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Post by Entendance on Feb 13, 2017 6:48:46 GMT -5
<Good deal, cheap, McEwen knows like back of hand, now in Canada, USA, Argentina, Mexico...more ounces, more assets...no hedges!> -Tom from Florida
McEwen Mining to acquire Lexam by way of plan of arrangement; each Lexam common share would entitle the holder to receive 0.056 of a McEwen Mining share. If the Arrangement is completed and based on the current outstanding Lexam Shares, McEwen Mining will issue a total of 12,689,709 shares of McEwen Mining common stock to the shareholders of Lexam.
In order to comply with NYSE rules, Robert R. McEwen will not be entitled to receive newly-issued shares of McEwen Mining representing more than 1% of the currently issued and outstanding shares of McEwen Mining without obtaining the prior approval of McEwen Mining shareholders, which is expected to be obtained at the next annual meeting of McEwen Mining shareholders. If such shareholder approval is not obtained, McEwen Mining will pay for such excess shares in cash. The Arrangement agreement includes customary deal protection and non-solicitation provisions in favour of McEwen Mining, including a break fee of $2.1 million payable to McEwen Mining in certain circumstances, and fiduciary out provisions for the benefit of Lexam. Lexam is entitled to a reverse break fee of the same amount payable in certain other circumstances -Briefing.com
***Why The Next Large Market Correction Will Cause Record Gold Demand
MUX McEwen Mining Announces Friendly Acquisition of Lexam VG Gold
TORONTO, Feb. 13, 2017 -- McEwen Mining Inc. ("McEwen Mining") (NYSE:MUX) (TSX:MUX) and Lexam VG Gold Inc. (the “Company” or “Lexam”) (TSX:LEX) (OTCQX:LEXVF), have entered into an agreement pursuant to which McEwen Mining would acquire all of the issued and outstanding securities of Lexam by way of plan of arrangement (the "Arrangement") and Lexam would become a wholly-owned subsidiary of McEwen Mining. The proposed arrangement is subject to approval by the shareholders of Lexam. Pursuant to the Arrangement, each Lexam common share (a “Lexam Share”) would entitle the holder to receive 0.056 of a McEwen Mining share (the "Exchange Ratio"). Lexam shareholders would receive a premium of 30% to the 30-day volume weighted average price (VWAP) of the Lexam Shares.
“Lexam’s assets include multiple advanced exploration projects located in the prolific gold camp of Timmins, Ontario. Lexam’s primary projects are past producers with defined resources and excellent infrastructure. The proposed transaction would give the Lexam shareholders access to McEwen Mining’s technical and financial resources enabling the projects to be advanced towards production. Lexam shareholders will also gain exposure to a growing gold and silver producer, with a diversified portfolio of projects throughout the Americas,” commented Rob McEwen, Chief owner of both McEwen Mining and Lexam.
Benefits of the Transaction for Lexam Shareholders:
•Ability to fund development and construction of the Timmins Properties with McEwen Mining’s existing financial resources;
•Access to McEwen Mining’s experienced and disciplined management team with an accomplished history in gold exploration, open-pit and underground mining, and mine development;
•Exposure to McEwen Mining’s diversified portfolio of producing operations and development projects; and
•Lexam shareholders receive an attractive premium of approximately 30% to the 30-day VWAP of the Lexam Shares and greatly enhanced liquidity of dual stock exchanges within the US and Canada.
Benefits of the Transaction for McEwen Mining Shareholders:
•Adds Measured and Indicated gold resources of 1,468,500 ounces and Inferred gold resources of 954,000 ounces to McEwen Mining’s resource base in a premier geopolitically stable mining jurisdiction;
•Enhances McEwen Mining’s development and production pipeline with the potential to commence production of the Timmins properties within 24 months; and
•Substantial exploration potential.
Details of the Arrangement
If the Arrangement is completed and based on the current outstanding Lexam Shares, McEwen Mining will issue a total of 12,689,709 shares of McEwen Mining common stock (the “McEwen Mining Shares”) to the shareholders of Lexam. Based on a price of USD $4.23 per McEwen Mining Share, being the closing price on the NYSE on February 10, 2017, the Exchange Ratio represents an offer price of CDN $0.31 per Lexam Share, being a premium of 30 % over the volume weighted average price of Lexam Shares for the period comprising the 30 trading days ended on February 10, 2017.
In order to comply with NYSE rules, Robert R. McEwen will not be entitled to receive newly-issued shares of McEwen Mining representing more than 1% of the currently issued and outstanding shares of McEwen Mining without obtaining the prior approval of McEwen Mining shareholders, which is expected to be obtained at the next annual meeting of McEwen Mining shareholders. If such shareholder approval is not obtained, McEwen Mining will pay for such excess shares in cash.
To be effective, the Arrangement must be approved at a meeting of the shareholders of Lexam ( the “Lexam Meeting”) by: (i) at least 66 ⅔% of the votes cast on the resolution to approve the Arrangement by the Lexam Shareholders present in person or represented by proxy and entitled to vote at the Lexam Meeting; and (ii) at least a majority of the votes cast on the resolution to approve the Arrangement by the minority Lexam Shareholders present in person or represented by proxy and entitled to vote at the Lexam Meeting. The minority shareholders are defined by securities legislation and, among others will exclude the shares of Lexam held by the directors of McEwen Mining, including Mr. Robert McEwen.
The Arrangement agreement includes customary deal protection and non-solicitation provisions in favour of McEwen Mining, including a break fee of $2.1 million payable to McEwen Mining in certain circumstances, and fiduciary out provisions for the benefit of Lexam. Lexam is entitled to a reverse break fee of the same amount payable in certain other circumstances.
Completion of the Arrangement is also subject to certain other conditions including approval by the TSX, the NYSE and the Ontario Superior Court of Justice (Commercial List).
The Arrangement was approved by the Board of Directors of each of McEwen Mining and Lexam upon recommendation, in each case of a special committee of independent and disinterested directors, after the special committees consulted with their independent legal and financial advisors. Messrs. Robert R. McEwen and Richard Brissenden noted their respective conflicts as directors of Lexam and McEwen Mining and abstained from voting in connection with the approval of the Arrangement by the Board of Directors of each company.
Overview of Lexam’s Timmins Properties
Upon closing, McEwen Mining will own 100% interest in the Buffalo Ankerite, Fuller and Davidson Tisdale properties, and a 61% interest in the Paymaster property, with the remaining 39% of mineral rights held by Goldcorp Inc.
Lexam controls a cluster of four past-producing gold properties, both with open-pit and underground potential. The properties are located within the world-renowned Abitibi greenstone belt in proximity to the Porcupine-Destor Fault Zone. Lexam’s projects are situated within two claim blocks, one in the northern part of Tisdale Township (the Davidson Tisdale block located approximately five kilometres southeast of Timmins city centre) and a second block of contiguous claims comprising the Buffalo Ankerite, Fuller, and Paymaster properties located in Tisdale and Deloro Townships roughly nine kilometers to the east-northeast of Timmins city centre. The relative locations of the properties can be seen in Figure 1 below.
Figure 1: Lexam VG Gold Property Locations:
www.globenewswire.com/NewsRoom/AttachmentNg/c05fca89-baba-4131-9b1c-2125538f471a
ABOUT MCEWEN MINING www.mcewenmining.com
McEwen Mining has an ambitious goal of qualifying for inclusion in the S&P 500 Index by creating a high growth gold and silver producer focused in the Americas. McEwen Mining's principal assets consist of the San José Mine in Santa Cruz, Argentina (49% interest), the El Gallo Mine and El Gallo Silver project in Sinaloa, Mexico, the Gold Bar project in Nevada, USA, and the Los Azules copper project in San Juan, Argentina.
McEwen Mining has a total of 300 million shares outstanding. Rob McEwen, Chairman and Chief Owner, owns 25% of the Company.
Technical Information
The technical information contained in this press release has been reviewed and approved by Kenneth W. Guy, P. Geo, a consultant to Lexam VG Gold and a Qualified Person within the meaning of National Instrument 43-101 “Standards of Disclosure for Mineral Projects” (“NI 43-101”).
(1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
(2) The quantity and grade of reported Inferred resources are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
(3) The mineral resources herein were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council. For additional information about these mineral resources , see www.lexamvggold.com/resources.php, where all the technical reports used are available. These technical reports are also available under Lexam’s profile on SEDAR (www.sedar.com).
