black Fox & Stock Still early days ! 1,000m 2,000m HG Young Campbell Red Lake Red Lake Black Fox Stock Stock East Macassa Kirkland Teck Hughes Lake Shore Wright- Hargreaves Sylvanite Toburn Kirkland Lake Timmins Camp Hollinger Dome Bell Creek Hoyle Pond Stock Mine:
Slide 33: Thanks to the NEOMMS '18 Volunteers
36 Thanks to the NEOMMS ‘18 Volunteers 36
Slide 34: Thanks to the NEOMMS '18 Volunteers
Thanks to the NEOMMS ‘18 Volunteers
McEwen Mining — Technical Presentation (October 2018) on 6ix