McEwen Mining Inc (MUX)

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MUX Conference Call Transcripts

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$MUX McEwen Mining: (Open-Pit, Heap Leach, Sx/Ew, Nameplate Capacity Of 175 Ktpa Cu Cathodes)

The following excerpt is from the company's SEC filing.

Average annual copper (
) cathode production
of
401 million lbs.
(182,100 tonnes) during the first
5 years
of operation, and
322 million lbs.
(145,850 tonnes)
over the
27-year
life of the mine (LOM)
Total Cu recoverable to cathode of
8.68 billion
lbs.
(3.94 million tonnes), based on the LOM extraction of mineralized material containing approximately
11.90 billion lbs.

of total Cu (5.40 million tonnes), and average copper recovery of
After-tax net present value (
$2.659 billion
, internal rate of return (IRR) of
21.2%,
and a payback peri od of
3.2 years
– at

$3.75 per lb.
Initial capital expenditure of
$2.462 billion
,
and a project capital intensity of
$7.66 per lb.
Cu ($16,880 per tonne Cu)
Average C1
cash costs of
$1.07
per lb.
Cu and all-in sustaining costs
$1.64 per lb.
Cu (AISC Margin of
Average EBITDA
per year of

$1.101 billion
(Years 1-5) and
$692 million
(Years 6-27)
Estimated carbon intensity of
670 kg CO
equivalent per tonne of Cu (CO
-e/t Cu)
for Scope 1&2 GHG Emissions, well below the industry
average of
1,980 kg CO
. McEwen Copper’s goal at Los Azules is to be carbon neutral by 2038,
a target which is achievable through the use of emerging technologies and offsets
Estimated site-wide water consumption of
137
liters per second
(L/s) from years 1 to 10, increasing to
163 L/s
from years 11 to 27, this compares to approximately
600
L/s
for a conventional mill producing copper concentrate
1.182 billion
tonnes of mineralized material
placed on heap leach pad with in-situ total copper grade of
and in-situ soluble copper grade of
TORONTO,
June 20, 2023 -
McEwen Mining Inc. (NYSE: MUX) (TSX: MUX)
pleased
to provide results of the updated Preliminary Economic Assessment (the “
2023 PEA
”) on the Los Azules Copper Project
in San Juan Argentina (the “
”). Los Azules is 100% owned by McEwen Copper Inc., which is 52% owned by McEwen
Mining.
Page
The 2023 PEA Technical Report is prepared
in accordance with the requirements set forth by Canadian National Instrument 43-101 (“
NI 43-101
”) for the disclosure
of material information and is intended to meet the requirements of a Preliminary Economic Assessment (PEA) level of study and disclosure
as defined in the regulations and supporting reference documents. The effective date of the report is May 9, 2023. All currency shown


in this report is expressed in Q1 2023 United States Dollars unless otherwise noted.
This study is preliminary in nature
and includes
inferred mineral resources in the conceptual mine plan. Inferred mineral resources are considered too speculative
geologically and in other technical aspects to enable them to be categorized as mineral reserves under the standards set forth in NI 43-101.
There is no certainty that the estimates in this PEA will be realized.
Study Contributors
The
2023 PEA technical report was prepared by
Samuel Engineering Inc.
, with contributions from
Knight Piésold Consulting
Stantec Consulting International Ltd
McLennan Design
Whittle Consulting Pty Ltd
SRK Consulting
UK Limited
under the supervision of David Tyler, McEwen Copper Project Director. The 2023 PEA technical report has been filed on
SEDAR and on the Company’s website:
https://www.mcewenmining.com/investor-relations/reports-and-filings/default.aspx
2023 PEA vs 2017 PEA
The base case development strategy
selected in the
2023 PEA is distinctly different
from that presented in the prior PEA published in 2017. In 2017, the strategy
was to construct a mine with a conventional mill and flotation concentrator producing a concentrate for export to international smelters.


