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) has completed the purchase of the Afgan-Kobeh property in Nevada for $450,000 in cash, the company said in a statement.
Afgan-Kobeh is an attractive acquisition for McEwen Mining because it hosts a near surface, oxide gold resource in close proximity to our Gold Bar Complex which is expected to begin development in 2017. The objective is to develop the property into a satellite resource that can contribute to the production from Gold Bar. The property has immediate exploration potential with several historical higher-grade drill intersections open laterally and at depth. McEwen Mining plans to conduct a drill program beginning in May 2016 with the objective to increase the known mineralization.
Property Location and Description
The Afgan-Kobeh property is located towards the southeast limit of the Battle Mountain-Eureka-Cortez mineral trend in Eureka County, Nevada. The Afgan deposit is approximately 3 miles (5km) to the southeast of the main ore bodies comprising the Gold Bar Complex (see Fig. 1). Afgan is similar to other sedimentary-rock hosted gold deposits in Nevada in that disseminated and oxidized gold mineralization occurs in the Webb Formation and Devils Gate Limestone lithologies.
Mineral Resource Estimate
A report titled “Updated Technical Report Afgan-Kobeh Property Eureka County, Nevada USA,” dated June 13, 2011, was published by the prior owner in accordance with compliance and disclosure requirements of Canadian National Instrument 43-101 (NI 43-101). Mine Development Associates of Reno, Nevada prepared the technical report that includes a mineral resource estimate for the Afgan deposit using a cutoff grade of 0.006 ounces per ton (opt) or 0.2 grams per tonne (gpt). The mineral resource includes drill information from 181 holes, for a total of 63,303 feet (19,295 meters) of drilling.
For more details, read the press release here.
