Copper $ 2.91 +0.04 +1.22% Volume: December 19, 2014
Silver $ 16.08 +0.20 +1.26% Volume: December 19, 2014
Gold $ 1,195.90 -2.51 -0.21% Volume: December 19, 2014
TSX: MUX $ 1.07 -0.12 -10.08% Volume: 570,868 December 19, 2014
NYSE: MUX $ 0.95 -0.06 -5.69% Volume: 44,959,786 December 19, 2014
1,195.90 -2.51 -0.21% Volume: Pricing delayed 20 minutes December 19, 2014 6:55 PM

El Gallo – Mexico


In Q3 2014, the El Gallo 1 mine produced 6,831 gold equivalent ounces. This is 16% lower than Q2 2014 and 15% lower than Q3 2013 (see table below for comparatives). This decrease was due to severe rainfall that resulted in lower ore production from the mine and lower crusher throughput. 

In order to meet our 2014 production forecast of 37,500 gold equivalent ounces our mining contractor has acquired additional trucks, a second ramp has been constructed to access more mining faces, extra water pumps have been installed and a portable crusher is in place to ensure additional crushing capacity. As well, mining of deeper, higher-grade ore has commenced. The average grade for Q4 2014 is expected to be 1.8 gpt, increasing to 2.6 gpt in 2015 with approximately 850,000 total tonnes being crushed (including tailings and stockpiled material) in 2015.

Total cash costs in Q3 2014 were $1,367 per gold equivalent ounce, 60% higher than Q2 2014 and 83% higher than Q3 2013. The increase in total cash costs is primarily due to the operating challenges resulting from the severe rainfall, as mentioned above, as well as higher operating costs resulting from increased waste tonnage and the addition of a secondary crusher. All-in sustaining costs totaled $1,730 per gold equivalent ounce in Q3 2014, which was 38% higher than Q2 2014 and 79% higher than Q3 2013.

The average realized prices for gold and silver during Q3 2014 were $1,284/oz. and $17.69/oz., respectively.

Despite unfavorable production results at El Gallo 1 in Q3 2014, the Company maintains 2014 production guidance of 37,500 gold equivalent ounces due to higher grades and processing capacity in Q4 2014. Since the end of Q3 2014, approximately 9,000 ounces have been crushed and loaded to the leach pad. These ounces are expected to be reflected in our Q4 2014 production. As well, approximately 3,600 ounces have been poured so far this quarter. This is a good start to producing the 13,200 gold equivalent ounces required in Q4 2014 in order to meet our full year guidance.

For El Gallo 1, 2014 total cash cost guidance is being increased from $750 per gold equivalent ounce to $1,000 per gold equivalent ounce. Full-year all-in sustaining cost guidance is being increased from $1,100 per gold equivalent ounce to $1,250 per gold equivalent ounce. The increase in costs is the result of an increase in waste tonnage, the addition of a secondary crusher and inter-lift liner, as well as repairs and improvements to the integrity of the solution pond liners and foundation of the ADR plant.

Due to the recent, rapid decrease in the gold price, we are evaluating the option of not mining the lower-grade, higher strip Lupita pit at El Gallo 1 in 2015. As a result 2015 guidance has been changed to 50,000 gold equivalent ounces at cash costs of 

El Gallo Phase 1 Mine Production Results

Q3 2014

Q2 2014

Q3 2013

Year to Date 2014

Ore production (tonnes processed)





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$)





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

The El Gallo information on this page was derived from  a news release titled “McEwen Mining Q3 2014 Operating & Financial Results", released on November 10, 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.