McEwen Mining 2013 Production Up 33% Over 2012; 139,455 Gold Eq. oz
Produced in 2013
TORONTO, ONTARIO--(Marketwired - Jan 14, 2014) - McEwen Mining
Inc. (NYSE:MUX)(TSX:MUX) is pleased to announce full-year and Q4
production results. For the full-year, the Company's total
production was 139,455 gold eq. oz comprised of 79,158 gold oz and
3,135,467 silver oz. This represents an approximate 33% increase
compared to 2012.
In Q4 the Company produced 37,167 gold eq. oz (20,686 gold oz
and 857,011 silver oz). This is 15% higher than Q4 2012.
Company Wide Operating Results |
|
|
Full-Year 2013 |
Full-Year 2012 |
4th Quarter 2013 |
4th Quarter 2012 |
San José Mine Production (49%)* |
|
|
|
|
|
Gold produced (ounces) |
48,425 |
42,026 |
12,999 |
11,024 |
|
Silver produced (ounces) |
3,114,832 |
2,916,742 |
853,225 |
757,009 |
|
Gold equivalent produced (ounces)** |
108,326 |
98,117 |
29,407 |
25,582 |
El Gallo 1 Production |
|
|
|
|
|
Gold produced (ounces) |
30,733 |
6,863 |
7,687 |
6,567 |
|
Silver produced (ounces) |
20,635 |
4,492 |
3,786 |
4,360 |
|
Gold equivalent produced (ounces)** |
31,129 |
6,949 |
7,760 |
6,651 |
Total Production |
|
|
|
|
|
Gold produced (ounces) |
79,158 |
48,889 |
20,686 |
17,591 |
|
Silver produced (ounces) |
3,135,467 |
2,921,234 |
857,011 |
761,369 |
|
Gold equivalent produced (ounces)** |
139,455 |
105,067 |
37,167 |
32,233 |
* McEwen Mining holds a 49% attributable
interest in the San José mine. |
** Gold equivalent ounces were calculated
at a silver to gold ratio of 52:1 for 2012 and 2013, For the
purpose of the 2014 forecast a ratio of 60:1 is being used. |
Production for 2014 is forecast to be roughly in line with 2013,
between 135,000-140,000 gold eq. oz (approximately 81,000 gold oz
and 3,225,000 silver oz). The Company expects production during the
second half of 2014 to exceed the first half due to the expansion
at El Gallo 1 scheduled for completion at the end of Q1 and ramping
up in Q2. Production costs in 2014 are forecasted to be similar to
2013, with cash costs between $750-$850 per gold eq. oz and all-in
sustaining costs between $1,100-$1,200 per gold eq. oz. The Company
projects to produce 170,000 gold eq oz in 2015, excluding any
potential production from El Gallo 2. The decision as to whether to
proceed with El Gallo 2 is still pending and subject to a number of
factors, including obtaining the required financing. Final
production costs for 2013 will be reported in early March 2014 with
year-end financials.
"In addition to executing on our organic growth plans, we
continue to analyze M&A opportunities. Our ideal candidate
would significantly increase our production, lower our cost
profile, and have cash and free cash flow to facilitate the
construction of El Gallo 2. Our geographic focus remains on the
Americas.
As the Company's largest shareholder, I can say management is
focused on growth that produces a higher share value and price. It
is not growth just to be a larger company. The fact that I do not
take a salary means that the only way I will make money is the same
as all the shareholders do and that is through a higher share
price," stated Rob McEwen, Chairman and Chief Owner.
Our Sources of Production
1. San José Mine, Argentina (49%)
McEwen Mining's attributable production from the San José mine
during Q4 2013 totaled 29,407 gold eq. oz (12,999 gold oz and
853,225 silver oz) and the full-year production totaled 108,326
gold eq. oz (48,425 gold oz and 3,114,832 silver oz). McEwen
Mining's share of production from San José in 2014 is forecasted at
97,500 gold eq. oz (44,000 gold oz and 3,200,000 silver oz).
Production costs will be released with year-end financials in early
March.
