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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):        July 12, 2023

 

McEWEN MINING INC.

(Exact name of registrant as specified in its charter)

 

Colorado
  001-33190
  84-0796160
(State or other jurisdiction
of incorporation)
  (Commission
File Number)
  (IRS 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

 

 

(Former name or former address, if changed since last report)

 

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 July 12, 2023, McEwen Mining Inc. (the “Company”) issued a press release to report recent drill results from its subsidiary, McEwen Copper Inc., relating to the Los Azules project in San Juan, Argentina. A copy of that press release is furnished with this report as Exhibit 99.1.

 

The information furnished under this Item 7.01, including the referenced 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 exhibits are furnished or filed with this report, as applicable:

 

99.1Press release dated July 12, 2023

 

104Cover 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, future drilling results, metal prices, economic and market conditions, operating costs, receipt of permits, and receipt of working capital, as well as other factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, 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

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  McEWEN MINING INC.
   
Date: July 13, 2023 By: /s/ Carmen Diges
    Carmen Diges, General Counsel

 

3

 

Exhibit 99.1

 

 

 

McEwen Copper: Los Azules – Latest Assay Results

Significant Intercept

398 m of 0.75% Cu, including 124 m of 1.43% Cu (Hole AZ23220)

 

TORONTO, July 12, 2023 (GLOBE NEWSWIRE) — McEwen Copper Inc., 52% owned by McEwen Mining Inc. (NYSE: MUX) (TSX: MUX), today reports additional copper values over wide intercepts resulting from drilling performed on its Los Azules project, located in San Juan, Argentina. McEwen Copper recently published an updated Preliminary Economic Assessment (PEA) on a copper leaching phase of development (see release dated June 20, 2023). Infill and other resource drilling completed since the PEA model data cut-off date confirm very good alignment of new assay results to the resource model prediction for the same area. Also, copper grade continuity modeled in the core of the deposit is well-supported by core logging and new assay results. Los Azules is a large copper-gold-silver porphyry deposit with growth potential, it has many features comparable to world-class copper-gold deposits in South America and its depth and lateral extent have not yet been determined. Infill drilling serves several purposes: providing better data density to upgrade confidence in the mineral resources, providing material and data for metallurgical, geotechnical, and hydrological studies.

 

Table 1 provides an overview of the latest round of copper (Cu), gold (Au) and silver (Ag) assays.

 

Highlights

 

·Hole AZ23220 intercepted an Enriched zone of 398 meters (m) grading 0.75% Cu (est. true thickness) and includes a sub-interval of 124 m grading 1.43% Cu. (Figure 3)

 

·Hole AZ23218 intercepted an Enriched zone of 202 m grading 0.63% Cu (est. true thickness) contained within an overall intercept of 239.2 m grading 0.59% Cu. (Figure 2)

 

·Hole AZ23216 intercepted an Enriched zone of 338 m grading 0.58% Cu and Primary mineralization of 84 m grading 0.27% Cu. (Figure 4)

 

·Hole AZ23206 intercepted 353 m of 0.46% Cu including an Enriched zone intercept of 190 m grading 0.57% Cu. (Figure 5)

 

The latest drilling program, which began in October 2022, was concluded on June 19, 2023. Up to 15 rigs completed some 39,900 m of drilling in 138 holes, to evaluate geotechnical, hydrological, resource and exploration-related parameters and opportunities. The Los Azules drill hole database now totals some 126,000 m.

 

To test the Cu% resource model veracity versus actual drilling results, 24 infill holes completed subsequent to the PEA model update were compared to expected results based on the model. The length-weighted average grade of the new drilling was 0.567% Cu versus a resource model prediction of 0.520% Cu. This limited test of the resource model’s predictive capacity is very encouraging with actual grades being 9% higher than the model prediction.

 

Preparations are underway for the next phase of drilling, anticipated to begin in early October. This phase will continue to increase geologic certainty with drilling needed to delineate a Measured mineral resource estimate on the material expected to be mined in the first five years of operation, covering more than the payback period and other technical evaluations.

