TORONTO — McEwen Mining Inc. reports consolidated production for the 2018 first quarter of 35,069 gold ounces and 695,651 silver ounces, or 44,344 gold equivalent ounces, using a 75:1 gold to silver ratio.
Highlights of the first quarter released April 16 show results from the company’s three producing mines and newest mine in Nevada, which is under construction:
Gold Bar Mine, Nevada
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 55,000, 74,000 and 68,000 ounces of gold, respectively.
Black Fox Mine, Canada
Black Fox produced 12,078 gold equivalent ounces, in line with full year production guidance for 2018 of 48,000 gold equivalent ounces. A $12 million exploration program is ongoing across the Black Fox Complex.
A new technical report and resource/reserve estimates for the Black Fox Complex was published on April 6. The new mineral resource estimate for the Black Fox Mine resulted in a 40 percent increase in gold resource in the Indicated category to 538,000 ounces, and a decrease of 2 percent in the inferred category to 44,000 ounces.
El Gallo Mine, Mexico
El Gallo produced 12,217 gold equivalent ounces, in line with the company’s budget and full year production guidance for 2018 of 32,000 GEOs. Mining from the existing open pits will cease in the second quarter, while heap leaching activities are expected continue until 2020, or as long as it remains economical to do so.
San José Mine, Argentina
The company’s attributable production from San José was 10,822 gold ounces and 692,052 silver ounces, for a total of 20,049 gold equivalent ounces. 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 full year guidance for 2018 of 91,000 gold equivalent ounces. The company, which owns 49 percent of the San José Mine, received approximately $5 million in dividends from its interest in San José during the first quarter.