Announces Record Quarterly Production at El Gallo Mine: Q2 2015 Production Results
Toronto, July 16, 2015 AEST (ABN Newswire) - McEwen Mining Inc. (
NYSE:MUX) (TSE:MUX) ("McEwen Mining" or the "Company") is pleased to announce record quarterly production at the El Gallo Mine in Mexico of 17,325 gold equivalent ounces(1), 15% above guidance for the quarter. On a consolidated basis, gold production for the quarter was 39,164 gold equivalent ounces(see note 1).
Highlights
- Record quarterly production at the El Gallo Mine of 17,325 gold equivalent ounces(1).
- Total Q2 2015 production of 39,164 gold equivalent ounces(1), an increase of 36% over Q2 2014.
- Year-to-date gold production of 72,598 gold equivalent ounces(1), an increase of 24% over the first six months of 2014.
- Higher average processed gold grade at El Gallo Mine of 3.7 grams per tonne (gpt) vs. 3.2 gpt last quarter.
- Current cash and precious metals of $27.3 million(2) vs. $17.3 million(see note 2) reported on May 11th, 2015.
- Full year production guidance maintained at 96,500 gold ounces and 3.1 million silver ounces.
- Inaugural semi-annual dividend distribution of $0.005 per share will be paid August 17th, 2015 to shareowners of record on July 31st, 2015, a current yield of 1.3% annualized.
El Gallo Mine, Mexico - Continued Strong Performance
Production in Q2 2015 was 15% above guidance due to higher gold grade and improved processing efficiencies. The gold grade processed in the quarter was 3.7 gpt, which is higher than the average resource grade at El Gallo, and we expect that over the next six months the grade will gradually return to approximately 2 gpt. Operational performance in 2015 has been strong, with production exceeding guidance in both Q1 and Q2 by 17% and 15% respectively (see Fig. 1 in link below).
Guidance for Q3 remains at 8,000 gold ounces. Q3 production is typically lower due to the adverse impact of the annual summer rainy season on mining and heap leach efficiency. Our 2015 production guidance remains 50,000 gold ounces at an all-in sustaining cost (AISC) of $750 per gold equivalent ounce(see note 2).
San José, Argentina (49%(see note 3)) - Meeting Guidance, Higher Grade
Our attributable production from San José in Q2 2015 was 11,275 gold ounces and 792,344 silver ounces, or 21,839 gold equivalent ounces(1). Compared to Q2 2014, gold and silver production was up 5% and 8% respectively (see Fig. 2 in link below). The gold equivalent grade processed in the quarter was 12.7 gpt, which is somewhat higher than the long-run average grade of approximately 11.0 gpt gold equivalent. Full year guidance for San José remains at 46,500 gold ounces and 3.1 million silver ounces at an all-in sustaining cost (AISC) of $1,225 per gold equivalent ounce(2).
Financial Results
Operating costs for Q2 2015 will be released with the Quarterly Financial Statements on August 10th, 2015.
Click here to view Figure 1 - El Gallo Mine Production and Figure 2 - San José Mine (49%3) Production:
http://www.abnnewswire.net/lnk/A0J4K0GG
Footnotes:
1 'Gold Equivalent Ounces' are calculated based on a 75:1 gold to silver ratio.
2 All Dollar Amounts in United States Dollars, see Cautionary Note Regarding Non-GAAP Measures below.
3 The San José Mine is 49% owned by McEwen Mining and 51% owned and operated by Hochschild Mining.
ABOUT MCEWEN MINING (www.mcewenmining.com)
The goal of McEwen Mining is to qualify for the S&P 500 by creating a high growth gold/silver producer focused in the Americas. McEwen Mining's principal assets consist of the San José mine in Santa Cruz, Argentina (49% interest), the El Gallo Mine and El Gallo 2 project in Sinaloa, Mexico, the Gold Bar project in Nevada, USA, and the Los Azules copper project in San Juan, Argentina.
As of July 15, 2015 McEwen Mining has an aggregate of 300,530,174 shares of common stock outstanding and issuable upon the exchange of the exchangeable shares. Rob McEwen, Chairman and Chief Owner, owns 25% of the shares of the Company (assuming all outstanding Exchangeable Shares are exchanged for an equivalent number of Common Shares).
RELIABILITY OF INFORMATION REGARDING THE SAN JOSÉ MINE
Minera Santa Cruz S.A., the owner of the San José Mine, is responsible for and has supplied to the Company all reported results from the San José Mine. McEwen Mining's joint venture partner, a subsidiary of Hochschild Mining plc, and its affiliates other than MSC do not accept responsibility for the use of project data or the adequacy or accuracy of this release.
About McEwen Mining Inc
McEwen Mining (NYSE:MUX) (TSE:MUX) is a gold and silver producer with operations in Nevada, Canada, Mexico and Argentina. McEwen Mining also holds a 48.3% interest in McEwen Copper, which is developing the large, advanced-stage Los Azules copper project in Argentina. The Company's goal is to improve the productivity and life of its assets with the objective of increasing the share price and providing a yield. Rob McEwen, Chairman and Chief Owner, has a personal investment in the Company of US$225 million.
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