McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) reports
consolidated production for Q2 2018 of 36,959 gold ounces and
772,432 silver ounces, or 47,258 gold equivalent ounces(1)(“GEOs”),
using a 75:1 gold to silver ratio.
Consolidated Production
Summary
|
Q2 ‘18 |
Q1 ‘18 |
Q4 ‘17 |
Q3 ‘17 |
Q2 ‘17 |
Gold ounces |
36,959 |
35,069 |
48,609 |
19,051 |
22,191 |
Silver ounces |
772,432 |
695,651 |
926,739 |
749,749 |
779,487 |
GEOs |
47,258 |
44,344 |
60,965 |
29,047 |
32,584 |
Highlights of the second quarter from our four
mines including our newest mine in Nevada, which is under
construction, are as follows:
Gold Bar Mine, USA
(100%)
Construction activities at Gold Bar focused on
the heap leach pad, and installation of the crushing and process
facility. All major equipment and bulk materials are either on site
or purchased. Engineering for the project is complete and
approximately 90% of contracts are awarded. Construction is
advancing on schedule for completion by the end of 2018, targeting
production in Q1 2019. During the first three years of operation
beginning with 2019, Gold Bar is projected to
produce 55,000, 74,000 and 68,000 ounces
of gold respectively.
Black Fox Mine, Canada
(100%)
Black Fox produced 14,055
GEOs, in line with our full year production guidance for 2018 of
48,000 GEOs. A $15 million exploration program is ongoing across
the Black Fox Complex, drilling results and other developments will
be released quarterly, with the next update planned in the coming
weeks.
El Gallo Mine, Mexico
(100%)
El Gallo produced 10,808 GEOs,
in line with our budget and full year production guidance for 2018
of 32,000 GEOs. By the end of Q2, mining and crushing activities
ceased and contractor equipment has been demobilized from the mine
site. Closure, reclamation and residual heap leach activities are
ongoing and will continue for several years.
A new Preliminary Economic Assessment (PEA)
study on the potential restart of production from the El Gallo
Complex at some point in the future was published on July 9, 2018.
The proposed development plan evaluated in the PEA is called
Project Fenix. The key outcomes of Project Fenix include an average
annual production rate of 47,000 ounces gold equivalent (AuEq), a
12-year mine life, low initial capital cost of $41 million for
Phase 1 and $30 million for Phase 2, and pay-back period of 4.1
years. At current gold and silver prices the after-tax internal
rate of return (IRR) is 28%, and the net present value (NPV) at a
5% discount rate is $60 million.
Capital cost estimates for Project Fenix are to
a level of accuracy that is consistent with a PEA technical report.
During the next 14 months we will continue to review mineral
processing, mine sequencing, material transportation and tailings
storage options; and the flow sheet will be optimized by
undertaking trade-off studies, updating cost models and additional
metallurgical testwork.
The PEA is available for review on our website
and SEDAR (http://www.sedar.com).
San José Mine, Argentina
(49%(2))
Our attributable production from San José was
12,139 gold ounces and 769,197
silver ounces, for a total of 22,395 GEOs.
Production is on-track to achieve our full year guidance for 2018
of 91,000 GEOs. We received approximately $2.4 million in dividends
from our interest in San José during Q2.
First Quarter Financial
Results
Operating costs for the quarter ended June 30,
2018 will be released with our 10-Q Quarterly Financial Statements
in early August. As of July 9, 2018 we are debt-free with liquid
assets of approximately $30 million.
ABOUT MCEWEN MININGMcEwen’s
goal is to qualify for inclusion in the S&P 500 Index
by creating a profitable gold and silver producer. McEwen’s
principal assets consist of: the San José mine in Santa
Cruz, Argentina (49% interest); the El Gallo Gold mine
in Mexico; the Black Fox mine in Timmins, Canada; the
Gold Bar mine in Nevada that is currently under construction;
and the large Los Azules copper project in Argentina that is
advancing towards permitting.
McEwen has a total of 337 million shares outstanding. Rob
McEwen, Chairman and Chief Owner, owns 24% of the shares.
Footnotes
- 'Gold Equivalent Ounces' are calculated based on a 75:1 gold to
silver ratio.
- 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
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 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, 2017 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 |
Website:
www.mcewenmining.comFacebook:
facebook.com/mcewenrob Twitter:
twitter.com/mcewenmining Instagram:
instagram.com/mcewenmining |
150 King
Street WestSuite 2800, P.O. Box 24Toronto, ON, CanadaM5H 1J9(866)
441-0690 |
McEwen Mining (NYSE:MUX)
Historical Stock Chart
From Aug 2024 to Sep 2024
McEwen Mining (NYSE:MUX)
Historical Stock Chart
From Sep 2023 to Sep 2024