TORONTO, Feb. 16, 2021 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) (“McEwen” or the “Company”) is pleased to announce the filing of a technical report prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), for its 100%-owned Fenix Project (the “Project”), which is located in the State of Sinaloa, Mexico. The technical report is available on SEDAR under the Company's profile at www.sedar.com.

“The Fenix Feasibility Study envisions a 9.5-year mine life with an attractive after-tax IRR of 28% using $1,500/oz gold and $17/oz silver. At $1,800/oz gold and $25/oz silver the project generates a 51% After-Tax IRR and a $91 million NPV@8%.

The project will incorporate an environmentally progressive method of tailings management, using in-pit storage that creates multiple benefits such as improved safety, smaller environmental footprint, lower capital and operating costs, and improved reclamation outcomes.

Average annual production is projected at 26,000(1)oz gold in Phase 1 and 4,500,000(4)oz silver equivalent in Phase 2. The critical path environmental permits are in hand for the first phase of production. In addition, the El Gallo Complex infrastructure remains in place, as well as an established, well-experienced local workforce.Our next steps will involve detailed engineering, assessment of procurement options, and the evaluation of financing alternatives,” said Rob McEwen, Chairman and Chief Owner.

Fenix FS Highlights

Feasibility Study Report

The complete Fenix Project FS NI 43-101 Technical Report is available on www.sedar.com and www.mcewenmining.com. The FS was prepared by GR Engineering Services Limited (“GRES”) in accordance with the requirements of Canadian National Instrument 43-101 “Standards of Disclosure for Mineral Projects” (“NI 43-101”) and SEC Industry Guide 7.

Permits

The current operation at El Gallo Gold is a fully permitted site; permit for the Phase 1 was granted by the Federal Environmental Authority (SEMARNAT) in September 2019, for the addition of a mill and leach circuit in the location of the existing facilities for the reprocessing of the heap leach pad material. The permit amendment also includes the backfilling of a previously mined pit with mill tailings, as part of an integrated concurrent closure plan for the El Gallo Gold Mine. In-pit tailings storage provides a number of key benefits to the project, including:

• Lower construction and operating cost compared to a conventional tailings dam or dry-stack facility.
• Much improved safety and long-term tailing and pit stability.
• Reduced footprint minimizes surface disturbance and maximizes reclamation results.
• Promotes the re-use of process water, reducing groundwater demand.
• Reduces reclamation and management costs.

Further project advancement for Phase 2 is subject to permit approvals. Phase 2 project permitting will require authorization to expand the process plant footprint at El Gallo Gold and the haul road, and to augment the tailings volume to be deposited at the depleted pit.

The Fenix Project has CONAGUA approval for the extraction of groundwater and land-use permits for the construction of wells required for the life of Fenix Project.

Resource Estimates

Estimated resources for the Fenix Project are comprised only of material within the boundaries of conceptual pit shells, except for the El Gallo heap leach pad, which is considered completely available for reprocessing.

For the purposes of mine scheduling, the contained gold ounces in the Heap Leach Material have been depleted from the drill-defined resource model estimate by an amount of 23 koz Au, to account for the production from heap leach operations and gold in circuit assessments between the timing of the resource estimate up until the reserve estimate date of December 2020.

Table 1: Fenix Project Resources Estimate(5)(6)

Table 2: Fenix Project Reserves Estimate December 31, 2020(8)

Table 3: Assumptions for Heap Leach Pad and El Gallo Silver Pit Optimization Phase 2(6)(9)

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All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
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