On January 1st, 2013, El Gallo 1 declared commercial production. In Q3 2013 the El Gallo 1 mine produced 8,027 gold equivalent ounces, consisting of 7,934 gold ounces and 4,868 silver ounces. The mine remains on track to meet its production guidance of 27,300 gold equivalent ounces in 2013.
Total cash costs for the quarter equaled $747 per gold equivalent ounce, below full year guidance of $750-$850 per ounce. All-in sustaining costs totaled $1,066 per gold equivalent ounce.
El Gallo 1 is currently being expanded from 3,000 to 4,500 tonnes per day. The expansion is ahead of schedule with completion expected at the end of Q1 2014 versus the earlier estimate of end of Q2 2014. The cost to complete the expansion has been reduced to $3 million from $5 million. The cost is lower than expected due to a large contingency that was initially included but has since been reduced. The increased capacity, combined with higher grades as mining moves deeper in the pit, is expected to increase production from 27,300 gold equivalent ounces in 2013, to 37,500 gold equivalent ounces in 2014 and 75,000 gold equivalent ounces by 2015.
El Gallo Phase 1 Mine Production Results
Ore production (tonnes)
|Average grade gold (gpt)
|Gold produced (ounces)
|Silver produced (ounces)
|Gold equivalent produced (ounces)
|Gold sold (ounces)
|Silver sold (ounces)
|Gold equivalent total cash cost (US$)
|Gold equivalent co-product all-in sustaining cash cost (US$)
The El Gallo information on this page was derived from: (1) news release titled “McEwen Mining Q3 2013 Results", released on November 8, 2013 by McEwen Mining Inc. To access the news release click here. And, (2) News release titled “McEwen Mining Announces Plans to Expand Production at El Gallo 1 Mine in Mexico” released on May 16, 2013 by McEwen Mining Inc. To access the news release 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.
This website contains certain forward-looking statements and information and investors are encouraged to review our "Cautionary Note Regarding Forward Looking Statement".