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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

 

 

Date of Report (Date of earliest event reported):  June 24, 2020

 

McEWEN MINING INC.

(Exact name of registrant as specified in its charter)

 

Colorado
(State or other jurisdiction of
incorporation or organization)
  001-33190
(Commission File
Number)
  84-0796160
(I.R.S. Employer
Identification No.)

 

150 King Street West, Suite 2800

Toronto, Ontario, Canada  M5H 1J9

(Address of principal executive offices)  (Zip Code)

 

Registrant’s telephone number including area code:  (866) 441-0690

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨        Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨        Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨        Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨        Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock   MUX   New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

 

Item 7.01Regulation FD Disclosure

 

On June 24, 2020, management of McEwen Mining Inc. (the “Company”) participated in a webinar hosted by Red Cloud Financial Services to discuss the Company’s operations and exploration and development plans for the future. A copy of the Power Point slides used in conjunction with the webinar 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 9.01Financial Statements and Exhibits.

 

(d)  Exhibits. The following exhibit is furnished with this report:
    
99.1  Power Point slides dated June 2020 
    
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 presentation 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 exploration, development, construction and production activities. Factors that could cause actual results to differ materially from projections or estimates include, among others, metal prices, economic and market conditions, operating costs, receipt of permits, receipt of working capital, future drilling results and the effect of the recent coronavirus pandemic, as well as other factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, 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.

 

2

 

 

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 25, 2020 By: /s/ Carmen Diges
    Carmen Diges, General Counsel

 

3

 

 

Exhibit 99.1

 

Gold / / Copper Turnaround in Progress NYSE & TSX June 2020

 

 

MUX Cautionary Statement Risk adverse? Forget about buying our shares. Past performance is unreliable in predicting the future. Unexpected events can happen and can change forecasts. MUX

 

 

MUX Pros x Good Real Estate x Development Pipeline x Successful Exploration x Large Insider Ownership x Diversified – Au, Ag, Cu Challenges - Debt - High Costs - Short Mine Life - COVID - 19 Goals ▪ Refinance Debt ▪ Production Growth ▪ Cost / oz ▪ Mine Life Turnaround Story Strategy • Operational Improvement & Efficiencies • Organic Growth • Opportunistic M&A

 

 

MUX MUX’s Portfolio Gold & Silver Mines Gold & Silver Development Pipeline Froome Grey Fox Stock Copper Looking for JV Los Azules Fenix Black Fox Argentina Mexico Nevada Ontario Gold Bar El Gallo San José

 

 

MUX Froome 181koz @ 5.1 g/t Au Grey Fox 888 koz @ 7.1 g/t Au Stock East: 121 koz @ 1.6 g/t Au West Discovery Fenix Feasibility Study Pending Timmins, Canada Mexico 1. Please see Appendix for more details. Black Fox Mine 255 koz @ 7.6 g/t Au Gold Bar South 64 koz @ 1.1 g/t Au Nevada, USA Organic Development Pipeline for Gold & Silver Production M&I Resources 1

 

 

MUX Prime Exploration Real Estate in Nevada Cortez Nevada Gold Mines Cortez 50 Moz Au cluster 1 Fourmile Discovery Goldrush MUX Property NGM Property Faults Gold Bar 20 k m 1 . Includes past production and current resources. Exploration Potential » Surface Near Mine & De eper Targets » Oxide & Sulfide Legend Gold Bar Nevada, USA 12 miles N On Trend - Similar Geology Criteria Cortez Gold Bar Large mineralization footprint x x Host rock, alteration, mineralization style x x Shallow oxides x x Intrusions x x Major faults x x Structural traps x x

 

 

MUX West Pick East Pick 1.7g/t Au / 61.8ft 2018 LOM Pit Mineralized lenses 2020 Hole Drilled 2020 Prelim. Pit Faults Gold Pick Model Revision 2018 model gold mineralization mostly stratigraphically controlled. 2020 preliminary model gold mineralization structurally controlled (+ limited stratigraphic control). 2020 Preliminary Revised Pit Gold Bar – Pit Shells 2018 & Preliminary 2020 2018 LOM Pit

 

 

