McEwen Mining El Gallo 1 Mine Expansion Nears Completion
Ahead of Schedule & Below Budget
2015 Production Estimate 75,000 oz. Gold - Cash Cost US$575 per
oz.
TORONTO, ONTARIO--(Marketwired - Feb 20, 2014) - McEwen Mining
Inc. (NYSE:MUX) (TSX:MUX) is pleased to announce that the expansion
of the El Gallo 1 mine in Sinaloa State, Mexico is scheduled to be
completed by early April. The expansion is approximately three
months ahead of schedule and capital costs are expected to total
US$3 million versus the US$5 million originally budgeted.
Production is anticipated to grow from 37,500 oz. gold this year to
75,000 oz. gold in 2015. Cash costs are also expected to decrease
from US$750 per oz. to US$575 per oz. starting next year.
Commissioning is expected to commence during Q2, with the
expansion fully operational during the second half of the year. El
Gallo 1 is being expanded from 3,000 tonnes per day (tpd) to 4,500
tpd. In addition to the expansion, gold grades are expected to
increase starting in 2015 from approximately 1.1 gpt to 2.0
gpt.
"Our team in Mexico, along with the company's main contractor,
SAR Servicios Tecnicos, has done a good job expanding the El Gallo
1 mine. Our skill set within Mexico continues to grow and this is
an important learning experience should the company proceed with
the construction of El Gallo 2. With the expansion and higher gold
grades, we expect the mine to generate US$30 million in annual free
cash flow before taxes starting next year (at a $1,300 gold
price)", stated Rob McEwen, Chairman and Chief Owner.
About McEwen Mining (www.mcewenmining.com???)
The goal of McEwen Mining is to qualify for inclusion in the
S&P 500 by creating a high growth gold 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 complex
in Sinaloa, Mexico; the Gold Bar project in Nevada, US; the Los
Azules project in San Juan, Argentina and a large portfolio of
exploration properties in Argentina, Mexico and Nevada.
McEwen Mining has 297,159,359 shares issued and outstanding at
February 20, 2014, which consists of both common and exchangeable
shares. Each exchangeable share is convertible into a common share
on a one-for-one basis and holds the same rights as each common
share. Rob McEwen, Chairman, and Chief Owner, owns 25% of the
shares of the Company.
TECHNICAL INFORMATION:
This news release has been reviewed and approved by William
Faust, PE, McEwen Mining's Chief Operating Officer, who is a
Qualified Person as defined by National Instrument 43-101 ("NI
43-101"). For additional information about the El Gallo complex see
the technical report titled "Resource Estimate for the El Gallo
Complex, Sinaloa State, Mexico" dated August 30, 2013 with an
effective date of June 30, 2013, prepared by John Read, C.P.G., and
Luke Willis, P. Geo. Mr. Read and Mr. Willis are not considered
independent of the Company as defined by NI 43-101.
There are significant risks and uncertainty associated with
construction, commencing or expanding production or changing
production plans without a current feasibility, pre-feasibility or
scoping study. As such, El Gallo 1 may ultimately be determined to
lack one or more geological, engineering, legal, operating,
economic, social, environmental, and other relevant factors
reasonably required to serve as the basis for a final decision to
successfully complete the expansion of all or part of this
project.
The foregoing news release and technical reports are available
under the Corporation's profile on SEDAR (www.sedar.com).
CAUTIONARY NOTE TO US INVESTORS
McEwen Mining prepares 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. The estimation of measured resources and indicated
resources involve greater uncertainty as to their existence and
economic feasibility than the estimation of proven and probable
reserves. U.S. investors are cautioned not to assume that any part
of measured or indicated resources will ever 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.
CAUTIONARY NOTE REGARDING NON-GAAP MEASURES
In this news release, we have provided non-U.S. GAAP
("non-GAAP") performance measures. Because the non-GAAP performance
measures do not have any standardized meaning prescribed by U.S.
GAAP, they may not be comparable to similar measures presented by
other companies.
Total cash costs consist of mining, processing, on-site general
and administrative costs, royalty costs, refining and treatment
charges, sales costs and operational stripping costs. All-in
sustaining cash costs consist of total cash costs (as described
above), plus environmental rehabilitation costs, mine site
exploration and sustaining capital expenditures. Depreciation is
excluded from both total cash costs and all-in sustaining cash
costs. Total cash cost and all-in sustaining cash cost per ounce
are calculated on a co-product basis by dividing the respective
proportionate share of the total cash costs and all-in sustaining
cash costs for the period attributable to each metal by the ounces
of each respective metal sold.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking statements
and information, including "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
The forward-looking statements and information expressed, as at the
date of this news release, McEwen Mining Inc.'s (the "Company")
estimates, forecasts, projections, expectations or beliefs as to
future events and results. Forward-looking statements and
information are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by management, are
inherently subject to significant business, economic and
competitive uncertainties, risks and contingencies, and there can
be no assurance that such statements and information will prove to
be accurate. Therefore, actual results and future events could
differ materially from those anticipated in such statements and
information. Risks and uncertainties that could cause results or
future events to differ materially from current expectations
expressed or implied by the forward-looking statements and
information include, but are not limited to, factors associated
with fluctuations in the market price of precious metals, mining
industry risks, political, economic, social and security risks
associated with foreign operations, risks associated with the
construction of mining operations and commencement of production
and the projected costs thereof, risks related to litigation, the
state of the capital markets, environmental risks and hazards,
risks related to the receipt of required permits and other
governmental approvals, uncertainty as to calculation of mineral
resources and reserves and other risks. Readers should not place
undue reliance on forward-looking statements or information
included herein, which speak only as of the date hereof. The
Company undertakes no obligation to reissue or update
forward-looking statements or information as a result of new
information or events after the date hereof except as may be
required by law. See McEwen Mining's Annual Report on Form 10-K for
the fiscal year ended December 31, 2012 and other filings with the
Securities and Exchange Commission, under the caption "Risk
Factors", for additional information on risks, uncertainties and
other factors relating to the forward-looking statements and
information regarding the Company. All forward-looking statements
and information made in this news release are qualified by this
cautionary statement.
The NYSE and TSX have not reviewed and do not accept
responsibility for the adequacy or accuracy of the contents of this
news release, which has been prepared by management of McEwen
Mining Inc.
McEwen Mining Inc.Sheena ScotlandInvestor Relations(647)
258-0395 ext 410 or Toll Free: (866) 441-0690(647) 258-0408Mailing
AddressMcEwen Mining Inc.181 Bay Street Suite 4750Toronto, ON M5J
2T3PO box 792info@mcewenmining.comMcEwen Mining Inc.Facebook:
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