Copper $ 2.99 +0.00 +0% Volume: October 20, 2014
Silver $ 17.43 +0.14 +0.81% Volume: October 20, 2014
Gold $ 1,246.95 +10.52 +0.85% Volume: October 20, 2014
TSX: MUX $ 1.98 -0.05 -2.46% Volume: 224,764 October 20, 2014
NYSE: MUX $ 1.76 -0.04 -2.22% Volume: 2,018,040 October 20, 2014
1,246.95 +10.52 +0.85% Volume: Pricing delayed 20 minutes October 20, 2014 6:55 PM
Operations
Operations

El Gallo – Mexico

Production

In Q2 2014 the El Gallo 1 mine produced 8,167 gold equivalent ounces, consisting of 8,113 gold ounces and 3,275 silver ounces. This was 4% lower than Q2 2013 and 13% lower than Q1 2014. Production was lower due to lower gold grades and downtime at the process plant that was associated with commissioning of the expansion.

Total cash costs in Q2 2014 were $852 per gold equivalent ounce, 19% higher than Q2 2013 and 18% higher than Q1 2014. The increase in total cash costs is primarily due to a higher strip ratio in the areas being mined in 2014, coupled with lower ounces produced in Q2. Haulage costs have increased slightly year-over-year, as we are currently mining pits that are further away from both the processing plant and the waste dumps as per the mine plan. The Company also incurred additional expenditures to repair and improve the solution pond liners and the ADR plant.

All-in sustaining costs totaled $1,257 per gold equivalent ounce in Q2 2014, which was 4% higher than Q2 2013 and 20% higher than Q1 2014. The average realized prices for gold and silver during Q2 2014 were $1,291/oz. and $19.58/oz., respectively.

The Company expects Q3 production at El Gallo 1 to remain at current levels due to continuation of the rainy season and crusher availability issues experienced in mid-July.

By mid-Q3 2014 we expect to be mining significantly higher grade ore at El Gallo 1. The grade is expected to increase from 1.1 gpt in Q2 to an average of 1.9 gpt for the second half of 2014. The grade coupled with the expanded rate of production will have a positive impact in Q4.

In 2014, El Gallo 1 is forecasted to produce 37,500 gold equivalent ounces. Total cash costs and all-in sustaining costs have been estimated at $775 and $1,100 per gold equivalent ounce, respectively.

In 2015, cash costs and all-in sustaining costs are forecasted to fall from $775 to $575 per gold equivalent ounce and $1,100 to $850 per gold equivalent ounce, respectively because of the expansion at El Gallo 1. The increased capacity, combined with higher grades as mining moves deeper in the pit, is expected to increase production from 37,500 gold equivalent ounces in 2014, to 75,000 gold equivalent ounces in 2015.

El Gallo Phase 1 Mine Production Results

Q2 2014

Q1 2014

Q2 2013

Year to Date 2014

Ore production (tonnes)

368,223

359,402

346,896

727,625

Average grade gold (gpt)

1.10

1.16

1.34

1.13

Gold produced (oz)

8,113

9,295

8,439

17,408

Silver produced (oz)

3,275

4,195

6,341

7,470

Gold equivalent produced (oz)

8,167

9,365

8,545

17,532

Gold sold (oz)

8,911

8,563

7,897

17,474

Silver sold (oz)

6,760

1,600

6,400

8,360

Gold equivalent total cash cost (US$)

852

720

714

788

Gold equivalent co-product all-in sustaining cash cost (US$)

1,257

1,046

1,204

1,154

* Gold recoveries are projected to reach 70% through on-going leaching.

The El Gallo information on this page was derived from (1) a news release titled “McEwen Mining Q2 2014 Financial & Operating Results", released on August 7, 2014 by McEwen Mining Inc. To access the news release 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.

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

 

Subscribe to Our Mailing List

Email Address *

 
Enter the code shown above.