(4) Lexam’s resources are as follows:
- Open Pit: 35,500 ounces (“oz”) gold (“Au”) Measured from 0.45 million tonnes grading 2.44 grams per tonne (“gpt”) Au, 741,300 oz Au Indicated from 12.12 million tonnes grading 1.89 gpt Au, 358,400 oz Au Inferred from 6.28 million tonnes grading 1.79 gpt Au;
- Underground: 63,600 oz Au Measured from 0.36 million tonnes grading 5.56 gpt Au and 628,100 oz Au Indicated from 4.06 million tonnes grading 4.82 gpt Au, 595,800 oz Au Inferred from 4.24 million tonnes grading 4.35 gpt Au.
(5) The resource estimates contained herein do not constitute a Feasibility or Pre-Feasibility study and contain no mineral reserves within the meaning of NI 43-101 or SEC Industry Guide 7. The mineral resource figures referred to in this press release are estimates and therefore insufficient to allow meaningful application of the technical and economic parameters to enable an evaluation of technical or economic viability and no assurances can be given that the indicated levels of gold will be produced. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While Lexam believes that the resource estimates included in this press release are well established, resource estimates are imprecise by their nature and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such estimates are inaccurate or are reduced in the future, this could have a material adverse impact on Lexam. In addition, this news release includes Inferred resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves.
All resource estimates reported by Lexam VG Gold are calculated in accordance with NI 43-101 and the CIM classification system. These standards are different from the standards generally permitted in reports filed with the SEC. For further information see www.lexamvggold.com/US_Cautionary_Statement.php
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Post by Entendance on Feb 15, 2017 3:50:43 GMT -5
When the herd go towards the water, never stand between the beasts and the river.  No intention of selling any shares for at least two more years or $10 + which ever comes first. ***Global exchange-traded funds add 51 tons of Gold in last 10 trading days
MUX Rob McEwen: Public Markets Must Do Better for Investors
Rob McEwen - Full Interview
Fred & EntendanceInvestors Beach advice to buyers of physical precious metals is the same as always: if you purchased it and you can't hold it in your hand, it isn't yours. More here
 E. on twitter
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Post by messier94 on Feb 17, 2017 9:09:32 GMT -5
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Post by Entendance on Feb 23, 2017 8:22:58 GMT -5
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Post by Entendance on Mar 9, 2017 10:06:35 GMT -5
March 7, 2017 Toronto, Ontario, Canada
Room 801B in the Gold: Americas 2 session, in the Metro Toronto Convention Centre, South Building
Speaker: Rob McEwen, Chairman & Chief Owner, McEwen Mining March 7, 2017
MUX McEwen Mining Corporate Presentation PDAC View this Presentation PDF 13.68 MB
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Post by Entendance on Mar 9, 2017 17:31:51 GMT -5
Despite concerns about Argentina as a positive mining jurisdiction, McEwen Mining CEO Rob Mcewen says he’s staying in the country. “The current government has made some big, positive changes…and Argentina is a very prospective country for deposits,” he told Kitco News. McEwen also talked about the DisruptMining shark-tank style panel he was part of at the PDAC convention in Toronto. Video here |
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Post by Entendance on Mar 14, 2017 8:54:52 GMT -5
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Post by Entendance on Mar 16, 2017 9:47:15 GMT -5
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Post by Entendance on Mar 24, 2017 11:56:13 GMT -5
EUREKA – McEwen Mining Inc.’s Gold Bar project in Eureka County would be the company’s first mine in the United States if it is approved by the Bureau of Land Management.
The Canadian company and the BLM were in the Eureka Opera House on Wednesday night to answer the public’s questions about the proposed gold mine that would be about 30 miles northwest of the city of Eureka...MUX***McEwen answers questions on proposed Eureka County mine
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Post by Entendance on Mar 31, 2017 7:31:02 GMT -5
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Post by Entendance on Apr 13, 2017 5:41:23 GMT -5
TORONTO, ONTARIO--April 12, 2017 - Lexam VG Gold Inc. (TSX:LEX)(FRANKFURT:VN3A)(OTCQX:LEXVF) is pleased to announce that its Share Owners voted in favour of the Arrangement Agreement for the acquisition of Lexam VG by McEwen Mining Inc. (NYSE:MUX)(TSX:MUX) at its Special Meeting of Shareholders today.
***Lexam VG Share Owners Approve the Acquisition by McEwen Mining
Next Steps in the Transaction
The TSX Exchange has conditionally approved the arrangement transaction. Application for approval is also being made by McEwen Mining of the NYSE. The arrangement transaction also requires a final order of the Ontario Superior Court of Justice. A Notice of Application for the final order has been filed and is expected to be heard by the Court on April 19, 2017. Closing of the transaction is expected shortly after receipt of the final court order and all regulatory approvals.
McEwen Mining Inc.
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Post by Entendance on Apr 15, 2017 14:24:13 GMT -5
Robert McEwen, one of the gold’s industry’s best-known bulls, is predicting that the precious metal will continue to surge this year, closing 2017 much higher than today’s prices of around 1,290 an ounce.
The former investment banker, who for years have made bold predictions when it comes to precious metal prices, is sure that bullion will reach $5,000 an ounce, though, he warns, that won’t happen “immediately.”
“The metal is in an upward trend now and while it has years to go before it peaks, gold will continue to climb higher. It won’t be a straight line, but the direction is definitively up,” he told MINING.com... ***Gold bull McEwen says price rally has just begun*** h/t Tom from Florida
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Post by Entendance on May 18, 2017 8:57:00 GMT -5
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Post by Entendance on May 25, 2017 7:36:50 GMT -5
Sprott Money News Ask the Expert May 2017 - Rob McEwen |
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Post by Entendance on May 29, 2017 15:10:31 GMT -5
MUX McEwen Mining 2017 Annual Shareholders Meeting 6 Videos starting below
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Post by Entendance on May 31, 2017 10:41:41 GMT -5
MUX McEwen Mining Corporate New Presentation 2017 Annual Meeting of Shareholders
PDF here
E. on twitter! |
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Post by Entendance on Jun 8, 2017 11:23:15 GMT -5
Panel Discussion and Launch of TNM/PwC Report: Strategies for excess cash, whether to entrench, acquire, repurchase or payout. Featuring Robert McEwen, Executive Chairman, Director and Chief Owner of McEwen Mining.
***Panel Discussion: Strategies for excess cash |
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Post by Entendance on Jul 13, 2017 19:03:07 GMT -5
MUX McEwen Mining Reports Q2 2017 Production Results
TORONTO, July 13, 2017-- McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) is pleased to report consolidated production for Q2 2017 of 22,191 gold ounces and 779,487 silver ounces, or 32,584 gold equivalent ounces(1), using a 75:1 gold to silver ratio.
Consolidated Production Summary is HERE
Gold Bar Project, Nevada – Advancing Towards Construction
Permitting continues to advance as planned, the Bureau of Land Management has incorporated the public comments from the Draft Environmental Impact Statement into the Final Environmental Impact Statement. Permitting remains on schedule, with a Record of Decision expected in Q3, 2017.
San José Mine, Argentina (49%(2)) – Improving Production
Our attributable production from San José in Q2 was 12,477 gold ounces and 774,521 silver ounces, for a total of 22,804 gold equivalent ounces. During the first half of 2017 our attributable production was 42,729 gold equivalent ounces, a slight improvement on the same period in 2016, mainly driven by better gold grades.
El Gallo Mine, Mexico – Grade to Increase in Second Half
Production in Q2 was 9,780 gold equivalent ounces, compared to 15,640 gold equivalent ounces during the same period in 2016. Production in the first half of 2017 was expected to be slower as a result of lower gold grades mined, however gold grades are projected to increase in the second half of the year.
Timmins Projects, Ontario, Canada
Evaluation work and trade-off studies are underway to determine in which order the newly acquired properties will be advanced towards development. Updated resource estimates are expected later this year.
Financial Results
Operating costs for the quarter ended June 30, 2017 will be released with our 10-Q Quarterly Financial Statements in early August. As at June 30, 2017 we are debt-free with liquid assets of $44 million comprised of $24 million in cash, $8 million in precious metals, and $12 million in marketable securities. Substantial investments in our Los Azules project and lower production levels from our El Gallo Mine contributed to the reduction in liquidity since Q1. We have not issued equity to finance our operations since completing a rights issue in 2013, and we have preserved our leverage to higher gold and silver prices by not encumbering our assets with royalties, metal streams or hedges.
Footnotes:
(1) 'Gold Equivalent Ounces' are calculated based on a 75:1 gold to silver ratio.