San José Mine Operating Results |
|
San José - 100%* |
Full-Year 2013 |
Full-Year 2012 |
4th Quarter 2013 |
3rd Quarter 2013 |
Ore production (tonnes) |
536,937 |
509,851 |
156,150 |
131,592 |
Average grade gold (gpt) |
6.42 |
5.79 |
6.03 |
6.59 |
Average head silver (gpt) |
425 |
417 |
399 |
446 |
Average gold recovery (%) |
89.2 |
90.4 |
87.6 |
91.9 |
Average silver recovery (%) |
86.7 |
87.0 |
87.0 |
89.5 |
Gold produced (ounces) |
98,827 |
85,768 |
26,529 |
25,610 |
Silver produced (ounces) |
6,356,801 |
5,952,534 |
1,741,275 |
1,689,237 |
Gold equivalent produced (ounces)** |
221,073 |
200,240 |
60,015 |
58,095 |
|
|
|
|
|
McEwen Mining - 49% Share |
|
|
|
|
Gold produced (ounces) |
48,425 |
42,026 |
12,999 |
12,549 |
Silver produced (ounces) |
3,114,832 |
2,916,742 |
853,225 |
827,726 |
Gold equivalent produced (ounces)** |
108,326 |
98,117 |
29,407 |
28,467 |
* McEwen Mining holds a 49% attributable interest in the San
José mine. |
** Gold equivalent ounces are calculated at a ratio of 52:1 for
2012 and 2013. |
2. El Gallo 1 Mine, Mexico (100%)
El Gallo 1 had a successful first full-year of commercial
production, producing 31,129 gold eq. oz (30,733 gold oz and 20,635
silver oz). During Q4, El Gallo 1 produced 7,760 gold eq. oz (7,687
gold oz and 3,786 silver oz). In 2014, El Gallo 1 is forecasted to
produce 37,500 gold equivalent ounces (37,000 gold oz and 25,000
silver oz). Production costs will be released with year-end
financials in early March 2014.
El Gallo 1 is currently being expanded from 3,000 to 4,500
tonnes per day. The expansion is scheduled to be completed by the
end of Q1 2014. The increased capacity, combined with higher grades
as mining moves deeper in the pit, is expected to increase
production to 75,000 gold equivalent ounces by 2015.
El Gallo 1 Mine Operating Results in 2013 |
|
|
Full-Year 2013 |
4th Quarter 2013 |
3rd Quarter 2013 |
Ore production (tonnes) |
1,260,641 |
323,863 |
289,382 |
Average grade gold (gpt) |
1.22 |
1.17 |
1.31 |
Gold produced (ounces) |
30,733 |
7,687 |
7,934 |
Silver produced (ounces) |
20,635 |
3,786 |
4,868 |
Gold equivalent produced (ounces)** |
31,129 |
7,760 |
8,028 |
** Gold equivalent ounces are calculated at a ratio of 52:1 for
2013. |
3. Future Mines
El Gallo 2, Mexico (100%)
The Environmental Impact Statement (EIS) permit for El Gallo 2
was approved by the federal Mexican Secretariat of Environment and
Natural Resources (SEMARNAT) on November 8, 2013. The final Change
of Land Use permit is being reviewed by the state government and a
decision on this permit is expected during Q1 2014. This final
permit would allow construction and operations to commence at El
Gallo 2 under a mill scenario. The Company has not yet made a
decision as to whether to proceed with El Gallo 2. This decision,
will among other things, be determined by the timing of permits,
the availability of capital and precious metals prices.
Gold Bar, Nevada (100%)
McEwen Mining continues to advance the Gold Bar permitting
process for construction and production. Gold Bar is forecasted to
produce 50,000 ounces gold per year for 8 years at a cash cost of
approximately $700 per ounce. The project is located primarily on
public lands managed by the Bureau of Land Management (BLM). The
BLM and the Nevada Division of Environmental Protection (NDEP) are
the primary government agencies responsible for approving the
permits that would allow the Company to begin construction. The
Company expects to have the permits required for Gold Bar by Q1
2015.
About McEwen Mining (www.mcewenmining.com)
The goal of McEwen Mining is to qualify for inclusion in the
S&P 500 by creating a high growth gold producer focused in the
Americas. McEwen Mining's principal assets consist of the San José
mine in Santa Cruz, Argentina (49% interest); the El Gallo complex
in Sinaloa, Mexico; the Gold Bar project in Nevada, US; the Los
Azules project in San Juan, Argentina. McEwen Mining has
297,159,359 shares issued and outstanding at January 14, 2014. Rob
McEwen, Chairman, and Chief Owner, owns 25% of the shares of the
Company.