 

 

McEwen Mining Inc. Page 1

 

  

Table 1 - Los Azules Drilling Results, May-June 2023

 

Hole-ID Section Predominant Mineral Zone From
(m)
To
(m)
Length
(m)
Cu
%
Au
(g/t)
Ag
(g/t)
Comment
AZ23187B 52 Total 40.0 1000.0 960.0 0.08 0.00 0.48  
    Enriched 40.0 90.0 50.0 0.03 0.00 0.25  
    Primary 90.0 1000.0 910.0 0.08 0.00 0.49  
AZ23206 51 Total 116.0 469.0 353.0 0.46 0.03 1.52  
    Enriched 116.0 306.0 190.0 0.57 0.04 2.02 Incl. 94 m of 0.62% Cu
    Primary 306.0 469.0 163.0 0.32 0.02 0.93  
GTK2314B 52 Total 90.0 489.0 399.0 0.10 0.01 0.46  
    Enriched 90.0 204.0 114.0 0.13 0.00 0.44  
    Primary 204.0 489.0 285.0 0.09 0.01 0.46  
AZ23211A 49 Total 110.0 446.0 336.0 0.30 0.03 0.89  
    Enriched 110.0 348.0 238.0 0.28 0.03 0.58  
    Primary 348.0 446.0 98.0 0.35 0.03 1.64  
AZ23218 44 Total 62.0 301.2 239.2 0.59 0.04 1.21  
    Enriched 62.0 264.0 202.0 0.63 0.05 1.35 Incl. 20 m of 0.91% Cu
    Primary 264.0 301.2 37.2 0.39 0.03 0.47  
AZ23216 49 Total 108.0 530.0 422.0 0.52 0.08 1.84  
    Enriched 108.0 446.0 338.0 0.58 0.09 2.07 Incl. 48 m of 0.90% Cu
    Primary 446.0 530.0 84.0 0.27 0.06 0.94  
GTK2318 32 Total 154.0 466.3 312.3 0.22 0.01 0.46  
    Enriched 154.0 398.0 244.0 0.25 0.01 0.48  
    Primary 398.0 466.3 68.3 0.13 0.01 0.38  
AZ23220 45 Total 80.0 522.0 442.0 0.69 0.05 1.00  
    Enriched 80.0 478.0 398.0 0.75 0.05 1.00 Incl. 124 m of 1.43% Cu
    Primary 478.0 522.0 44.0 0.16 0.02 0.91  

 

 

McEwen Mining Inc. Page 2

 

 

 

Description of Results

 

Figure 1 shows a plan view of 2023 mineable Indicated and Inferred resources from the PEA whose pit wall is shown as a black trace at surface. Drill hole and cross-section locations relevant to today’s release are also shown.

 

The drilling results are summarized on four schematic cross sections that include interpretations of Overburden, Leached, Enriched (also called Supergene) and Primary (also called Hypogene) mineral zones. The green line on each section indicates the floor of the Base Case 27-year pit outline according to the updated PEA. Adjacent cross sections occur every 50 m with the lowest section numbers located at the southern end of the field and increasing northwards.

 

Figure 1 – Cross Sections and Recent Drill Holes on the 2023 Base Case Mineable Resource Pit Plan

 

 

 

McEwen Mining Inc. Page 3

 

 

 

Figure 2 - Section 44 - Drilling, Mineral Zones & 2023 Base Case Mineable Resource Pit (Looking North)

 

 

Hole AZ23218, shown in the center of Figure 2, has been added to section 44 to infill a 300 m gap in drilling between holes AZ23189 and AZ22170. The hole returned a higher-grade Enriched zone intercept than either of those holes with 202 m of 0.63% Cu, including a sub-interval of 20 m of 0.91% Cu. Overall, the cross section is characterized by a 200 m to 300 m flat-lying Enriched zone buried immediately below a thin Leached zone horizon. The mineralization in hole AZ23218 extends at depth into the Primary (or Hypogene) zone with an intercept of 37.2 m of 0.39% Cu.

