(MKTW) McEwen Mining Reports Record Production in 2014 46

(MKTW) McEwen Mining Reports Record Production in 2014
46 minutes ago - DJNF
McEwen Mining Reports Record Production in 2014

TORONTO, ONTARIO--(Marketwired - Jan 15, 2015) - McEwen Mining Inc. (NYSE:MUX)(TSX:MUX) is pleased to announce Q4 and 2014 full-year production results.

-- In Q4 2014, the Company produced a quarterly record of 27,412 gold oz and

973,417 silver oz.

-- In 2014 the Company produced an annual record of 84,363 gold oz and

3,195,693 silver oz.

El Gallo 1, Mexico

-- In Q4 2014, we produced a record of 14,068 gold oz and 13,422 silver oz.

-- In Q4 2014, our mined gold grade increased 73% quarter-over-quarter to

1.93 gpt Au. This year we expect to be mining an average grade of 2.6 gpt

Au.

-- This year annual gold production is expected to increase 31% to 50,000

oz.

-- This year all-in sustaining costs are expected to decrease to $750 per

gold oz due to a one third decrease in crusher throughput and lower

mining, blasting and cyanide costs.

San José, Argentina (49%)*

-- Our attributable production from San José in Q4 was 13,344 gold oz

and 959,995 silver oz.

-- In 2015 the gold and silver grades are expected to increase slightly to

6.15 gpt and 414 gpt for the year, respectively.

-- This year annual production is expected to be similar to 2014, with

46,500 gold oz and 3,100,000 silver oz.

-- At the current silver to gold ratio of 75:1, we expect all-in sustaining

costs in 2015 to be $1,225 per gold equivalent oz.

Production costs for 2014 will be released with year-end financials in early March 2015.

At December 31, 2014, McEwen Mining had cash and liquid assets of $18.3 million and no bank debt.

Due to the volatility in the silver-to-gold ratio, we have decided to highlight both gold and silver ounces for our production instead of on a gold-equivalent (gold eq.) basis. For reference our 2014 guidance of 135,000 - 140,000 gold eq. oz was based on a silver-to-gold ratio of 60:1. At that ratio, our production in 2014 was 137,625 gold eq oz.

McEwen Mining Operating Results

2015 Full-Year Full-Year

Guidance 2014(1) 2013 Q4 2014(1) Q4 2013



Corporate

Total



Gold produced

(oz) 96,500 84,363 79,158 27,412 20,686



Silver

produced

(oz) 3,120,000 3,195,693 3,135,468 973,417 857,011





San José

- 100%



Ore

production

(tonnes) 550,000 571,018 536,937 152,689 156,150



Average grade

gold (gpt) 6.15 5.77 6.42 6.19 6.03



Average head

silver

(gpt) 414 404 425 454 399



Average gold

recovery

(%) 87.0 88.8 89.2 89.6 87.6



Average

silver

recovery

(%) 87.0 87.2 86.7 87.8 87.0



Gold produced

(oz) 95,000 94,161 98,827 27,233 26,529



Silver

produced

(oz) 6,300,000 6,469,022 6,356,801 1,959,174 1,741,275



McEwen Mining

- 49%*



Gold produced

(oz) 46,500 46,139 48,425 13,344 12,999



Silver

produced

(oz) 3,100,000 3,169,821 3,114,833 959,995 853,225





El Gallo 1



Ore

production

(tonnes) 850,000 1,462,496 1,255,314 522,337 323,863



Average grade

gold (gpt) 2.6 1.42 1.22 1.93 1.17



Gold produced

(oz) 50,000 38,224 30,733 14,068 7,687



Silver

produced

(oz) 20,000 25,872 20,635 13,422 3,786



* The San José Mine is 49% owned by McEwen Mining

and 51% owned and operated by Hochschild Mining.

1. Although believed by management to be accurate,

information provided for production, tonnes and grades

is preliminary and may consequently differ from final

results expected to be disclosed in the Company's

forthcoming Form 10-K. Any differences are expected

to be positive.

About McEwen Mining (www.mcewenmining.com)

The goal of McEwen Mining is to qualify for inclusion in the S&P 500 by creating a profitable gold producer focused in the Americas. McEwen Mining's principal assets consist of the San José Mine in Santa Cruz, Argentina (49% interest); the El Gallo complex in Sinaloa, Mexico; the Gold Bar project in Nevada, US; the Los Azules project in San Juan, Argentina. McEwen Mining has 305.2 million shares fully diluted at January 15, 2015. Rob McEwen, Chairman, and Chief Owner, owns 75,168,564 shares or approximately 25% of the Company.

RELIABILITY OF INFORMATION

Minera Santa Cruz S.A. ("MSC", the owner of the San José mine, is responsible for and has supplied to the Company all reported results from the San José mine. McEwen Mining's joint venture partner, a subsidiary of Hochschild Mining plc, and its affiliates other than MSC do not accept responsibility for the use of project data or the adequacy or accuracy of this release.

Technical Information

The technical contents of this news release has been reviewed and approved by William Faust PE, Chief Operating Officer and a Qualified Person as defined by Canadian Securities Administrator National Instrument 43-101 "Standards of Disclosure for Mineral Projects".

Cautionary Note Regarding Non-GAAP Measures

In this report, we have provided information prepared or calculated according to U.S. GAAP, as well as provided some non-U.S. GAAP ("non-GAAP" performance measures. Because the non-GAAP performance measures do not have any standardized meaning prescribed by U.S. GAAP, they may not be comparable to similar measures presented by other companies.

Total cash costs consist of mining, processing, on-site general and administrative costs, community and permitting costs related to current explorations, royalty costs, refining and treatment charges (for both doré and concentrate products), sales costs, export taxes and operational stripping costs. All-in sustaining cash costs consist of total cash costs (as described above), plus environmental rehabilitation costs, mine site exploration and development costs, and sustaining capital expenditures. In order to arrive at our consolidated all-in sustaining costs, we also include corporate general and administrative expenses. Depreciation is excluded from both total cash costs and all-in sustaining cash costs. Total cash cost and all-in sustaining cash cost per ounce sold are calculated on a co-product basis by dividing the respective proportionate share of the total cash costs and all-in sustaining cash costs for the period attributable to each metal by the ounces of each respective metal sold. We use and report these measures to provide additional information regarding operational efficiencies both on a consolidated and an individual mine basis, and believe these measures provide investors and analysts with useful information about our underlying costs of operations. A reconciliation to the nearest U.S. GAAP measure is provided in McEwen Mining's Quarterly Report on Form 10-Q for the quarter ended September 30, 2014.

Caution Concerning Forward-Looking Statements

There are significant risks and uncertainty associated with construction, commencing or expanding production or changing production plans without a current feasibility, pre-feasibility or scoping study. As such, El Gallo 1 may ultimately be determined to lack one or more geological, engineering, legal, operating, economic, social, environmental, and/or other relevant factors reasonably required to serve as the basis for the decision to complete the expansion of this project.

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