MUX > 50 30 to 50 20 to 30 10 to 20 5 to 10 Au GXM < 5 5.1g/t Au / 64ft incl. 11.3g/t Au / 17ft 2.7g/t Au / 90ft incl. 4.9g/t Au / 45ft 1g/t Au / 100ft incl. 1.7g/t Au / 40ft 2.4g/t Au / 95.9ft incl. 4.38g/t Au / 46.5ft 0.6g/t Au / 170ft 1.9g/t Au / 108ft incl. 2.7g/t Au / 72ft 2.9g/t Au / 82ft incl. 5.3 g/t Au / 40ft 1.4g/t Au / 230ft incl. 6.86g/t Au / 15ft 0.86g/t Au / 120ft incl. 1.66g/t Au / 25ft incl. 2.85g/t Au / 5ft 3.2g/t Au / 185ft incl. 3.63g/t Au / 160ft 1.5g/t Au / 110ft incl. 12.7g/t Au / 5ft 1.5g/t Au / 110ft incl. 2.5g/t Au / 45ft 1.2g/t Au / 145ft incl. 2.3g/t Au / 50ft 1.4g/t Au / 81ft incl. 3.9g/t Au / 10ft 1.7g/t Au / 225ft incl. 2.2g/t Au / 60ft 3.4g/t Au / 90ft incl. 5.4g/t Au / 55ft West Pick East Pick 3g/t Au / 75ft incl. 3.6g/t Au / 60ft 1.7g/t Au / 61.8ft 3.2g/t Au / 110ft incl. 4.0g/t Au / 55ft 2018 LOM Pit Mineralized lenses 2020 Hole Drilled 2020 Prelim. Pit Faults 2018 LOM Pit 2020 Preliminary Revised Pit Gold Bar – 2020 Drilling With a New Model H1 2020 Exploration Drilling Focused on West Pick - Confirming & de - risking in - pit mineralization - Extending below revised pits - Defining potential SW extension

 

 

MUX Old Gold Bar Upside Exploration Near Mine & Property Scale Gold Bar South Pot Canyon Gold Canyon Cabin Creek Pick Extensions of known deposits Follow - up on positive drill intersections Deeper targets - “game changer” discovery potential (only 3 deep holes drilled in the district) Hunter Taurus Horse Canyon Rutabaga Gold Stone Ridge 6,100 m Gold Bar

 

 

MUX Gold Bar South Showing 2019 drill results . 10 North Area Infill Potential South Extension Resource Pit Outline 1.0g/t Au / 125ft incl. 1.8g/t Au / 20ft 1.7g/t Au / 125ft incl. 3.1g/t Au / 15ft 2.5g/t Au / 105ft incl. 5.4g/t Au / 25ft 1.7g/t Au / 185ft incl. 4g/t Au / 40ft 2.1g/t Au / 155ft incl. 3g/t Au / 100ft 1.8g/t Au / 210ft incl. 2.9g/t Au / 120ft 2.0g/t Au / 195ft incl. 4.0g/t Au / 40ft 0.9g/t Au / 185ft incl. 2.3g/t Au / 40ft 2.7g/t Au / 120ft incl. 4.7g/t Au / 20ft 3.4g/t Au / 175ft incl. 5.2g/t Au / 80ft 1.9g/t Au / 110ft incl. 3.7g/t Au / 45ft 1.9g/t Au / 205ft incl. 3.9g/t Au / 85ft 6.0g/t Au / 90ft incl. 10g/t Au / 50ft 2.0g/t Au / 160ft incl. 3.4g/t Au / 80ft 1.0g/t Au / 95ft incl. 1.4g/t Au / 50ft Showing 2019 drill results . Satellite Deposit Near Surface Mineralization Production Expected H2 2021 Ongoing 2020 Drill Program ▪ North area infill ▪ South extension ▪ Follow - up on higher grade mineralization

 

 

MUX Gold Bar Operations – Start Up Gold Bar Nevada Past Challenges • Lack of definition drilling and a grade control block model (BM) • Did not follow the feasibility study and mine plan • Too much clay in ore blend exacerbated by wet winter conditions • Pushed tonnage & clay beyond plant capacity – resulted in inefficient mining, excessive downtime & maintenance, poor process controls and higher costs • Reactive ore control including a lack of blast movement monitoring • Gaps in organizational structure, processes, systems and asset management

 

 

MUX Gold Bar Operations - Going Forward Turnaround Plan • Restructured management and worforce to align with feasibility • Operational review to develop the turnaround and ramp up plan – Phase 1 'Roadmap' complete end July – Phase 2 Implementation targeted August • New resource model & pit optimizations underway – includes clay • Improved blending, mine planning, mining and stockpile management • Reduce maintenance downtime and achieve steady state production • Improve ore and process control systems • Anticipate 6 - 9 month ramp up to full production beginning Q3 2020 Gold Bar Nevada

 

 

MUX Taylor mine Aquarius Matheson Destor - Porcupine Fault Zone (DPFZ) ▪ Proven mineralized gold systems at each property ▪ +20 km cumulative strike length prospective structures ▪ Major splay faults intersect the main Destor - Porcupine Fault Zone (DPFZ) ▪ Still underexplored and near infrastructure (near Mine and Mill) Stock Mine Trend Grey Fox Stock Property Black Fox Property Froome Black Fox Mine Black Fox Complex Located on Prime Segments of DPFZ Black Fox Timmins, Canada Timmins Mining Camp Gold Deposits

