McEwen Mining posts Q1 production; restarts Black Fox Mine

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McEwen Mining Inc.‘s [MUX-TSX, NYSE] consolidated production for the first quarter of 2020 was 29,177 gold ounces and 553,179 silver ounces, or 35,062 gold equivalent ounces, at the average gold:silver price ratio for the quarter of 94:1.

Black Fox Mine, Timmins, Canada (100%)

In Q1 Black Fox produced 8,328 ounces AuEq. Mining was temporarily suspended at Black Fox on March 26, 2020, for two weeks to allow time for management to evaluate and adapt to operating with the risks associated with the COVID-19 pandemic. Over the course of the shutdown the company has implemented rigorous policies and procedures to minimize the potential risks to the health of all individuals at the mine.

The company’s miners and teams are overwhelmingly supportive of returning to work with the new safety measures, and the decision has been made to restart operations immediately.

San Jose Mine, Santa Cruz, Argentina (49%)

In Q1 the San Jose Mine produced 8,993 gold ounces and 551,872 silver ounces, for a total of 14,864 ounces AuEq. Mining was temporarily suspended from March 20, 2020, due to a nationwide mandatory quarantine imposed in Argentina to combat the spread of COVID-19. Permission has now been granted by the government to restart mining at San Jose. Partner and operator Hochschild Mining PLC [HOC-London; HCHDF-OTC], 51%, has notified the company that it is restarting production, with the expectation that continuing labour and travel restrictions will mean that the ramp-up will take place over an extended period.

Gold Bar Mine, Nevada (100%)

In Q1 Gold Bar produced 9,133 ounces AuEq. On March 26, 2020, the company announced that operations would be temporarily scaled back for two weeks, contract mining stopped on April 1, and crushing and stacking stopped on April 4. Downstream activities such as heap leaching and process plant operation are continuing.

El Gallo Project, Sinaloa, Mexico (100%)

In Q1 El Gallo produced 2,737 ounces AuEq from residual leaching of the heap leach pad. On April 1, 2020, the Mexican government ordered the temporary closure of all non-essential businesses, including mining, to combat the spread of COVID-19. This order limits some activities at El Gallo but is not expected to have a significant effect on residual leaching.

Operating costs for the quarter ended March 31, 2020, will be released with the company’s 10-Q quarterly financial statements.

Due to the impact of the CIVID-19 pandemic, on March 20, the company withdrew it 2020 guidance.

McEwen Mining has operating mines in Nevada, Canada, Mexico and Argentina. It also owns a large copper deposit in Argentina.

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