McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) reports
consolidated production for Q3 2017 of 19,051 gold ounces and
749,749 silver ounces, or 29,047 gold equivalent ounces(1), using a
75:1 gold to silver ratio.
|
Consolidated Production Summary |
|
|
|
|
|
|
|
Q3 ‘17 |
Q2 ‘17 |
Q1 ‘17 |
Q4 ‘16 |
Q3 ‘16 |
Gold ounces |
19,051 |
22,191 |
20,096 |
20,337 |
24,281 |
Silver ounces |
749,749 |
779,487 |
722,767 |
838,768 |
916,168 |
Gold Eq. ounces |
29,047 |
32,584 |
29,733 |
31,521 |
36,496 |
Black Fox, Timmins – Enhanced Growth
Strategy
Our growth strategy in the Timmins region, which
started in April 2017 with the acquisition of Lexam VG Gold,
reached a second important milestone on October 6, 2017 with the
purchase of the Black Fox Complex. Black Fox consists of:
1) the fully operational Black Fox underground gold
mine, 2) the Black Fox-Stock mill, 3) an
experienced workforce, and 4) the nearby Grey Fox and
Froome development projects. The addition of Black Fox boosts our
global 2018 production guidance to between 172,000-185,000
gold equivalent ounces.
Gold Bar Project, Nevada – Major
Permitting Milestone
The Gold Bar Project has achieved a major
milestone in the permitting process with the publication by the
Environmental Protection Agency (EPA) of the Notice of Availability
of the Final Environmental Impact Statement (EIS) in the Federal
Register. Following a regulated review period, a signed Record of
Decision will be published, signifying the completion of the
National Environmental Policy Act (NEPA) process. The Record of
Decision is expected in early November this year and development of
Gold Bar is planned to begin upon receipt, in line with our earlier
estimates. Gold Bar is expected to contribute an average of
65,000 ounces to our annual gold
production beginning in 2019.
Los Azules, Argentina – Robust Economics
in New PEA
The results of the 2017 PEA demonstrate that Los
Azules could become a robust, high margin, rapid pay-back, and
long-life open pit mine at current copper, gold and silver prices.
Financial highlights from the 2017 PEA, assuming a $3.00 per pound
copper price, are: 1) $2.2 billion after-tax net
present value (NPV@8%), 2) an internal rate of return (IRR) of
20.1%, and 3) a payback period of 3.6
years and a total mine-life of 36 years.
Estimated average annual copper production is 415 million
lbs. at a cash cost of $1.11/lb. during
the first 10 years of mining operations. The PEA report is
available for review on our website
(www.mcewenmining.com/operations/los-azules-exploration) and SEDAR
(www.sedar.com).
San José Mine, Argentina (49%(2)) – Improving
Production
Our attributable production from San José in Q3
was 11,862 gold ounces and
747,960 silver ounces, for a total of
21,834 gold equivalent ounces. Year-to-date our
attributable production was 64,563 gold equivalent
ounces, 2.8% below the same period in 2016.
El Gallo Mine, Mexico – Overcoming
Challenges
Production in Q3 was 7,213 gold
equivalent ounces, compared to 11,849 gold
equivalent ounces during the same period in 2016. Production in Q3
continued to be below our expectations as a result of a serious
mechanical failure at the end of July that removed the crushing
circuit from operation. As a result we were unable to crush and
place fresh ore to leach on the leach pad for a period of time. We
currently have almost twice our normal crushing capacity available
for the remainder of the year. Production is improving on account
of the increased throughput, and access to better grades of ore in
the pit that was predicted in the second half of the year.
Increased production in Q4 will partially compensate for the
shortfall experienced to date.
Financing
In order to purchase Black Fox and provide
funding for further investment in capital spending and exploration,
we completed a financing in which a total of 20,700,000 shares and
10,350,000 warrants were sold at a price of $2.25 per
share and associated one-half warrant, for aggregate gross proceeds
of $46,575,000. Each whole warrant entitles the holder to
purchase one share at an exercise price of $2.70 per
share until September 28, 2018.
Financial Results
Operating costs for the quarter ended September
30, 2017 will be released with our 10-Q Quarterly Financial
Statements in early November. As of October 12, 2017 we are
debt-free with liquid assets of approximately $60 million.
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. All dollar amounts are US Dollars
About McEwen Mining
McEwen 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’s principal assets consist
of the San José mine in Santa Cruz, Argentina (49% interest), the
El Gallo Gold mine and El Gallo Silver project in Mexico, the Black
Fox mine in Timmins, Canada, the Gold Bar project in Nevada, and
the Los Azules copper project in Argentina.
McEwen has a total of 333 million shares
outstanding. Rob McEwen, Chairman and Chief Owner, owns 24%
of McEwen.
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.
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".
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 related to fluctuations in mine production
rates, 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: |
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|
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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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