 

 

MUX Black Fox Timmins, Canada Black Fox Exploration Potential Near Surface & Depth Other mines with similar geological settings go much deeper 1 Lengths presented are true widths. Please see Sep 4, 2019 and Sep 6, 2018 press release. Stock Mine 27.2 g/t Au / 7m Incl. 311 g/t Au / 0.6m Black Fox Mine 55.1 g/t Au / 1.2m 232 g/t Au / 0.9m Black Fox Complex Kirkland Lake Timmins Red Lake 1,000m 2,000m Surface Ore Bodies Headframe/ Shaft 3,300ft 6,600ft Stock West 6.7 g/t Au / 39m 5.6 g/t Au / 29.1m 7.72 g/t Au / 25m Stock East 63.6 g/t Au / 6.2m 34.7 g/t Au / 6.5m Grey Fox 53 g/t Au / 7.4m 39.5 g/t / 3.8m 4.8 g/t Au / 19m Incl. 10.3 g/t Au / 6m 10.9 g/t Au / 18.8m McEwen Mineralization Zone Outlines Stock Black Fox

 

 

MUX Vertical Longitudinal Section Black Fox Going West & Deep - 500m - 1000m Froome 232g/t Au / 0.9m 60.7g/t Au / 2.9m, 91.2g/ t Au / 0.9m 23.3g/t Au / 2.8m, 76.7g/t Au / 1m 13.9g/t Au / 5.3m 30.6g/t Au / 8m incl. 231.4g/t Au / 1m 32.5g/t Au / 3.5m incl. 68.3g/t Au / 1.05m, 97.7g/t Au / 1m, 283.3g/t Au / 1m 37.2g/t Au / 2m 16.5g /t Au / 5.1m incl. 71.2g/t Au / 0.85m, 68.2g/t Au / 2.33m 145g/t Au / 0.86m 245.6g/t Au / 1.65m incl. 402g/t Au / 1m 79.2g/t Au / 2.87m incl. 197.5g/t Au / 1.1m 40.5g/t Au / 4m incl. 152.5g/t Au / 1m, 776.6g/t Au / 2.9m incl. 2488.2g/t Au / 0.9m, 5.3g/t Au / 12.1m incl. 16.9g/t Au / 1.1m, 162.3g/t Au / 3.15m incl. 1009.2g/t Au / 0.5m, 230.8g/t Au / 0.6m, 34g/t Au / 2.76m incl. 93.7g/t Au / 0.8m 483.1g/t Au / 3m incl. 1435g/t Au / 1m, 30.8g/t Au / 1.94m, 78g/t Au / 2m, 20.2g/t Au / 3m incl. 52.8g/t Au / 1m, 13.9g/t Au / 4.9m incl. 59.5g/t Au / 0.9m 2019 Drill Results 2020 Drill Results

 

 

MUX 2 km 1.2 miles N Please see Appendix for more details. Black Fox Property Black Fox Mine Froome 181,000 oz Indicated @ 5.1 g/t Au Grey Fox 888,000 oz Indicated @ 7.1 g/t Au 173,000 oz Inferred @ 6.6 g/t Au

 

 

MUX Area Project Hole Number Gold (g/t) Width (m) From (m) Including Au_GXM GREY FOX 147NE 19GF - 1253 265 1.20 56 318 19GF - 1121 261 0.60 168.7 157 19GF - 1123 39.5 3.80 325 143 g/t Au over 1m 150 19GF - 1151 10.0 13.2 229.8 133 19GF - 1134 6.98 15.5 466 108 19GF - 1175 148 0.71 189.1 105 GF South 19GF - 1198 10.9 18.8 281.2 205 19GF - 1261 13.6 15.0 69 126.5 g/t Au over 1m 204 19GF - 1277 29.1 5.00 98 146 19GF - 1310 4.30 26.5 335 113 147 Zone 19GF - 1187 3.99 34.0 207 7.04 g/t Au over 14m 136 19GF - 1259 120.5 1.10 7.9 133 Whiskey Jack 19GF - 1293 53.0 7.40 147 392 19GF - 1248 8.99 44.0 181 395 19GF - 1242 9.74 13.0 107 127 Gibson 19GF - 1275 26.3 9 892 226 g/t Au over 1m 236 19GF - 1106W1 26.7 8.04 739 519 g/t Au over 0.4m 215 Grey Fox 2019 Drill Results Highlights Width(m) = Down hole intersection