TECHNICAL INFORMATION
This news release has been reviewed and approved by William
Faust, PE, McEwen Mining's Chief Operating Officer, who is a
Qualified Person as defined by National Instrument 43-101 ("NI
43-101"). For additional information about the El Gallo complex see
the technical report titled "Resource Estimate for the El Gallo
Complex, Sinaloa State, Mexico" dated August 30, 2013 with an
effective date of June 30, 2013, prepared by John Read, C.P.G., and
Luke Willis, P. Geo. Mr. Read and Mr. Willis are not considered
independent of the Company as defined by NI 43-101. For additional
information about the San José Mine see the "Technical Report on
San José Silver-Gold Mine, Santa Cruz, Argentina" dated August 15,
2013 with an effective date of December 31 2012, prepared by Eugene
Puritch, P.Eng., David Burga, P.Geo., Alfred Hayden, P.Eng., James
L. Pearson, P.Eng., and Fred H. Brown, P.Geo., all of whom are
qualified persons and all of whom are independent of McEwen Mining,
each as defined by NI 43-101. For information about the Gold Bar
project see the technical report titled "NI 43-101 Technical Report
on Resources and Reserves Gold Bar Project, Eureka County, Nevada"
dated February 24, 2012 with an effective date of November 28,
2011, prepared by J. Pennington, C.P.G., MSc., Frank Daviess,
MAusIMM, Registered SME, Eric Olin,, MBA, RM-SME, MSc, Herb Osborn,
P.E, Joanna Poeck, MMSA, B. Eng., Kent Hartley P.E. Mining, SME,
BSc, Mike Levy, P.E, P.G, MSc., Evan Nikirk, P. E., Mark Allan
Willow, M.Sc, C.E.M. and Neal Rigby, CEng, MIMMM, PhD, all of whom
are qualified persons and all of whom are independent of McEwen
Mining, each as defined by NI 43-101. There are significant risks
and uncertainty associated with construction, commencing production
or changing production plans without a current feasibility,
pre-feasibility or scoping study. Although the subject of a 2012
feasibility study, the Company does not have a current feasibility
study on the El Gallo 2 project. As such, El Gallo 2 may ultimately
be determined to lack one or more geological, engineering, legal,
operating, economic, social, environmental, and other relevant
factors reasonably required to serve as the basis for a final
decision to complete the expansion of all or part of this
project.
Minera 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.
The foregoing technical reports are available under the
Corporation's profile on SEDAR (www.sedar.com).
CAUTIONARY NOTE TO US INVESTORS
McEwen Mining prepares its resource estimates in accordance with
standards of the Canadian Institute of Mining, Metallurgy and
Petroleum referred to in Canadian National Instrument 43-101 (NI
43-101). These standards are different from the standards generally
permitted in reports filed with the SEC. Under NI 43-101, McEwen
Mining reports measured, indicated and inferred resources,
measurements which are generally not permitted in filings made with
the SEC. The estimation of measured resources and indicated
resources involve greater uncertainty as to their existence and
economic feasibility than the estimation of proven and probable
reserves. U.S. investors are cautioned not to assume that any part
of measured or indicated resources will ever be converted into
economically mineable reserves. The estimation of inferred
resources involves far greater uncertainty as to their existence
and economic viability than the estimation of other categories of
resources.
CAUTIONARY NOTE REGARDING NON-GAAP MEASURES
In this news release, we have provided non-U.S. GAAP
("non-GAAP") performance measures. Because the non-GAAP performance
measures do not have any standardized meaning prescribed by U.S.
GAAP, they may not be comparable to similar measures presented by
other companies.
Total cash costs consist of mining, processing, on-site general
and administrative costs, royalty costs, refining and treatment
charges, sales costs and operational stripping costs. All-in
sustaining cash costs consist of total cash costs (as described
above), plus environmental rehabilitation costs, mine site
exploration and sustaining capital expenditures. Depreciation is
excluded from both total cash costs and all-in sustaining cash
costs. Total cash cost and all-in sustaining cash cost per ounce
are calculated on a co-product basis by dividing the respective
proportionate share of the total cash costs and all-in sustaining
cash costs for the period attributable to each metal by the ounces
of each respective metal sold.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This 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, technical, 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, 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,
risks related to the receipt of required permits and other
governmental approvals, 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, 2012 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.
McEwen Mining Inc.Sheena ScotlandInvestor Relations(647)
258-0395 ext 410 or Toll Free: (866) 441-0690(647) 258-0408McEwen
Mining Inc.Mailing Address181 Bay Street Suite 4750Toronto, ON M5J
2T3PO box 792info@mcewenmining.comMcEwen Mining Inc.Facebook:
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