McEwen Inc 8-K, filed Jun 24, 2022
McEwen Inc. (MUX)
About this 8-K
McEwen Inc filed this 8-K on June 24, 2022, reporting on events of June 23, 2022.
Items reported
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
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| Item 7.01 | Regulation FD Disclosure |
On June 23, 2022, McEwen Mining Inc. (the “Company”) issued a press release to provide a progress report about its majority owned subsidiary, McEwen Copper Inc., on recent and planned work at the Los Azules copper project in San Juan, Argentina. A copy of that press release is attached to this report as Exhibit 99.1.
The information furnished under this Item 7.01, including the exhibit, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by reference to such filing.
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits. The following exhibit is furnished with this report: |
| 99.1 | Press release dated June 23, 2022 |
| 104 | Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document (contained in Exhibit 101) |
Cautionary Statement
With the exception of historical matters, the matters discussed in the press release include forward-looking statements within the meaning of applicable securities laws that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained therein. Such forward-looking statements include, among others, statements regarding future production and cost estimates, exploration, development, construction and production activities. Factors that could cause actual results to differ materially from projections or estimates include, among others, the continuing effects of the COVID-19 pandemic and related governmental responses, metal prices, economic and market conditions, operating costs, receipt of permits, receipt of working capital, and future drilling results, as well as other factors described in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2021, and other filings with the United States Securities and Exchange Commission. Most of these factors are beyond the Company’s ability to predict or control. The Company disclaims any obligation to update any forward-looking statement made in the press release, whether as a result of new information, future events, or otherwise. Readers are cautioned not to put undue reliance on forward-looking statements.
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SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| McEWEN MINING INC. | ||
| Date: June 24, 2022 | By: | /s/ Carmen Diges |
| Carmen Diges, General Counsel | ||
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Exhibit 99.1
McEwen Copper: Los Azules Progress Report #3
Drilling returns:
330.0 m of 0.83% Cu including 103.4 m of 1.31% Cu (AZ22146)
298.0 m of 0.55% Cu including 54.0 m of 1.38% Cu (AZ22149)
176.0 m of 1.00% Cu including 44.0 m of 1.38% Cu (AZ22158)
TORONTO, June 23, 2022 - McEwen Copper Inc., a subsidiary of McEwen Mining Inc. (NYSE: MUX) (TSX: MUX), is pleased to provide its 3rd progress report on the advancement of its large Los Azules copper project located in the San Juan province, Argentina.
Improving Our Knowledge & Confidence of This Copper Resource
The objectives of our 59,000-meter (m) drilling program at Los Azules are to:
| · | upgrade the Inferred mineral resources to Indicated; | |
| · | conduct metallurgical, hydrological and geotechnical drilling to accelerate our study work; and | |
| · | selectively test high value exploration targets. |
This program will almost double the historic database of 66,000 m of drilling from 202 holes. So far in 2022, some 13,500 m have been drilled in 29 holes and assays have been returned for 6,035 m of drilling from 15 holes, which are designed to improve confidence and increase our Indicated resource category. Figure 4 profiles the sections and hole locations relevant to this update.
The cross-sections in Figures 1 to 3 are displaying current inclined and historic vertical holes, with histograms of total copper content along their length, overlayed on a simplified interpretation of overburden, leached, enriched and primary mineral zones, and the 30-year pit shell (shown by blue line), as defined by the 2017 Preliminary Economic Assessment (PEA).
Figure 1 – Cross-section B-B’
| McEwen Mining Inc. | Page 1 |
Section B-B', shown in Figure 1, includes hole AZ22146, which produced an attractive intercept of 0.83% Cu over 330.0 m, and included an interval of 103.4 m grading 1.31% Cu. This result correlates well with hole AZ22142 (Figure 2) on section A-A' which intersected 419.1 m of 0.79% Cu and includes 104.0 m of 1.00% Cu in the enriched supergene zone. This represents 200 m of continuity of mineralization, consistent with the lithological and structural features that control the distribution of copper and gold at Los Azules.
Holes AZ22145 (181.0 m of 0.18% Cu) and AZ22148 (239.0 m of 0.26% Cu) located on the southwest flank of the deposit returned grades within the expected ranges for the flanks of the deposit. Results from both holes compare favourably to AZ0618 (228.4 m of 0.21% Cu) from an early drill program. It is notable that many of the holes ended in mineralization.
