Copper $ 3.08 +0.00 +0% Volume: April 23, 2014
Silver $ 19.45 +0.01 +0.05% Volume: April 23, 2014
Gold $ 1,283.61 +0.07 +0.01% Volume: April 23, 2014
TSX: MUX $ 2.83 +0.11 +4.04% Volume: 258,381 April 23, 2014
NYSE: MUX $ 2.57 +0.10 +4.05% Volume: 3,186,152 April 23, 2014
1,283.61 +0.07 +0.01% Volume: Pricing delayed 20 minutes April 23, 2014 6:55 PM

El Gallo – Mexico


In Q1 2014 the El Gallo 1 mine produced 9,365 gold eq. oz (9,295 gold oz and 4,195 silver oz) establishing a new quarterly production record, 38% higher than Q1 2013 and ahead of budget. Production costs will be reported in May 2014 with Q1 financials.

In 2014, El Gallo 1 is forecast to produce 37,500 gold equivalent ounces (converting silver into gold using a 60:1 ratio). Total cash costs and all-in sustaining costs have been estimated at $750 and $1,100 per gold equivalent ounce.

El Gallo 1 is currently being expanded from 3,000 to 4,500 tonnes per day. The expansion is nearing completion and commissioning is scheduled to start in April 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 37,500 gold equivalent ounces in 2013, to 75,000 gold equivalent ounces in 2015. Cash costs and all-in sustaining costs are forecasted to fall from $750 to $575 per gold equivalent ounce and$1,100 to $850 per gold equivalent ounce in 2015.

El Gallo Phase 1 Mine Production Results

  Q1 2014 Q4 2013 Q1 2013 Full-Year 2013
Ore production (tonnes) 359,402 323,863 295,173 1,255,314
Average grade gold (gpt) 1.16 1.17 1.10 1.22
Gold produced (oz) 9,295 7,687 6,673 30,733
Silver produced (oz) 4,195 3,786 5,640 20,635
Gold equivalent produced (oz)(3) 9,365 7,750 6,767 31,077

* 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 Financial & Operating Results", released on March 10, 2014 by McEwen Mining Inc. To access the news release click here. And (2) a news release titled “McEwen Mining Q1 2014 Production Results” released on April 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".

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