 

 

MUX 1 Km (0.6 miles) 1.5km 1.5km Sedimentary rocks Syenite Intrusion Mafic Volcanic Rocks Mafic Volcanic Rocks 147 Zone Contact Zone Gibson South Zone 147NE Whiskey Jack Apr 30, 2020 Resource Update: 888 Koz @ 7.05 g/t Au Indicated 173 Koz @ 6.58 g/t Au Inferred Ultramafic volcanic rocks Grey Fox – 888,000 Ounces Gold Indicated @ 7.05 g/t

 

 

MUX Grey Fox – Abundant Visible Gold

 

 

MUX 4.40 124.0 79.7 25.8 52.9 33.6 61.4 13.2 Whiskey Jack: 53 g/t Au over 7.4 m (Hole 19GF - 1293 from 147 m) Grey Fox - High Grade, Near Surface, Good Ground Gold grade in g/t

 

 

MUX Grey Fox - High Grade, Near Surface, Good Ground Grey Fox South: 9.4 g/t Au over 22 m incl. 19.6 g/t Au over 6 m (Hole 19GF - 1198 from 280 m)

 

 

MUX Stock West Stock Mine Stock East 62g/t Au / 0.38m 41.5g/t Au / 0.24m 16.5g/t Au / 1.53m 5.3g/t Au / 1.83m 8.6g/t Au / 1.53m 2018 - 2019 Exploration Focused on a 3 km Mine Trend along the DPFZ x Stock East Resource x Stock Mine Depth Extension x Stock West Discovery Stock - Significant Intersections Over 3 KM Trend, Strong Upside Potential Sediment Volcanics

 

 

MUX Area Project Hole Number Gold (g/t) Width (m) From (m) Including Au_GXM STOCK Stock West S19 - 101 6.37 42.0 494 267 S19 - 106 7.72 25.0 536 11.2 g/t Au over 16.2m 193 S19 - 98 5.63 30.0 472 9.09 g/t Au over 13m 169 S19 - 105 5.62 29.1 475 164 S19 - 113 6.30 19.0 482 120 Stock East SEZ19 - 35 63.6 6.20 324.3 394 SEZ19 - 28 34.7 6.50 337 74.1 g/t Au over 3m 226 Stock Mine S19 - 95 27.2 7.00 972 311 g/t Au over 0.6m 191 Stock 2019 Drill Results Highlights Width(m) = Down hole intersection

 

 

MUX - 200m - 400m - 600m - 800m - 1000m - 1200m - 200m - 400m - 600m - 800m - 1000m Significant Intersections Over a 3 KM Trend, Strong Upside Potential Stock West Stock Mine Stock East 1000 m 121 Koz Au Indicated Resource OP: 83 Koz @ 1.26 g/t Au UG: 38 Koz @ 3.19 g/t Au Mineralized Areas / Targets S18 - 10 5.24g/t Au / 14.8m incl. 19.2g/t Au/ 2.9m S18 - 47 9.6g/t Au / 7.2m incl. 25.2g/t Au/ 2.7m SEZ19 - 28 34.7g/t Au / 6.5m incl. 74.1g/t Au / 3m SEZ19 - 35 63.6g/t Au / 6.2m incl. 317g/t Au / 1.2m S18 - 60 3.3g/t Au / 17m incl. 5.8g/t Au/ 9m

 

 

MUX - 200m - 400m - 600m - 800m - 1000m - 1200m - 200m - 400m - 600m - 800m - 1000m Stock West Stock Mine Stock East Stock Deep 1000 m 0 Past Production: 137 Koz Au High grade intersections on depth extension Significant Intersections Over a 3 KM Trend, Strong Upside Potential S19 - 95 27.2g/t Au / 7m incl. 311g/t Au/ 0.6m S18 - 31 5.6g/t Au / 3.3m, 14.1g/t Au / 1.8m incl. 30.1g/t Au/ 0.8m Mineralized Areas / Targets

 

 

MUX Significant Intersections Over a 3 KM Trend, Strong Upside Potential - 200m - 400m - 600m - 800m - 1000m - 1200m - 200m - 400m - 600m - 800m - 1000m Stock West Stock Mine Stock East 1000 m 0 16,350 m from 31 holes drilled Avg: grade 5 g/t Au, widths 15 - 20 m Area: 265 m along strike, 100 - 200 m vertically 2020 Infill & Step - out Drilling Planned S19 - 98 5.6g/t Au / 30m incl. 9.1g/t Au / 13m S19 - 105 5.5g/t Au / 29.7m incl. 5.6g/t Au / 29.1m S19 - 106 7.7g/t Au / 25m incl. 11.2g/t Au / 16.2m S19 - 113 6.5g/t Au / 19m incl. 7g/t Au / 17m S19 - 101 6.4g/t Au / 42m incl. 6.7g/t Au / 39m S19 - 112A 4.2g/t Au / 14.5m incl. 12.2g/t Au / 3.4m Mineralized Areas / Targets

