NYSE:
MUX

$7.69
-0.46 -5.64% Volume: 501,526 June 7, 2023
TSX:
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San José Mine

ABOUT SAN JOSÉ MINE

Located in Santa Cruz, Argentina

The San José silver-gold mine is located in the Santa Cruz province of Argentina, 350 kilometers southwest of the Atlantic port city of Comodoro Rivadavia, which provides the principal access route to the property and has regularly scheduled air services to Buenos Aires.

The mine is part of a larger property which covers a total area of approximately 260,000 hectares and consists of 141 mining concessions. Located in the northwest corner of the Deseado Massif region, the San José property surrounds Newmont’s Cerro Negro, with the mines at a distance of 20 kilometers.

The San José mine is a high grade underground gold and silver operation in production since 2007, owned and operated in partnership between McEwen Mining (49% interest) and Hochschild Mining (51% interest).

About Diagram About Diagram

2021 Production

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

San José
Key
Operational
FACTS

Location Santa Cruz Province, Argentina
Workforce 1,900 (including contractors)
Mining Type Underground
Processing Method Grinding and flotation
Crushing/Processing Capacity 1,650 tonnes per day
2021 Production (100%)  83.6 thousand ounces gold + 5.3 million ounces silver
2021 Average Production Grades  5.47 g/t gold and 344 g/t 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 14 years and is estimated to continue producing gold and silver into 2027, according to the operator's 2021 Full Year Results report. The life of the mine continues to be updated as exploration advances and reserve estimates are renewed.

McEwen Mining's attributable production for 2021 at San José was of 40,900 gold ounces and 2,573,000 silver ounces, for a total of 76,800 gold equivalent ounces (using a gold-to-silver price ratio of 68:1 for Q1 2021, 68:1 for Q2 2021, 73:1 for Q3 2021 and 77:1 for Q4 2021).

The 2022 guidance for our attributable production from San José is of 34,500 to 38,500 gold ounces and 2,520,000 to 2,800,000 silver ounces for a total of 69,500 to 77,500 gold equivalent ounces (using a gold to silver price ratio of 72:1), at All-in Sustaining Costs of $1,330 to $1,370.

Silver pille

RESOURCES
& RESERVES

Silver

MEASURED & INDICATED

1,800,000OZ

INFERRED

19,600,000OZ

PROVEN & PROBABLE

16,400,000OZ
Gold pille

Gold

MEASURED & INDICATED

27,000OZ

INFERRED

308,000OZ

PROVEN & PROBABLE

273,000OZ
Mineral Resources are presented exclusive of Mineral Reserves.

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.