The 2023 PEA proposes a heap leach (leach) project using solvent extraction-electrowinning (SX/EW) to produce copper cathodes (LME Grade
A) for sale in Argentina or international markets. There are three principal reasons why the implementation strategy was changed to leach
in the 2023 PEA:
Environmental Footprint
: Fresh water consumption is reduced by approximately
(150 vs.
600 L/s). Electricity consumption is reduced by approximately
(57 vs. 230 MW). GHG emissions are reduced by approximately

(670 vs. 1,560 CO
-e/t Cu Scope 1&2), with paths to further reductions by implementing new technologies, with the goal
of reaching net-zero carbon by 2038 with some offsets. Los Azules copper cathodes will thus be attractive to end-users seeking to measurably
reduce their upstream environmental impacts.
Reduced Permitting Risk
: When proposing any mega-project development, it is vital to understand
the local standards and sensitivities around permitting. The Project uses technology (heap leach) that is in operation in San Juan today.
It also eliminates tailings and tailings dams, conserves scarce water resources, and reduces the overall complexity of the mine, optimizing
the permitting process.
Producing Cathodes
: The leach process produces LME Grade A copper cathodes, which can be directly
used in industry, including within Argentina reducing export taxes. This eliminates reliance on 3
party foreign smelters
for the processing of concentrates into refined copper products. It also eliminates significant GHG emissions associated with transportation,
and pollution associated with smelting. Counterparty and pricing risks are also reduced.
McEwen views the progress made with
the 2023 PEA towards reducing our environmental footprint and greater environmental and social stewardship sets the Project apart from
other potential mine developments, which appropriately justifies certain economic trade-offs. The primary trade-offs to achieve these


environmental benefits is lower overall copper recovery, slightly higher unit costs, and less immediate cashflow due to extended leach
cycles. Nevertheless, the leach project remains very robust. Furthermore, McEwen believes that some of these drawbacks can be mitigated
by implementing developing technologies such as Nuton™, discussed below.
Property Description
The Los Azules deposit is a classic
Andean-style porphyry copper deposit. The large hydrothermal alteration system is at least 5 kilometers (km) long and 4 km wide and is
elongated in a north-northwest direction along a major structural corridor. The Los Azules deposit area is approximately 4 km long by
2.2 km wide and lies within the alteration zone. The limits of the mineralization along strike to the North and at depth have not yet
been defined. Primary or hypogene copper mineralization extends to at least 1,000 meters (m) below the surface. Near surface, leached
primary sulfides (mainly pyrite and chalcopyrite) were redeposited below the water table in a sub-horizontal zone of supergene enrichment
as secondary chalcocite and covellite. Hypogene bornite appears at deeper levels together with chalcopyrite. Gold, silver, and molybdenum
are present in small amounts, but copper is the economic driver at Los Azules.
A New Vision and Approach
We developed regenerative guiding principles
to reframe the approach to sustainable innovation and set forth high-reaching goals that explore all facets of the mining processes considered
for Los Azules. The project development seeks to significantly reduce the environmental footprint of mining operations and their associated
GHG emissions by integrating the latest renewable and environmentally responsible technologies and processes. The Project aims to obtain
100% of its energy from renewable sources (wind, hydro, and solar) in a combination of offsite and onsite installations. The Project is


also seeking to have long-term net positive impacts on the greater Andean ecosystem, local flora and fauna, the lives of miners, and of
the other citizens of nearby communities, while contributing positively to the local and national economy of Argentina.
Refer to the
full 2023 PEA Technical Report for more information about our regenerative approach.
Metal Price Assumption
The copper price use in the 2023 PEA
was $3.75 per pound (except for the mineral resource estimate), in line with analysts’ consensus projections for long-term copper
prices that range between $3.25 and $4.25 per pound, with a mean price of $3.75 per pound.
Study Highlights
This 2023 PEA development strategy
begins with processing of resources associated with the oxide and supergene copper mineralization in the near surface portion of the deposit
using heap leaching methods. This approach results in low average C1 costs of
$1.07 per lb.
$0.88 per lb.
in the first
8 years) and an attractive
3.2-year
payback period. Copper cathode production during the first 5 years of operation averages
401
million lbs. per year
(182 ktpa), and average over the 27-year LOM is
322 million lbs. per year
(146 ktpa).
A nominal copper cathode production
capacity of 385 million lbs. per year (
175 ktpa
) is met or exceeded during the first 11 years of mining and was selected as the

