Copper $ 3.05 +0.00 +0.03% Volume: October 24, 2014
Silver $ 17.21 +0.02 +0.12% Volume: October 24, 2014
Gold $ 1,231.03 -1.48 -0.12% Volume: October 24, 2014
TSX: MUX $ 1.78 -0.01 -0.56% Volume: 147,820 October 24, 2014
NYSE: MUX $ 1.59 -0.01 -0.62% Volume: 1,235,107 October 24, 2014
1,231.03 -1.48 -0.12% Volume: Pricing delayed 20 minutes October 24, 2014 6:55 PM
Operations
Operations

El Gallo – Mexico

Production

In Q3 2014 the El Gallo 1 mine produced 6,831 gold equivalent ounces, consisting of 6,748 gold ounces and 4,980 silver ounces. This was 16% lower than Q2 2014. The decrease in production was due to lower ore production, the result of severe rainfall that resulted in lower haulage rates and crusher throughput. Production costs will be reported in November 2014 with Q3 financials. 

In order to meet our 2014 production forecast of 37,500 gold eq. oz, 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.

These initiatives are already paying off. Month-to-date, we have crushed and loaded approximately 4,300 ounces to the leach pad that are expected to be reflected in our Q4 production. This is a solid start to producing the 13,200 gold eq. oz required in Q4 in order to meet our full year guidance.

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

Q3 2014

Q2 2014

Q3 2013

Year to Date 2014

Ore production (tonnes)

212,534

368,223

289,382

940,159

Average grade gold (gpt)

1.12

1.10

1.31

1.13

Gold produced (oz)

6,748

8,113

7,934

24,155

Silver produced (oz)

4,980

3,275

4,868

12,450

Gold equivalent produced (oz)(3)

6,831

8,167

8,015

24,362

* 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. And (2) a news release titled “McEwen Mining Q2 2014 Production Results", released on October 23, 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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