 

 

Strong, Consistent Mineralized Intersections Length Au g/t Cog 1Cog 3 475m 1.0 6.6 1.0 3.0 1.0 1.8 1.0 2.3 1.0 3.5 1.0 2.3 1.0 3.1 1.0 2.5 1.0 7.7 1.0 8.7 1.0 2.4 1.0 3.3 1.0 5.1 1.0 1.6 1.0 5.5 1.0 4.0 1.0 4.5 1.0 5.2 1.0 2.6 1.0 0.9 1.0 4.1 1.0 2.1 1.2 3.1 0.8 1.2 1.0 6.2 1.0 22.8 1.0 8.3 1.0 22.3 0.6 18.7 504.10m 0.6 11.8 5.62g/t Au / 29.1m5.62g/t Au / 29.1m Length Au g/t Cog 1Cog 3 536m 1.0 1.2 1.0 0.1 1.0 0.8 1.0 3.4 1.0 1.3 1.0 0.7 1.0 11.6 1.0 6.0 1.0 10.7 1.0 10.4 1.0 16.9 1.0 12.6 1.0 13.7 1.0 26.8 1.0 21.4 1.0 9.5 1.0 13.9 1.0 13.1 1.2 8.7 0.8 2.3 1.0 2.0 1.0 0.5 1.0 1.4 1.0 0.8 561m 1.0 2.2 7.72g/t Au / 25m 11.24g/t Au / 16.2m Hole S19 - 106 536m to 561m Hole S19 - 101 494m to 536m Length Au g/t Cog 1Cog 3 494m 1.0 1.3 1.0 1.6 1.0 2.4 1.0 4.1 1.0 6.6 1.0 2.8 1.0 3.4 1.0 8.3 1.0 16.7 1.0 7.9 1.0 5.3 1.0 2.9 1.0 4.8 1.0 3.1 1.0 6.7 1.0 11.3 1.0 5.1 1.0 6.7 1.0 7.8 1.0 3.1 1.0 5.7 1.0 6.7 1.0 9.5 1.0 3.5 1.0 6.2 1.0 6.4 1.0 6.8 0.9 9.5 0.2 4.2 0.9 2.7 1.0 41.4 1.0 4.0 1.0 4.2 0.5 6.7 0.5 5.2 1.0 4.3 1.0 4.7 1.0 2.0 1.0 11.0 1.0 7.9 1.0 6.4 1.0 0.9 1.0 1.0 536m 1.0 5.7 6.37g/t Au / 42m 6.72g/t Au / 39m Hole S19 - 105 475m to 504.1m Stock West Drill Results

 

 

MUX 5.6 g/t Au over 30 m Stock West Drill Results Strong, Consistent Mineralized Intersections Visible Gold VG

 

 

MUX Strategy for the Future Black Fox Complex Expansion Based on Existing 1.5 Moz M&I Grey Fox 2022 - 2023 GROWTH • Growing into a long - life core asset • Evaluating open pit & underground scenarios • Environmental baseline work underway • Identify preferred business case for expansion Stock INCREMENTAL OZ POTENTIAL • Define Stock West resource and complete scoping study for ramp access • Assess re - entry Stock Main via existing shaft for exploration and potential re - activation of mining • Future exploration Stock East and Deep extensions Froome 2021 NEAR TERM PRODUCTION • Developing ramp to first ore Q4 2021 • Low - cost transverse open stope mining method • 2 - 3 yrs of production = GREY FOX DEVELOPMENT TIME Production Growth Target +100 Koz per Annum - Leverage Stock Mill Capacity Black Fox Mine 2020+ CURRENT • Fire and floods, grade control and mine design • H1 developed access to 10 mining areas - flexibility • H2 resume full production • New geological & structural models – better planning • Dilution & grade control improvements - better design • Missed ore potential mine - wide – map & sample

 

 

MUX Froome Deposit Black Fox Deposit Section Looking North - East Froome – Developing Near Term Production • Twin decline access provides early ventilation • 720 m straight line remaining to reach the deposit • Low ramp gradient for efficient haul • Achieving rate 8 m / day - improvements • Consistent disseminated mineralization • Suited for productive ‘bulk mining’ • Synergies with Black Fox • shorter haul potential for Black Fox West via Froome decline

 

 

