McEwen Mining Inc. to Become 5.9% Strategic Shareholder in Canadian Gold

Assays were completed at ALS Global Laboratory, North Vancouver, BC as follows:

*Cu-OG62: Standard assay, aqua regia solvent for copper oxides and sulphides, Four acid digestion and ICP finish 0.4g sample
**Cu-AA05: Leach test for total oxide copper, 5% H2SO4 Leach (AAS) prepared sample (0.5g) is leached with 5% sulphuric acid.
***Cu-AA07n: Leach test for total oxide copper, H2SO4/Na2SO3 Leach (AAS) When exposed to dilute H2SO4/Na2SO3 solutions Cu oxide dissolved. The sample (1 g) is leached in 50 mL of dilute H2SO4/Na2SO3 for 1 hour.
****Cu-AA08q: Leach test for total oxide copper, H2SO4 / Fe2SO4 (AAS) The sample (~ 1.0 g) is shaken in H2SO4 / Fe2SO4 for half an hour.

The Copper Island property is a Red-Bed Copper deposit located proximate to Campbell River, British Columbia and the Company’s nearby Murex Copper Project. The Property is underlain by Karmutsen volcanics, which consist of highly fractured and sheared Karmutsen Formation amygdaloidal andesitic flow rocks filled with calcite, quartz, chlorite, actinolite or prehnite. Minerals of interest are chalcocite (CuS), a secondary mineral of copper, with subordinate and local occurrences of bornite (Cu5 FeS4) cuprite (Cu2O), malachite (Cu CO3 (OH )), and native copper (Cu), in highly oxidized material. Chalcocite occurs in the higher-grade showings as partial to complete replacement of amygdules in the upper portion of individual flow structures (similar to Keweenan, Point Michigan, copper-bearing basaltic flows). Historic sampling identified acid leachable vanadium which contains highest vanadium values in a black siliceous sediment, overlying a copper mineralized flow.

The Pomeroy 3, 4 Zone mineralization occurs over a strike length of approximately 750 feet, largest of the numerous Cu-Ag zones identified. Mineralization follows a northwest to north trending formation of amygdaloidal basaltic flows, with important E-W to ENE-SSW trending cross fault/fracture zones. Several parallel zones have been identified (e.g. Copper Valley, Butte, Copper Bell, Colleen, Vanadium & Ingersoll). The Pomeroy zones have large areas of copper mineralization in a calcite filled amygdules and veinlet stockwork that is evident throughout the property. The other mineralized zones consist of increased quartz, calcite veining, and copper sulphides in up to 30 feet wide altered and fractured zones traced intermittently for up to 600 feet on surface.

Historic Exploration and Development Work

Considerable previous work has been performed on the Pomeroy Group copper-silver bearing mineralization. Modern exploration began in 1952-53, when Dodge Copper carried out a detailed exploration program of trenching and diamond drilling. Dodge Copper drilled 145 holes totaling 8800 feet on various deposits. Extensive drilling and trenching of the mineralized zones were completed by Prince Stewart Mines Ltd. in 1972-74 resulting in a resource and reserve estimate totaling 50,886,710 lbs. of copper. In 2011, the…