(2) The San José Mine is 49% owned by McEwen Mining Inc. and 51% owned and operated by Hochschild Mining plc.
About McEwen Mining www.mcewenmining.com McEwen Mining has the goal to qualify for inclusion in the S&P 500 Index by creating a high growth gold and silver producer focused in the Americas. McEwen Mining's principal assets consist of the San José Mine in Santa Cruz, Argentina (49% interest), the El Gallo Mine and El Gallo Silver project in Sinaloa, Mexico, the Gold Bar project in Nevada, USA, the Los Azules copper project in San Juan, Argentina, and the recently acquired gold projects in Timmins, Canada.
McEwen Mining has a total of 312 million shares outstanding. Rob McEwen, Chairman and Chief Owner, owns 25% of the Company.
Technical Information
The technical contents of this news release has been reviewed and approved by Nathan M. Stubina, Ph.D., P.Eng., FCIM, Managing Director and a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 "Standards of Disclosure for Mineral Projects".
Reliability of Information Regarding San José
Minera Santa Cruz S.A., the owner of the San José Mine, is responsible for and has supplied to the Company all reported results from the San José Mine. 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.
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Post by Entendance on Jul 27, 2017 6:58:59 GMT -5
07/27/2017 McEwen Mining Notice of Q2 2017 Financial Results Conference Call McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) announces that senior management will be hosting a conference call to discuss our Q2 2017 financial results and project developments on Thursday, Aug 3rd, 2017 at 11:00 am ET. For dial-in, webcast and replay details see below: Q2 2017 Conference Call Details
Thursday, Aug 3rd, 2017 at 11:00 am ET
WEBCAST:
edge.media-server.com/m/p/jvkqd2vw
TELEPHONE:
Participant Dial-in numbers: (844) 630-9911 (North America) / (210) 229-8828 (International)
Conference ID: 61325613
REPLAY:
Dial-in numbers: (855) 859-2056 (North America) / (404) 537-3406 (International)
Conference ID: 61325613
08/03/2017 14:00 ET - 08/10/2017 14:00 ET
***Gold Bar Resources and Reserves
In their recent press release he also stated, "The Gold Bar district is highly prospective with McEwen Mining's (NYSE: MUX) Gold Bar Development Project and Gold Bar South property nearby."
Mihaela Iancu, Head of Investor Relations at McEwen Mining Inc. (NYSE: MUX) talked to Investor Ideas about the Gold Bar Project.
"Gold Bar is a proposed mine project which, if constructed, would consist of a conventional open pit mine with an oxide gold heap leach recovery circuit. The property is located in the southern Roberts Mountains within the Battle Mountain-Eureka-Cortez gold trend, approximately 30 miles northwest of Eureka, in Eureka County, central Nevada and covers an area of 37 square miles (97 sq km) contained in 1,196 claims. The property was previously mined from 1987 to 1994 by Atlas Precious Metals Inc. The Gold Bar project is currently in the permitting phase, which commenced in 2012. In October, 2015 we published a Feasibility Study on the property." "The Gold Bar South Property was purchased in 2016 due to its close proximity to the Gold Bar Project. Its near surface deposit is approximately 3 miles (5 km) to the southeast of the main ore bodies of the Gold Bar Complex. The deposit is similar to other sedimentary-rock hosted gold deposits in Nevada in that disseminated and oxidized gold mineralization occurs in the Webb Formation and Devils Gate Limestone lithologies. Our objective is to develop Gold Bar South into a satellite resource that can contribute to the production from the Gold Bar Mine by adding to the later years of mine production. The company intends to initiate permitting on Gold Bar South after a positive Record of Decision is delivered for Gold Bar. The property also has additional exploration potential beyond its current 120,000 oz Au resources."
"For 2017 we allocated $2 million for the completion of the permitting activities at Gold Bar. The Bureau of Land Management has incorporated the public comments from the Draft Environmental Impact Statement into the Final Environmental Impact Statement. Permitting continues to advance as planned and remains on schedule, with a Record of Decision expected in Q3, 2017. $37.2 million are allocated for initial stage construction to start in 2017, immediately upon obtaining the permit. Completion of the initial stage construction of the mine will take about 10-12 months and will provide us with a ramp-up production of 9,000 oz Au in 2018, further to which production at Gold Bar will move to 75,000 oz Au per year."
More here
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Post by Entendance on Aug 2, 2017 16:39:36 GMT -5
•McEwen Mining (NYSE:MUX): Q2 EPS of -$0.01
•Revenue of $15.11M (+3.4% Y/Y)
MUX McEwen Mining Announces Q2 2017 Operating & Financial Results
TORONTO, Aug. 02, 2017 McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) today reported consolidated financial results for the second quarter ending June 30, 2017. Continued investments in exploration and project development, particularly related to the updated PEA on our Los Azules copper project and the advancement of our Gold Bar project towards construction, were the key features of the quarter. As a result, the Company reported a net loss of $1.7 million or $0.01 per share and negative cash flow of $4.1 million or $0.01 per share.
During the quarter McEwen Mining achieved consolidated production of 32,584 gold equivalent ounces(1)(3). The El Gallo mine produced 9,780 gold equivalent ounces(1) and reported earnings from mining operations of $6.8 million(2)(4) and the San José mine produced 22,804 gold equivalent ounces(1) and reported earnings from mining operations of $4.1 million(2)(4).
Our quarterly management conference call will take place on August 3rd, 2017 at 11 am, EDT. Webcast and call-in details are provided at the end of this news release.
Q2 2017 Operating & Financial Highlights here
Comparative production and cost results are shown in the table below. For our SEC Form 10-Q Financial Statements and MD&A refer to: www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000314203
***Table Silver production is presented as a gold equivalent. Gold equivalent calculations are based on prevailing spot prices at the beginning of the year. The silver to gold ratio used for 2016 and 2017 is 75:1.
2.All amounts are reported in US dollars unless otherwise stated.
3.Includes portion attributable to us from our 49% interest in the San José Mine.
4.Earnings from mining operations, total cash costs per ounce, and all-in sustaining costs (AISC) per ounce are non-GAAP financial performance measures with no standardized definition under U.S. GAAP. See “Cautionary Note Regarding Non-GAAP Measures” for additional information, including definitions of these terms.
Treasury
As of June 30, 2017 we had $44 million in cash, investments and precious metals valued at spot prices; and no debt. This compares to liquid assets of $55.1 million and no debt at the end of Q1 2017.
Ounces Produced
Consolidated gold equivalent production in Q2 2017 totaled 32,584 ounces, consisting of 9,780 gold equivalent ounces from the El Gallo mine, and 22,804 gold equivalent ounces attributable to us from our 49% interest in the San José mine.
Production Costs
For our El Gallo mine in Q2 2017, total cash costs and all-in sustaining cash costs were $706 and $843 per gold equivalent ounce, respectively. For our San José mine in Q2 2017, total cash costs and all-in sustaining costs were $921 and $1,102 per gold equivalent ounce, respectively.
Earnings from Mining Operations
In Q2 2017, earnings from mining operations from our El Gallo mine were $6.8 million, compared to $9.6 million in the same period in 2016; and earnings from mining operations from our 49% interest in the San José mine were $4.1 million, compared to $9.7 million in the same period in 2016.
Net Income/ Loss
Our consolidated net loss for Q2 2017 was $1.7 million, or $0.01 per share, compared to a net income of $8.4 million, or $0.03 per share for the same period in 2016. The net loss was mainly due to a $2.8 million increase in production costs at our El Gallo mine, a $4.4 million decrease in income from our San José mine, and a $1.4 million increase in exploration expenditures primarily related to the drilling campaign performed at the Los Azules project, compared to the same period during 2016.
Cash Flow
Net cash used in Q2 2017 was $4.1 million, compared to a net cash inflow of $2.1 million for the same period in 2016. The significant change in cash flow quarter over quarter related mainly to a reduction in the number of ounces sold from the El Gallo mine, coupled with lower VAT collection from our Mexican operations and the increase in costs in Mexico, when compared to the prior period. In Q2 2017, our El Gallo mine contributed $15.1 million in gold and silver sales to operating cash flow, compared to $14.6 million in the same period in 2016. In Q2, 2017 our 49% interest in the San José mine contributed $2.4 million in dividends to operating cash flows, compared to $2.8 million in the same period in 2016.