Figure 2 – Cross-section A-A’
Hole AZ22144 (Figure 2) was drilled in the area of Inferred mineralization, as classified in the 2017 Preliminary Economic Assessment (PEA) and returned 448.6 m of 0.30% Cu. The drill hole ended in visible copper mineralization 294 m below the 30-year pit limit from the 2017 study, indicating potential at depth. The grade and extent of mineralization compares well to historic hole AZ1297 (911.0 m of 0.34% Cu) and to previously released hole AZ22143 (310.5 m of 0.20% Cu).
Assay results are now being returned for Section C-C’ (Figure 3) completed 400 m north of Section B. Hole AZ22149 drilled within an area classified as Indicated (2017 PEA) returned 298.0 m of 0.55% Cu and included 54.0 m of 1.38% Cu beginning at 376.0 m down-hole. Hole AZ22147, drilled along the far southwest flank of the deposit, returned low-grade mineralization in an area classified as Inferred mineralization in the 2017 PEA.
Partial assay results have been returned for hole AZ22158 (Figure 4). located 300 meters south of section A. It correlates well with the high-grade mineralization in hole AZ22142. Results to-date for this hole are 176.0 m grading 1.00% Cu in the enriched mineralization zone and includes an interval of 44 m grading 1.38% Cu.
Figure 3 - Cross-section C-C’
| McEwen Mining Inc. | Page 2 |
Figure 4 - Sections A-A', B-B', C-C' shown relative to the 2017 PEA pit shell and Indicated and Inferred Resources
| McEwen Mining Inc. | Page 3 |
Link to Drilling Results and Hole Collar Locations and Lengths for April to May 2022 at Los Azules: https://www.mcewenmining.com/files/doc_news/archive/2022/202206_LosAzules/2022_06_Los_Azules_Update_3.xlsx (alternatively see Tables 1 and 2 at the end of this press release).
Hyperspectral Scanning
Two geoLOGr hyperspectral rock analyzers are being used to guide and improve the robustness of the geological and metallurgical modelling and further our knowledge of the deposit and potentially revealing additional exploration targets.
Roads
Los Azules is no longer remote as a result of our work this year. We have constructed a lower altitude road access that provides us with the opportunity for year-round work at the site. The diagram below illustrates the important elevation difference between our exploration road (shown in blue) that allowed 5 to 6-month access to site and our new road access (shown in orange) that, in combination, will provide 12-month access. Having two roads into Los Azules represents an important development and safety feature for the project.
Figure 5 – Los Azules Road Access
Technical Information
The technical content of this news release has been reviewed and approved by Stephen McGibbon, P.Geo, SVP Exploration of McEwen Mining and a Qualified Person as defined by NI 43-101.
All samples were collected in accordance with generally accepted industry standards. Drill core samples usually taken at 2 m intervals are split and submitted to Alex Stewart International laboratory in Mendoza, Argentina for the following assays: gold determination using fire assay fusion and an atomic absorption spectroscopy finish (Au4-30); a 39 multi-element suite using ICP-OES analysis (ICP-AR 39); copper content determination using a sequential copper analysis (Cu-Sequential). An additional 19-element analysis (ICP-ORE) was performed for samples with high sulfide content.
The Company carries out a Quality Assurance / Quality Control program consistent with NI 43-101 and industry best practices utilising a combination of standards and blanks approximately one in every 25 samples. Results are monitored as the final certificates are received and any re-assay requests are sent back immediately. Pulp and prep duplicate sample analyses are also taken as part of the QAQC process. Approximately 5% of sample pulps are sent to a secondary laboratory for check assays. In addition, the assay lab performs its own internal QAQC checks with results available in the certificates for review by the Company.
