- McEwen Mining (MUX) has seen a rebound in production following the resumption of mining activities that were suspended in the second quarter
- Total production for the third quarter of 2020 came to 23,100 ounces of gold and 575,000 ounces of silver, or 30,400 gold equivalent ounces
- The Black Fox Mine posted an increase in production, thanks to development work that was completed in the second quarter
- Production is expected to increase into next year before mining activities switch to the Froome deposit
- Both the San José Mine in Argentina and the Gold Bar Mine in Nevada also saw an increase in production
- McEwen Mining (MUX) is currently down 1.03 per cent and is trading at C$1.09 per share
McEwen Mining (MUX) has seen a rebound in production following the resumption of mining activities that were suspended in the second quarter.
Total production for the third quarter of 2020 came to 23,100 ounces of gold and 575,000 ounces of silver, or 30,400 gold equivalent ounces based on a gold-to-silver price ratio of 79-to-one.
The Black Fox Mine in Timmins, Canada, produced 5,800 gold equivalent ounces compared to just 2,200 ounces in the second quarter. McEwen Mining said this is largely due to the recent completion of development work, which has led to an increase in mining flexibility.
Production is expected to increase over the next quarter and into 2021, before mining activities transition to the Froome deposit.
Located 800 metres west of the Black Fox Mine, underground development of the Froome deposit is expected to reach completion in the second quarter of next year, with commercial production scheduled to begin in the fourth quarter.
McEwen Mining said it is looking to achieve an annual production rate at the Froome deposit of between 40,000 and 45,000 ounces, for a period of around 2.5 years.
The company's wholly owned Gold Bar Mine in Nevada also reported an increase in production, from 6,100 gold equivalent ounces last quarter to 6,800 ounces this quarter.
In addition to the improved production, McEwen Mining also carried out exploration work at the Gold Pick deposit, with the aim of upgrading the mineral resource from inferred to an indicated category. A new reserve estimate and feasibility study is expected to be published by the end of this year.
Most significantly, the San José Mine in Santa Cruz, Argentina, in which the company holds a 49 per cent interest, saw production increase from 9,000 gold equivalent ounces to around 15,900.
This was largely due to a lower average gold-to-silver price ratio, which resulted in higher gold equivalent production.
The impressive result comes despite a below average operating capacity, brought on by continued COVID-related travel restrictions that have created challenges in mobilising workers to site.
McEwen Mining (MUX) is currently down 1.03 per cent and is trading at C$1.09 per share at 10:22am EDT.