Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
McEwen Mining Inc. (NYSE:MUX)(TSX:MUX) announced that El Gallo Phase I in Sinaloa State, Mexico has achieved its first gold production. The mine, which is 100% owned by McEwen Mining, is expected to produce 10,000 ounces of gold during the balance of this year. In 2013, the annual production is forecasted to be 30,000 ounces of gold.
The El Gallo Phase I is proceeding with the remaining commissioning activities, with commercial production anticipated to be achieved late this year.
The El Gallo Phase II, where a feasibility study was completed on September 10th, is forecasted to produce an additional 5.2 million ounces of silver and 6,000 ounces of gold per year, for combined production of 135,000 ounces of gold and gold equivalent per year.
“We are excited to see our second mine start production. I believe McEwen Mining is at a criticalpoint, where we begin to deliver on our promise of production growth. Our objective is to increase production from 105,000 ounces of gold and gold equivalent in 2012 to 290,000 ounces of gold and gold equivalent in 2015. I would like to thank all of our employees and contractors, who played an important role in the construction of the mine,” said Rob McEwen , Chief Owner.
The firm responsible for the EPCM (Engineering, Procurement, Construction and Management) ofEl Gallo Phase I is Sonoran Resources of Hermosillo, Mexico.