Average Realized Prices
Average realized prices in Q2 2017 were $1,257 per ounce of gold sold, and $17.20 per ounce of silver sold at our El Gallo mine; and $1,244 per ounce of gold sold and $16.38 per ounce of silver sold for the San Jose mine. In comparison, the average realized prices in the same period in 2016 were $1,260 per ounce of gold sold, and $16.86 per ounce of silver sold at El Gallo mine; and $1,276 per ounce of gold sold and $18.09 per ounce of silver sold for the San Jose mine.
Return of Capital
The next semi-annual return of capital installment of a ½ cent per share will be paid on August 17, 2017 to shareholders of record on August 4, 2017.
Production Guidance
Production for 2017 is expected to be 49,700 ounces of gold and 24,000 ounces of silver from the El Gallo mine, and 50,000 ounces of gold and 3,300,000 ounces of silver from the San José mine. Using a silver to gold ratio of 75:1 for the year 2017, this represents projected consolidated production of 144,000 gold equivalent ounces.
Cost Guidance
For 2017, total cash costs and all-in sustaining costs at the El Gallo mine are forecast to be $760 and $900 per gold equivalent ounce, respectively; and total cash costs and all-in sustaining costs at the San José mine are forecast at $780 and $990 per gold equivalent ounce, respectively. Our guidance is based on an average silver to gold ratio of 75:1.
Operations & Projects
El Gallo Mine, Mexico – Grade to Increase in Second Half of 2017
Production in Q2 was 9,780 gold equivalent ounces, compared to 15,640 gold equivalent ounces during the same period in 2016. Production in the first half of 2017 was expected to be slower as a result of lower gold grades mined, however gold grades are projected to increase in the second half of the year.
On July 30th the primary crusher at El Gallo experienced a mechanical failure and will be out of service while repairs are completed. A temporary mobile crusher is on-site and being commissioned to maintain our operations. We currently estimate that the negative impact on gold production for the remainder of the year will be approximately 1,500 ounces. We will update our production guidance if necessary once our team has accurately evaluated the situation. Production costs are not expected to be materially impacted.
San José Mine, Argentina (49%(3)) – Improving Production
Our attributable production from San José in Q2 was 12,477 gold ounces and 774,521 silver ounces, for a total of 22,804 gold equivalent ounces. During the first half of 2017 our attributable production was 42,729 gold equivalent ounces, a slight improvement from the same period in 2016, mainly driven by better gold grades.
Timmins Projects, Ontario, Canada – Growth Strategy Taking Shape
During Q2 2017 we completed the strategic acquisition of former producing mine properties (brownfield sites) in the heart of the world class Timmins gold mining district in Canada. We have engaged SRK Consulting to complete updated resource estimates and initial trade-off analysis. For 2017, we have budgeted $3.0 million for exploration and development-related activities in Timmins.
El Gallo Silver Project, Mexico (100%) – Making Headway on Capital Cost Reduction
During Q2 2017 we spent $0.2 million furthering studies on the feasibility and development of the El Gallo Silver project. These studies are intended to identify opportunities to reduce the initial capital investment required to start the project. Our 2017 budget for El Gallo Silver is approximately $4.9 million, comprised of $2.0 million for exploration and $2.9 million for development.
Los Azules Project, Argentina (100%) – PEA in Third Quarter 2017
During Q2 2017 we spent $0.8 million at the Los Azules project, primarily on finalizing the 2017 drilling campaign initiated in Q1. We are currently preparing a new Preliminary Economic Assessment (PEA), which is expected in the third quarter of 2017.
Gold Bar Project, Nevada – Advancing Towards Construction
During Q2 2017 we spent $0.6 million at the Gold Bar project. Permitting continues to advance as planned, the Bureau of Land Management has incorporated the public comments from the Draft Environmental Impact Statement into the Final Environmental Impact Statement. Permitting remains on schedule, with a Record of Decision expected in the second half of 2017.
Q2 2017 Conference Call Details:
Thursday, Aug 3rd, 2017 at 11:00 am ET
WEBCAST:
edge.media-server.com/m/p/jvkqd2vw
TELEPHONE:
Participant Dial-in numbers: (844) 630-9911 (North America) / (210) 229-8828 (International)
Conference ID: 61325613
REPLAY:
Dial-in numbers: (855) 859-2056 (North America) / (404) 537-3406 (International)
Conference ID: 61325613
08/03/2017 14:00 ET - 08/10/2017 14:00 ET
About McEwen Mining www.mcewenmining.com
McEwen Mining has the goal to qualify for inclusion in the S&P 500 Index by creating a high growth gold and silver producer focused in the Americas. McEwen Mining's principal assets consist of the San José mine in Santa Cruz, Argentina (49% interest), the El Gallo Gold mine and El Gallo Silver project in Mexico, the Gold Bar project in Nevada, the Timmins projects in Canada and the Los Azules copper project in Argentina.
McEwen Mining has a total of 312 million shares outstanding. Rob McEwen, Chairman and Chief Owner, owns 25% of the Company.
Technical Information
The technical contents of this news release has been reviewed and approved by Nathan M. Stubina , Ph.D., P.Eng., FCIM, Managing Director and a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 "Standards of Disclosure for Mineral Projects".
Reliability of Information Regarding San José
Minera Santa Cruz S.A., the owner of the San José mine, is responsible for and has supplied to the Company all reported results from the San José mine. 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.
Cautionary Note Regarding Non-GAAP Measures
In this report, we have provided information prepared or calculated according to U.S. GAAP, as well as provided some non-U.S. GAAP ("non-GAAP") performance measures. Because the non-GAAP performance measures do not have any standardized meaning prescribed by U.S. GAAP, they may not be comparable to similar measures presented by other companies.
(1) Total Cash Costs and All-in Sustaining Costs
Total cash costs consist of mining, processing, on-site general and administrative costs, community and permitting costs related to current explorations, royalty costs, refining and treatment charges (for both doré and concentrate products), sales costs, export taxes and operational stripping costs. All-in sustaining cash costs consist of total cash costs (as described above), plus environmental rehabilitation costs, amortization of the asset retirement costs related to operating sites, sustaining exploration and development costs, and sustaining capital expenditures. Total cash cost and all-in sustaining cash cost per ounce sold are calculated on a co-product basis by dividing the respective proportionate share of the total cash costs and all-in sustaining cash costs for the period attributable to each metal by the ounces of each respective metal sold. We use and report these measures to provide additional information regarding operational efficiencies on an individual mine basis, and believe that these measures provide investors and analysts with useful information about our underlying costs of operations. A reconciliation to the nearest U.S. GAAP measure is provided in McEwen Mining's Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.
(2) Earnings from mining operations
The term Earnings from Mining Operations used in this report is a non-GAAP financial measure. We use and report this measure because we believe it provides investors and analysts with a useful measure of the underlying earnings from our mining operations. We define Earnings from Mining Operations as Gold and Silver Revenues from our El Gallo Mine and our 49% attributable share of the San José Mine's Net Sales, less their respective Production Costs Applicable to Sales. To the extent that Production Costs Applicable to Sales may include depreciation and amortization expense related to the fair value increments on historical business acquisitions (fair value paid in excess of the carrying value of the underlying assets and liabilities assumed on the date of acquisition), we deduct this expense in order to arrive at Production Costs Applicable to Sales that only include depreciation and amortization expense incurred at the mine-site level. The San José Mine Net Sales and Production Costs Applicable to Sales are presented, on a 100% basis, in Note 5 of McEwen Mining's Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.
(3) Average realized prices
The term average realized price per ounce used in this report is also a non-GAAP financial measure. We report this measure to better understand the price realized in each reporting period for gold and silver. Average realized price is calculated as sales of gold and silver (excluding commercial deductions) over the number of ounces sold in the period (net of deduction units). A reconciliation to the most directly comparable U.S. GAAP measure, Sales of Gold and Silver, is provided in McEwen Mining's Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.
(4) Cash, investments and precious metals
The term cash, investments and precious metals used in this report is a non‑GAAP financial measure. We report this measure to better understand our liquidity in each reporting period. Cash, investments and precious metals is calculated as the sum of cash, investments and ounces of doré held in inventory, valued at the London P.M. Fix spot price at the corresponding period. A reconciliation to the most directly comparable U.S. GAAP measure, Sales of Gold and Silver, is provided in McEwen Mining's Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.
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Post by Entendance on Aug 7, 2017 6:47:08 GMT -5
MUX McEwen Mining Announces Revised Record Date 08/07/2017
TORONTO, Aug. 07, 2017- McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) today reported a revised record date for the next semi-annual return of capital instalment of a ½ cent per share which will be distributed to shareholders of record on August 14, 2017. The distribution will be paid on August 17, 2017.
