McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) reports
consolidated production for Q2 2020 was
15,700
gold ounces and
359,400 silver ounces, or
19,200 gold equivalent ounces(1)(“GEOs”), at the
average gold:silver price ratio for the quarter of 104:1.
Production was significantly impacted by temporary mine suspensions
at all four of our operations as a result steps taken to stop the
spread of COVID-19, along with operational issues at several
mines.
Consolidated Production
Summary
|
Q1 |
Q2 |
2019 |
2020 |
2019 |
2020 |
Gold (oz) |
26,900 |
29,200 |
36,200 |
15,700 |
Silver (oz) |
703,200 |
553,200 |
850,500 |
359,400 |
GEOs(1) |
36,300 |
36,100 |
45,900 |
19,200 |
Black Fox Mine, Timmins, Canada
(100%)
In Q2, Black Fox produced 2,200
GEOs. Mining was temporarily suspended at Black Fox from March 26th
to April 13th due to health and safety concerns resulting from the
COVID-19 pandemic. A progressive return to work was completed by
the end of April. For the remainder of the quarter production was
lower due to lower than expected grade and development work
completed for establishing a greater number of mining areas in
order to improve operational flexibility.
Development of the access to the Froome deposit
is on track, having advanced 30% of the way to the orebody. The
plan is to reach the orebody in Q2 2021, complete the necessary
development and start production from Froome in Q4 2021.
At the Black Fox Mine, a total of 44,800 feet
(13,650 m) of underground diamond drilling was completed between
April 13th and June 30th, with 70% devoted to closely spaced
definition drilling of gold mineralization within or adjacent to
upcoming mining blocks (see Figure 1). Exploration
is continuing on the upper west flank of the mine. During
H1, this area has delivered some impressive high grade
results. For details please refer to our news release dated
June 17th, 2020 – Click here).
High-grade intercepts were generated from these
ore definition holes, including:
- 42.2 g/t Au over 2.0 m from
hole 660-F953-13
- 42.4 g/t Au over 2.5 m from
hole 260-B242-07A
- 20.9 g/t Au over 4.8 m from
hole 260-B249-09
Figure 1: Black Fox Mine – Longitudinal Section
http://mcewenmining.com/files/doc_news/archive/20200700/Jul2020_Fig1_BF.pdf
A complete summary of new underground drilling results from
Black Fox is available here:
http://mcewenmining.com/files/doc_news/archive/20200700/Jul2020_ug_comp.xlsx
San José Mine, Santa Cruz, Argentina
(49%(2))
In Q2, San José produced 5,500 gold ounces and
358,700 silver ounces, for a total of 9,000 GEOs.
Mining was temporarily suspended from March 20th due to a
nationwide mandatory quarantine imposed in Argentina to combat the
spread of COVID-19. Although the mine was able to restart
operations in late April, the operations remain below capacity due
to government imposed travel restrictions that continue to pose
significant challenges in mobilizing personnel to the site.
Gold Bar Mine, Nevada
(100%)
In Q2, Gold Bar produced 6,100
GEOs. Mining was halted on April 1st due to concerns about the
COVID-19 pandemic, and production ramp up started on May 4th.
Throughout May and June the mine only operated on day shift as work
progressed for the updated resource model, new mine plan and
addressing engineering design deficiencies. Full operations on day
and night shift are scheduled to start in August.
Pit optimizations are ongoing and detailed mine
planning is underway. Completion of a new resource estimate, mine
plan and 2020 forecast are being finalized in Q3. A new reserve
estimate is expected towards the year’s end.
Drilling on Gold Bar South is testing for
extensions of the deposit. Drilling on the south extension
encountered significant mineralization, indicating the potential to
extend the existing resource to the south (see Figure
2), including:
- Two holes drilled 100 ft (30
m) from the latest mineralized drill fence returned:
1.2 g/t Au over 125 ft (Hole
GBS079) and 0.9 g/t Au over 150
ft including 4.0 g/t Au over 10
ft (Hole GBS080); and
- Partial results from drilling
completed 100 ft (30 m) further to the south returned 1.5
g/t Au over 70 feet (Hole GBS113).
Figure 2: Gold Bar South – Deposit Plan
View
http://mcewenmining.com/files/doc_news/archive/20200700/Jul2020_Fig2_GBS.pdf
A complete summary of new surface diamond and reverse
circulation drilling results from Gold Bar South is available here:
http://mcewenmining.com/files/doc_news/archive/20200700/Jul2020_GBS_Comp.xlsx
El Gallo Project, Sinaloa, Mexico
(100%)
In Q2, El Gallo produced 1,900
GEOs from residual leaching of the heap leach pad. COVID-19 is an
ongoing challenge in Sinaloa. We are saddened to report that some
employees and contractors at the mine and regional office have
contracted the virus. One of our employees, who seemed to be
recovering well in hospital, passed away suddenly due to
complications. We are supporting all the families in this difficult
time and extend our sincere condolences on the loss of our valued
team member. No severe symptoms have been reported among the other
confirmed or suspected cases.
Financial Results
Operating costs for the quarter ended June
30, 2020 will be released with our 10-Q Quarterly Financial
Statements.
Notes:
(1) 'Gold Equivalent Ounces' are calculated
based on a gold to silver price ratio of 75:1 for Q1 2019, 88:1 for
Q2 2019, 94:1 for Q1 2020 and 104:1 for Q2 2020.(2) The San José
Mine is 49% owned by McEwen Mining Inc. and 51% owned and operated
by Hochschild Mining plc.
Technical InformationThe
technical content of this news release has been reviewed and
approved by Peter Mah, P.Eng., COO of McEwen Mining and a Qualified
Person as defined by Canadian Securities Administrators National
Instrument 43-101 "Standards of Disclosure for Mineral
Projects."
Technical information pertaining to Black Fox geology and
exploration contained in this news release has been prepared under
the supervision of Ken Tylee, P.Geo. Mr. Tylee is Qualified
Person as defined by Canadian Securities Administrators National
Instrument 43-101 "Standards of Disclosure for Mineral
Projects."
Technical information pertaining to Gold Bar geology and
exploration contained in this news release has been prepared under
the supervision of Kevin Kunkel, CPG. Mr. Kunkel is 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, effects of the COVID-19 pandemic, 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, 2019 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.
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 Mining’s goal is to create a profitable gold and
silver producer focused in the Americas.
CONTACT INFORMATION: |
Investor Relations:(866)-441-0690 Toll Free(647)-258-0395
Mihaela Iancu ext. 320
info@mcewenmining.com |
Website:
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150 King Street WestSuite 2800, P.O. Box 24Toronto, ON, CanadaM5H
1J9 |
McEwen Mining has approximately 400 million shares
outstanding. Rob McEwen, Chairman and Chief Owner, owns 21% of the
shares.
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