Base Case
, with a smaller
Alternative Case
presented at 275 million lbs. per year (
125 ktpa
) of copper cathodes.
The 2023 PEA financial model does not include potential future development phases focused on primary copper mineralization found beneath
the supergene copper layer but some of these opportunities are discussed in the report, including the potential of deploying Nuton™
technologies.
The processing facility will function
through to the completion of mining in Year 23 with stockpile reprocessing and residual leaching operations to Year 27. Mining operations
ramp up over the proposed mine life from approximately 80 million total tonnes per year to 150 million tonnes per year through the life


of the project as copper grades decrease, and material movements increase.
Summary results for the Base Case and
Alternative Case are provided in Table 1.
Table 1: Summary Results
Project Metric
Mine Life
Tonnes Processed
Billion tonnes
Tonnes Waste Mined
Strip Ratio
Total Copper Grade
0.457%
Soluble Copper Grade (CuSOL)
% CuSOL
0.311%
Copper Recovery (Total Copper)
Soluble Copper Recovery
Copper Production (LOM avg.)
tonnes/yr
145,820
123,060
Copper Production (Yr 1-5)
136,100
Copper Production – cathode Cu
ktonnes
Initial Capital Cost
USD Millions
$2,462
$2,153
Sustaining Capital Cost
$2,243
$2,351
Closure Costs
C1 Cost (Life of Mine)
USD/lb Cu
All-in Sustaining Costs (AISC)
Before Taxes
Net Cumulative Cashflow
$15,820
$15,679
Internal Rate of Return (IRR)
Net Present Value (NPV) @ 8%
$4,436
$3,278
After Taxes
$10,240
$10,159
$2,659
$1,929
Pay Back Period
Sensitivity Analysis
The Base Case project economics are
reasonably robust (>15% post-tax IRR) at a copper price above $3.00 per pound and are similarly resistant to an increase in LOM capital
expenditure of up to 30% and an increase in operating expenses of up to 60%. Table 2 below shows the sensitivity of the Base Case project
economics to the Copper Price (+/- 20%) on a post-tax basis. The project NPV8% is breakeven at a copper price of $2.34 per pound.
Tables 2: Base Case (175 ktpa) Copper Price Sensitivity
Sensitivity (%)
Metal Pricing
Post-Tax
Payback
$ Cu/lb
$1,277
$1,624
$1,969
$2,314
$2,659
$3,003
$3,346
$3,689
$4,032
Table 3 below show the sensitivity
of the Base Case project economics to initial and sustaining capital expenditure escalation on a post-tax basis.
Table 3: Base Case (175 ktpa) Initial & Sustaining CAPEX Sensitivity
$2,597
$2,484
$2,372
$2,260
$2,148
$2,036
Table 4 below show the sensitivity
of the Base Case project economics to operating expenditure escalation on a post-tax basis.
Table 4: Base Case (175 ktpa) OPEX Sensitivity
$2,496
$2,396
$2,295
$2,195
$2,095
Capital Costs Estimates
The Project includes the development
of an open pit mine with muti-stage crushing and screening, a heap leach pad, and a copper solvent extraction-electrowinning (SX/EW) facility
with a nominal production capacity of 175 ktpa copper cathodes. There is also a sulfuric acid plant and other associated infrastructure
to support the operations. Initial capital infrastructure for the Base Case includes the following facilities:
Mine development and associated infrastructure
Coarse rock storage and handling (crushing, conveying,
agglomeration)
Heap leach pads and conveyor stacking systems
SX/EW facility
Sulfuric acid plant
On-site utilities and ancillary facilities including
a construction camp
Off-site infrastructure: power transmission line
(outsourced), access roads, and permanent camp
The project initial capital costs are
based on budgetary quotes for major equipment, recent in-house cost information and installation factors, and regional contractor inputs
and facilities obtained between Q4 2022 and Q1 2023. The capital costs for the project are summarized in Table 5 and should be viewed
with the level of accuracy expected for a preliminary analysis.
The approximate construction cost of
the 132 kV power supply line to site is $155 million and has not been included in the capital estimate because it is assumed that YPF
Luz, a large Argentinean power utility company, will be constructing the line at their expenses pursuant to a long-term renewable power
purchase agreement.
Table 5: Initial Capital Costs by Case
175k tpa Cu ($)
125k tpa Cu ($)
$65,600,000
Ore Storage & Handling
$234,500,000
$192,500,000
Heap Leaching
$158,500,000
$142,100,000
SX/EW Facilities
$250,400,000
$167,700,000
Acid Plant
$94,900,000
$79,900,000
Ancillary Facilities
$23,300,000
Site Development & Yard Utilities
$126,300,000
$112,200,000
Off-Sites
$167,400,000
Total Direct Costs
$1,120,900,000
$950,700,000
Common Indirect Costs
$379,200,000
$323,800,000
Owners Costs
$466,700,000
$455,900,000
Subtotal
$1,966,800,000
$1,730,400,000
Contingency
$495,000,000
$423,100,000
Total Capital Cost
$2,461,800,000
$2,153,500,000
Operating Costs Estimates
Table 6 summarizes the LOM project
operating costs per tonne of material processed and per pound of copper produced.
Table 6: LOM Cash Costs