MUX 1. Hochschild Mining 2019 Annual Report. 2. 49% basis. 3. Mar 16, 2020 - “McEwen Mining Reports 2019 Full Year and Q4 Results". 4. Hochschild’s “Annual Report and Accounts 2018” McEwen Mining Reports 2019 Full Year and Q4 Results". 5 Goldcorp 2018 Management Discussion & Analysis. 6. Hoc hsc hild’s news releases - Feb 19, 2020 San José Mine N 201 9 Production 5 334,000 oz Au 20 k m Newmont Cerro Negro Mine Reserve Grade 1 Production 2019 MUX’s 49% 2,3 Mine Life 4 459 gpt Silver 7.3 gpt Gold 3.4 Moz Silver 52 koz Gold 5 Years 12 miles San José Argentina San José Mine: Production Since 2007 High Grade Silver & Gold (49% Owned) 2019 Exploration Highlights - Drill Assay Values 6 46.0 g/t Au + 11,416 g/t Ag / 0.5 m 30.4 g/t Au + 1,991 g/t Ag / 1.1 m 8.1 g/t Au + 239 g/t Ag / 3.9 m 7.1 g/t Au + 467 g/t Ag / 0.9 m 7.0 g/t Au + 727 g/t Ag / 3.1 m 6.3 g/t Au + 355 g/t Ag / 1.0 m 4.8 g/t Au + 502 g/t Ag / 2.5 m Large Property High Grade Surrounds Newmont

 

 

Source: Oct 16, 2017 – “NI 43 - 101 Technical Report - Preliminary Economic Assessment Update for the Los Azules Project, Argentina”. Tonnes Copper Gold Silver Indicated: 962 Million 10.2 Billion lbs @ 0.48% 1.7 Million oz @ 0.06 gpt 55.7 Million oz @ 1.8 gpt Inferred: 2,666 Million 19.3 Billion L bs @ 0.33% 3.8 Million O z @ 0.04 gpt 135.4 Million O z @ 1.6 gpt Drill Assay Value Highlights: 221 m (725 ft) @ 1.62% Cu 200 m (656 ft) @ 0.89% Cu 240 m (787 ft) @ 0.94% Cu 360 m (1,181 ft) @ 0.63% Cu 429 m (1,470 ft) @ 0.75% Cu Significant Optionality to Copper Los Azules: De - Risking to Attract JV Partner Los Azules Argentina

 

 

MUX Los Azules - Robust at $3/lb Copper Highlights PEA 2017 (Hatch) Oct 16, 2017 – “NI 43 - 101 Technical Report - Preliminary Economic Assessment Update for the Los Azules Project, Argentina”. Initial Capex: Payback: Mine Life: After - Tax IRR: After - Tax NPV @ 8%: Average Annual Production 1st 13 Years: $2.4 Billion 3.6 Years 36 Years 20% $2.2 B 415 Million lbs Cu @ cash cost $1.14/lb + Au & Ag credits

 

 

MUX Diversified Production Base – 4 Mines Near - Term Organic Growth Production Potential High Beta to Gold Large Insider Ownership 1 2 3 4 6 5 Investment Highlights Exploration Upside Turnaround in Progress

 

 

MUX What Makes MUX Unique? $16 5 M 2 1 % $1/ Y r Investment 1 Ownership Salary Avg. Daily Share Vol 2 : Shares Outstanding: Fully Diluted: Share Price: Market Cap : 4.9 million 400 million 435 million US$ .96 US$ 384 million Rob McEwen 21% Institutional 20% Retail 59% Stock Ownership 1 Rob McEwen’s: $1 40 M shares investment + $25 M loan investment, Aug 13, 2018 & Mar 29, 2019 press release. Share ownership. SEC filings. 2 As of Jun 23, 2020.

 

 

MUX -80 -60 -40 -20 0 20 40 60 Oct/2017 Feb/2018 Jun/2018 Oct/2018 Feb/2019 Jun/2019 Oct/2019 Feb/2020 Jun/2020 Discovery Story Obscured by Operational Challenges Turnaround in Progress % MUX - 54% Source: Bloomberg. From Oct 6, 2017 – Jun 23 , 20 20 . Operational Issues @ Black Fox & Gold Bar GDX 50% HUI 40% GDXJ 39% Gold + 39% S&P500 + 23% DOW + 15% Black Fox Purchase Distressed Asset

 

 

Appendix

 

 