| McEwen Mining Inc. | Page 4 |
Table 1 – Drill Results April-May 2022 at Los Azules
| Hole-ID | Section | Predominant Mineral Zone |
From (m) |
To (m) |
Length (m) |
Cu % |
Au (g/t) |
Ag (g/t) |
Comment |
| AZ22144 | A | Total | 58.0 | 506.6 | 448.6 | 0.30 | 0.02 | 0.84 | |
| incl | Enriched | 58.0 | 204.0 | 146.0 | 0.31 | 0.01 | 0.52 | ||
| and | Primary | 204.0 | 506.6 | 302.6 | 0.29 | 0.02 | 1.00 | incl 104.6m of 0.48% Cu | |
| AZ22145 | B | Total | 76.0 | 257.0 | 181.0 | 0.18 | 0.02 | 1.90 | |
| incl | Enriched | 76.0 | 194.0 | 118.0 | 0.16 | 0.03 | 2.25 | ||
| and | Primary | 194.0 | 257.0 | 63.0 | 0.21 | 0.01 | 1.26 | ||
| AZ22146 | B | Total | 91.0 | 421.5 | 330.0 | 0.83 | 0.11 | 2.30 | |
| incl | Enriched | 91.0 | 394.0 | 303.0 | 0.86 | 0.11 | 2.26 | incl. 103.4m of 1.31% Cu | |
| and | Primary | 394.0 | 421.5 | 27.0 | 0.50 | 0.10 | 2.76 | ||
| AZ22147 | C | Total | 60.0 | 240.8 | 180.8 | 0.03 | 0.02 | 0.50 | |
| incl | Enriched | 60.0 | 67.0 | 7.0 | 0.10 | 0.08 | 1.27 | ||
| AZ22148 | B | Total | 76.0 | 315.0 | 239.0 | 0.26 | 0.02 | 1.01 | |
| incl | Enriched | 76.0 | 212.0 | 136.0 | 0.33 | 0.02 | 0.85 | ||
| and | Primary | 212.0 | 315.0 | 103.0 | 0.16 | 0.02 | 1.23 | ||
| AZ22149 | C | Total | 130.0 | 428.0 | 298.0 | 0.55 | 0.04 | 1.62 | |
| incl | Enriched | 130.0 | 278.0 | 148.0 | 0.34 | 0.02 | 0.32 | ||
| and | Primary | 278.0 | 428.0 | 150.0 | 0.76 | 0.06 | 2.91 | incl. 54m of 1.38% Cu from 376m | |
| AZ22150 | Total | 78.0 | 257.4 | 179.4 | 0.14 | 0.01 | 0.53 | ||
| incl | Enriched | 78.0 | 126.0 | 48.0 | 0.04 | 0.01 | 0.25 | ||
| and | Primary | 126.0 | 257.4 | 131.4 | 0.17 | 0.01 | 0.63 | ||
| AZ22158 | Enriched | 76.0 | 252.0 | 176.0 | 1.00 | 0.09 | 1.46 | ||
| incl | 144.0 | 188.0 | 44.0 | 1.38 | 0.11 | 2.36 |
Table 2 - Hole Collar Locations and Lengths for April-May 2022 Drill Results at Los Azules
| HOLE-ID | Azimuth | Dip | Length | Loc X | Loc Y | Loc Z | ||
| AZ22144 | 250 | -70 | 507 | 2382889 | 6559204 | 3688 | ||
| AZ22145 | 250 | -73 | 257 | 2382912 | 6559411 | 3628 | ||
| AZ22146 | 250 | -75 | 422 | 2383406 | 6559591 | 3644 | ||
| AZ22147 | 250 | -68 | 241 | 2382558 | 6559708 | 3642 | ||
| AZ22148 | 250 | -75 | 315 | 2383106 | 6559482 | 3647 | ||
| AZ22149 | 70 | -77 | 428 | 2382879 | 6559875 | 3618 | ||
| AZ22150 | 70 | -82 | 257 | 2382670 | 6559536 | 3661 | ||
| AZ22158 | 250 | -65 | 300 | 2383561 | 6559115 | 3627 | ||
| Coordinates listed in Table 2 based on Gauss Kruger - Campo Inchauspe Zone 2 | ||||||||
| McEwen Mining Inc. | Page 5 |
WEBSITE www.mcewenmining.com
CONTACT INFORMATION
150 King Street West Suite 2800, P.O. Box 24 Toronto, ON, Canada M5H 1J9
Investor Relations: (866)-441-0690 Toll-Free (647)-258-0395
Mihaela Iancu ext. 320 info@mcewenmining.com |
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McEwen Copper | ||
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Rob McEwen | ||
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| McEwen Mining Inc. | Page 6 |