Copper $ 3.04 +0.01 +0.26% Volume: November 21, 2014
Silver $ 16.44 +0.16 +0.98% Volume: November 21, 2014
Gold $ 1,201.42 +6.75 +0.57% Volume: November 21, 2014
TSX: MUX $ 1.63 -0.09 -5.23% Volume: 203,260 November 21, 2014
NYSE: MUX $ 1.46 -0.06 -3.95% Volume: 4,029,308 November 21, 2014
1,201.42 +6.75 +0.57% Volume: Pricing delayed 20 minutes November 21, 2014 6:55 PM
Operations
Operations

San José Mine – Argentina (49% Ownership)

Production

Production for McEwen Mining’s 49% share in the San José mine during Q3 2014 was 23,811 gold equivalent ounces (converting silver into gold using a 60:1 ratio). This was 3% higher than Q2 2014 (see table below for comparatives) due to slightly higher gold grades and recoveries. Production in Q3 2014 was in-line with the mine plan, but was 10% lower year-over-year due to exceptionally high gold and silver grades processed in Q3 2013.

Gold equivalent total cash costs in Q3 2014 were $873 per ounce sold. This is 4% higher than Q2 2014 and 12% higher than Q3 2013. The increase in total cash costs is primarily due to a significantly lower number of ounces sold. This is a result of delays in concentrate shipments caused by increased fishing activities at the port where concentrate is exported. As well on a year-over-year basis costs increased due to inflation.

All-in sustaining costs totaled $1,217 per gold equivalent ounce sold and were 4% higher than Q2 2014 and 15% higher than Q3 2013. The increase in all-in sustaining costs is due to a significantly lower number of ounces sold. Also, all-in sustaining costs increased due to inflation, however the effects were slightly offset by a reduction in underground development and exploration costs.

For San José, 2014 total cash cost guidance is being increased from $750 per gold equivalent ounce to $825 per gold equivalent ounce, the result of inflation in Argentina outpacing the devaluation of the peso. Full-year all-in sustaining cost guidance is being increased from $1,100 per gold equivalent ounce to $1,125 per gold equivalent ounce as the effects of inflation were slightly offset by a reduction in underground development and exploration costs.

The average realized prices for gold and silver during Q3 2014 were $1,190/oz. and $16.47/oz., respectively.

McEwen Mining’s forecast share of production from San José in 2014 is 97,500 per gold equivalent ounce with approximately 27,900 gold equivalent ounces being produced in Q4 2014. Guidance for total cash costs and all-in sustaining costs for 2014 has been revised to $825 per gold equivalent ounce and $1,125 per gold equivalent ounce, respectively.

San José Mine Operating Results

 

San José – 100%* Q3 2014 Q2 2014 Q3 2013

Year to Date

2014

Ore production (tonnes processed)

141,666

142,074

131,592

418,329

Average grade gold (gpt)

5.66

5.45

6.59

5.62

Average head silver (gpt)

388

378

446

386

Average gold recovery (%)

89.2

87.6

91.9

88.5

Average silver recovery (%)

86.9

87.1

89.5

87.0

Gold produced (ounces)

23,016

21,938

25,610

66,928

Silver produced (ounces)

1,534,683

1,504,084

1,689,237

4,509,848

Gold sold (ounces)

17,893

20,954

24,713

61,145

Silver sold (ounces)

1,149,208

1,511,314

1,655,699

4,153,209

Co-product total cash cost Au (US$/oz)

971

889

814

916

Co-product total cash cost Ag (US$/oz)

13.02

13.19

12.52

13.19

Gold equivalent total cash cost (US$/oz)

873

836

781

839

Co-product all-in sustaining cash cost Au (US$/oz)

1,353

1,239

1,100

1,215

Co-product all-in sustaining cash cost Ag (US$/oz)

18.16

18.38

16.93

17.50

Gold equivalent co-product all-in sustaining cash cost (US$/oz)

1,217

1,165

1,056

1,117

 

 

 

 

 

McEwen Mining – 49% Share

Gold produced (oz)

11,278

10,750

12,549

32,795

Silver produced (oz)

751,995

737,001

827,726

2,209,826

Gold equivalent¹ produced (oz)(3)

23,811

23,033

26,344

69,625

* McEwen Mining holds a 49% attributable interest in the San José mine.


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.

Mineral resources which are not mineral reserves do not have demonstrated economic viability.

This website contains certain forward-looking statements and information and investors are encouraged to review our Cautionary Note Regarding Forward Looking Statement and our disclaimer regarding Reliability of Information San Jose Mine / Minera Santa Cruz S.A.

 

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