Cost/tonne ($)
Cost/lb. ($)

Cost/tonne ($)
Processing
General & Administrative
Selling Expenses
LOM C1 Costs
Royalties and Taxes
The 2023 PEA includes all government
and private royalties on production, export taxes, as well as income taxes and banking taxes. Royalty calculations vary, however royalties
and retentions based on net smelter return (NSR) total approximately 9.2%. In the financial model it was assumed that 10,000 tonnes per
year of copper cathodes are sold within Argentina and consequently they are not subject to export taxes. 95% of VAT is assumed to be recoverable
after two years. A 0.2% portion of the bank tax is recoverable in the following year.
Table 7: Royalties and Taxes (All Cases)
Income Tax
Argentine Corporate Income
% Profit
VAT Taxes
Argentine Value Added Tax
% on Capital
% on Operating
San Juan Province
% “Mine Mouth”
TNR Royalty
McEwen Mining Royalty
Export Retentions
Argentine Export Retention
Bank Tax
Debit and Credit Bank Tax
Nuton Opportunity
Nuton LLC is a copper heap leaching
technology venture of Rio Tinto that became a strategic partner in 2022. Its Nuton™ suite of proprietary technologies provide opportunities
to leach both primary and secondary copper sulfides, providing significant opportunity to optimize the mine plan and the overall mining
and processing operations. In addition, Nuton™ provides significant other benefits, such as lower overall energy consumption, allowing
earlier conversion to renewable energy sources, and lower water consumption than conventional sulfide mineralization treatment processes.
Based on preliminary scoping testing,
Nuton™ technologies offer the potential for copper recoveries of more than 80% from predominantly chalcopyrite, depending on the
specific mineralogy make-up of the mineral resource. At Los Azules, Nuton™ has the potential to economically process the large primary
sulfide copper resource as an alternative to a concentrator, with low incremental capital following the oxide and supergene leach, no
tailings requirement, and a smaller environmental footprint. Producing copper cathode with Nuton™ on-site also has the advantage
of simplifying outbound logistics for copper concentrates and offers a finished product to the domestic and international market.
The outcomes modelled using the Nuton
proprietary computational fluid dynamics model, are very encouraging and indicate that unoptimized copper recovery to cathode from primary
material should range from 73% to 79%. Furthermore, Nuton recovery from secondary material is high, ranging from 80% to 86%. This could
provide a significant opportunity to optimize the mine plan and the need for selective mining, as simultaneous stacking of both secondary
and primary mineralization will not impact on the copper recovery from either material type. Based on the current resource estimate, this
could have a significant positive impact on the expected life of the mine, without significantly increasing the initial capital investment
required.
Nuton is currently validating modelled
data with column leach tests. Column leaching of the composite samples at their facilities is underway and expected to be completed in
Q1 2024. Validation of the modelled results could be obtained much sooner, depending on the trends provided by the actual column leach
results.
McEwen Copper does not currently have
a commercial arrangement with Nuton that enables it to deploy their technologies at Los Azules, and there is no guarantee that such an
agreement will come to fruition, however McEwen Copper and Nuton intend to work in good faith toward such an arrangement. The results
in Table 8 below assume that Nuton™ technologies are implemented without including costs associated with technology licensing or
some other commercial cost structure.
Table 8: Nuton™ Opportunity Economic Summaries
Base Case-Nuton
Copper Grade (Total)
$2,444
$2,793
$3,701
Project Development Schedule
The Gantt chart below presents a conceptual
project development timeline based on regional contractor inputs and long-lead equipment and materials delivery assumptions provided by
vendors. The schedule assumes that the feasibility study work is completed by the end of 2024, finalization of the environmental permitting
process (IIA/DIA) and other necessary permits to begin work are completed during the proposed feasibility study and preliminary timeframe
