Inferred and Indicated now sits at over 15.4 billion lbs
Even at $0.01 per pound in situ value, which a substantially lower than the $0.03 per pound going in the market, it gives Los Azules a value of over $154 million by itself.
With the rights to back into 25% of Los Azules, gold miner junior TNR Gold (TNR.V) is attractively positioned. One thing to note of course is the dilution factor if TNR were to raise the capital to back-in to the expenditure on their portion of Los Azules so far.
McEwen increases Los Azules NI 43-101 indicated
2013-05-15 09:03 ET - News ReleaseMr. Rob McEwen reports
MCEWEN MINING'S LOS AZULES COPPER PROJECT CONTINUES TO GROW!
McEwen Mining Inc. has provided an updated Canadian National Instrument 43-101-compliant mineral resource estimate for its 100-per-cent-owned Los Azules copper project in San Juan province, Argentina. Key developments include the successful conversion of inferred resources into the indicated category while increasing the size of the resource. The resource remains open along strike, to depth, and laterally. Los Azules ranks as one of the world's largest, undeveloped, high-grade, open pit copper projects, and appears to have significant growth potential.
LOS AZULES COPPER PROJECT -- COMPARISON OF PREVIOUS AND CURRENT MINERAL RESOURCE ESTIMATES
June, 2012, resource estimate May, 2013, resource estimate
update update % change
Cut-off Tonnage Cu Tonnage Cu
grade (million grade Cu lb (million grade Cu lb Contained
(Cu%) tonnes) (%) (billions) tonnes) (%) (billions) Cu lb
Indicated resource
0.35 323 0.65 4.6 389 0.63 5.4 +17%
Inferred resource
0.35 948 0.52 10.8 1,397 0.46 14.3 +32%
(i) Details for gold and silver resources are included in the attached table.
"This resource estimate update marks the completion of our most
successful drilling season at Los Azules. We discovered a new parallel
zone to the west and significantly increased the indicated resource and
inferred resource estimates. Congratulations are in order to our
exploration team in Argentina who set a record for the number of pounds
discovered at Los Azules in one drill season," stated Rob McEwen, chief
owner.This season's exploration effort focused on expanding the resource base. A total of 15,800 metres of drilling was completed which produced a 17-per-cent increase in contained copper in the indicated resource category, to 5.4 billion pounds of copper and a 32-per-cent increase in contained copper in the inferred resource category, to 14.3 billion pounds of copper, since the June, 2012, estimate of mineral resources. On Feb. 5, 2013, the company released an interim, midseason resource update. The "Los Azules copper project -- comparison of previous and current mineral resource estimates" table shows a comparison of the new (May, 2013) resource with the resource estimated at the end of last year's drilling program (June, 2012).
This updated resource estimate will form the basis of a new preliminary economic assessment (PEA), which is expected to be completed in the third quarter of 2013. This PEA will evaluate the possibility of: (1) increasing the daily throughput; (2) producing copper cathode instead of a concentrate; and (3) processing low-grade mineralized material not previously considered, via a heap leach.
The advantages of being able to produce a copper cathode rather than a copper concentrate is twofold: first, it would eliminate the capital intensive, concentrate pipeline through Chile; and second, it would reduce the applicable export tax by 50 per cent.
About Los Azules
Los Azules is a large undeveloped copper porphyry system located in western San Juan province within a belt of porphyry copper deposits that straddles the Chilean/Argentine border. This belt contains some of the world's largest copper deposits, including Codelco's El Teniente and Andina mines, Anglo American's Los Bronces mine, Antofagasta PLC's Los Pelambres mine and Xstrata's El Pachon project, among others. Los Azules is one of the world's largest, highest grade, undeveloped copper-porphyry deposits not owned by a major base metals company.
In order to exhibit reasonable prospects for economic viability, the mineral resource estimate has been contained within a conceptual open pit shell generated using general technical and economic parameters that are defined at the end of this news release. For comparison purposes, resources are listed at a series of cut-off grades in the "Los Azules mineral resource estimate" table.
