Copper $ 3.25 +0.00 +0% Volume: July 24, 2014
Silver $ 20.37 -0.53 -2.54% Volume: July 24, 2014
Gold $ 1,293.43 -11.15 -0.85% Volume: July 24, 2014
TSX: MUX $ 2.85 -0.16 -5.32% Volume: 248,355 July 24, 2014
NYSE: MUX $ 2.65 -0.16 -5.69% Volume: 3,256,111 July 24, 2014
1,293.43 -11.15 -0.85% Volume: Pricing delayed 20 minutes July 24, 2014 6:55 PM
Operations
Operations

El Gallo – Mexico

Production

In Q2 2014 the El Gallo 1 mine produced 8,167 gold eq. oz (8,113 gold oz and 3,275 silver oz). This is 4% lower than the comparable period in 2013 and 13% lower than Q1 2014. Production was lower due to lower gold grades and temporary downtime at the process plant that was associated with commissioning of the expansion. The expansion, which will increase the processing capacity from 3,000 to 4,500 tonnes per day, was completed mid-May and commissioning is underway. The mine is expected to be operating at its full capacity by the start of Q4. Production costs will be reported in August with Q2 financials.

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. 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 respectively. 


El Gallo Phase 1 Mine Production Results

Q2 2014

Q1 2014

Q2 2013

Year to Date 2014

Ore production (tonnes)

368,223

359,402

346,896

727,620

Average grade gold (gpt)

1.10

1.16

1.34

1.13

Gold produced (oz)

8,113

9,295

8,439

17,408

Silver produced (oz)

3,275

4,195

6,341

7,470

Gold equivalent produced (oz)(3)

8,167

9,365

8,545

17,532

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

* 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 Q1 2014 Financial & Operating Results", released on May 8, 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 July 17, 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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