McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) is pleased
to announce that total production for the third quarter (“Q3”) was
36,496 gold equivalent ounces using a gold to silver ratio of 75:1,
or 24,281 gold ounces and 916,168 silver ounces. Production is on
target to achieve our 2016 guidance of 144,000 gold equivalent
ounces, or 99,500 gold ounces and 3,337,000 silver ounces.
2016
Consolidated Production Summary |
|
Guidance |
YTD |
Q1 |
Q2 |
Q3 |
Gold ounces |
99,500 |
81,145 |
28,975 |
27,888 |
24,281 |
Silver ounces |
3,337,000 |
2,464,941 |
673,767 |
875,006 |
916,168 |
Gold Eq. ounces |
144,000 |
114,009 |
37,958 |
39,555 |
36,496 |
San José Mine, Argentina
(49%)(1)
The San José Mine produced 12,527 gold ounces
and 909,017 silver ounces attributable to us in Q3, for a total of
24,647 gold equivalent ounces. Year-to-date the San José Mine
produced 33,839 gold ounces and 2,443,527 silver ounces
attributable to us, for a total of 66,419 gold equivalent ounces.
Full year production guidance for San José in 2016 is 45,000 gold
ounces and 3.3 million silver ounces, for a total of 89,000 gold
equivalent ounces attributable to us.
El Gallo Mine, Mexico
(100%)
The El Gallo Mine performed as expected in Q3,
producing 11,849 gold equivalent ounces. Production in Q3 was lower
than the prior quarter due to lower ore grades, as we previously
forecast (1.4 gpt in Q3 2016 vs. 2.3 gpt in Q2 2016). Year-to-date
the El Gallo Mine produced 47,590 gold equivalent ounces. Full year
guidance for El Gallo is 55,000 gold equivalent ounces.
Mexico Exploration Update
The 2016 exploration budget for Mexico is $4
million. Exploration drilling in the district around our El Gallo
Mine has been concentrated primarily on three prospective areas;
one area called Encuentro South has returned particularly
encouraging results at shallow depths. Highlights are summarized
below:
Hole ID |
Gold Grade (gpt) |
Intercept Width (m) |
ENX-032 |
9.59 |
9.1 |
including |
126.50 |
0.5 |
and |
2.94 |
38.2 |
including |
27.3 |
1.2 |
ENX-043 |
7.82 |
5.4 |
including |
28.70 |
1.1 |
ENX-009 |
16.09 |
2.1 |
ENX-041 |
16.27 |
1.9 |
ENX-051 |
1.30 |
19.5 |
and |
6.13 |
4.8 |
ENX-019 |
1.85 |
15.2 |
including |
3.99 |
5.0 |
ENX-021 |
1.66 |
12.7 |
Encuentro South is located 7 miles (11 km)
southwest of the El Gallo Mine. The project area lies on an
important 4 mile (7 km) long, regional NW-SE mineral trend that
also hosts two of our other exploration targets (Las Milpas and
Twin Domes). Extensive exploration along this trend has identified
favorable alteration signatures and abundant anomalous gold and
silver mineralization in surface rock and soil samples.
A total of 51 core holes (8,980 meters) have
been drilled in the project area, with 42 of those (7,522 meters)
at the Encuentro South prospect. Initial interpretations indicate
that the favourable gold assays occur in at least three distinct
zones that are either shallow dipping NW, or sub-vertical NS
structures and are still open along strike and at depth.
Mineralization has been identified from surface to a depth of 130
meters. The known length (or strike) of the zone is approximately
230 meters. For full results of the recently drilled holes at
Encuentro South see Table 1 here:
http://www.mcewenmining.com/files/doc_news/20161012/Table_1.pdf
Mineralisation at Encuentro South is
characterized primarily by structurally controlled, multi-event
quartz breccias and stockwork zones hosted by propolytically
altered meta-andesites. Minor silicification and hematisation
alteration is also seen locally. The mineralization is considered
to be of the low-sulphidation, epithermal style as seen elsewhere
on the property. Very early stage test results show that the gold
mineralization at Encuentro South is potentially amenable to heap
leaching.
