Copper $ 3.03 +0.04 +1.37% Volume: October 21, 2014
Silver $ 17.54 +0.11 +0.63% Volume: October 21, 2014
Gold $ 1,250.85 +3.99 +0.32% Volume: October 21, 2014
TSX: MUX $ 1.92 -0.06 -3.03% Volume: 85,891 October 21, 2014
NYSE: MUX $ 1.71 -0.05 -2.84% Volume: 1,258,253 October 21, 2014
1,250.85 +3.99 +0.32% Volume: Pricing delayed 20 minutes October 21, 2014 2:14 PM
Operations
Operations

San José Mine – Argentina (49% Ownership)

Production

For the full-year 2013, San José produced 108,326 gold equivalent ounces exceeding 2013 guidance for the third consecutive year by 5%. In addition, full-year production was 10% higher than 2012.

Production for McEwen Mining's 49% share in the San José mine during Q2 2014 was 23,033 gold equivalent ounces (converting silver into gold using a 60:1 ratio), consisting of 10,750 gold ounces and 737,001 silver ounces. This was 9% lower than the comparable period in 2013 and 1% higher than Q1 2014. Production was lower year-over-year due to lower gold and silver grades.

Gold equivalent total cash costs in Q2 2014 were $836 per ounce sold. This is 3% higher than Q2 2013 and 2% higher than Q1 2014. The increase in total cash costs is primarily due to lower silver grades, high inflationary pressures and an increase in ground support costs.

All-in sustaining costs totaled $1,165 per gold equivalent ounce sold and was 11% higher than Q2 2013 and 17% higher than Q1 2014. The increase in all-in sustaining costs was also due to lower silver grades, which are expected to recover during the second half of 2014. Further, all-in sustaining costs on a per ounce basis were lower in 2013 than in 2014 due to a significantly higher number of ounces sold, therefore resulting in a lower cost per ounce. Sales in the second quarter of 2013 were unusually high due to a build-up of inventory in the preceding quarter. The average realized prices for gold and silver during Q2 2014 were $1,268/oz. and $19.30/oz., respectively.

Q3 production at San José will be at similar levels to Q2 due to continued low silver grades. In July, the mine also experienced a work stoppage that lasted 3 days. However; the mine remains on track for 2014 production guidance due to anticipated higher grades in Q4.

Production guidance for our share of production from San José in 2014 remains at 97,500 gold equivalent ounces. Cash costs and all-in sustaining costs are estimated at $800 and $1,100 per gold equivalent ounce in 2014.

San José Mine Operating Results

 

San José – 100%* Q2 2014 Q1 2014 Q2 2013

Year to Date

2014

Ore production (tonnes)

142,074

134,589

140,816

276,663

Average grade gold (gpt)

5.45

5.77

6.34

5.60

Average head silver (gpt)

378

391

407

385

Average gold recovery (%)

87.6

88.1

89.3

88.1

Average silver recovery (%)

87.1

86.9

85.5

87.0

Gold produced (oz)

21,938

21,974

25,610

43,912

Silver produced (oz)

1,504,084

1,471,081

1,575,442

2,975,165

Gold sold (oz)

20,954

22,298

31,974

43,252

Silver sold (oz)

1,511,314

1,492,687

1,911,030

3,004,001

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

889

872

878

881

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

13.19

12.75

12.40

12.96

Gold equivalent total cash cost (US$/oz)

836

816

810

826

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

1,239

1,060

1,137

1,149

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

18.38

15.51

16.06

16.92

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

1,165

992

1,049

1,077

 

 

 

 

 

McEwen Mining – 49% Share

Gold produced (oz)

10,750

10,767

12,549

21,517

Silver produced (oz)

737,001

720,830

771,967

1,457,831

Gold equivalent¹ produced (oz)(3)

23,033

22,781

25,415

45,814

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

** Gold equivalent ounces were calculated at a silver to gold ratio of 52:1 for 2012 and 2013, For the purpose of the 2014 forecast a ratio of 60:1 is being used.

San José technical information on this page were 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 Q2 2014 Financial & Operating Results” released on August 7, 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.

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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