NYSE:
MUX

$1.86
+0.09 +5.08% Volume: 3,615,831 September 23, 2019
TSX:
MUX

$2.47
+0.11 +4.66% Volume: 458,000 September 23, 2019

San José Mine

ABOUT SAN JOSÉ MINE

Located in Santa Cruz, Argentina

The San José Mine is owned and operated in partnership between McEwen Mining (49% interest) and Hochschild Mining (51% interest).

Located approximately 20 km north of Goldcorp’s Cerro Negro project, in the northwest corner of the Deseado Massif region of the Santa Cruz Province in Argentina, the mine is a high grade underground gold and silver operation in production since 2007.

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 1,300 (including contractors)
Mining Type Underground
Processing Method Grinding and floatation
Crushing/Processing Capacity 1,650 tonnes per day
2018 Production (100%)  96.6 thousand oz gold + 6.2 million oz silver

Production

Mineralized material at San José is processed at a mill site, with half of the concentrate material produced being processed into doré, and the balance filtered and shipped as concentrate. The mine has been in commercial production for over 12 years and is estimated to continue producing gold and silver into 2024, according to the December, 2018 assessment. The life of the mine continues to be updated as exploration advances and reserve estimates are renewed.

McEwen Mining's attributable production for 2018 at 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 2018, cash costs and all-in-sustaining costs per ounce of gold equivalent were $851 and $1,061, respectively. Below are presented annual production numbers and costs per ounces sold over the most recent three years.

McEwen Mining's guidance for 2019 production at San José is of 49,000 ounces of gold and 3,225,000 ounces of silver. From the second quarter of 2019 the Company has adopted a variable gold-to-silver ratio for reporting, that approximates the average during each fiscal quarter. Based on a 85:1 gold-to-silver ratio for 2019, the production guidance translates into a total of 87,000 gold equivalent ounces at estimated cash costs and all-in sustaining costs of $860 and $1,120 per ounce of gold equivalent, respectively. Our attributable production was 24,077 ounces of gold and 1,549,609 ounces of silver in the first half of 2019, with average total cash costs and all-in-sustaining costs of $865 and $1,165 per gold equivalent ounce using a 75:1 gold-to-silver ratio for Q1 2019 and a 88:1 gold-to-silver ratio for Q2 2019.

San Jose (100%) Full Year
2018
Full Year
2017
Full Year
2016
Ore processed (thousand tonnes) 556 533 536
Average grade gold (gpt) 6.2 6.7 6.3
Average grade silver (gpt) 397 436 444
Average gold recovery (%) 87.2 87.4 87.8
Average silver recovery (%) 86.8 86.3 87.4
Gold produced (thousand oz) 96.6 100.5 95.0
Silver produced (thousand oz) 6,165 6,448 6,691
Total cash cost Au (US$/oz) 897 847 751
Total cash cost Ag (US$/oz) 10.64 11.07 10.24
Gold equivalent total cash cost (US$/oz) 851 839 760
All-in sustaining cash cost Au (US$/oz) 1,118 1,058 944
All-in sustaining cash cost Ag (US$/oz) 13.27 13.83 12.87
Gold equivalent all-in sustaining cash cost (US$/oz) 1,061 1,027 954
Silver pille

RESOURCES
& RESERVES

Silver

MEASURED & INDICATED

44,400,000OZ

INFERRED

21,000,000OZ

PROVEN & PROBABLE

18,300,000OZ
Gold pille

Gold

MEASURED & INDICATED

663,000OZ

INFERRED

367,000OZ

PROVEN & PROBABLE

259,000OZ

EXPLORATION
- NEW HIGH GRADE RESULTS

The San Jose Property Has Not Been Fully Explored

The Property Encompasses 
687,000 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 quartz veins bearing gold and silver. Low sulphidation silver-gold and polymetallic mineralization accompanied Jurassic magmatism and deformation in the Deseado Massif.

The mine is part of a larger property which covers a total area of approximately 1,074 square miles (2,781 square kilometers) and consists of 135 mining concessions. The sizable land package provides good potential for additional resource and reserve expansion.

The Jurassic 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.

Mineralization in the San José area occurs as low sulfidation epithermal quartz veins, breccias and stockwork systems accompanying normal-sinistral faults. 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.

Based on a $6 million budget, the 2018 exploration program focused on Aguas Vivas, Juanita NE , Candy, Scott 1, Maia, Lita, Maura, Tensional Perla, Tensional EW, Manteca, Tornado, Rml Ayelen, Sigmoide Luli y Antonella SE. In 2019 $5 million will be invested in exploration, to continue the efforts to increase the knowledge of the new veins and develop other new veins in the district.