Name and Location.
Gold Bar project, Nevada, US.

Client
McEwen Mining.

Project Description
Gold Bar is planned as an openpit mine. The project has proven and probable reserves of 13.1-million tonnes with contained gold of 0.034 oz/t.

Measured and indicated resources are estimated at 22.11-million tonnes grading 0.95 g/t of gold. Inferred resources are estimated at 4.62-million tonnes.

Run-of-mine (RoM) and screened and agglomerated oxide ore will be processed at an estimated rate of 8 000 t/d on a conventional heap leach, with an adsorption-desorption recovery (ADR) carbon plant producing a doré product.

To maximise recovery and minimise project risk, the ore handling method will be flexible, depending on the ore characteristics.

Ore from the Gold Ridge deposit will be processed as RoM.
Ore from the Gold Pick and Cabin Creek deposits will be screened first and classified prior to leaching as follows:

• ore containing fines will be screened at 6" and again at 1";
• ore greater than 6" will be stockpiled and placed on the leach pad using loaders and trucks;
• ore less than 1" will be agglomerated with cement and recombined with the midfraction (+1" to –6"), and placed on the leach pad using conveyors; and
• RoM material without fines will trucked directly to the leach pad.

Over the mine life, production will total 13-million tons of ore at a diluted gold grade of 0.032 ounces per short ton for 325 000 oz of payable gold.

RoM ore will require 3 lb/t lime and agglomerated ore will require 20 lb/t cement.

Leaching will consume 0.4 lb/t sodium cyanide.

Net Present Value/Internal Rate of Return
The project has an after-tax base case net present value, at a 5% discount rate, of $30-million and an after-tax base case internal rate of return at 20%, with a payback of three years.

Value
Initial capital is estimated at $60.4-million, including $4.8-million for contingencies. Additional capital expenses, such as a heap-leach expansion and reclamation and closure obligations, bring the total life-of-mine capital required to $79.4-million, including an additional $1.5-million for contingencies.

Duration
Not stated.

Latest Developments
McEwen believes there are opportunities to further improve the economics of the Gold Bar project through continued exploration, capital cost reductions, and potential process plant engineering synergies through the company’s El Gallo mine, in Mexico. Capital cost estimates for the project at this level of study are conservative. During the next 14 months, until permit approval, McEwen will study ways to reduce capital expenditure. For example, the El Gallo mine uses an ADR plant of a very similar size and design to the one required at Gold Bar.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
McEwen Mining, tel +1 647 258 0395, fax +1 647 258 0408 or email info@mcewenmining.com.