McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) reports
consolidated production for Q3 2021 was 32,100 gold ounces and
792,000 silver ounces, or
42,900 gold equivalent
ounces(1)(“GEOs”), compared to 30,400 GEOs in Q3 2020. Consolidated
production for the nine months ended September 30,
2021 is
114,300 GEOs, compared to 85,700
GEOs during the same period in 2020. 2021 production is trending
towards the midpoint of the guidance range for the year.
Consolidated Production Summary |
|
|
Q1 |
Q2 |
Q3 |
2021Guidance |
2020 |
2021 |
2020 |
2021 |
2020 |
2021 |
Gold (oz) |
29,200 |
23,300 |
15,700 |
31,700 |
23,100 |
32,100 |
110,500-127,900 |
Silver (oz) |
553,200 |
493,200 |
359,400 |
611,800 |
575,000 |
792,000 |
2,300,000-2,450,000 |
GEOs(1) |
36,100 |
30,600 |
19,200 |
40,800 |
30,400 |
42,900 |
141,000-160,400 |
Fox Complex, Timmins, Canada
(100%)
Fox produced 8,300 GEOs during
the period, compared to 5,800 GEOs for Q3 2020.
Mining at Fox has transitioned to the Froome
deposit, where commercial production was reached on September 19,
2021, 3 months ahead of schedule. The underground infrastructure at
Froome is expected to be fully developed by June 2022.
Highlights of results and opportunities at
Froome:
- Encouraging
drill results were returned from near-mine exploration designed to
extend the Froome resources and mine life, providing more time to
bridge potential future production from the Grey Fox and Stock
deposits. The Company expects to update the Froome resource and
life-of-mine plan with the release of the Fox Complex Preliminary
Economic Assessment (PEA) in late-Q4 2021.
- Although early
in the overall mining process, there have been positive trends in
metallurgical recovery, which is 2.2% above plan,
and average gold grade, which is 3.8
g/t versus plan of
3.2 g/t.
- Cash costs and
AISC per ounce produced are reflecting better than expected
efficiencies during the initial ramp-up of production to commercial
levels.
Gold Bar Mine, Nevada (100%)
During the quarter, Gold Bar produced
12,400 GEOs, compared to 6,800 GEOs in Q3 2020.
Production is on track to meet guidance for 2021.
The permitting process to access ore at the Gold
Bar South (GBS) deposit has progressed well, with authorizations
now anticipated to be received in Q4 2021. The Company is planning
for gold production from GBS in H2 2022.
Exploration highlights from our adjoining Tonkin
property.
- Positive
initial drill results at the Rooster deposit include refractory
mineralization of 14.7 g/t gold over 6.1
m (20 ft) in hole TS208 starting at 29.9 m (98 ft) depth,
and mixed oxide/refractory mineralization of 1.5
g/t gold over 20.9 m (68.5 feet) starting
at 59.3 m (194.5 ft).
- Also at
Rooster, hole TS186 reported 1.8 g/t gold over
25.9 m (85 ft) of oxide mineralization (cyanide
solubility of 81%) starting from surface, and hole TS202 reported
0.76 g/t gold over 41.1 m (135
feet) starting from surface with cyanide solubility of 67%.
- Ongoing
mapping at the Tonkin Property during the quarter is reassessing
the exploration potential based on an updated geological
interpretation and includes relogging of previous drilling at
Rooster.
San José Mine, Santa Cruz, Argentina
(49%(2))
During Q3, San José produced 10,800 gold ounces
and 790,000 silver ounces, for a total of 21,600
GEOs, compared to 15,900 GEOs in Q3 2020. We received $2.4
million in dividends during the quarter, for a total of $10 million
for the nine months ended September 30, 2021.
El Gallo Project, Sinaloa, Mexico
(100%)
In Q3, El Gallo produced 560
GEOs from residual leaching of the heap leach pad.
McEwen Copper
With the approach of
Argentinian spring and the melting of snow in the mountains, access
to the Los Azules project site has been re-established via the
existing exploration road. Drills and crews will begin mobilizing
to the project in November and a 174,000 ft (53,000 m) drill
program is expected to be completed by the end of Q2 2022.
Construction of the new all-season access road has already advanced
approximately 17 km from the east end. In order to accelerate its
completion, construction advancing from the west end of the new
road will begin this quarter. The new year-round access road is a
key milestone in unlocking the project’s value as the current route
is inaccessible 7 months of the year. All road construction will be
completed by local San Juan contractors as part of the ongoing
shared benefits with the local communities, entrepreneurs and
workers. The prefeasibility study is in the tender award stage and
is expected to begin as soon as possible in Q4 2021.
Financial
Results
Operating costs for
the quarter ended September 30, 2021 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 94:1 for Q1 2020, 104:1 for Q2 2020, 79:1 for Q3
2020, 68:1 for Q1 2021, 68:1 for Q2 2021 and 73:1 for Q3 2021. |
(2) |
|
The San José Mine is 49% owned by McEwen Mining Inc. and 51% owned
and operated by Hochschild Mining plc. |
Technical InformationTechnical
information pertaining to mining operations contained in 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 Gold Bar geology and exploration contained in this
news release has been prepared under the supervision of Kevin
Kunkel, P.Geo., 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, 2020, 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.
This news release and the information
included herein do not constitute an offer to buy or the
solicitation of an offer to subscribe for or to buy any of the
securities described herein, nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such jurisdiction.
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 the management of
McEwen Mining Inc.
ABOUT MCEWEN MINING
McEwen Mining is a diversified gold and silver
producer and explorer focused in the Americas with operating mines
in Nevada, Canada, Mexico and Argentina.
CONTACT INFORMATION: |
Investor Relations:(866)-441-0690 Toll
Free(647)-258-0395Mihaela Iancu ext.
320info@mcewenmining.com |
Website:
www.mcewenmining.comFacebook: facebook.com/mcewenminingFacebook: facebook.com/mcewenrobTwitter:
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instagram.com/mcewenmining |
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1J9 |
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