McEwen Mining estimates for San Jose mine rise

McEwen Mining mineral resource estimates for San Jose mine jump in 2012

Associated Press

NEW YORK (AP) -- McEwen Mining Inc. said Monday that mineral resource estimates for its San Jose mine in Argentina jumped to record levels in 2012.

As of the end of 2012, the mine's inferred gold resources were up 61 percent from the end of 2011 to 497,400 ounces, while its inferred silver resources rose 44 percent to 32.1 ounces, the Canadian mining company said.

At the same time, gold grades increased 39 percent to 7.37 grams per ton and silver grades rose 24 percent to 476 grams per ton.

Toronto-based McEwen holds a 49 percent interest in the mine.

More than 84,000 ounces of gold and 5.85 million ounces of silver were extracted from the mine in 2012, while production attributable to McEwen totaled 48,876 ounces of gold and 2.92 million ounces of silver.

The company said that during 2012 the mine's proven and probable gold reserves increased 7 percent to 367,100 ounces, while proven silver reserves jumped 20 percent to 26.8 million ounces. Gold grades edged up 1 percent to 6.44 grams per ton, while silver grades increased 14 percent to 470 grams per ton.

In afternoon trading, McEwen's U.S. shares rose 7 cents, or 2.6 percent, to $2.82. They have ranged from 1.96 to $4.94 over the past year.

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