 

Figure 3 - Section 45 - Drilling, Mineral Zones & 2023 Base Case Mineable Resource Pit (Looking North)

 

 

 

McEwen Mining Inc. Page 4

 

 

 

Hole AZ23220, shown in Figure 3 on section 45, returned outstanding Enriched zone results of 398 m of 0.75% Cu, including a sub-interval of 124 m grading 1.43% Cu which exceeds the Base Case grade of the recently released 2023 Updated PEA for Los Azules by more than three times. The hole was positioned to test for a structural corridor located in the core of the deposit. The high grades returned occur within a hydrothermal magmatic breccia, which is representative of that corridor. The mineralization and lithology logged are consistent with the previously released neighboring holes AZ22171 and AZ23201 which supports our view that continuity within the deposit is very good and in harmony with the resource model that has been developed.

 

Figure 4 - Section 49 - Drilling, Mineral Zones & 2023 Base Case Mineable Resource Pit (Looking North)

 

 

Hole AZ23216, shown in Figure 4 on section 49, highlights a 338 m Enriched zone intercept grading 0.58% Cu including a 48 m interval of 0.90% Cu. The hole was positioned to extend mineralization east from hole AZ17133. The thick intercept occurred toward the eastern flank of the deposit, where normally both grade and thickness begin to diminish. Mineralization continues at depth where Primary mineralization corresponds to an 84 m interval of 0.27% Cu.

 

 

McEwen Mining Inc. Page 5

 

 

 

Figure 5 - Section 51 - Drilling, Mineral Zones & 2023 Base Case Mineable Resource Pit (Looking North)

 

 

Hole AZ23206, shown in Figure 5 on section 51, intersected 190 m of Enriched zone mineralization grading 0.57% Cu and includes a 94 m section of 0.62% Cu. Mineralization continues at depth where the Primary zone was intersected with 163 m of 0.32% Cu.

 

Technical information

 

The technical content of this press release has been reviewed and approved by Stephen McGibbon, P. Geo., McEwen Mining's Senior Consulting Geologist, 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, were split and submitted to the Alex Stewart International laboratory located in the Province of Mendoza, Argentina, for the following assays: gold determination using fire fusion assay 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 LM-140). An additional 19-element analysis (ICP-ORE) was performed for samples with high sulphide content.

 

The company conducts a Quality Assurance/Quality Control program in accordance with NI 43-101 and industry best practices using a combination of standards and blanks on approximately one out of every 25 samples. Results are monitored as final certificates are received, and any re-assay requests are sent back immediately. Pulp and preparation sample analyses are also performed as part of the QAQC process. Approximately 5% of the sample pulps are sent to a secondary laboratory for control purposes. In addition, the laboratory performs its own internal QAQC checks, with results made available on certificates for Company review.

 

Link to drill results, locations and lengths of drillhole collars corresponding to May 2023 through June 2023 at Los Azules:

 

https://www.mcewenmining.com/files/doc_news/archive/2023/2023_06LA/2023_05-06_DrillResultsLocations_LA.xls

 

 

McEwen Mining Inc. Page 6

 

 

 

Link to drill results, locations and lengths of drillhole collars corresponding to the October 2022 to June 2023 drilling campaign at Los Azules:

 

https://www.mcewenmining.com/files/doc_news/archive/2023/2023_06LA/2022_10-2023_06DrillResultsLocations_LA.xls

 

Table 2 – Hole Locations and Lengths for Los Azules Drilling Results

 