MUX Appendix: Reserves & Resources Mineral Reserves Source: Company disclosure. Attributable Gold Reserves Proven Probable Proven + Probable 43 - 101 Au Reserves Tonnes (millions) Grams per tonne Contained Metal (Koz) Tonnes (millions) Grams per tonne Contained Metal (Koz) Tonnes (millions) Grams per tonne Contained Metal (Koz) Gold Bar 2.2 1.27 88 14.3 0.96 436 16.5 0.99 524 San José (49%) 0.4 7.75 96 0.1 5.78 22 0.5 7.28 118 Black Fox Mine 0.04 5.4 7 0.3 5.78 57 0.3 5.73 64 TOTAL 191 515 706 Attributable Silver Reserves Proven Probable Proven + Probable 43 - 101 Ag Reserves Tonnes (millions) Grams per tonne Contained Metal (Koz) Tonnes (millions) Grams per tonne Contained Metal (Koz) Tonnes (millions) Grams per tonne Contained Metal (Koz) San José (49%) 0.4 489 6,032 0.1 363 1,413 0.5 459 7,448

 

 

MUX Appendix: Reserves & Resources Mineral Resources Attributable Gold Resources Measured Indicated Measured + Indicated Inferred 43 - 101 Au Resources Tonnes (millions) Grams per tonne Contained Metal (Koz) Tonnes (millions) Grams per tonne Contained Metal (Koz) Tonnes (millions) Grams per tonne Contained Metal (Koz) Tonnes (millions) Grams per tonne Contained Metal (Koz) San José (49%) 0.8 8.59 212 0.5 6.04 94 1.2 7.61 306 0.9 5.62 157 Los Azules - - - 962.0 0.06 1,700 962.0 0.06 1,700 2,666.0 0.04 3,800 El Gallo Silver 1.1 0.09 3 4.4 0.13 19 5.5 0.12 22 0.6 0.38 7 Palmarito 1.7 0.38 20 0.01 0.23 0 1.7 0.38 20 0.5 0.30 5 Palmarito Dumps 0.2 0.29 2 0.1 0.24 1 0.2 0.28 2 - - - Carrisalejo - - - 0.4 0.11 1 0.4 0.11 1 0.04 0.02 - El Encuentro - - - 0.5 1.87 32 0.5 1.87 32 0.2 5.68 35 El Gallo Heap Leach Pad - - - 4.7 0.56 84 4.7 0.56 84 4.4 0.72 101 Tonkin 17.5 1.44 820 14.7 1.34 627 32.3 1.39 1,447 8.4 1.13 311 Gold Bar 2.8 1.17 106 21.6 0.88 614 24.4 0.93 719 6.8 0.90 196 Gold Bar South 0.7 1.23 29 1.1 0.97 35 1.9 1.07 64 0.4 0.72 9 New Pass (50%) 5.0 0.97 156 0.1 0.59 1 5.1 0.97 157 - - - Limo 5.9 0.89 168 3.7 0.61 73 9.6 0.78 241 2.2 0.70 51 Timmins, Open Pit 0.5 2.44 36 12.1 1.89 741 12.6 1.91 777 6.3 1.79 358 Timmins, Underground 0.4 5.56 64 4.1 4.82 628 4.4 4.88 692 4.2 4.35 596 Black Fox Mine 0.2 7.83 61 0.8 7.48 195 1.1 7.56 255 0.1 7.32 12 Tamarack - - - 0.8 1.83 46 0.8 1.83 46 - - - Grey Fox - - - 3 .9 7.05 8 88 3 .9 7.05 8 88 0.8 6.58 173 Froome Underground - - - 1.1 5.09 181 1.1 5.09 181 0.05 4.13 7 Stock East Open Pit - - - 2.0 1.26 83 2.0 1.26 83 0.3 0.91 8 Stock East Underground - - - 0.4 3.19 38 0.4 3.19 38 - - - TOTAL 1,676 6,081 7,754 5,826 Source: Company disclosure. Note: Mineral Resources inclusive of Mineral Reserves (where applicable).

 

 

MUX Appendix: Reserves & Resources Mineral Resources (Cont’d) Source: Company disclosure. Note: Mineral Resources inclusive of Mineral Reserves (where applicable). Attributable Silver Resources Measured Indicated Measured + Indicated Inferred 43 - 101 Ag Resources Tonnes (millions) Grams per tonne Contained Metal (Koz) Tonnes (millions) Grams per tonne Contained Metal (Koz) Tonnes (millions) Grams per tonne Contained Metal (Koz) Tonnes (millions) Grams per tonne Contained Metal (Koz) San José (49%) 0.8 537 13,231 0.5 364 5,660 1.2 470 18,888 0.9 356 9,960 Los Azules 962.0 2 55,700 962.0 2 55,700 2,666.0 2 135,400 El Gallo Silver 1.1 150 5,088 4.4 120 17,053 5.5 125 22,140 0.6 82 1,488 Palmarito 1.7 136 7,245 0.01 148 52 1.7 136 7,297 0.5 133 2,258 Palmarito Dumps 0.2 177 1,007 0.1 154 338 0.2 170 1,345 - - - Carrisalejo - - - 0.4 116 1,454 0.4 116 1,454 0.04 821 1,111 El Encuentro - - - 0.5 2 42 0.5 2 42 0.2 19 117 New Pass (50%) 5.0 8 1,320 0.1 3 7 5.1 8 1,326 - - - Tamarack - - - 0.8 26 663 0.8 26 663 - - - TOTAL 27,891 80,969 108,856 150,334

