TORONTO — McEwen Mining Inc. recently reported annual consolidated production in 2017 was 109,947 gold ounces and 3,178,742 silver ounces, or 152,329 gold equivalent ounces at a gold-to-silver ratio of 75:1.
Q4 2017 highlights
- The El Gallo Mine in Mexico achieved production of 19,893 gold equivalent ounces in Q4, successfully recuperating lost production due to equipment failure in July.
- Black Fox Complex in the Timmins region of Canada had a good first quarter after the transition to MUX ownership, producing 14,279 gold equivalent ounces.
- Funding for a $10 million exploration program in the Timmins region, focusing on the Black Fox Complex.
El Gallo Mine, Mexico
Production in 2017 was 46,694 gold equivalent ounces, compared to 55,266 gold equivalent ounces in 2016. The mine overcame a production shortfall stemming from a serious mechanical crusher failure at the end of July to achieve 93 percent of annual guidance.
In Q4, the mine produced 19,893 gold equivalent ounces, compared to 7,676 gold equivalent ounces during same period in 2016. Production in Q4 was higher as a result of increased crushing capacity, readily available stockpile of ore from previous quarters, and access to higher-grade portions of the orebody.
Black Fox Mine, Canada
MUX closed the purchase of the Black Fox Complex on Oct. 6, 2017. During Q4, the mine produced 14,279 gold equivalent ounces from 79,046 tons processed at a grade of 6.47 grams per ton of gold. These results are in line with the company’s production expectations set forth during the acquisition.
San José Mine, Argentina
Attributable production from San José in 2017 was 49,233 gold ounces and 3,159,352 silver ounces, for a total of 91,356 gold equivalent ounces. Compared to 2016, gold production was up 6 percent and silver production was down 4 percent. In Q4, attributable production was 14,528 gold ounces and 919,898 silver ounces, for a total of 26,793 gold equivalent ounces.
The San José Mine is 49 percent owned by McEwen Mining Inc. and 51 percent owned and operated by Hochschild Mining.
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.
Return of Capital
The semi-annual return of capital of ½ cent per share will be paid on Feb. 14 to shareholders of record as of the close of business on Feb. 2. It will be paid to common shareholders of McEwen Mining Inc. from additional paid-in capital. For shareholders in the U.S. and Canada, return of capital is generally not taxed; however the company recommends obtaining advice from a tax professional familiar with your specific situation.
Operating costs for the quarter ended Dec. 31 will be released with the company’s 10-K Annual Financial Statements in late February 2018.
McEwen’s principal assets consist of the San José mine in Santa Cruz, Argentina, , the El Gallo Gold mine and El Gallo Silver project in Mexico, the Black Fox mine in Timmins, Canada, the Gold Bar future mine in Nevada, and the Los Azules copper project in Argentina.
McEwen has a total of 337 million shares outstanding. Rob McEwen, chairman and chief owner, owns 24 percent of McEwen.