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San José Mine

ABOUT SAN JOSÉ MINE

Located in Santa Cruz, Argentina

Located in Argentina's Santa Cruz province, the San José silver-gold mine is situated 350 kilometers southwest of Comodoro Rivadavia. This port city is the primary access point to the mine and offers regular flights to Buenos Aires.

The San José mine is located in the northwest corner of the Deseado Massif region, 20 kilometers north of Newmont's Cerro Negro mine. San José's property encompasses 141 mining concessions, spanning 260,000 hectares that encircle Cerro Negro.

In production since 2007, San José is a high grade underground gold and silver mine, owned and operated in partnership between McEwen Mining (49% interest) and Hochschild Mining (51% interest).

About Diagram About Diagram

2022 Production

Estimates Silver
78.8 Koz
Au
Estimates Gold
5.3 Moz
Ag
Exploration
Potential
Great Address
High Grade
Narrow Vein

San José
Key
Operational
FACTS

Location Santa Cruz Province, Argentina
Workforce 1,900 (including contractors)
Mining Type Underground
Processing Method Grinding and flotation
Crushing/Processing Capacity 1,650 tonnes per day
2022 Production (100%)  78.8 Koz gold + 5.3 Moz silver
2022 Average Production Grades  5.6 g/t gold and 369 g/t silver

Production

Mineralized material at San José is processed at a mill site, with part 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 15 years and is estimated to continue producing gold and silver into 2028, according to the operator's 2022 Annual Report. The life of the mine continues to be updated as exploration advances and reserve estimates are renewed.

2022 production from the San José mine consisted of 55% doré and 45% concentrate, with McEwen Mining's attributable production of 38,600 gold ounces and 2,593,000 silver ounces, for a total of 69,100 gold equivalent ounces (using a gold-to-silver price ratio of 84:1 for the year).

The 2023 forecast for our attributable production from San José is of 40,000 gold ounces and 2,300,000 silver ounces for a total of 68,000 gold equivalent ounces (using a gold to silver price ratio of 83:1), at costs per gold equivalent ounce of $1,450 for cash costs and $1,800 for all-in sustaining costs.

Silver pille

RESOURCES
& RESERVES

Silver

MEASURED & INDICATED

3,100,000OZ

INFERRED

26,700,000OZ

PROVEN & PROBABLE

10,400,000OZ
Gold pille

Gold

MEASURED & INDICATED

51,000OZ

INFERRED

396,000OZ

PROVEN & PROBABLE

192,000OZ
Dec 2022 Mineral Resources are presented exclusive of Reserves.

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.

The San Jose property is still under-explored. We are continuing to identify structures/ extensions with current operations. Long hole drilling started close to the mine at the end of 2019 has recognized new potential to the west side of the Huevos Verdes vein. Geophysics for the Titan area was also started in 2020.

The evaluation of the Aguas Vivas polymetallic deposit to the north west of our existing operations was continued in 2019 and will be completed in 2020.

The Telken zone, which we believe that it could form the extension to veins from Newmont’s Cerro Negro mine in the south, was prepared for drilling in 2019 and will have a 5 kilometers drilling program in the first half of 2020.