McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) reports
consolidated production for
Q1 2021 of
23,300 gold ounces and
493,200
silver ounces, or
30,600 gold equivalent
ounces(1)(GEOs), compared to 35,100 GEOs in Q1 2020. All operations
delivered production in line with budget. Production is expected to
increase over the balance of the year and to be 20-40% greater than
2020.
Consolidated Production
Summary
|
Q1 |
Full Year |
Full Year Guidance |
2020 |
2021 |
2020 |
2021 |
Gold (oz) |
29,200 |
23,300 |
92,100 |
110,500 – 127,900 |
Silver (oz) |
553,200 |
493,200 |
2,020,000 |
2,300,000 – 2,450,000 |
GEOs(1) |
35,100 |
30,600 |
115,600 |
141,000 – 160,400 |
Fox Complex, Timmins, Canada (100%)
Black Fox
produced 5,200 GEOs during the period,
compared to 8,300 GEOs in Q1 2020. Mining at Black Fox has begun
transitioning to the Froome deposit, where a progressive ramp-up is
planned through Q3, with commercial production expected in Q4. At
the Stock property, surface exploration is underway with four
drills at the Stock West target, and one drill at the historic
Stock Mine. A Preliminary Economic Assessment (PEA) to expand the
production from the Fox Complex will be released late in Q2. The
exploration budget for 2021 is $9 million.
San José Mine, Santa Cruz, Argentina
(49%(2))
During Q1, San José produced 9,500 gold ounces
and 492,300 silver ounces, for a total
of 16,700 GEOs, compared to 14,900 GEOs
in Q1 2020. The Company received $5 million in dividends during the
quarter. San José performed well after a challenging 2020 that was
impacted by COVID-19 restrictions. In 2021, the exploration budget
is $10 million.
Gold Bar Mine, Nevada (100%)
During the quarter, Gold Bar
produced 7,400 GEOs, compared to 9,100
GEOs in Q1 2020. Updated resource and reserve estimates were
completed. Production in Q2 is expected to be higher than Q1. The
exploration budget for 2021 is $5 million and will be focused on
testing for near-mine targets and on further defining oxide
resources on the neighbouring Tonkin property.
El Gallo Project, Sinaloa, Mexico (100%)
In Q1, El Gallo
produced 1,300 GEOs from residual
leaching of the heap leach pad. Operations were briefly disrupted
by a blockade of the mine entrance by members of the local
community, which has been resolved. A new 10-year agreement has
been reached between the El Gallo operation and the neighbouring
communities.
COVID-19 Update
The worsening COVID-19 infection rate in Ontario
is being closely monitored; to date it has not had a material
impact on operations or exploration activities at the Fox
Complex.
Financial Results
Operating costs for the quarter ended March
31, 2021 will be released with our 10-Q Quarterly Financial
Statements. Our next quarterly management conference call will
occur on Monday, May 10th
at 11:00 am EDT to discuss the Q1 2021
results.
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Notes:(1) 'Gold Equivalent
Ounces' are calculated based on a gold to silver price ratio of
68:1 for Q1 2021, 94:1 for Q1 2020, 86:1 for the
FY 2020 and 75:1 for 2021 Production
Guidance.(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."
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.
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 focused in the Americas with operating mines in Nevada,
Canada, Mexico and Argentina. It also owns a large copper deposit
in Argentina.
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Free(647)-258-0395Mihaela Iancu ext.
320info@mcewenmining.com |
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