 

 

MUX Appendix: Cautionary Note Regarding NON - GAAP Measures In this presentation, we have provided information prepared or calculated according to U . S . GAAP, as well as provided some non - U . S . GAAP ("non - GAAP") performance measures . Because the non - GAAP performance measures do not have any standardized meaning prescribed by U . S . GAAP, they may not be comparable to similar measures presented by other companies . Total Cash Costs per GEO, and All - in Sustaining Costs (“AISC”) per GEO . Total cash costs consist of mining, processing, on - site general and administrative costs, community and permitting costs related to current explorations, royalty costs, refining and treatment charges (for both doré and concentrate products), sales costs, export taxes and operational stripping costs . All - in sustaining cash costs consist of total cash costs (as described above), plus environmental rehabilitation costs, amortization of the asset retirement costs related to operating sites, sustaining exploration and development costs, and sustaining capital expenditures . In order to arrive at our consolidated all - in sustaining costs, we also include corporate general and administrative expenses . Depreciation is excluded from both total cash costs and all - in sustaining cash costs . For both total cash costs and all - in sustaining costs we include our attributable share of total cash costs from operations where we hold less than a 100 % economic share in the production, such as MSC, where we hold a 49 % interest . Total cash cost and all - in sustaining cash cost per GEO sold are calculated on a co - product basis by dividing the respective proportionate share of the total cash costs and all - in sustaining cash costs for the period attributable to each metal by the ounces of each respective metal sold . We use and report these measures to provide additional information regarding operational efficiencies both on a consolidated and an individual mine basis, and believe that these measures provide investors and analysts with useful information about our underlying costs of operations . A reconciliation to the nearest U . S . GAAP measure is provided in McEwen Mining's Annual Report on Form 10 - K for the year ended December 31 , 2019 . Earnings from Mining Operations The term Earnings from Mining Operations used in this presentation is a non - GAAP financial measure . We use and report this measure because we believe it provides investors and analysts with a useful measure of the underlying earnings from our mining operations . We define Earnings from Mining Operations as Gold and Silver Revenues from our El Gallo Mine, Black Fox Mine, and our 49 % attributable share of the San José Mine's Net Sales, less their respective Production Costs Applicable to Sales . To the extent that Production Costs Applicable to Sales may include depreciation and amortization expense related to the fair value increments on historical business acquisitions (fair value paid in excess of the carrying value of the underlying assets and liabilities assumed on the date of acquisition), we deduct this expense in order to arrive at Production Costs Applicable to Sales that only include depreciation and amortization expense incurred at the mine - site level . The San José Mine Net Sales and Production Costs Applicable to Sales are presented, on a 100 % basis, in Note 5 of McEwen Mining's Annual Report on Form 10 - K for the year ended December 31 , 2019 . Cash, Investments and Precious Metals The term cash, investments and precious metals used in this presentation is a non - GAAP financial measure .. We report this measure to better understand our liquidity in each reporting period . Cash, investments and precious metals is calculated as the sum of cash, investments and ounces of doré held in inventory, valued at the London P . M . Fix spot price at the corresponding period . A reconciliation to the most directly comparable U . S . GAAP measure, Sales of Gold and Silver, is provided in McEwen Mining's Annual Report on Form 10 - K for the year ended December 31 , 2019 .

 

 

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Cover
Jun. 24, 2020
Cover [Abstract]  
Document Type 8-K
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Document Period End Date Jun. 24, 2020
Entity File Number 001-33190
Entity Registrant Name McEWEN MINING INC.
Entity Central Index Key 0000314203
Entity Tax Identification Number 84-0796160
Entity Incorporation, State or Country Code CO
Entity Address, Address Line One 150 King Street West
Entity Address, Address Line Two Suite 2800
Entity Address, City or Town Toronto
Entity Address, State or Province ON
Entity Address, Country CA
Entity Address, Postal Zip Code M5H 1J9
City Area Code 866
Local Phone Number 441-0690
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Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol MUX
Security Exchange Name NYSE
Entity Emerging Growth Company false