Financial Results
Operating costs for the quarter ended September
30, 2016 will be released with our 10-Q Quarterly Financial
Statements in early November. As at October 7, 2016 we have no debt
and liquid assets of $61 million composed of $39 million of cash,
$18 million of precious metals, and $4 million of marketable
securities. We have not issued equity to finance our
operations since completing a rights issue in 2013, and we have
preserved our leverage to higher gold and silver prices by not
encumbering our assets with royalties, metal streams or hedges.
ABOUT MCEWEN MINING
(www.mcewenmining.com)
McEwen Mining’s goal is to qualify for
inclusion in the S&P 500 Index by creating a high growth,
profitable gold and silver producer focused in the Americas and
Europe. McEwen Mining's principal assets consist of the San José
Mine in Santa Cruz, Argentina (49% interest), the El Gallo Mine and
El Gallo Silver project in Sinaloa, Mexico, the Gold Bar project in
Nevada, USA, and the Los Azules copper project in San Juan,
Argentina.
McEwen Mining has a total of 300 million
shares outstanding and 305 million fully diluted. Rob McEwen,
Chairman and Chief Owner, owns 25% of the Company.
Footnotes:
(1) The San José Mine is owned by Minera Santa Cruz S.A.,
which is a joint venture 49% owned by McEwen Mining Inc. and 51%
owned and operated by Hochschild Mining plc.
RELIABILITY OF INFORMATION REGARDING THE
SAN JOSÉ MINE Minera Santa Cruz S.A. (“MSC”), the owner of
the San José Mine, is responsible for and has supplied to the
Company all reported results from the San José Mine. McEwen
Mining's joint venture partner, a subsidiary of Hochschild Mining
plc, and its affiliates other than MSC do not accept responsibility
for the use of project data or the adequacy or accuracy of this
release.
TECHNICAL INFORMATIONThe
technical aspects of the production results section has been
reviewed and approved by Nathan M. Stubina, Ph.D., P.Eng., FCIM,
Managing Director and a Qualified Person as defined by Canadian
Securities Administrator National Instrument 43-101 "Standards of
Disclosure for Mineral Projects".
The exploration section has been reviewed and
approved by Luke Willis, P.Geo, McEwen Mining’s Director of
Resource Modelling, who is a Qualified Person as defined by
National Instrument 43-101 and is responsible for program design
and quality control of exploration undertaken by the Company at its
Mexican exploration properties. Samples from the core drilling were
split on-site at the Company’s El Gallo Mine. One half of the split
drill core is shipped to ALS Chemex for sample preparation and
analysis by fire assay for gold and 4-acid digestion with ICP
determination for silver. Samples returning greater than 10
ppm gold or 1500 ppm silver were re-analyzed using gravimetric fire
assay. Standards and blanks were inserted every 20 samples. All
holes were drilled with HQ bits and reduced to NTW where
required. Samples were taken based on lithologic and/or
mineralized intervals and vary in length. The true width of the
mineral zones has not yet been determined.
CAUTION CONCERNING FORWARD-LOOKING
STATEMENTSThis 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, factors associated with 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 corporation 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, and other risks. The
Company’s dividend policy will be reviewed periodically by the
Board of Directors and is subject to change based on certain
factors such as the capital needs of the Company and its future
operating results. 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, 2015 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.
CONTACT INFORMATION: |
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Mihaela Iancu |
Christina
McCarthy |
150 King Street West |
Investor Relations |
Director of Corporate
Development |
Suite 2800,P.O. Box 24 |
(647) 258-0395 ext 320 |
(647) 258-0395 ext 390 |
Toronto, Ontario, Canada |
info@mcewenmining.com |
corporatedevelopment@mcewenmining.com |
M5H 1J9 |
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(866) 441-0690 |
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Website |
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