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McEwen Mining expects to overcome Q2 theft of gold, meet 2015 estimate

TORONTO – McEwen Mining Inc. (TSX:MUX) says it’s still on track to meet this year’s production estimate despite the theft of gold concentrate from its El Gallo mining operation in Mexico last month.

The Toronto-based gold and silver producer says El Gallo’s production will be lower in the April-June quarter than in the first quarter, but still reach 50,000 ounces for the full year as it experiences better ore grades.

McEwen estimates El Gallo’s gold production will drop to 14,000 ounces in the second quarter that began April 1 but return to 15,000 ounces in the third quarter that begins July 1.

The El Gallo mine produced 15,243 ounces of gold in the first quarter ended March 31, prior to an armed robbery of concentrate containing 6,350 ounces in early April.

The Mexican mine accounted for more than half of the gold produced by McEwen in the first quarter, with the rest coming from its 49 per cent share of production at the San Jose mine in Argentina. Both mines also produce silver.

For the full year, McEwen estimates 96,500 ounces of gold production, including 46,500 from the Argentinian mine. Including silver production, it estimates 138,000 gold-equivalent ounces, including 50,200 from Gallo and 87,800 from San Jose.