McEwen Mining Reports Q1 2018 Production Results

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TORONTO, April 16, 2018 (GLOBE NEWSWIRE) -- (NYSE:MUX) (TSX:MUX) reports consolidated production for Q1 2018 of 35,069 gold ounces and 695,651 silver ounces, or 44,344 gold equivalent ounces (“GEOs”), using a 75:1 gold to silver ratio.

Highlights of the first quarter from our three producing mines and our newest mine in Nevada, which is under construction, are as follows:

Construction activities at Gold Bar focused on finishing civil works related to the heap leach pad, ponds and site infrastructure, in preparation for major equipment and material deliveries in the second quarter. Construction is advancing on schedule for completion by the end of 2018. During the first three years of operation beginning in 2019 Gold Bar is projected to produce , and ounces of gold respectively.

Black Fox produced GEOs, in line with our full year production guidance for 2018 of 48,000 GEOs. A $12 million exploration program is ongoing across the Black Fox Complex, drilling results and other developments will be released quarterly, with the next update anticipated by the end of April.

A new technical report and resource/reserve estimates for the Black Fox Complex was published on April 6, 2018. The complete report, with an effective date of October 31, 2017, is available on the Company’s website and on . For comparative purposes the previous resource/reserve estimates by the former property owner had an effective date of December 31, 2016. The new mineral resource estimate for the Black Fox Mine resulted in a 40% increase in gold resource in the Indicated category to 538,000 ounces, and a decrease of 2% in the Inferred category to 44,000 ounces . The overall increase is mainly attributable to improvements in methodology used to constrain high and low-grade domains within lithological and alteration envelopes. This significantly reduced internal dilution that previously resulted in the exclusion of potential resource. Additionally, capping grades and variography parameters were reviewed and tailored to each domain.

The new mineral reserve estimate for the Black Fox Mine resulted in a 2% increase in Proven and Probable gold reserves to 113,000 ounces .

Resource estimates for the Froome and Grey Fox deposits were also updated. The new Froome resource estimate is in line with the previous estimate. At Grey Fox, the updated resource considered a potential underground mining scenario (previously open pit and underground) and was calculated using additional drill hole data, updated geological and structural interpretations and tighter controls on the estimation process. Comparing underground resources only, gold resource in the Indicated category increased by 44% to 465,000 ounces, and the Inferred category decreased by 32% to 100,000 ounces.

El Gallo produced GEOs, in line with our budget and full year production guidance for 2018 of 32,000 GEOs. Mining from the existing open pits will cease in Q2, while heap leaching activities are expected continue until 2020, or as long as it remains economical to do so. Operating expenses will diminish significantly in Q2, while gold production will decline more gradually, resulting in an overall reduction in cost per ounce produced for the balance of 2018.

Our attributable production from San José was gold ounces and silver ounces, for a total of GEOs. Production at San José in the first quarter is typically lower than other quarters due to regularly scheduled maintenance, however the mine is on-track to achieve our full year guidance for 2018 of 91,000 GEOs. We received approximately $5 million in dividends from our interest in San José during Q1, and with spot gold and silver prices significantly above budget, we expect to continue to receive dividends in each of the subsequent quarters.

Operating costs for the quarter ended March 31, 2018 will be released with our 10-Q Quarterly Financial Statements in early May. As of April 6, 2018 we are debt-free with liquid assets of approximately $52 million.

McEwen has the goal to qualify for inclusion in the S&P 500 Index by creating a profitable gold and silver producer focused in the Americas. McEwen’s principal assets consist of: the San José mine in Santa Cruz, Argentina (49% interest); the El Gallo Gold mine in Mexico; the Black Fox mine in Timmins, Canada; the Gold Bar mine in Nevada, currently under construction; and the large Los Azules copper project in Argentina, advancing towards development.

McEwen has a total of 337 million shares outstanding. Rob McEwen, Chairman and Chief Owner, owns 24% of the shares.

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.

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Globe Newswire: 15:41 GMT Monday 16th April 2018

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