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McEwen Copper: Los Azules Progress Report #2

TORONTO, May 04, 2022 (GLOBE NEWSWIRE) — Copper McEwen Inc., a subsidiary of McEwen Mining Inc. (NYSE: MUX) (TSX: MUX)is pleased to provide a progress report on recent successes and planned future work at the Los Azules copper project in San Juan, Argentina.

Copper Developer Comparisons

One of the biggest copper opportunities

Timing is everything and now seems like copper’s time to shine. According to research by Goldman Sachs (GS)1, copper is the new oil. A growing sector with supply constraints, GS predicts that there are only two years left of copper supply growth, 2022 and 2023, and unlimited supply decline from 2024. They see copper play an important and critical role as a critical component in the global push to electrify transportation and contain/reverse global warming. They are not the only ones to think of copper this way. McKinsey Research2 estimates that by 2030, demand for copper will exceed supply by five to eight million tonnes per year.

Summary

An attractive history of copper development
As you have seen above, Los Azules compares very well to many other copper development stories, considering its size, lifespan, location, and economy.

Design for positive impact
Working to create a net positive impact on the world over the life of the project – McLennan Design, architects at the forefront of the green sustainable building movement, assist our team in system design and selection of technologies and approaches innovative to make our project regenerative. http://mclennan-design.com

Los Azules is no longer remote!
The critical problem of road access to the site has been solved! We have built a second road at a lower altitude which will allow us to access the site all year round. Our access will be expanded, making it safer, cheaper, and faster to advance and complete our fieldwork.

Drilling confirming size and quality
Additional drilling confirms the size and grade of mineralization compared to historical intersections used to estimate the 2017 PEA mineral resource estimate. To date, results from core logging and sample analysis are very encouraging. In many holes, drilling was allowed to continue beyond the planned length where visible copper mineralization was observed. Often the primary mineralization in the hole was still apparent when drilling was stopped due to limitations in the drilling equipment. Hole AZ22142 intersected 419.1 meters of 0.79% copper comprising an interval 104.0m of 1.00% copper in the supergene-enriched zone and 46 meters of 1.59% copper in the primary copper zone. Importantly, our updated geological model will reflect subvertical structures and rock types that are considered key elements controlling the distribution of mineralization. This directly indicates the potential for significant mineralization to be uncovered with further drilling at depth.

Cross section of Los Azules

Link to the table of drilling results from January to April 2022 at Los Azules: https://mcewenmining.com/files/doc_news/archive/2022/20220500_copper/20220500_LA_results.xlsx

Community involvement
Our sustainability efforts currently focus on systems related to local procurement and employment, environment, health, education, training and safety. We employ a local workforce and invest in projects such as building medical outposts, sponsoring education, and installing energy-efficient street lighting.

Bigger and better
Whittle Consulting’s business optimization work, which will be described in our next updated PEA expected in Q1 2023, suggests that the size and value of the Los Azules project has the potential to be significantly greater than those described in the 2017 PEA. Their analysis has provided important guidance and direction for the detailed work underway, including guidance for drilling programs, metallurgical testwork, and trade-off studies for mining. , processing and infrastructure.

Link to Whittle Consulting:
https://www.whittleconsulting.com.au

Link to the Whittle Enterprise Optimization methodology: https://mcewenmining.com/files/doc_news/archive/2022/20220500_copper/20220500_whittle_methodology.pdf

PEA to be updated – 2017 Highlights
The Preliminary Economic Assessment (PEA) base case assumed a copper price of $3/lb, and the economics were robust. Today, copper is above $4/lb. Summary of the results of the PEA 2017 available on the Company’s website:










Avg. annual production 1st 13 years 415 million lbs Cu at $1.14/lb cash cost
The life of the mines 36 years
Initial investment $2.4 billion
Price of Cu in base case $3.00/lb
Refund 3.6 years
IRR after tax 20.1%
NPV after tax(8%) $2.2 billion

Calendar of planned events

Private placement financing – 2022
Preliminary Economic Assessment (PEA) Update – Q1 2023
Initial public offering (IPO) – PEA after update
Pre-feasibility study (EPF) – H1 2024

One of our main goals is to improve the perception and reality of mining by using innovative solutions to reduce our environmental impact, such as reducing our carbon footprint.

1 https://www.goldmansachs.com/insights/podcasts/episodes/05-18-2021-nick-snowdon.html

2 https://www.mckinsey.com/industries/metals-and-mining/our-insights/the-raw-materials-challenge-how-the-metals-and-mining-sector-will-be-at-the- heart-of-the-energy-transition

TECHNICAL INFORMATIONS

The technical content of this press 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 taken in accordance with generally accepted industry standards. Drill core samples typically taken at 2m intervals are split and submitted to the Alex Stewart International Laboratory in Mendoza, Argentina for the following analyses: fusion gold determination by fire assay and finishing by atomic absorption spectroscopy (Au4-30); a multi-element suite of 39 using ICP-OES analysis (ICP-AR 39); the copper content was determined using sequential copper analysis (Cu-Sequential). An additional 19 element analysis (ICP-ORE) was performed for the high sulphide samples.

The Company implements a quality assurance/quality control program in accordance with NI 43-101 and industry best practices using a combination of standards and blanks of approximately one in every 25 samples. are monitored as final certificates are received and any rescan requests are returned immediately. Duplicate sample analyzes of the batter and mix are also taken as part of the QAQC process. About 5% of the pulp samples are sent to a secondary laboratory for control analyses. In addition, the analytical laboratory performs its own internal QAQC checks with the results available in certificates for review by the Company.

CAUTION REGARDING 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. Forward-looking statements and information expressed, as of the date of this release, Estimates, forecasts, projections, expectations or beliefs of McEwen Mining Inc. (the “Company”) regarding future events and results. Forward-looking statements and information are necessarily based on a number of estimates and assumptions which, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies, and nothing only warrants these statements and information will prove to be accurate. Accordingly, actual results and future events could differ materially from those anticipated in such statements and information. The risks and uncertainties that could cause future results or events to differ materially from the current expectations expressed or implied by the forward-looking statements and information include, but are not limited to, the effects of the COVID-19 pandemic. , fluctuations in the market price of precious metals, risks in the mining industry, political, economic, social and security risks associated with overseas operations, the company’s ability to receive or receive in time permits or other approvals required in connection with the operations, the risks associated with the construction of mining operations and the commencement of production and the projected costs thereof, the risks associated with litigation, the state of the markets for capital, environmental risks and hazards, uncertainty in the calculation of mineral resources and reserves and other risks. Readers should not place undue reliance on any forward-looking statements or information contained herein, which speak only as of the date hereof. The Company undertakes no obligation to reissue or update any forward-looking statements or information as a result of new information or events after the date hereof, except as required by law. See McEwen Mining’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and other filings with the Securities and Exchange Commission under “Risk Factors” for additional risk information. , uncertainties and other factors relating to forward-looking statements and information about the Company. All forward-looking statements and information contained in this press release are qualified by this cautionary statement.

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

ABOUT MCEWEN MINING

McEwen Mining is a diversified gold and silver producer and explorer focused on the Americas with operating mines in Nevada, Canada and Argentina. It is also heavily exposed to copper through its subsidiary McEwen Copper, owner of the Los Azules copper deposit in Argentina.