and financing are in place to achieve the scheduled milestones. Following this conceptual schedule, the SX/EW plant start-up could occur
in Q1 2029.
McEwen Copper Capital Structure
McEwen Copper is a Canadian-based private
company with 28,885,000 common shares issued and outstanding. Its current shareholders are McEwen Mining Inc. 51.9%, Stellantis 14.2%,
Nuton 14.2%, Rob McEwen 13.9%, Victor Smorgon Group 3.5%, other management and shareholders 2.3%.
Updated Mineral Resource Estimate
The database for resource estimation
has a cutoff date December 31
, 2022. An additional 22,252 m of drilling (mostly infill) from 49 holes, completed in
2023 to date, were not included in the resource estimate.
The mineral resources have been classified
according to guidelines and logic summarized within the Canadian Institute of Mining, Metallurgy and Petroleum (CIM 2019) Definitions
referred to in NI 43-101. Resources were classified as Indicated or Inferred by considering geology, sampling, and grade estimation aspects
of the model. For geology, consideration was given to the confidence in the interpretation of the lithologic domain boundaries and geometry.
For sampling, consideration was given to the number and spacing of composites, the orientation of drilling and the reliability of sampling.
For the estimation results, consideration was given to the confidence with which grades were estimated as measured by the quality of the
match between the grades of the data and the model.
Mineral resources are determined using
an NSR cut-off value to cover the processing cost for each recovery methodology. For supergene and primary material using sulfuric acid
leaching and SX/EW recovery the cutoff was
$2.74/t
. The supergene and primary material can be treated in a float mill with NSR
cutoffs of
$5.46/t
$5.43/t
, respectively. NSR values are based on a copper price of
$4.00/lb
, gold at
$1,700/oz
,
and silver at
$20/oz
, where applicable. Variable pit slopes between
were applied depending on
depth.
The current database is adequate for
the preparation of a long-range model that serves as the basis for the 2023 PEA. The extent of mineralization along strike exceeds 4 kilometers
and the distance across strike is approximately 2.2 kilometers. The deposit is open at depth and to the North. Over the approximately
2.5 km strike length where mineralization is strongest, the average drill spacing is approximately 150 m to 200 m but there are localized
areas where drilling is on 100-m spacing. The assay database includes 56,528 m of assay interval data from 162 drillholes. Resource estimation
work was performed using Datamine Studio modeling software.
Resources disclosed in Table 9 are
reported in two categories related to processing amenability:
1) materials that
are suited for processing in a commercially proven conventional, ambient conditions, copper bio-leaching scheme (Leach); and
2) materials that are better suited to processing either in a more advanced bio-leaching scheme such as Nuton™ technologies or
traditional milling/concentrator approach (Mill or Leach+).
Table 9: Mineral Resource Estimate
tonnes (MT)
Average Grade
Contained Metal
(Blbs)
Supergene
Total Indicated
Leach & Mill or Leach+
1,235.3
0.40
10.94
10.01
3,288.0
124.67
3,813.6
149.07
Total Inferred
4,509.3
Table 9 Notes:
Mineral resources, which are
not mineral reserves, do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental,
permitting, legal, title, socio-political, marketing, or other relevant factors.
The quantity and grade of reported
inferred mineral resources in this estimation are uncertain in nature and there is insufficient exploration to define these inferred mineral
resources as an indicated or measured mineral resource; it is expected that further infill drilling will result in upgrading some of this
material to an indicated or measured classification.
Reasonable prospects of eventual
economic extraction are demonstrated by using a calculated NSR value in each block to evaluate an open pit shell using both Indicated
and Inferred blocks in Geovia Whittle™ pit optimization software.
NSR was calculated using the
following: metal prices of $4.00/lb for copper, $1,700/oz. for gold and $20/oz. for silver, processing costs of $4.17/t, total freight
costs of $150/t, selling costs of $0.02/lb for copper and a constant recovery of 95% applied.
An NSR cut-off of $2.74/t was
