McEwen Mining Celebrates Its First Year of Production

Tue Jan 15, 2013 7:30am EST

* Reuters is not responsible for the content in this press release.

McEwen Mining Inc. (NYSE:MUX)(TSX:MUX) is pleased to announce the results
of its first year of production and for its Fourth Quarter 2012. For the
full-year 2012, the Company produced 105,050 gold eq. oz (48,876 gold oz
and 2,921,242 silver oz) and in Q4 produced 32,220 gold eq. oz (17,578
gold oz and 761,377 silver oz). Silver production has been converted into
gold equivalent ounces (gold eq. oz) based on a 52:1 ratio.

    Production costs for 2012 and cost guidance for 2013 will be reported in
March with year-end financials. Production in 2013 is forecasted to grow
by +24% to 130,000 gold eq. oz (72,310 gold oz and 3,000,000 silver oz)
with production coming from 2 mines: San Jose and El Gallo 1. El Gallo 1
in Mexico commenced commercial production on January 1st, 2013. 

    "2012 was a transformative year. It started in January, when McEwen
Mining was created with the combination of US Gold and Minera Andes. We
saw strength in the combination through the diversification and growth of
our production base. At mid-year, our exploration success was highlighted
by an increase in our estimated gold, silver and copper resources. Our
second mine, El Gallo, was built on budget and on time and has reached
commercial production. El Gallo 2 is in the permitting phase and we hope
to have the necessary permits to start construction during Third Quarter
of this year. Our partner and the operator the San Jose mine, Hochschild
Mining, has been doing an excellent job managing the mine and increasing
production. We continue to advance the permitting process of our Gold Bar
project in Nevada, and hope to receive construction permits in 2014. Late
in the year, we announced a settlement of the lawsuit on our Los Azules
property and began an aggressive exploration program there. Initial
exploration results and an updated resource estimate will be released by
the end of January. Before year-end, we also successfully completed a $60
million Rights Issue, which will provide the necessary funds to start
development of El Gallo 2. Over the next 3 years, we forecast our
internal projects will increase our production from 100,000 gold eq. oz
to 290,000 gold eq. oz, a 3-fold increase. During this time, we will also
be looking for opportunities to further increase our production in order
to advance on our goal of qualifying for inclusion in the S&P 500 Index,"
said Rob McEwen, Chief Owner.

San Jose Mine - Another Solid Year                                          
(49% owned by MUX)                                                          

    McEwen Mining's attributable production from the San Jose mine during the
Fourth Quarter totaled 25,582 gold eq. oz (11,024 gold oz and 757,009
silver oz). Full-year production for 2012 totaled 98,117 eq. oz (42,026
gold oz and 2,916,742 silver oz). At the end of 2012, an optimization
plan was completed at the mine that will increase its processing capacity
by +10% from 1,500 tonnes to 1,650 tonnes per day in 2013. McEwen
Mining's share of production from San Jose in 2013 is forecasted at
102,700 gold eq. oz (45,000 gold oz and 3,000,000 silver oz). Production
costs will be released with year-end financials in March. 

    San Jose Mine Production Comparison 

                               Full-Year  Full-Year  4th Quarter 3rd Quarter
   San Jose - 100%(i)            2012        2011       2012        2012    
Ore production (tonnes)         509,851    462,825     128,940     136,577  
Average grade gold (gpt)         5.79        5.86       6.00        5.24    
Average head silver (gpt)         417        444         422         402    
Average gold recovery (%)        90.4        92.9       90.4        91.1    
Average silver recovery (%)      87.0        88.8       88.3        87.9    
Gold produced (ounces)          85,768      80,948     22,498      20,967   
Silver produced (ounces)       5,952,534  5,869,564   1,544,917   1,552,000 
Gold equivalent(1) produced                                                 
 (ounces)                       200,240    193,824     52,208      50,813   
   McEwen Mining - 49% Share                                                
Gold produced (ounces)          42,026      39,665     11,024      10,274   
Silver produced (ounces)       2,916,742  2,876,086    757,009     760,480  
Gold equivalent(1) produced                                                 
 (ounces)                       98,117      94,974     25,582      24,899   
(i)McEwen Mining holds a 49% attributable interest in the San Jose mine.    
El Gallo 1 - Commercial Production Achieved                                 
(100% owned by MUX)                                                         

    On September 24th McEwen Mining announced that it had achieved its first
gold pour from El Gallo 1. During the Fourth Quarter the focus was on
achieving commercial production (defined as operating at 80% capacity for
30 consecutive days), which was achieved on January 1st, 2013. The mine
is now operating at 90% of its designed capacity. During the Fourth
Quarter, El Gallo 1 produced 6,638 gold eq. oz (6,554 gold oz and 4,368
silver oz). Production since the first pour was slightly higher at 6,937
gold eq. oz (6,850 gold oz and 4,500 silver oz). In 2013, El Gallo 1 is
forecasted to produce 27,310 gold oz. Production costs will be reported
starting in the First Quarter. 

