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Enter Symbol
or Name
USA
CA



McEwen Mining Inc
Symbol MUX
Shares Issued 299,170,725
Close 2016-10-12 C$ 4.35
Market Cap C$ 1,301,392,654
Recent Sedar Documents

McEwen Mining produces 36,496 oz AuEq in Q3 2016

2016-10-13 06:42 ET - News Release

Ms. Christina McCarthy reports

MCEWEN MINING REPORTS Q3 PRODUCTION, MEXICO EXPLORATION DRILL RESULTS

McEwen Mining Inc.'s total production for the third quarter was 36,496 gold-equivalent ounces using a gold-to-silver ratio of 75 to 1, or 24,281 gold ounces and 916,168 silver ounces. Production is on target to achieve the company's 2016 guidance of 144,000 gold-equivalent ounces, or 99,500 gold ounces and 3,337,000 silver ounces.

                      2016 CONSOLIDATED PRODUCTION SUMMARY   
               
                       Guidance          YTD        Q1        Q2        Q3

Au ounces                99,500       81,145    28,975    27,888    24,281
Ag ounces             3,337,000    2,464,941   673,767   875,006   916,168
AuEq ounces             144,000      114,009    37,958    39,555    36,496

San Jose mine, Argentina (49 per cent)(1)

The San Jose mine produced 12,527 gold ounces and 909,017 silver ounces attributable to the company in Q3, for a total of 24,647 gold-equivalent ounces. Year to date the San Jose mine produced 33,839 gold ounces and 2,443,527 silver ounces attributable to the company for a total of 66,419 gold-equivalent ounces. Full-year production guidance for San Jose in 2016 is 45,000 gold ounces and 3.3 million silver ounces, for a total of 89,000 gold-equivalent ounces attributable to the company.

El Gallo mine, Mexico (100 per cent)

The El Gallo mine performed as expected in Q3, producing 11,849 gold-equivalent ounces. Production in Q3 was lower than the prior quarter due to lower ore grades, as the company previously forecasted (1.4 grams per tonne in Q3 2016 versus 2.3 g/t in second quarter 2016). Year to date the El Gallo mine produced 47,590 gold-equivalent ounces. Full-year guidance for El Gallo is 55,000 gold-equivalent ounces.

Mexico exploration update

The 2016 exploration budget for Mexico is $4-million. Exploration drilling in the district around the El Gallo mine has been concentrated primarily on three prospective areas; one area called Encuentro South has returned particularly encouraging results at shallow depths. Highlights are summarized in the table.

                  EL GALLO DRILL RESULTS

Hole ID           Gold grade         Intercept width
                        (g/t)                     (m)

ENX-032                 9.59                     9.1
including             126.50                     0.5
and                     2.94                    38.2
including               27.3                     1.2
ENX-043                 7.82                     5.4
including              28.70                     1.1
ENX-009                16.09                     2.1
ENX-041                16.27                     1.9
ENX-051                 1.30                    19.5
and                     6.13                     4.8
ENX-019                 1.85                    15.2
including               3.99                     5.0
ENX-021                 1.66                    12.7

Encuentro South is located seven miles (11 kilometres) southwest of the El Gallo mine. The project area lies on an important four-mile-long (seven km), regional northwest-southeast mineral trend that also hosts two other exploration targets (Las Milpas and Twin Domes). Extensive exploration along this trend has identified favourable alteration signatures and abundant anomalous gold and silver mineralization in surface rock and soil samples.

A total of 51 core holes (8,980 metres) have been drilled in the project area, with 42 of those (7,522 m) at the Encuentro South prospect. Initial interpretations indicate that the favourable gold assays occur in at least three distinct zones that are either shallow-dipping-northwest or subvertical-north-south structures, and are still open along strike and at depth. Mineralization has been identified from surface to a depth of 130 m. The known length (or strike) of the zone is approximately 230 m. For full results of the recently drilled holes at Encuentro South, see the table on the company's website.

Mineralization at Encuentro South is characterized primarily by structurally controlled, multievent quartz breccias and stockwork zones hosted by propolytically altered meta-andesites. Minor silicification and hematization alteration is also seen locally. The mineralization is considered to be of the low-sulphidation, epithermal style as seen elsewhere on the property. Very early-stage test results show that the gold mineralization at Encuentro South is potentially amenable to heap leaching.

Financial results

Operating costs for the quarter ended Sept. 30, 2016, will be released with the company's 10-Q quarterly financial statements in early November. As at Oct. 7, 2016, the company has no debt and liquid assets of $61-million composed of $39-million of cash, $18-million of precious metals and $4-million of marketable securities. The company has not issued equity to finance its operations since completing a rights issue in 2013, and it has preserved its leverage to higher gold and silver prices by not encumbering its assets with royalties, metal streams or hedges.

McEwen Mining's principal assets consist of the San Jose mine in Santa Cruz, Argentina (49-per-cent interest), the El Gallo mine and El Gallo silver project in Sinaloa, Mexico, the Gold Bar project in Nevada, United States, and the Los Azules copper project in San Juan, Argentina.

(1) The San Jose mine is owned by Minera Santa Cruz SA, which is a joint venture 49 per cent owned by McEwen Mining and 51 per cent owned and operated by Hochschild Mining PLC.

The technical aspects of the production results section have been reviewed and approved by Dr. Nathan M. Stubina, PhD, PEng, FCIM, managing director and a qualified person as defined by National Instrument 43-101.

The exploration section has been reviewed and approved by Luke Willis, PGeo, McEwen Mining's director of resource modelling, who is a qualified person as defined by National Instrument 43-101, and is responsible for program design and quality control of exploration undertaken by the company at its Mexican exploration properties. Samples from the core drilling were split on-site at the company's El Gallo mine. One-half of the split drill core is shipped to ALS Chemex for sample preparation and analysis by fire assay for gold and four-acid digestion with ICP determination for silver. Samples returning greater than 10 parts per million gold or 1,500 ppm silver were reanalyzed using gravimetric fire assay. Standards and blanks were inserted every 20 samples. All holes were drilled with HQ bits and reduced to NTW where required. Samples were taken based on lithologic and/or mineralized intervals and vary in length. The true width of the mineral zones has not yet been determined.

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