El Gallo 1 had a successful first full-year of commercial production, producing 31,129 gold eq. oz (30,733 gold oz and 20,635 silver oz). During Q4, El Gallo 1 produced 7,760 gold eq. oz (7,687 gold oz and 3,786 silver oz). In 2014, El Gallo 1 is forecasted to produce 37,500 gold equivalent ounces (37,000 gold oz and 25,000 silver oz). Production costs will be released with year-end financials in early March 2014.
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 1 Mine Operating Results in 2013
4th Quarter 2013
3rd Quarter 2013
Ore production (tonnes)
Average grade gold (gpt)
Gold produced (ounces)
Silver produced (ounces)
Gold equivalent produced (ounces)**
** Gold equivalent ounces are calculated at a ratio of 52:1 for 2013.
The El Gallo information on this page was derived from: (1) news release titled “McEwen Mining 2013 Production Up 33% Over 2012; 139,455 Gold Eq. oz Produced in 2013", released on January 14, 2014 by McEwen Mining Inc. To access the news release click here. And, (2) news release titled “McEwen Mining Q3 2013 Results", released on November 8, 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".