McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) is pleased
to report consolidated production for Q2 2017 of 22,191 gold ounces
and 779,487 silver ounces, or 32,584 gold equivalent ounces(1),
using a 75:1 gold to silver ratio.
Consolidated Production Summary |
|
|
|
Q2 ‘17 |
|
Q1 ‘17 |
|
Q4 ‘16 |
|
Q3 ‘16 |
|
Q2 ‘16 |
Gold ounces |
|
22,191 |
|
20,096 |
|
20,337 |
|
24,281 |
|
27,888 |
Silver ounces |
|
779,487 |
|
722,767 |
|
838,768 |
|
916,168 |
|
875,006 |
Gold Eq. ounces |
|
32,584 |
|
29,733 |
|
31,521 |
|
36,496 |
|
39,555 |
Gold Bar Project, Nevada – Advancing
Towards Construction
Permitting continues to advance as planned, the
Bureau of Land Management has incorporated the public comments from
the Draft Environmental Impact Statement into the Final
Environmental Impact Statement. Permitting remains on schedule,
with a Record of Decision expected in Q3, 2017.
San José Mine, Argentina (49%(2)) – Improving
Production
Our attributable production from San José in Q2
was 12,477 gold ounces and
774,521 silver ounces, for a total of
22,804 gold equivalent ounces. During the first
half of 2017 our attributable production was
42,729 gold equivalent ounces, a slight
improvement on the same period in 2016, mainly driven by better
gold grades.
El Gallo Mine, Mexico – Grade to
Increase in Second Half
Production in Q2 was 9,780 gold
equivalent ounces, compared to 15,640 gold
equivalent ounces during the same period in 2016. Production in the
first half of 2017 was expected to be slower as a result of lower
gold grades mined, however gold grades are projected to increase in
the second half of the year.
Timmins Projects, Ontario,
Canada
Evaluation work and trade-off studies are
underway to determine in which order the newly acquired properties
will be advanced towards development. Updated resource estimates
are expected later this year.
Financial Results
Operating costs for the quarter ended June 30,
2017 will be released with our 10-Q Quarterly Financial Statements
in early August. As at June 30, 2017 we are debt-free with liquid
assets of $44 million comprised of $24 million in cash, $8 million
in precious metals, and $12 million in marketable securities.
Substantial investments in our Los Azules project and lower
production levels from our El Gallo Mine contributed to the
reduction in liquidity since Q1. 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.
Footnotes:
(1) 'Gold Equivalent Ounces' are calculated based on a
75:1 gold to silver ratio.(2) The San José Mine is 49% owned
by McEwen Mining Inc. and 51% owned and operated by Hochschild
Mining plc.
About McEwen Mining
(www.mcewenmining.com)
McEwen Mining has the goal to qualify for
inclusion in the S&P 500 Index by creating a high growth gold
and silver producer focused in the Americas. 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,
the Los Azules copper project in San Juan, Argentina, and the
recently acquired gold projects in Timmins, Canada.
McEwen Mining has a total of 312 million shares
outstanding. Rob McEwen, Chairman and Chief Owner, owns 25% of the
Company.
Technical InformationThe
technical contents of this news release 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
Administrators National Instrument 43-101 "Standards of Disclosure
for Mineral Projects".
Reliability of Information Regarding San
JoséMinera Santa Cruz S.A., 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.
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, 2016 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: |
|
Mihaela
IancuInvestor Relations(647) 258-0395 ext
320info@mcewenmining.com |
|
Facebookfacebook.com/mcewenrob
Websitewww.mcewenmining.com
Twittertwitter.com/mcewenmining |
|
150 King Street
WestSuite 2800,P.O. Box 24Toronto, Ontario, CanadaM5H 1J9(866)
441-0690 |
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