NYSE:
MUX

$2.05
+0.06 +3.02% Volume: 1,869,178 November 22, 2017
TSX:
MUX

$2.60
+0.00 +0% Volume: 56,166 November 23, 2017
Gold
$1,292.16
+0.16 +0.01% Volume: November 23, 2017
Silver
$17.10
+0.15 +0.9% Volume: 1 November 22, 2017
Copper
$3.13
+0.01 +0.29% Volume: 424 November 22, 2017

San José Mine

ABOUT SAN JOSÉ MINE

Located in Santa Cruz, Argentina

The San José mine (owned 49% McEwen Mining and 51% Hochschild Mining) is an underground operation located approximately 20 km north of Goldcorp’s Cerro Negro project, in the northwest corner of the Deseado Massif region of Santa Cruz Province, Argentina.

About Diagram About Diagram

2016 Production

Estimates Silver
95K
Au Oz
Estimates Gold
6.7M
Ag Oz
Exploration
Potential
Great Address
High Grade
Narrow Vein

San José
Key
Operational
FACTS

Location Santa Cruz Province, Argentina
Workforce 1,400 (including contractors)
Estimated Mine Life 5 years
Mining Type Underground
Processing Method Grinding and floatation
Crushing/Processing Capacity 1,650 tonnes per day
2017 Estimated Production (100%)  102 thousand gold ounces and 6.7 million silver ounces

Production

The San José Mine is held in partnership between McEwen Mining (49% ownership) and Hochschild Mining (51% ownership). In 2017 McEwen Mining's attributable production from the mine was 50,000 gold ounces and 3.3 million silver ounces, for a total of 94,000 gold equivalent ounces. (75:1 gold to silver ratio).

San Jose (100%) Full-Year
2016
Full-Year
2015
Full-Year
2014
Ore processed (thousand tonnes) 536 532 571
Average grade gold (gpt) 6.28 6.36 5.77
Average grade silver (gpt) 444 448 404
Average gold recovery (%) 87.8 88.8 88.8
Average silver recovery (%) 87.4 87.5 87.2
Gold produced (thousand oz) 95.0 96.6 94.0
Silver produced (thousand oz) 6,691 6,706 6,469
Gold sold (thousand oz) 99.8 88.8 91.0
Silver sold (thousand oz) 7,081 6,340 6,316
Co-product total cash cost Au (US$/oz) 751 871 874
Co-product total cash cost Ag (US$/oz) 10.24 11.45 12.11
Gold equivalent total cash cost (US$/oz) 760 865 795
Co-product all-in sustaining cash cost Au (US$/oz) 944 1,119 1,193
Co-product all-in sustaining cash cost Ag (US$/oz) 12.87 14.72 16.54
Gold equivalent all-in sustaining cash cost (US$/oz) 954 1,111 1,086
Silver pille

RESOURCES
& RESERVES

Silver

MEASURED & INDICATED

54,500,000OZ

INFERRED

13,500,000OZ

PROVEN & PROBABLE

27,200,000OZ
Gold pille

Gold

MEASURED & INDICATED

815,000OZ

INFERRED

214,000OZ

PROVEN & PROBABLE

412,000OZ

EXPLORATION
- NEW HIGH GRADE RESULTS

The San Jose Mine has not been fully explored

The property encompasses approximately
469,000 ACRES

The San José Property is located in the northwest corner of the Deseado Massif in the Santa Cruz Province in Argentina, where Jurassic bimodal volcanics host numerous gold- and silver-bearing quartz veins. Low sulphidation silver-gold and polymetallic mineralization accompanied Jurassic magmatism and deformation in the Deseado Massif.

The property consists of 98 mining concessions and 10 exploration rights covering approximately 469,000 acres. The sizable land package provides good potential for additional resource and reserve expansion.

The Bajo Pobre Formation is the main host for gold and silver mineralization, where veins are typically developed in competent andesite flows at the Huevos Verdes, Frea and Kospi deposits on the San José property and to a lesser extent in volcaniclastic units.

The San José deposits are considered to be typical low sulphidation silver-gold epithermal vein deposits. The main structural trend of fault and vein systems on the property is northwest to north-northwest, together with less prominent east striking and north to northeast striking faults and veins.