NYSE:
MUX

$1.48
-0.01 -0.67% Volume: 2,831,615 October 16, 2019
TSX:
MUX

$1.97
+0.02 +1.03% Volume: 236,717 October 16, 2019

El Gallo

About El Gallo

Located in Mexico

The El Gallo Complex is located in Mexico’s Sinaloa State, along the foothills of the Sierra Madres Occidental mountain range, with a property package including over 1,700 square kilometers of mineral claims. The mine is easily road accessible 20 kilometers NE from the town of Guamuchil.

McEwen Mining purchased El Gallo in 2007, initiated a significant exploration effort and announced the initial silver and gold discovery holes in the complex in November 2008. The Complex includes the El Gallo and Palmarito silver deposits and the Magistral gold deposit, located within a 13 km (8 mile) radius.

The El Gallo Mine, which achieved first gold pour in September 2012 and commercial production in January 2013, operated until May 2018 as an open pit with crushing and heap leach processing, at a capacity of 4,500 tonnes of ore per day.

From 2012 to 2018 El Gallo produced 279,000 ounces of gold and 134,000 ounces of silver, equating to 281,000 ounces of gold equivalent at average cash cost of $655 per ounce of gold equivalent. Due to the transition to deeper sulfide mineralization that is not amenable to heap leaching, mining and crushing activities ceased in the second quarter of 2018 and contractor equipment has been demobilized from the mine site. Residual heap leaching will continue to produce gold for several years.

About Diagram About Diagram

Latest Annual Production

2018 Production

Estimates Silver
38,984
Au Oz
Estimates Gold
9,145
Ag Oz
Big Land
Package,
Exploration
Potential

Production at El Gallo

From its beginnings in 2012 until 2017, the El Gallo Mine produced 240,000 gold ounces and 125,000 silver ounces. During Q2 2018 mining and crushing activities at El Gallo ceased and contractor equipment has been demobilized from the mine site. Onsite operations continued through residual heap leaching for the remainder of 2018.

In 2018 El Gallo produced 38,984 ounces of gold and 9,145 ounces of silver, representing a total of 39,106 gold equivalent ounces based on a 75:1 gold-to-silver ratio. Mine demobilization in May brought diminishing operating expenses, with gold production declining more gradually, resulting in an overall reduction in costs per ounce produced for the balance of the year. El Gallo costs per gold equivalent ounce realized in 2018 were $733 total cash costs and $771 all-in sustaining costs.

In 2019 the process plant underwent expansions that improved efficiency and enabled faster gold recovery. Q1 production was 5,432 gold equivalent ounces, with total cash cost and all-in sustaining cost of $967 and $989 per gold equivalent ounce, respectively (based on a 75:1 gold:silver ratio). Q2 production was 5,340 gold equivalent ounces, with total cash cost and all-in sustaining cost of $926 and $939 per gold equivalent ounce, respectively (based on a 88:1 gold:silver ratio).

El Gallo has 2019 production guidance of 16,000 gold equivalent ounces to be derived from residual heap leaching activities, at cash costs and all-in sustaining costs of $875 and $915 per gold equivalent ounce, respectively.

Closure and reclamation at El Gallo are ongoing and residual heap leaching activities will continue to produce gold for several years. At the same time, our team in Mexico is working on an exciting new project for the El Gallo Complex. To find out information about project Fenix please visit its page here.