About McEwen Mining www.mcewenmining.com
McEwen Mining has the goal to qualify for inclusion in the S&P 500 Index by creating a high growth gold and silver producer focused in the Americas. McEwen Mining's principal assets consist of the San José mine in Santa Cruz, Argentina (49% interest), the El Gallo Gold mine and El Gallo Silver project in Sinaloa, Mexico, the Gold Bar project in Nevada, USA, the Timmins projects in Ontario, Canada and the Los Azules copper project in San Juan, Argentina.
McEwen Mining has a total of 312 million shares outstanding. Rob McEwen, Chairman and Chief Owner, owns 25% of the Company.
McEwen Mining Inc. (NYSE:MUX) Q2 2017 Results Earnings Conference Call August 3, 2017, 11:00 AM ET
Executives
Rob McEwen - Executive Chairman and Chief Owner
Andrew Elinesky - CFO
Xavier Ochoa - President and COO
Analysts
Heiko Ihle - Rodman & Renshaw
 Rob McEwen
Good morning fellow shareowners, ladies and gentlemen. Welcome. Our second quarter can be characterized as one of increasing investment in key assets, essentially building our future. We've been moving aggressively on four fronts.
At our Gold Bar project in Nevada, we are completing the engineering design, signing up contractors and securing longer lead time capitalized assets in anticipation of receiving our permits in Q4. Once received, this will enable us to build and operate the mine, which we expect will take about a year to do.
In Mexico the good news is we have reconfigured our El Gallo Silver project such that it will now meet our investment criteria thresholds using current silver prices. And new feasibility study will be released in early 2018. Also in Mexico exploration will be focused on several key areas to expand the known mineralization and extend the operations of El Gallo Gold.
On our newly acquired properties in Timmins, we're quite excited about them. They hold interesting promise. We are assessing the best sequence for mining of the open pit and underground resources and at the same time we are testing for extensions of the known high grade mineralization.
Our large Los Azules copper project has advanced significantly and we will be releasing in September a new preliminary economic assessment and it will show that we have significantly lowered the CapEx and improved the economics. While we're intensely focused on being a precious metal company, I strongly believe that Los Azules represents the single biggest value creator currently in our portfolio.
At this time I would like to ask Andrew to tell you about our financial performance and liquidity.
Andrew Elinesky
Good morning everyone, thank you again for joining us. I am able to report that the company had a reasonable second quarter, with consolidated production of just over 32,000 gold equivalent ounces. This was in line with our expectations and we are on track to meet our full year guidance for 2017.
However, despite the solid production levels and reasonable operating costs, the company reported a net loss of $1.7 million or $0.01 per share. This was due to the combination of decreased profits at the San Jose Mine in Argentina, and increased levels of exploration and development of other projects that Rob just mentioned.
The spending increase was also reflected in our cash balance. We saw a reduction of $4.1 million or $0.01 per share during the quarter. And combining this cash spend with the reduced market value of our equity investments and reduced buoy on inventory, this meant that our liquid asset balance decreased by $11 million during the quarter.
Moving the conversation to site results, in Mexico, as mentioned, our production was in line with our expectations. However cash costs and all-in sustaining costs were significantly lower than our full-year guidance. This was similar to our first quarter, where we saw the effects of the carryover of lower cost heap leach inventory from 2016.
Obviously, the mine is constantly working to reduce their costs and we’ll try to lock in as much of these savings as possible. However, at this point of the year, we still expect our per ounce cost to trend in line with our full-year guidance as we progress into the second half of 2017.
The anticipated benefit of an increasing grade profile for the second half of 2017 should allow us to meet our full year guidance and increase our operating cash flows. Profitability in Mexico was being challenged by appreciation of the Mexican peso versus the dollar, which has increased in value by over 13% since the start of the year.
Regarding our capital investment plans in order to extend the mine life beyond 2018, we are continuing with our exploration program while also furthering our studies and evaluations of the significant resources in the area. Overall, we anticipate that El Gallo will still remain a strong contributor of free cash flows for the year.
At the San Jose Mine in Argentina, we saw improvement in production in the quarter despite unusually harsh winter conditions. As a result of increased snow falls in the area, cash costs per ounce continue to be higher than full-year guidance, but with the recent depreciation of the Argentinian peso versus the dollar, and the planned increase in production for the fourth quarter of 2017, full-year cost should meet our stated guidance.
These higher cash cost combined with the continued increase in capital investments and exploration results in a decrease in our share of the income from the mine when compared to the prior-year. Despite this decrease in profitability, the joint venture continued with its issuance of dividends and we received $2.4 million during the quarter. We expect the dividends should continue to be paid during the year despite the increased cost and capital investment levels.
Before handing over to Xavier, I would like to briefly discuss our projects. As Rob mentioned, at our Timmins projects we closed the Lexam VG [acquisition] during the quarter. We immediately commenced with our planned expenditures in Timmins with the initiation of resource valuations and trade-off studies and we have a full-year budget for that of $3 million.
Secondly, at our Los Azules copper project in Argentina, we are in the process of completing the updated PEA and the results should be announced later in the third quarter. With the completion of the seasonal drill campaign, we have seen a drastic reduction in our expenditures there.
And finally at Gold Bar, Nevada, as Rob mentioned, we continue with our advancement of critical path items including the key vendor engagements, as well as the building and team development with the planned permit approval coming later this year.
Xavier Ochoa
Good morning. At our operations and projects, I’d like to start with El Gallo Gold.
I had mentioned in our last call, we are now in the final stages of mining in the current pits. Mining reached the final bottom benches at one pit and all mining activity is now concentrated into the two other known pits.
These pits are oxides and that is focal point for us. This shown in a quarter-to-quarter production, a decrease of 49% at El Gallo when compared to the same third quarter last year. They produced in the past quarter 9,780 gold equivalent ounces, which reflects, prior lower grades that were processed.
The average grade mine, however, climbed to 2.5 grams per ton gold, which will be largely processed during the third quarter.
On July 30, we had a piece of tempered steel go through the primary crusher with substantial mechanical damages resulting from it. At this time, we expect quick remedial actions to minimize the effect of crushing down time, which will mitigate the negative estimated impact of 1,500 ounces this may have. We will further update what the actual impact on the total annual production and cost will be, as we think this could be minimal.
At El Gallo Gold, total cash cost and all-in sustaining cash cost were 706 and 843 gold equivalent ounce respectively. As the year advances, we expect our cost to trend towards our guidance numbers for the entire year. We will see an impact on our cost from harder ore in the transition sulfide materials at the bottom of the pits. On completion of the mining in the pits, ore leaching and processing at the heap will continue for three years.
At the El Gallo Silver project also in Mexico, during the third quarter we continued to advance our work on the project with the positive advances. Work aims to reduce the initial capital investments and lower operating cost. We remain on track to complete this work during the second half of the year.
At the San Jose Mine in Argentina, where we hold a 49% interest, during the second quarter we saw our share of attributable production at 22,804 gold equivalent ounces. This was a quarter-on-quarter production decrease of 5%, vis-à-vis the same quarter last year.
During the quarter in the month of June, heavy winter weather in the Patagonia resulted in unusual snow storms that affected delivery of ore mine for processing.
At the Los Azules project also in Argentina, during the second quarter we dedicated ourselves to complete up work to the field campaign completed during the first quarter of the year which focused on supergene, high grade, enrichment zone definition and improving it's continuity. The results obtained from drilling are now being used to refine our understanding of the deposit.
Engineering work continued to define our project configuration, mine plants and infrastructure, which will be reflected in the new preliminary economic assessment, on track to be finalized in the third quarter of this year.
At our Gold Bar project in Nevada in the United States, which we look forward to being our newest mine, we have focused our efforts on advancing the permitting. Our team was successful in completing the mandatory 45 day common period, updating the environmental impact study and having the required notice of availability issued and now the permitting process is at its final stage.
As of today, we believe that permitting remains on schedule to receive a positive Record of Decision from the U.S. Bureau of Land Management in the third quarter of the year, as planned. In parallel, detailed engineering work was nearly completed with supplier evaluations finalized for the execution of the project.
As Rob indicated, at our properties in the Timmins Camp, we're now in process of advancing studies in the four projects towards defining a development program.
At El Gallo, brownfield exploration is now looking at the deeper portions of our existing pits to determine what the potential for new resources is in the zones containing transition and sulfidic mineralization.
