McEwen Mining reports For the FY12, the Company produced 105,050 gold eq. oz
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.
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.