The El Gallo Complex is located in Mexico’s Sinaloa State, along the foothills of the Sierra Madres. McEwen Mining announced the initial discovery holes from the El Gallo silver/gold discovery in November 2008. The complex includes the El Gallo and Palmarito silver deposits and the Magistral gold deposit, located within a 13 km (8 mile) radius.
El Gallo Mine: The El Gallo Mine achieved first gold pour in September 2012 and commercial production in January 2013. In 2015 the mine had a record production of 63,366 gold equivalent ounces.
Full year guidance for El Gallo Mine in 2016 was of 55,000 gold equivalent ounces at all-in sustaining cost of $840 per gold equivalent ounce. Our 2016 production of 54,929 gold ounces and 25,336 silver ounces equates to 55,266 gold equivalent ounces, in line with the annual guidance (estimated at a 75:1 gold-to-silver ratio).
El Gallo Mine Key Operational Facts
||Sinaloa State, Mexico
||350 (including contractors)
|Estimated Mine Life
||Crushing and heap leach
||4,500 tonnes per day
||54,929 gold oz & 25,336 silver oz
El Gallo Silver: The El Gallo Silver project is located in the El Gallo Complex, within 7 kilometers from the producing El Gallo Mine.
According to the last feasibility study for the project, which was envisioning an open pit mine with conventional crushing and milling at 5 thousand tonnes per day using whole ore leaching, the project was designed to produce an average of 5.2 million ounces of silver and 6,100 ounces of gold for 95,000 gold equivalent ounces per year, at an average silver grade of 101 grams per tonne and gold grade of 0.12 grams per tonne, over a 6.5 year Life of Mine (gold equivalent ounces at a 60:1 gold to silver exchange ratio). The El Gallo Silver project is now fully permitted. New studies will examine the potential for utilizing used equipment and a different processing technique that increases recoveries while reducing retention times, consumables and the number of tanks. We are targeting improvement of the project’s economics in line with the current silver prices, such as reduction of the initial capital expenditures, down from the $178 million anticipated by the 2012 feasibility study.
The El Gallo information on this page was derived from:
(1) news release titled “McEwen Mining Reports 2015 Full Year and Q4 Results", released on March 11, 2016 by McEwen Mining Inc. To access the news release click here.
(2) news release titled “McEwen Mining 2014 Operating & Financial Results", released on March 9, 2015 by McEwen Mining Inc. To access the news release click here.
(3) news release titled “McEwen Mining Q2 2016 Operating & Financial Results", released on August 4, 2016 by McEwen Mining Inc. To access the news release click here.
(4) 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. Both Mr. Read and Mr. Willis are not considered independent of the Company as defined in Section 1.5 of NI 43-101. To access the report click here.
McEwen Mining reports 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. According to Canadian NI 43-101 criteria, the estimation of measured resources and indicated resources involve greater uncertainty as to their economic feasibility than the estimation of proven and probable reserves. Under SEC Industry Guide 7 criteria, measured, indicated and inferred resources are considered Mineralized Material. The SEC considers that in addition to greater uncertainty as to the economic feasibility of Mineralized Material compared to proven and probable reserves, there is also greater uncertainty as to the existence of Mineralized Material. U.S. investors are cautioned not to assume that measured or indicated resources will 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.
Mineral resources which are not mineral reserves do not have demonstrated economic viability.