Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) is pleased to announce the purchase of mineral properties located approximately 6 miles (10 km) from the El Gallo Mine (the “Acquired Properties”) for $250,000 plus a 2% NSR royalty retained by the seller over the Acquired Properties.
“This is an attractive exploration target because of its proximity to the El Gallo Mine, and fits with our strategy of investing in opportunities that have the possibility to extend the life of our mine,” said Rob McEwen, Chairman and Chief Owner.
The Acquired Properties lie on an important mineral trend over 7km long which is contained within our larger claim block. The acquisition completes the consolidation of the district surrounding the El Gallo Mine and El Gallo Silver deposit, and adds an area of considerable exploration potential. McEwen Mining has explored extensively along this trend and previously discovered two satellite mineral resources (Twin Domes and Las Milpas).
The Acquired Properties and surrounding area is characterized by favorable alteration signatures and abundant anomalous gold and silver mineralization in surface rock and soil samples. Recent exploration adjacent to the Acquired Properties revealed an area of structurally controlled gold mineralization in shallow percussion drilling and in deeper core drilling. Now that this acquisition is complete we will expand our exploration program in the area.
The Acquired Properties consist of two mineral claims (totaling 1,040 acres), which were 100% owned by the seller, as well as the sellers’ rights to four additional mineral claims (totaling 930 acres) under an option agreement that is the subject of a legal dispute. We will attempt to settle the litigation and obtain title to the disputed claims.