used based on extraction of the resource from the enriched zone using sulfuric acid leaching and SX/EW recovery; 100% of the soluble copper
and 15% of the non-soluble copper grade is recovered in the heap-leach method.
The supergene and primary material
can potentially be treated in a mill/concentrator with NSR cut-offs of $5.46/t and $5.43/t respectively. This has the added benefit of
also recovering the gold and silver present in the resource. Additional parameters are used for the NSR calculation for this scenario.
Depending on the potential depth
of the pit, total pit slope angles ranged from 42° near surface to 32° below 1000m depth. Overburden slopes were set at
30°.
Composites of 2 m length were
capped where needed; the capping strategy is based on the distribution of grade which varies by location (i.e. domain or proximity to
controlling structures) and the associated potential metal removal. The resource estimate is based on uncapped copper grades; local
capped grades are used for gold and silver.
Block grades were estimated
using a combination of ordinary Kriging and inverse distance squared weighting depending on domain size.
Model blocks are 20m x 20m x
15m in size.
End Notes:
All
dollar amounts are United States Dollars (USD) unless otherwise stated.
Project
capital intensity is defined as Initial Capex ($) / LOM Avg. Annual Copper Production (lbs. or tonnes). C1 cash costs per pound produced
is defined as the cash cost incurred at each processing stage, from mining through to recoverable copper delivered to the market, net
of any by-product credits. All-in sustaining costs (AISC) per pound of copper produced adds production royalties, non-recoverable VAT
and sustaining capital costs to C1. AISC margin is the ratio of AISC to gross revenue. Capital intensity, C1 cash costs per pound of copper
produced, AISC per pound of copper produced, and AISC margin are all non-GAAP financial metrics.
Annual
earnings before interest, taxes, depreciation, and amortization (EBITDA). EBITDA is a non-GAAP financial measure.
Kilograms
of Carbon Dioxide Equivalent per tonne of Copper Equivalent produced. Carbon Dioxide Equivalent means having the same global warming potential
as any another greenhouse gas.
Wood
Mackenzie Limited average Scope 1&2 emissions intensity for 394 assets during the period between 2022 and 2040.
2017
NI 43-101 Technical Report on Los Azules Project, Hatch Engineering (Throughput of 120,000 tpd of mineralized material).
The
sequential assay method used at Los Azules for both the resource assay and metallurgical programs provides an indication of the copper
mineralization present in the form of acid soluble copper and cyanide soluble copper, both assays combined provide an approximation for
‘soluble’ copper.
Soluble
copper recovery exceeding 100% implies partial leaching of material which was not categorized as “soluble” based on the sequential
assaying method and data available.
Qualified
Persons
Technical
aspects of this news release, excluding mineral resource disclosure, have been reviewed and verified by James L. Sorensen – FAusIMM
Reg. No. 221286 with Samuel Engineering, who is a qualified person as defined by National Instrument 43-101– Standards of Disclosure
for Mineral Projects.
Disclosure
related to the updated Los Azules mineral resource estimate has been reviewed and approved by Allan Schappert,
CPG #11758, SME-RM,
with
Stantec Consulting, who is Qualified Persons as defined by National Instrument 43-101 –
Standards of Disclosure for Mineral Projects (“NI 43- 101”).
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 Company 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, foreign exchange volatility, foreign exchange controls, foreign currency risk, 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.
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.

ABOUT MCEWEN MINING
McEwen
Mining is a gold and silver producer with operations in Nevada, Canada, Mexico and Argentina. In addition, it owns approximately 52% of
McEwen Copper which owns the large, advanced stage Los Azules copper project in Argentina. The Company’s goal is to improve the
productivity and life of its assets with the objective of increasing its share 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.
WEB
SITE
SOCIAL
MEDIA
www.mcewenmining.com

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