Copper $ 3.15 -0.01 -0.33% Volume: 538 October 19, 2017
Silver $ 17.08 -0.22 -1.28% Volume: October 20, 2017
Gold $ 1,280.30 -10.24 -0.79% Volume: October 20, 2017
TSX: MUX $ 2.52 -0.06 -2.33% Volume: 79,729 October 20, 2017
NYSE: MUX $ 1.99 -0.08 -3.87% Volume: 1,433,025 October 20, 2017
1,286.90 +7.00 +0.55% Volume: 163 Pricing delayed 20 minutes October 19, 2017 11:10 PM

El Gallo Complex – Mexico

The El Gallo Complex consists of 50 claims covering 680 square miles in Mexico’s Sinaloa State, along the foothills of the Sierra Madres. McEwen Mining announced the initial gold and silver discovery holes from El Gallo in 2008. The Complex includes the Samaniego, San Rafael, San Dimas, Sagrado, Corazón, Lupita and Central gold deposits, 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 2016 the mine produced 54,929 gold ounces and 25,336 silver ounces, equating to 55,266 gold equivalent ounces, in line with the guidance for the year.

The guidance for 2017 at the El Gallo Mine is for a production of 49,700 ounces of gold and 24,000 ounces of silver, equating to 50,000 ounces gold equivalent ounces at gold equivalent total cash cost of $760 and all-in sustaining cost of $900. The gold equivalence is estimated at a 75:1 gold-to-silver ratio for both 2016 and 2017.

El Gallo Mine Key Operational Facts 

Location Sinaloa State, Mexico
Workforce 350 (including contractors)
Estimated Mine Life +2.5 years
Mining Type Open pit
Processing Method Crushing and heap leach
Crushing/Processing Capacity 4,500 tonnes per day
2017 Estimated Production 49,700 gold oz + 24,000 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 2016 Full Year and Q4 Results", released on March 1, 2017 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) 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.

Cautionary Notes
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.

This website contains certain forward-looking statements and information and investors are encouraged to review our "Cautionary Note Regarding Forward Looking Statement". 



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