NYSE:
MUX

$1.67
-0.05 -2.91% Volume: 2,939,100 January 18, 2019
TSX:
MUX

$2.25
+0.03 +1.35% Volume: 55,986 January 21, 2019

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

2018 Production

Estimates Silver
96.6K
Au Oz
Estimates Gold
6.2M
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)
Mining Type Underground
Processing Method Grinding and floatation
Crushing/Processing Capacity 1,650 tonnes per day
2018 Production (100%)  96.6 thousand gold oz and 6.2 million silver oz

Production

The San José Mine is held in partnership between McEwen Mining (49% ownership) and Hochschild Mining (51% ownership). The mine has been in production since 2007 and, according to an estimate from December 31, 2017, production will continue into 2024. The life of the mine continues to be updated as exploration advances and the mine's reserves are renewed.

McEwen Mining's guidance for 2018 production at San José was for 48,000 gold ounces and 3,225,000 silver ounces, for a total of 91,000 gold equivalent ounces (based on a 75:1 gold-to-silver ratio), at costs per ounce of gold equivalent of $860 for cash costs and $1,110 for all-in-sustaining costs.

Our 2018 production from San José was of 47,331 gold ounces and 3,020,696 silver ounces, for a total of 87,607 gold equivalent ounces (using a 75:1 gold-to-silver ratio). For the nine months ending September 30, 2018, costs per ounce of gold equivalent were $864 for cash costs and $1,078 for all-in-sustaining costs. Below are presented annual production numbers, costs and sales over the most recent three years.

San Jose (100%) Full Year
2017
Full Year
2016
Full Year
2015
Ore processed (thousand tonnes) 533 536 532
Average grade gold (gpt) 6.7 6.3 6.4
Average grade silver (gpt) 436 444 448
Average gold recovery (%) 87.4 87.8 88.8
Average silver recovery (%) 86.3 87.4 87.5
Gold produced (thousand oz) 100.5 95.0 96.6
Silver produced (thousand oz) 6,448 6,691 6,706
Gold sold (thousand oz) 99.6 99.8 88.8
Silver sold (thousand oz) 6,501 7,081 6,340
Co-product total cash cost Au (US$/oz) 847 751 871
Co-product total cash cost Ag (US$/oz) 11.07 10.24 11.45
Gold equivalent total cash cost (US$/oz) 839 760 865
Co-product all-in sustaining cash cost Au (US$/oz) 1,058 944 1,119
Co-product all-in sustaining cash cost Ag (US$/oz) 13.83 12.87 14.72
Gold equivalent all-in sustaining cash cost (US$/oz) 1,027 954 1,111
Silver pille

RESOURCES
& RESERVES

Silver

MEASURED & INDICATED

52,300,000OZ

INFERRED

10,100,000OZ

PROVEN & PROBABLE

20,700,000OZ
Gold pille

Gold

MEASURED & INDICATED

785,000OZ

INFERRED

188,000OZ

PROVEN & PROBABLE

313,000OZ

EXPLORATION
- NEW HIGH GRADE RESULTS

The San Jose Property Has Not Been Fully Explored

The Property Encompasses 
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.