LOS AZULES MINERAL RESOURCE ESTIMATE
Au Ag
grade grade
Cut-off Tonnage Cu Cu (grams Au (grams Ag
grade (million grade lb per oz per oz
(Cu%) tonnes) (%) (billions) tonne) (millions) tonne) (millions)
Indicated resource
0.15 627 0.49 6.74 0.06 1.13 1.7 34.9
0.20 584 0.51 6.57 0.06 1.08 1.8 32.8
0.25 523 0.54 6.27 0.06 1.02 1.8 29.7
0.30 450 0.59 5.83 0.06 0.92 1.8 25.9
0.35 389 0.63 5.39 0.07 0.84 1.8 22.9
0.40 338 0.67 4.97 0.07 0.76 1.9 20.2
0.45 293 0.70 4.55 0.07 0.68 1.9 17.7
0.50 253 0.74 4.13 0.07 0.60 1.9 15.5
0.55 217 0.78 3.72 0.07 0.52 1.9 13.4
0.60 184 0.81 3.29 0.08 0.45 1.9 11.3
0.65 151 0.85 2.84 0.08 0.38 1.9 9.2
0.70 120 0.90 2.38 0.08 0.30 1.9 7.2
Inferred resource
0.15 4,141 0.32 29.47 0.05 6.02 1.6 214.3
0.20 3,583 0.35 27.32 0.05 5.43 1.7 190.1
0.25 2,785 0.38 23.36 0.05 4.46 1.7 154.9
0.30 2,016 0.42 18.72 0.05 3.46 1.8 118.0
0.35 1,397 0.46 14.30 0.06 2.58 1.9 85.8
0.40 910 0.51 10.30 0.06 1.79 2.0 58.5
0.45 576 0.57 7.18 0.06 1.20 2.1 38.1
0.50 360 0.62 4.93 0.07 0.79 2.1 24.1
0.55 233 0.68 3.47 0.07 0.54 2.1 15.8
0.60 157 0.73 2.52 0.08 0.39 2.1 10.8
0.65 110 0.77 1.87 0.08 0.28 2.2 7.7
0.70 76 0.81 1.36 0.08 0.20 2.2 5.5
(i) Tonnes are stated in metric and is equivalent to 2,205 pounds.
(ii) Estimated contained metal values may be subject to rounding errors.
Details on the parameters of the resource estimate are as follows:- The resource estimate is based on data from 185 drill holes comprising a total length of 59,518 metres of drilling completed to the end of March, 2013.
- There were a total of 27,688 individual samples selected for analysis. The samples were collected and analyzed in accordance with industry standards. Splits from the drill core samples were submitted to either Alex Stewart in Mendoza or ALS Chemex or ACME in Santiago, Chile, for fire assay and ICP analysis. Accuracy of results is tested through the systematic inclusion of standards, blanks and check assays.
- The May, 2013, mineral resource estimate for the Los Azules copper project was prepared under the direction of Robert Sim, PGeo, of SIM Geological Inc. The mineral resource estimate uses drill hole sample assay results and the interpretation of a geologic model that relates to the spatial distribution of copper in the deposit. Interpolation characteristics were defined based on the geology, drill hole spacing and geostatistical analysis of the data. Block grade estimates were done using ordinary kriging (OK) with a nominal block size measuring 20 metres long, 20 metres wide and 15 metres high. Resources are classified according to their proximity to sample data locations and are reported, as required under NI 43-101, according to the CIM Definition Standards for Mineral Resources and Mineral Reserves.
- Mineral resources, which are not mineral reserves, do not have demonstrated economic viability.
- The quantity and grade of reported inferred resources are uncertain in nature and there has been insufficient exploration to classify these inferred resources as indicated or measured, and it is uncertain if further exploration will result in upgrading them to an indicated or measured category.
- As required under NI 43-101, reasonable prospects for economic viability of the mineral resources has been exhibited by the application of a resource limiting pit shell built about copper grades in the model using a projected metal price of $2.75 (U.S.) per pound Cu, mining costs of $1.00 (U.S.) per tonne, milling and general and administrative costs of $4.25 (U.S.) per tonne, 100-per-cent recoveries, and an average pit slope of 34 degrees.
Robert Sim, PGeo, a qualified person and independent of McEwen Mining as defined by National Instrument 43-101, has reviewed and approved the technical content of this news release related to the mineral resource estimate presented herein. Bruce Davis, PhD, FAusIMM, who is a qualified person and independent of McEwen Mining, as defined by NI 43-101 and responsible for the quality control for the assaying of the Los Azules drill core, has reviewed the assay quality control information. All samples were collected in accordance with industry standards. Splits from the drill core samples were submitted to the ACME sample preparation laboratory in Mendoza, Argentina, and then transferred to ACME's laboratory in Santiago, Chile, for fire assay and ICP analysis. Accuracy of results is tested through the systematic inclusion of standards, blanks and check assays. The mineral resource estimate referenced in this press release was prepared in April and May, 2013, by Robert Sim, PGeo, and Bruce Davis, PhD, FAusIMM.
For additional information about June, 2012, resource estimate and the Los Azules project generally see the technical report titled "Los Azules porphyry copper project, San Juan province, Argentina" dated Aug. 1, 2012, with an effective date of June 15, 2012, prepared by D. Ernest Winkler, PEng, Robert Sim, PGeo, Bruce Davis, PhD, FAusIMM, and James K. Duff, PGeo, all of whom are qualified persons and all of whom are independent of McEwen Mining, each as defined by NI 43-101. The foregoing report is available under the corporation's profile on SEDAR.
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