At the district level, the presence of this transition and sulfide zones represent an opportunity for exploration efforts. We are now looking into the deeper less oxidized mineralization which could become another chapter in the story of our prolific El Gallo district in Mexico. Nonetheless outside exploration is still being sought.
At San Jose, a surface exploration program is now ready to start as spring comes in, to support targets defined last fall.
Rob McEwen
I’d just like to close, before opening the session up for questions, with a few comments on gold. I see two positives for gold and silver.
First is where we are in the year. We are entering a period where gold has frequently exhibited seasonal highs, running from late August, through October. This seasonality is a well-known pattern. So, there is optimism there.
And the other, watching the Dow and other broad market indices hitting new highs, it’s interesting to note that gold has been holding it’s own, gold and silver, and actually showing signs of positive moves forward.
And I think that’s just reflecting while we have these highs in the broad market. Some people are starting to look at neglected areas and the precious metals space is one of those that features very prominently. So I think going forward it’s still looking quite good for gold.
Heiko Ihle with Rodman & Renshaw
For the Timmins project, you said you are spending 3 million for the new resource estate and the initial trade off analysis. Let's assume this all goes well, can you walk us through potential news flow for the site for remainder of this year and for next year please?
Rob McEwen
Xavier, would you like to handle that.
Xavier Ochoa
Could you please clarify the question.
Heiko Ihle
Sure. So you said, you are spending 3 million of Timmins for the new resource estimate in the initial trade off analysis. Let's assume the recent investment goes well, just sort of walk us through timing for news flow for the rest of this year. I mean it’s already August, for the next fiscal please.
Xavier Ochoa
Thanks for clarifying. What we are doing is the combination of updating the resource estimates, as well as conducting the detailed level of trade-offs that are necessary to determine, how we want to proceed with the project. So, this year, we want to complete those studies, define which of the four projects goes first and then that puts us into next year to complete the required permitting, depending on whether it’s open pit or underground option and then we can actually go into development.
So, we’re actually going to be in a position probably coming into the end of the quarter or following quarter to have more news on to what there is going to be the first part of the project coming out the gates in 2018.
Heiko Ihle
So you mentioned that the crusher at El Gallo went out of service. Can you just walk us through what exactly broke? It sounds like you’re going to turn this into lowest to almost no expenditures and you have a lot of contingency plans in place. Just what broke and timeline of getting this replaced, please.
Xavier Ochoa
What happens is, we had drill hammer come in, jammed into the jaw and the vibration pour into the bushings is, where the jaw sits. To do that work, you actually have to remove it and remachine the seats. So what our plan for that is, bringing a temporary crushing in replacement of that, while we do a proper repair on that and then reset it. In between there is tiny lost crushing.
Rob McEwen
I’d like to thank everyone for joining us today. Hope you have great summer. Hope it gets warmer, drier, and sunnier at least on the East Coast, and on the West Coast, gets a little cooler and little more rain and for everyone a higher gold price in September. Thank you.
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Post by Entendance on Aug 10, 2017 6:18:31 GMT -5
Primero sells Black Fox to McEwen Mining
MUX ***McEwen expands its stake in the Timmins gold camp with newest acquisition
MUX McEwen Mining to Acquire Black Fox From Primero all amounts in $US
TORONTO, Aug. 10, 2017 McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) (“McEwen”) is pleased to announce that it has reached an agreement with Primero Mining Corp. to purchase its Black Fox Complex and associated assets and liabilities located in the world-famous gold mining camp of Timmins, Canada. The agreed purchase price is $35 million, subject to closing adjustments. Definitive documentation is expected to be completed before the end of this month.
“Buying the Black Fox Complex provides fantastic synergies with our recently acquired Timmins deposits. Our objective is to build a long-term production platform with a robust pipeline of production, development and exploration assets, all feeding into a single processing facility. This acquisition will add immediately to our gold production, but is just the beginning of a new chapter of growth for McEwen Mining,” said Rob McEwen, Chairman and Chief Owner. “Black Fox comes with a talented operating team, an underground mine producing 50-60,000 ounces of gold in 2017(1), a processing facility with excess capacity, two future development opportunities, and excellent exploration potential. Combined with our existing portfolio of Timmins deposits, I believe this is a logical and potent combination.”
About McEwen Mining www.mcewenmining.com
McEwen Mining has the goal to qualify for inclusion in the S&P 500 Index by creating a high growth gold and silver producer focused in the Americas. McEwen Mining's principal assets consist of the San José mine in Santa Cruz, Argentina (49% interest), the El Gallo Gold mine and El Gallo Silver project in Mexico, the Gold Bar project in Nevada, the Timmins projects in Canada and the Los Azules copper project in Argentina.
McEwen Mining has a total of 312 million shares outstanding. Rob McEwen, Chairman and Chief Owner, owns 25% of the Company.
1Primero Mining Inc. stated 2017 production guidance for Black Fox.
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Post by Entendance on Aug 15, 2017 0:50:44 GMT -5
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Post by Entendance on Aug 29, 2017 5:12:54 GMT -5
MUX 08/29/2017 McEwen Mining and Primero Sign Definitive Agreement
TORONTO, Aug. 29, 2017 McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) (“McEwen”) is pleased to announce that it has signed the binding definitive agreement with Primero Mining Corp. for the purchase of its Black Fox Complex in the world-famous gold mining region of Timmins, Canada. The agreed purchase price is $35 million, subject to closing adjustments. Closing of the transaction is anticipated in late-September.
Key benefits of this transaction to McEwen Mining shareowners:
Production and Resource Growth
Strategically increases our gold production by 50,000 ounces in 2018 and significantly increases our gold resources in the Timmins region. Furthermore, excess mill and tailings capacity provide the capability to increase future production.
Management and Operational Readiness
Establishes a base of operations with an experienced and skilled site management and workforce who will operate and advance development of these assets and the Timmins properties recently acquired from Lexam VG Gold. Combined these properties include seven development and exploration stage projects.
Exploration Potential
The property is located along a prime 4.5 mile (7 km) section of the Destor-Porcupine Fault, which is host to many world-class gold deposits. It is already well-endowed with the Black Fox Mine, and the Grey Fox and Froome deposits; and has geologic traits that make it prospective to grow the existing deposits and for additional discoveries.
About McEwen Mining www.mcewenmining.com
McEwen Mining has the goal to qualify for inclusion in the S&P 500 Index by creating a high growth gold and silver producer focused in the Americas. McEwen Mining's principal assets consist of the San José mine in Santa Cruz, Argentina (49% interest), the El Gallo Gold mine and El Gallo Silver project in Mexico, the Gold Bar project in Nevada, the Timmins projects in Canada and the Los Azules copper project in Argentina.
McEwen Mining has a total of 312 million shares outstanding. Rob McEwen, Chairman and Chief Owner, owns 25% of the Company.
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Post by Entendance on Sept 8, 2017 1:38:06 GMT -5
MUX McEwen Mining Copper Shines Brightly for McEwen Mining - Enhanced Economics of Los Azules $2.2 Billion After-Tax NPV@8% and IRR of 20.1%
3.6 Year Payback at $3.00/lb. Copper and 36 Year Mine Life
415 Million lbs. Average AnnualCopper Production For The First 10 Years
$1.11/lb. Copper Average Cash Production Cost (C1) For First 10 Years
TORONTO, Sept. 07, 2017 -- McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) is pleased to announce the results of a new Preliminary Economic Assessment (PEA) on its 100% owned Los Azules Copper Project. The results of the 2017 PEA demonstrate that Los Azules is a robust, high margin, rapid pay-back, and long-life open pit mine at current copper, gold and silver prices.
The 2017 PEA was prepared by Hatch Ltd., a global multidisciplinary management, engineering and development consultancy known for leadership in mining innovation, under the direction of Donald Brown C. P. Eng (Senior Vice President of Projects for McEwen Mining) with contributions from other industry specialists.
The reforms introduced by the government of Argentina under the leadership of President Macri to encourage mining investment by eliminating taxes on exported mineral concentrates was a key factor driving the new PEA for Los Azules.
“Los Azules is a giant porphyry copper deposit that offers tremendous potential to generate wealth for McEwen Mining shareowners and other stakeholders,” said Rob McEwen, Chairman and Chief Owner. “Our next steps are to advance permitting and prefeasibility/feasibility studies to move Los Azules towards production.”
