MCEWEN MINING REPORTS 2017 FULL YEAR AND Q4 PRODUCTION RESULTS
TORONTO, Jan. 15, 2018 - McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) reports annual consolidated production in 2017 was 109,947 gold ounces and 3,178,742 silver ounces, or 152,329 gold equivalent ounces(1), at a gold to silver ratio of 75:1.
2017 Consolidated Production Summary
Guidance 2017 Q1 Q2 Q3 Q4
Gold ounces 109,500 109,947 20,096 22,191 19,051 48,609
Silver ounces 3,337,000 3,178,742 722,767 779,487 749,749 926,739
Gold Eq. ounces 154,000 152,329 29,733 32,584 29,047 60,965
Q4 2017 Highlights
El Gallo achieved production of 19,893 gold equivalent ounces in Q4, successfully recuperating lost production due to equipment failure in July.
Black Fox 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% of our 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 October 6, 2017. During Q4, the mine produced 14,279 gold equivalent ounces from 79,046 tonnes processed at a grade of 6.47 gpt gold. These results are in-line with our production expectations set forth during the acquisition.
San José Mine, Argentina (49%(2))
Our 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% and silver production was down 4%.
In Q4, attributable production was 14,528 gold ounces and 919,898 silver ounces, for a total of 26,793 gold equivalent ounces.
Return of Capital
The semi-annual return of capital of ½ cent per share will be paid on February 14th, 2018 to shareholders of record as of the close of business on February 2rd, 2018. It will be paid to common shareholders of McEwen Mining Inc. from additional paid-in capital. For shareholders in the US and Canada, return of capital is generally not taxed, however we recommend you to obtain advice from a tax professional familiar with your specific situation.
Financial Results
Operating costs for the quarter ended December 31, 2017 will be released with our 10-K Annual Financial Statements in late February 2018.
Footnotes:
'Gold Equivalent Ounces' are calculated based on a 75:1 gold to silver ratio.
The San José Mine is 49% owned by McEwen Mining Inc. and 51% owned and operated by Hochschild Mining plc.