HOLE-ID Azimuth Dip Length Loc X Loc Y Loc Z
AZ23187B 250 -83 1000 2382089 6559568 3598
AZ23206 250 -61 469 2383022 6559836 3613
AZ23211A 70 -71 446 2382742 6559653 3621
AZ23216 79 -71 530 2383139 6559822 3632
AZ23218 250 -73 301.2 2383040 6559496 3628
GTK2314B 277 -70 489 2382662 6559784 3610
GTK2318 90 -70 466.3 2383521 6559033 3660
AZ23220 70 -69 522 2383019 6559525 3627
Coordinates listed in Table 2 based on Gauss Kruger - POSGAR 94 Zone 2

 

ABOUT MCEWEN COPPER

 

McEwen Copper is a well-funded, private company which owns 100% of the large, advanced stage Los Azules copper project, located in San Juan province, Argentina. McEwen Copper is 52% owned private subsidiary of McEwen Mining, which has the ticker MUX on NYSE and TSX.

 

Los Azules is being designed to be distinctly different from a conventional copper mine, consuming significantly less water, emitting much lower carbon and progressing to be carbon neutral by 2038, being powered by 100% renewable once in operation. It recently released an updated PEA (preliminary economic assessment) which projects a long life of mine, low production cost/lb, short payback period, high annual copper production and a 21.2% after tax IRR.

 

ABOUT MCEWEN MINING

 

McEwen Mining is a gold and silver producer with operations in Nevada, Canada, Mexico and Argentina. In addition, it has significant exposure to copper through its 52% ownership of McEwen Copper. The Company’s goal is to improve the productivity and extend the life of its mines with the objective of increasing its share value and price and providing a yield. Rob McEwen, Chairman and Chief Owner, has personal investment in the company of US$220 million. His annual salary is US$1.

 

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

 

This news release contains certain forward-looking statements and information, including "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements and information expressed, as at the date of this news release, McEwen Mining Inc.'s (the "Company") estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies, and there can be no assurance that such statements and information will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements and information. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements and information include, but are not limited to, effects of the COVID-19 pandemic, fluctuations in the market price of precious metals, mining industry risks, political, economic, social and security risks associated with foreign operations, the ability of the corporation to receive or receive in a timely manner permits or other approvals required in connection with operations, risks associated with the construction of mining operations and commencement of production and the projected costs thereof, risks related to litigation, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral resources and reserves, and other risks. Readers should not place undue reliance on forward-looking statements or information included herein, which speak only as of the date hereof. The Company undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See McEwen Mining's Annual Report on Form 10-K for the fiscal year ended December 31, 2022, Quarterly Report on Form 10-Q for the three months ended March 31, 2023, and other filings with the Securities and Exchange Commission, under the caption "Risk Factors", for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information regarding the Company. All forward-looking statements and information made in this news release are qualified by this cautionary statement.

 

 

McEwen Mining Inc. Page 7

 

 

 

The NYSE and TSX have not reviewed and do not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management of McEwen Mining Inc.

 

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  WEB SITE   SOCIAL MEDIA        
  www.mcewenmining.com   McEwen Mining Facebook: facebook.com/mcewenmining  
      LinkedIn: linkedin.com/company/mcewen-mining-inc-  
  CONTACT INFORMATION   Twitter: twitter.com/mcewenmining  
  150 King Street West   Instagram: instagram.com/mcewenmining  
  Suite 2800, PO Box 24          
  Toronto, ON, Canada   McEwen Copper Facebook: facebook.com/ mcewencopper  
  M5H 1J9   LinkedIn: linkedin.com/company/mcewencopper  
      Twitter: twitter.com/mcewencopper  
  Relationship with Investors:   Instagram: instagram.com/mcewencopper    
  (866)-441-0690 - Toll free line          
  (647)-258-0395   Rob McEwen Facebook: facebook.com/mcewenrob    
  Mihaela Iancu ext. 320   LinkedIn: linkedin.com/in/robert-mcewen-646ab24  
  info@mcewenmining.com   Twitter: twitter.com/robmcewenmux  
             

 

 

McEwen Mining Inc. Page 8

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Entity Address, Address Line Two Suite 2800
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