Los Azules is located in the San Juan Province of north-western Argentina. The 2017 PEA is a substantial revision of the previous 2013 PEA and contemplates an enhanced implementation strategy resulting in improved economics while reducing execution risk. It envisions an owner-operated mine and conventional concentrator (flotation circuit) producing a copper concentrate for export. A phased implementation approach is employed to optimise initial capital expenditure. Phase 1 implementation will have a daily throughput of 80,000 tonnes per day (tpd), and Phase 2 will deliver a 50% increase in the processing rate to 120,000 tpd. The process design has been modeled on the flowsheet and implementation of the recently constructed and operating Antapaccay (Glencore) copper concentrator located in the high Andes of Peru. Antapaccay shares many key characteristics with Los Azules, making it an obvious choice upon which to model the proposed infrastructure.
Using the assumptions of $3.00/lb copper, $1,300/oz gold, and $17/oz silver, the Los Azules project generates a robust after-tax Net Present Value (NPV) discounted at 8% of $2.2 billion and an Internal Rate of Return (IRR) of 20.1%. The project economics for Los Azules contemplates two years of permitting, drilling, and feasibility studies; followed by a three year project implementation phase for production of the first copper concentrates. The economic values presented in the 2017 PEA are after-tax financial outcomes at the point of commencing the project implementation phase. The key financial results are summarized in Table 1 and Figure 1 HERE
Mineral Resource Estimate
The estimated mineral resources for the Los Azules deposit are shown in Table 2. Mineral resources are determined using a base case cut-off grade of 0.20% copper, which is based on projected technical and economic parameters. The mineral resource estimate for Los Azules was prepared utilizing three-dimensional block models based on geostatistical applications. The mineral resources are estimated using ordinary kriging with a nominal block size of 20 m x 20 m x 15 m. To ensure the reported resource exhibits reasonable prospects for economic extraction, the mineral resource is limited within a pit shell generated around copper grades in blocks classified in the Indicated and Inferred categories. Generalized technical and economic parameters include a copper price of $2.75/lb., site operating costs of $1.70/t for mining, $5.00/t for processing and $1.00/t for general and administration, a pit slope of 34° and 90% metallurgical recovery.
Mining
The life-of-mine (LOM) ore tonnage is estimated to be 1,488 million tonnes of concentrator feed and 1,510 million tonnes of waste stripping. The stripping ratio, including stockpile re-handling, is projected at 1.05 (tonnes of waste per tonne of sulfide ore milled). Excluding the three-year preproduction period, the mine life is estimated at 36 years.
The concentrator feed during the first five years of operation is predicted to have a higher average grade of 0.73% copper. These grades are approximately double the average grades in the later years of mining (after Year 20). In the first five years of mining, 93% of this initial mill feed is presently classified as Indicated mineralized material and the remaining 7% is Inferred mineralized material.
The 2017 PEA is preliminary in nature. The mine plan and economic model include the use of Inferred resources. Inferred resources are conceptual in nature and are considered to be too speculative to be used in an economic analysis except as allowed for by Canadian Securities Administrators' National Instrument 43-101 (NI 43-101) in PEA studies. There is no guarantee that Inferred resources can be converted to Indicated or Measured resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability. As such, there is no guarantee the project economics described herein will be achieved.
Processing
Preliminary metallurgical test work has been conducted intermittently since 2008 to determine how the mineralized material responds to flotation as a means of recovering payable copper metal. Results have consistently proved favorable and flotation has been adopted as the processing option of choice.
The Los Azules concentrator will produce copper concentrate as a final product. The process flowsheet has been modeled on the Antapaccay copper concentrator (Glencore - Peru) due to similarities in ore properties and process plant altitudes. Some minor design changes, in equipment sizing only, have been incorporated based on operating experience at Antapaccay. The plant has been designed for average daily throughput of 80,000 tpd. The concentrator would be constructed on-site and would employ one comminution circuit consisting of a primary crusher, stockpile feed conveyor, reclaim conveyor, one SAG mill, two pebble crushers and two ball mills. The comminution circuit would be followed by flotation, thickening and filtration circuits, a Tailings Storage Facility (TSF) and concentrate storage. LOM recovery of copper to concentrate is expected to be 91% at a concentrate grade of 30% Cu.
It is planned to expand the capacity of the plant to 120,000 tpd by Year 5 through the installation of additional comminution and flotation capacity.
Gold and silver are recoverable to the copper concentrate. No other metals have been identified that would yield by-product credits, nor that have significant amounts of penalty elements.
Capital Costs
A key desired outcome of this study was to provide a project capital estimate with a reasonable level of accuracy. A summary of the initial capital estimate is provided in Table 3. Operating Costs
This updated PEA for the Los Azules project has a total operating cost of $15.4 billion over the life of the mine. Table 4 displays the operating cost summary.
PEA Contributors
A summary of the qualified persons responsible for the report is provided in Table 5.
The Canadian National Instrument 43-101 (“NI 43-101”) technical report containing the results of the updated PEA, with the effective date of September 1, 2017, will be filed on SEDAR and the Company’s website within 45 days of this press release. All tables and figures in this release have been obtained from the PEA.
About McEwen Mining www.mcewenmining.com
McEwen Mining has the goal to qualify for inclusion in the S&P 500 Index by creating a high growth gold and silver producer focused in the Americas. McEwen Mining's principal assets consist of the San José mine in Santa Cruz, Argentina (49% interest), the El Gallo Gold mine and El Gallo Silver project in Mexico, the Gold Bar project in Nevada, the Timmins projects in Canada and the Los Azules copper project in Argentina.
McEwen Mining has a total of 312 million shares outstanding. Rob McEwen, Chairman and Chief Owner, owns 25% of the Company.
QUALIFIED PERSON
Technical information contained in this news release has been prepared under the supervision of Mr. Donald Brown C. P. Eng., who is an officer of the Company, and a "qualified person" within the meaning of NI 43-101.
An independent qualified person manually verified the geologic database supporting the resource estimate by randomly selecting drill holes and verifying the data back to the original source. No significant errors were found.
***GOLD HAS BROKEN OUT – DON’T BE LEFT BEHIND
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Post by Entendance on Sept 21, 2017 1:32:06 GMT -5
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Post by Entendance on Sept 22, 2017 8:40:05 GMT -5
MUX McEwen Mining Announces Closing of US$46.6 Million Bought Deal Offering
TORONTO, Sept. 22, 2017 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) is pleased to announce the closing of its previously announced bought deal offering (the “Offering”), including the exercise in full of the underwriters’ over-allotment option. Pursuant to the Offering, a total of 20,700,000 shares of common stock (“Shares”) and warrants (“Warrants”) to purchase up to 10,350,000 Shares were sold at a price of US$2.25 per Share and associated one-half Warrant, for aggregate gross proceeds of US$46,575,000. Each whole Warrant entitles the holder to purchase one Share at an exercise price of US$2.70 per Share until September 28, 2018.
Assuming all of the Warrants are exercised prior to this date, the Offering will have resulted in the issuance of 31,050,000 Shares for aggregate gross proceeds of US$74,520,000 at an average price of US$2.40 per Share. The maximum potential issuance of Shares, including the exercise of Warrants, represents 9.9% of the total Shares outstanding prior to the Offering.
Cantor Fitzgerald Canada Corporation acted as the sole book-running manager for the Offering, while H.C. Wainwright & Co. LLC acted as the lead manager and Haywood Securities Inc. and Maison Placements Canada Inc. acted as co-managers.
The proceeds of the Offering will be used to purchase the Black Fox Complex (“Black Fox”) and for general corporate purposes. Black Fox is a producing underground gold mine located in the world-famous mining region of Timmins, Canada. Production in 2018 is expected to be 50,000 gold ounces, increasing the company-wide gold equivalent production by 16% from approximately 157,000 ounces in 2017 to 182,000 ounces in 2018.
Comments from Rob McEwen, Chairman & Chief Owner -
Why we did this Financing:
The opportunity to buy Black Fox came together quickly and the timeframe to close was short, which meant that our financing options were limited to a bought deal or the issuance of debt. Weighing the alternatives, we decided that this Offering represented the best option for our share owners at this time.
The attraction of Black Fox:
Black Fox reminds me a lot of the early days of the Red Lake Mine when I was building Goldcorp Inc. The mine is shallower than many of the larger mines in the Timmins area, and some of its best high-grade zones extend near the bottom of the known mineralization, suggesting there is good potential to grow the deposit at depth.
Our plan is to continue to develop Black Fox to achieve its maximum potential, invest aggressively in exploration, and leverage the excess mill capacity to process feed from the Timmins properties that we recently acquired with the purchase of Lexam VG in April. In addition, we have also acquired a fantastic operational team at Black Fox, which should allow us to aggressively pursue our plans to advance the Lexam VG assets into production as quickly as possible.
