McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) reports
consolidated production for
Q3
2019 of
35,043 gold ounces and
947,146 silver ounces, or
45,930
gold equivalent ounces(1)(“GEOs”) using the average gold:silver
price ratio for Q3 of 87:1. For the nine months ended Sept. 30,
2019 we have produced
128,125 GEOs, or
74% of our revised guidance midpoint of 172,500
GEOs. Our Gold Bar Mine continued to improve during the third
quarter, achieving several key performance benchmarks for ore
production, crushing throughput, and gold production. Gold Bar
produced almost 5,000 GEOs in September, which is in line with our
plan and approaching the designed capacity of the process plant.
The San José and El Gallo mines performed well, meeting their
production targets. At our Black Fox Mine, underground mining
operations continued to be challenging, however high-grade
exploration results at both the Black Fox and Stock properties are
providing reason for excitement for the future. The latest
exploration drilling from Stock East returned impressive
intercepts, such as:
83.5 g/t gold over
5.6 m, including
417 g/t over
1.1 m; and
34.7 g/t gold over
5.9 m, including
74.1 g/t over
2.7 m (news release dated September 30, 2019).
Table 1 - Consolidated Production
Summary
|
Q1 |
Q2 |
Q3 |
Full Year |
2018 |
2019 |
2018 |
2019 |
2018 |
2019 |
2018 |
2019 Guidance |
Gold (oz) |
35,069 |
26,938 |
36,959 |
36,216 |
33,806 |
35,043 |
135,203 |
131,000-138,000 |
Silver (oz) |
695,651 |
703,219 |
772,432 |
850,525 |
745,172 |
947,146 |
3,032,694 |
3,225,000 |
GEOs(1) |
44,344 |
36,315 |
47,258 |
45,881 |
43,742 |
45,930 |
175,640 |
169,000-176,000 |
(1) 'Gold Equivalent
Ounces' are calculated based on a 75:1 gold to
silver price ratio for periods up to and including Q1 2019,
88:1 for Q2 2019, and 87:1 for Q3
2019. 2019 GEO Guidance assumes a 85:1 ratio.
Rob McEwen, Chairman and Chief Owner commented:
“Exploration continued to shine this quarter with Stock and
Grey Fox drill results returning multi-ounce gold intersections at
relatively shallow depths. In Nevada, our Gold Bar Mine produced
almost 5,000 ounces of gold in September. Drilling at Gold Bar
South returned several new drill holes showing broad intervals of
grades better than twice that of the current resource, which should
enhance the project’s economics. Our focus is on exploration to
grow our production and extend the life of our mines.”
Gold Bar Mine, Nevada
(100%)
Gold Bar produced 11,029 gold
ounces in Q3. Since reaching commercial production
during Q2, the mine has been able to reach several operational
benchmarks, and gold output is increasing during the second half of
2019.
Our 2019 exploration budget for the Gold Bar
property is $5 million, with a focus on near
surface oxide and deep sulphide targets. Drilling at Gold Bar South
has successfully defined additional mineralization that is expected
to increase our gold resource and reserve base and extend the Gold
Bar Mine’s life. The updated resource and reserve for Gold Bar
South will be released in early 2020. Subject to permitting
advancing as planned, mining at Gold Bar South could begin in early
2021.
Our deep drilling program has begun to test for
deep sulfide gold targets similar to Barrick Gold’s latest
discoveries Gold Rush and Fourmile, which are located on trend 25
miles North of the Gold Bar property. Two deep holes are planned
this year to test for higher-grade gold mineralization at depth.
The first deep drill hole is completed and was a geological
success, as it confirmed the presence of the right host rock units
over a large intercept of 1,217 ft. (370 m), which contained
anomalous gold-pathfinder elements and alteration indicating
hydrothermal fluid movement through the rock formation, but it did
not contain any gold values. A second deep hole, located 3.2 miles
(5.2 km) East of the first, is in progress.
Black Fox Mine, Timmins, Canada
(100%)
Black Fox produced 7,421
gold ounces in Q3. Production was below our
expectations, primarily because of insufficient working areas and
delays in advancing underground development.
Our 2019 exploration budget for the Black Fox
Complex is $18 million and includes surface and
underground drilling. Drilling started in April and there are
currently 14 surface rigs and one dedicated underground rig
actively exploring on the Black Fox and Stock properties. The best
results are coming from the Stock Property, where our mill is
located, and the Grey Fox deposit area at the Black Fox Property,
where exploration is adding to already significant gold resources.
Underground drilling at the Black Fox Mine is focusing on resource
development along the western flank of the mine and at depth below
900 m.
San José Mine, Santa Cruz, Argentina
(49%(2))
San José is on-track to achieve our full year
guidance for 2019 of 49,000 gold ounces and
3,225,000 silver ounces. Our attributable
production from San José in Q3 was
13,575 gold ounces and 943,037
silver ounces, for a total of 24,415 GEOs.
Exploration at San José is focusing on San José South and Aguas
Vivas, a poly-metallic sulfide deposit with gold, silver, lead and
zinc about 8 km from the mine. In Q4, exploration is also planned
in areas surrounding Newmont Goldcorp’s Cerro Negro Mine, which
produced 490,000 ounces of gold in 2018.
El Gallo Project, Sinaloa, Mexico
(100%)
El Gallo is expected to produce
16,000 gold ounces in 2019. It produced
3,018 gold ounces in Q3 from
residual leaching of the heap leach pad.
Third Quarter Financial
Results
Operating costs for the quarter ended September
30, 2019 will be released with our 10-Q Quarterly Financial
Statements at the end of October.
ABOUT MCEWEN MINING
McEwen Mining is a diversified gold and silver
producer and explorer with operating mines in Nevada, Canada,
Mexico and Argentina. It also owns a large copper deposit in
Argentina. McEwen’s goal is to create a profitable gold and silver
producer focused in the Americas.
McEwen has approximately 362 million shares
outstanding. Rob McEwen, Chairman and Chief Owner, owns 22% of the
shares.
Notes:(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.
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 content of this news release has been reviewed and
approved by Chris Stewart, P.Eng., President & COO of McEwen
Mining 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.
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, 2018 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: |
|
|
|
|
|
Investor Relations:(866)-441-0690 Toll Free(647)-258-0395
Christina McCarthy ext. 390Mihaela
Iancu ext. 320 info@mcewenmining.com |
Website: www.mcewenmining.com
Facebook:
facebook.com/mcewenminingFacebook:
facebook.com/mcewenrob
Twitter:
twitter.com/mcewenminingTwitter:
twitter.com/robmcewenmux Instagram:
instagram.com/mcewenmining |
150 King Street WestSuite 2800, P.O. Box 24Toronto, ON, CanadaM5H
1J9 |
McEwen Mining (NYSE:MUX)
Historical Stock Chart
From Mar 2024 to Apr 2024
McEwen Mining (NYSE:MUX)
Historical Stock Chart
From Apr 2023 to Apr 2024