McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) reports consolidated production for Q3 2021 was 32,100 gold ounces and 792,000 silver ounces, or 42,900 gold equivalent ounces(1)(“GEOs”), compared to 30,400 GEOs in Q3 2020. Consolidated production for the nine months ended September 30, 2021 is 114,300 GEOs, compared to 85,700 GEOs during the same period in 2020. 2021 production is trending towards the midpoint of the guidance range for the year.
|Consolidated Production Summary|
Fox Complex, Timmins, Canada (100%)
Fox produced 8,300 GEOs during the period, compared to 5,800 GEOs for Q3 2020.
Mining at Fox has transitioned to the Froome deposit, where commercial production was reached on September 19, 2021, 3 months ahead of schedule. The underground infrastructure at Froome is expected to be fully developed by June 2022.
Highlights of results and opportunities at Froome:
Gold Bar Mine, Nevada (100%)
During the quarter, Gold Bar produced 12,400 GEOs, compared to 6,800 GEOs in Q3 2020. Production is on track to meet guidance for 2021.
The permitting process to access ore at the Gold Bar South (GBS) deposit has progressed well, with authorizations now anticipated to be received in Q4 2021. The Company is planning for gold production from GBS in H2 2022.
Exploration highlights from our adjoining Tonkin property.
San José Mine, Santa Cruz, Argentina (49%(2))
During Q3, San José produced 10,800 gold ounces and 790,000 silver ounces, for a total of 21,600 GEOs, compared to 15,900 GEOs in Q3 2020. We received $2.4 million in dividends during the quarter, for a total of $10 million for the nine months ended September 30, 2021.
El Gallo Project, Sinaloa, Mexico (100%)
In Q3, El Gallo produced 560 GEOs from residual leaching of the heap leach pad.
With the approach of Argentinian spring and the melting of snow in the mountains, access to the Los Azules project site has been re-established via the existing exploration road. Drills and crews will begin mobilizing to the project in November and a 174,000 ft (53,000 m) drill program is expected to be completed by the end of Q2 2022. Construction of the new all-season access road has already advanced approximately 17 km from the east end. In order to accelerate its completion, construction advancing from the west end of the new road will begin this quarter. The new year-round access road is a key milestone in unlocking the project’s value as the current route is inaccessible 7 months of the year. All road construction will be completed by local San Juan contractors as part of the ongoing shared benefits with the local communities, entrepreneurs and workers. The prefeasibility study is in the tender award stage and is expected to begin as soon as possible in Q4 2021.
Operating costs for the quarter ended September 30, 2021 will be released with our 10-Q Quarterly Financial Statements.
|(1)||‘Gold Equivalent Ounces’ are calculated based on a gold to silver price ratio of 94:1 for Q1 2020, 104:1 for Q2 2020, 79:1 for Q3 2020, 68:1 for Q1 2021, 68:1 for Q2 2021 and 73:1 for Q3 2021.|
|(2)||The San José Mine is 49% owned by McEwen Mining Inc. and 51% owned and operated by Hochschild Mining plc.|
Technical information pertaining to mining operations contained in this news release has been reviewed and approved by Peter Mah, P.Eng., COO of McEwen Mining and a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 “Standards of Disclosure for Mineral Projects.”
Technical information pertaining to Gold Bar geology and exploration contained in this news release has been prepared under the supervision of Kevin Kunkel, P.Geo., a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 “Standards of Disclosure for Mineral Projects.”
Reliability of Information Regarding San José
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
McEwen Mining is a diversified gold and silver producer and explorer focused in the Americas with operating mines in Nevada, Canada, Mexico and Argentina.
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