Impact on our Financial Strength:
This is the first financing we’ve done in five years.
The Shares issued today resulted in dilution of 6.6%. This relatively small sacrifice will enable us to close on the Black Fox purchase, which is anticipated on October 2nd. Post-closing of the Black Fox purchase we expect to add US$16 million in cash to our balance sheet, increasing our total cash and liquid assets to above US$60 million.
Assuming all the Warrants are exercised, we will have diluted our pre-Offering Shares outstanding by 9.9% for gross proceeds of US$74.5 million, at an effective issue price of US$2.40 per Share, which would represent a discount of just 1.2% to the closing price of our Shares prior to the Offering.
Furthermore, based on our 2018 forecasts, if all of the Warrants are exercised, we will be in an excellent position to fund our project pipeline, including construction of the Gold Bar Mine in Nevada, which we expect to be fully permitted later this year.
Meanwhile...You Might Watch Egon von Greyenz's Video interview on Gold & Markets Here
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Post by Entendance on Oct 6, 2017 8:57:13 GMT -5
MUX McEwen Mining Completes Purchase of Black Fox Complex TORONTO, Oct. 06, 2017 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) (“McEwen”) is pleased to announce the closing of the purchase of the Black Fox Complex (“Black Fox”) from Primero Mining Corp. (“Primero”), which consists of: 1) the fully operational Black Fox underground gold mine that is forecast to produce 50,000 ounces (oz) in 2018, 2) the Black Fox-Stock mill with a capacity of 2,400 tonnes per day (tpd), 3) an experienced workforce, and 4) the nearby Grey Fox and Froome development projects. All these assets are located in the world-famous gold mining region of Timmins, Canada.
The initial purchase price for Black Fox was US$35 million, subject to closing adjustments. The transaction that closed today consists of a cash payment of US$27.5 million after making certain price adjustments. The recent financing completed on September 22nd provided the funds to secure this purchase, supplements our treasury for future capital projects and exploration at Black Fox, and may be used for general corporate purposes.
“We view this purchase as an important strategic step towards our goal of entering the S&P 500 Index; #1 It increases our forecast 2018 annual production by 20% to 185,000 gold equivalent ounces; #2 It allows us to accelerate development towards production of the Lexam VG properties we bought earlier this year; #3 It provides us with a base of operations, an experienced workforce, and multiple exploration targets in one of the world’s best gold mining districts, Timmins, Canada; #4 The purchase price was very attractive, given the significant investment made by the previous owner; and #5 The purchase includes large tax pools that will be used to shelter future income,” said Rob McEwen, Chairman and Chief Owner.
Management Conference Calls Please join our conference call today, when the Company will discuss the attractiveness of the Black Fox purchase, the recent financing and other corporate developments, followed by a question and answer session.
Friday, October 6th, 2017
2:00 pm (ET) Toll Free (US & Canada): (844)-630-9911
Outside US & Canada: (210)-229-8828
Conference ID Number: 97465147
Webcast Link: edge.media-server.com/m/p/9gxtsax4
If you cannot make it for today’s conference call, we invite you to join us for a second conference call on
Tuesday, October 10th, 2017
11:00 am (ET) Toll Free (US & Canada): (844)-630-9911
Outside US & Canada: (210)-229-8828
Conference ID Number: 95109551
Webcast Link: edge.media-server.com/m/p/6d4ugtj9
A corporate presentation that will be referenced during these calls is available at:  www.mcewenmining.com/Presentation/MUX-Presentation/default.aspx
Archived replays of the webcasts will be available for one week after they take place.
Access the October 6th webcast using the link edge.media-server.com/m/p/9gxtsax4
or
calling (855)-859-2056 (North America)/ (404)-537-3406 (International), Conference ID Number 97465147.
Access the October 10th webcast using the link edge.media-server.com/m/p/6d4ugtj9 or
calling (855)-859-2056 (North America)/ (404)-537-3406 (International), Conference ID Number 95109551.
Information on Black Fox
Attractive Purchase Price
The purchase price of US$35 million is attractive given the high-grade gold production expected from Black Fox and the significant exploration potential of the properties. Additionally, replacement value of only the fully permitted 2,400 tpd mill and tailings facility is well above the purchase price. Since 2014 capital investment and exploration at Black Fox totalled over US$120 million(1). As part of the acquisition, we will also gain access to US$150 million of development and exploration pools that can be applied to reduce taxable income generated from within Ontario.
Declining Production Cost per Ounce
Production costs at Black Fox have declined over the past twelve (12) months as a result of higher grades mined underground, cost cutting measures, and operational improvements (see table below). Our goal is to maintain a profitable cost structure at the mine with the expectation that capital investments will be required in the short to medium term.
Historical Production
The combined production from the purchased properties totals over 950,000 ounces of gold. The Black Fox mine was initially operated from 1997 to 2001. It was re-commissioned in 2009 and has operated continuously since then, producing a total of 821,000 ounces(1) of gold from an open pit and underground mine.
The property surrounding the Black Fox-Stock mill is also the site of the former Stock Mine (“Stock”), which produced 137,000 ounces of gold from an underground operation between 1989-2005.
Exploration Potential
The Black Fox property is located along a prime 4.5 mile (7 km) section of the Destor-Porcupine Fault, which is host to many world-class gold deposits. The property is already well-endowed with gold mineralization and has very attractive geological potential.
The objective of the current underground exploration and definition drilling programs is to upgrade and expand resources in the Deep Central, High Quartz Vein, Far West and Far East Zones, at depths ranging from approximately 500 to 850 meters (m). Exploration drilling will also focus on expanding the gold resources to depth at the Black Fox mine and the Froome deposit, which is located 800 m West of the mine. The Froome deposit is currently drilled to a depth of 350 m and remains open at depth.
Multiple other exploration targets exist on the Black Fox and Stock properties. These targets will be ranked during Q4 2017 for drilling in 2018.
Future Development Opportunities
Our project pipeline in the Timmins region has six potential development projects, those acquired with Black Fox: Froome and Grey Fox; and those acquired with Lexam VG Gold: Fuller, Davidson Tisdale, Buffalo Ankerite, and Paymaster. Having access to the Black Fox-Stock mill definitely enhances the value of these assets and significantly shortens the time required to reach production.
Existing Gold Stream
There is a pre-existing gold streaming agreement with Sandstorm Gold Ltd. (“Sandstorm”) on the Black Fox and Froome deposits. As a result of this agreement we will sell 8% of the gold produced on these specific properties to Sandstorm for US$531/ounce. The current cost of the stream assuming a $1,300/oz gold price is a reduction in realized revenue from Black Fox of approximately 4.7% compared to if no stream existed. The Grey Fox deposit and the Stock property are not subject to any streaming agreements.
Footnotes: (1) Source: Primero public filings
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Post by Entendance on Nov 2, 2017 8:30:35 GMT -5
Gold is important to me because...click here |
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Post by Entendance on Nov 7, 2017 13:27:25 GMT -5
banksters Cartel International
"...Financial services industry employees are trained to talk customers out of buying gold. They do this by pointing out its price volatility and riskiness. (The public has no idea that the gold price is manipulated, and fake.) If the customer still wants to buy it, then the broker steers them into electronic gold, such as bullion bank-controlled ETFs and major mining company equities.
This sterilizes the investor’s funds, and prevents them from being used to buy physical precious metals, which would interfere with the price rigging crime by increasing physical demand for and the price of gold, given its consistently tight supplies. It would also lessen capital flows onto the Gold Looting Field, the exact opposite of the Deep State manipulators’ agenda...
...The larger purpose behind the Deep State’s electronic gold products, beyond current profits, is to concentrate investment gold in a select number of locations that will be easy to control and raid when the time comes...
...For investors, electronic gold is nothing but modern day Fools’ gold. For the Deep State, it is a free ride, on investors’ backs, to the most massive physical gold theft of all times.
Taken together, we believe these factors present a compelling argument why investors should exit all of the electronic gold products specified at the beginning of this article, and convert the proceeds into physical gold and/or non-Deep State-controlled equities of companies in which they have full confidence that managements are working for them, not the bullion banks. The fact is that the Deep State manipulation of the gold price is never going to end until people stop buying electronic gold and providing the liquidity the Deep State needs to continue perpetrating the gold price rigging crime..." ***Electronic Gold: The Deep State’s Corrupt Threat to Human Prosperity and Freedom
banksters Cartel International***explained
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