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San José Mine

ABOUT SAN JOSÉ MINE

Located in Santa Cruz, Argentina

The San José Mine is owned and operated in partnership between McEwen Mining (49% interest) and Hochschild Mining (51% interest).

Located approximately 20 km north of Newmont’s Cerro Negro project, in the northwest corner of the Deseado Massif region of the Santa Cruz Province in Argentina, the mine is a high grade underground gold and silver operation in production since 2007.

About Diagram About Diagram

2019 Production

Estimates Silver
105.5K
Au Oz
Estimates Gold
6.8M
Ag Oz
Exploration
Potential
Great Address
High Grade
Narrow Vein

San José
Key
Operational
FACTS

Location Santa Cruz Province, Argentina
Workforce 1,400
Mining Type Underground
Processing Method Grinding and flotation
Crushing/Processing Capacity 1,650 tonnes per day
2019 Production (100%)  105.5 thousand ounces gold + 6.8 million ounces silver

Production

Mineralized material at San José is processed at a mill site, with half of the concentrate material produced being processed into doré, and the balance filtered and shipped as concentrate. The mine has been in commercial production for over 12 years and is estimated to continue producing gold and silver into 2024, according to the December 2018 assessment. The life of the mine continues to be updated as exploration advances and reserve estimates are renewed.

McEwen Mining's attributable production for 2019 at San José was of 51,700 gold ounces and 3,354,000 silver ounces, for a total of 91,700 gold equivalent ounces using a variable gold-to-silver ratio between 75:1 and 88:1 throughout the year. For 2019, cash costs and all-in-sustaining costs per ounce of gold equivalent were $867 and $1,140, respectively. Below are presented annual production numbers and costs per ounces sold over the most recent three years.

 

San Jose (100%) Full Year
2019
Full Year
2018
Full Year
2017
Ore processed (thousand tonnes) 544 556 533
Average grade gold (gpt) 6.8 6.2 6.7
Average grade silver (gpt) 443 397 436
Average gold recovery (%) 88.6 87.2 87.4
Average silver recovery (%) 88.3 86.8 86.3
Gold produced (thousand oz) 105.5 96.6 100.5
Silver produced (thousand oz) 6,846 6,165 6,448
Gold equivalent produced (thousand oz) 187.0 178.8 186.4
Gold equivalent cash cost (US$/oz) 867 851 839
Gold equivalent all-in sustaining cash cost (US$/oz) 1,140 1,061 1,027
Silver : gold ratio 84 : 1 75 : 1 75 : 1
Silver pille

RESOURCES
& RESERVES

Silver

MEASURED & INDICATED

38,600,000OZ

INFERRED

20,300,000OZ

PROVEN & PROBABLE

15,200,000OZ
Gold pille

Gold

MEASURED & INDICATED

624,000OZ

INFERRED

321,000OZ

PROVEN & PROBABLE

241,000OZ

EXPLORATION
- NEW HIGH GRADE RESULTS

The San Jose Property Has Not Been Fully Explored

The Property Encompasses 
687,000 ACRES

The San José Property is located in the northwest corner of the Deseado Massif in the Santa Cruz Province in Argentina, where Jurassic bimodal volcanics host numerous quartz veins bearing gold and silver. Low sulphidation silver-gold and polymetallic mineralization accompanied Jurassic magmatism and deformation in the Deseado Massif.

The mine is part of a larger property which covers a total area of approximately 1,074 square miles (2,781 square kilometers) and consists of 135 mining concessions. The sizable land package provides good potential for additional resource and reserve expansion.

The Jurassic Bajo Pobre Formation is the main host for gold and silver mineralization, where veins are typically developed in competent andesite flows at the Huevos Verdes, Frea and Kospi deposits on the San José property and to a lesser extent in volcaniclastic units.

Mineralization in the San José area occurs as low sulfidation epithermal quartz veins, breccias and stockwork systems accompanying normal-sinistral faults. The main structural trend of fault and vein systems on the property is northwest to north-northwest, together with less prominent east striking and north to northeast striking faults and veins.

The San Jose property is still under-explored. We are continuing to identify structures/ extensions with current operations. Long hole drilling started close to the mine at the end of 2019 has recognized new potential to the west side of the Huevos Verdes vein. Geophysics for the Titan area was also started in 2020.

The evaluation of the Aguas Vivas polymetallic deposit to the north west of our existing operations was continued in 2019 and will be completed in 2020.

The Telken zone, which we believe that it could form the extension to veins from Newmont’s Cerro Negro mine in the south, was prepared for drilling in 2019 and will have a 5 kilometers drilling program in the first half of 2020.