    About McEwen Mining ( 

    The goal of McEwen Mining is to qualify for inclusion in the S&P 500 by
2015 by creating a high growth, low-cost, mid-tier gold producer focused
in the Americas. McEwen Mining's principal assets consist of the San Jose
mine in Santa Cruz, Argentina (49% interest); the El Gallo complex in
Sinaloa, Mexico; the Gold Bar project in Nevada, US; the Los Azules
project in San Juan, Argentina and a large portfolio of exploration
properties in Argentina, Nevada and Mexico. 

    McEwen Mining has 296,024,859 shares issued and outstanding. Rob McEwen,
Chairman, President and Chief Owner, owns 25% of the shares of the
Company. As of December 31, 2012, McEwen Mining had cash and liquid
assets of approximately US$70 million and is debt free.

    Reliability of Information

    Minera Santa Cruz S.A., the owner of the San Jose mine, is responsible
for and has supplied to the Company all reported results from the San
Jose mine. This press release is based entirely on information provided
to McEwen Mining by Minera Santa Cruz S.A. (MSC). 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. As the Company
is not the operator of the San Jose mine, there can be no assurance that
production information reported to the Company by MSC is accurate, the
Company has not independently verified such information and readers are
therefore cautioned regarding the extent to which they should rely upon
such information.

    Technical Information

    The technical contents of this news release has been reviewed and
approved by William Faust, Chief Operating Officer, a Qualified Person as
defined by Canadian Securities Administrator National Instrument 43-101
"Standards of Disclosure for Mineral Projects" ("43-101"). 

    Cautionary Note to U.S. Investors

    McEwen Mining reports its resource estimates in accordance with standards
of the Canadian Institute of Mining, Metallurgy and Petroleum referred to
in Canadian National Instrument 43-101 (NI 43-101). These standards are
different from the standards generally permitted in reports filed with
the SEC. Under NI 43-101, McEwen Mining reports measured, indicated and
inferred resources, measurements which are generally not permitted in
filings made with the SEC. According to Canadian NI 43-101 criteria, the
estimation of measured resources and indicated resources involve greater
uncertainty as to their economic feasibility than the estimation of
proven and probable reserves. Under SEC Industry Guide 7 criteria,
measured, indicated and inferred resources are considered Mineralized
Material. The SEC considers that in addition to greater uncertainty as to
the economic feasibility of Mineralized Material compared to proven and
probable reserves, there is also greater uncertainty as to the existence
of Mineralized Material. U.S. investors are cautioned not to assume that
measured or indicated resources will be converted into economically
mineable reserves. The estimation of inferred resources involves far
greater uncertainty as to their existence and economic viability than the
estimation of other categories of resources.

    Caution Concerning Forward-Looking Statements 

    This press release contains certain forward-looking statements and
information, including "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. The forward-looking
statements and information expressed, as at the date of this press
release, McEwen Mining Inc.'s (the "Company") estimates, forecasts,
projections, expectations or beliefs as to future events and results.
Forward-looking statements and information are necessarily based upon a
number of estimates and assumptions that, while considered reasonable by
management, are inherently subject to significant business, economic and
competitive uncertainties, risks and contingencies, and there can be no
assurance that such statements and information will prove to be accurate.
Therefore, actual results and future events could differ materially from
those anticipated in such statements and information. Risks and
uncertainties that could cause results or future events to differ
materially from current expectations expressed or implied by the
forward-looking statements and information include, but are not limited
to, risks related to the cost of transferring or otherwise allocating
funds between operating jurisdictions, factors associated with
fluctuations in the market price of precious metals, mining industry
risks, political, economic, social and security risks associated with
foreign operations, risks associated with the construction of mining
operations and commencement of production and the projected costs
thereof, risks related to litigation, property title, the state of the
capital markets, environmental risks and hazards, uncertainty as to
calculation of mineral resources and reserves and other risks. Readers
should not place undue reliance on forward-looking statements or
information included herein, which speak only as of the date hereof. The
Company undertakes no obligation to reissue or update forward-looking
statements or information as a result of new information or events after
the date hereof except as may be required by law. See McEwen Mining's
Annual Report on Form 10-K for the fiscal year ended December 31, 2011
and other filings with the Securities and Exchange Commission, under the
caption "Risk Factors", for additional information on risks,
uncertainties and other factors relating to the forward-looking
statements and information regarding the Company. All forward-looking
statements and information made in this news release are qualified by
this cautionary statement.

    The NYSE and TSX have not reviewed and do not accept responsibility for
the adequacy or accuracy of the contents of this news release, which has
been prepared by management of McEwen Mining Inc.

McEwen Mining Inc.
Jenya Meshcheryakova
Investor Relations
(647) 258-0395 ext 410 or Toll Free: (866) 441-0690
(647) 258-0408 (FAX)

McEwen Mining Inc.
181 Bay Street Suite 4750
Toronto, ON M5J 2T3
PO box 792

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