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McEwen output up

McEwen Mining has reported 48% higher production for the first nine months of 2018, with its operating margins and financials to follow in a few weeks.
McEwen output up McEwen output up McEwen output up McEwen output up McEwen output up

Black Fox in Ontario's Timmins Camp

Staff reporter

The dual-listed miner (TSX/NYSE: MUX) controlled by Rob McEwen said its September quarter gold output of 33,806oz and silver production of 745,172oz equated to 43,742oz gold-equivalent ounces (at a 75:1 gold to silver ratio), taking output for the nine months to September 30 to 135,344oz Au-eq.

Wholly-owned Black Fox, near Timmins in Ontario, produced 11,618oz Au-eq in Q3 and 37,751oz Au-eq year-to-date, "in line with our full year production guidance for 2018 of 48,000oz Au-eq".

San José in Argentina, owned 49% by McEwen, contributed 11,768oz gold and 743,100oz silver in the September quarter and has produced 64,120oz Au-eq attributable YTD.

El Gallo in Mexico (McEwen 100%) has switched to residual heap leaching and has yielded 33,473oz Au-eq YTD. McEwen said its preliminary economic assessment of Project Fenix at El Gallo had shown an after-tax of IRR of 28% on a 12-year, 47,000ozpa Au-eq operation costing US$41 million to establish (and $30 million for phase 2).

"During the next 11 months we will continue to review mineral processing, mine sequencing, material transportation and tailings storage options; and the flow sheet will be optimized by undertaking trade-off studies, updating cost models and additional metallurgical testwork," the company said this week.

Meanwhile, construction of 100%-owned Gold Bar in Nevada is said to be on track for completion by the end of this year, with production scheduled for the first three months of 2019. Gold Bar is slated to produce 55,000oz in 2019, and then 74,000oz and 68,000oz in the following two years.

The company is spending US$5 million on exploration at Gold Bar this year, and $15 million at Black Fox, as it seeks to grow the resource base at the two pivotal properties.