McEwen Mining Celebrates Its First Year of Production

McEwen Mining Celebrates Its First Year of Production 
105,050 Gold Eq. oz Produced in 2012 
2013 Production Forecast to grow by 24% 
TORONTO, ONTARIO -- (Marketwire) -- 01/15/13 -- McEwen Mining Inc.
(NYSE:MUX)(TSX:MUX) is pleased to announce the results of its first
year of production and for its Fourth Quarter 2012. For the full-year
2012, the Company produced 105,050 gold eq. oz (48,876 gold oz and
2,921,242 silver oz) and in Q4 produced 32,220 gold eq. oz (17,578
gold oz and 761,377 silver oz). Silver production has been converted
into gold equivalent ounces (gold eq. oz) based on a 52:1 ratio.  
Production costs for 2012 and cost guidance for 2013 will be reported
in March with year-end financials. Production in 2013 is forecasted
to grow by +24% to 130,000 gold eq. oz (72,310 gold oz and 3,000,000
silver oz) with production coming from 2 mines: San Jose and El Gallo
1. El Gallo 1 in Mexico commenced commercial production on January
1st, 2013.  
"2012 was a transformative year. It started in January, when McEwen
Mining was created with the combination of US Gold and Minera Andes.
We saw strength in the combination through the diversification and
growth of our production base. At mid-year, our exploration success
was highlighted by an increase in our estimated gol
d, silver and
copper resources. Our second mine, El Gallo, was built on budget and
on time and has reached commercial production. El Gallo 2 is in the
permitting phase and we hope to have the necessary permits to start
construction during Third Quarter of this year. Our partner and the
operator the San Jose mine, Hochschild Mining, has been doing an
excellent job managing the mine and increasing production. We
continue to advance the permitting process of our Gold Bar project in
Nevada, and hope to receive construction permits in 2014. Late in the
year, we announced a settlement of the lawsuit on our Los Azules
property and began an aggressive exploration program there. Initial
exploration results and an updated resource estimate will be released
by the end of January. Before year-end, we also successfully
completed a $60 million Rights Issue, which will provide the
necessary funds to start development of El Gallo 2. Over the next 3
years, we forecast our internal projects will increase our production
from 100,000 gold eq. oz to 290,000 gold eq. oz, a 3-fold increase.
During this time, we will also be looking for opportunities to
further increase our production in order to advance on our goal of
qualifying for inclusion in the S&P 500 Index," said Rob McEwen,
Chief Owner. 


 
San Jose Mine - Another Solid Year                                          
(49% owned by MUX)                                                          

 
McEwen Mining's attributable production from the San Jose mine during
the Fourth Quarter totaled 25,582 gold eq. oz (11,024 gold oz and
757,009 silver oz). Full-year production for 2012 totaled 98,117 eq.
oz (42,026 gold oz and 2,916,742 silver oz). At the end of 2012, an
optimization plan was completed at the mine that will increase its
processing capacity by +10% from 1,500 tonnes to 1,650 tonnes per day
in 2013. McEwen Mining's share of production from San Jose in 2013 is
forecasted at 102,700 gold eq. oz (45,000 gold oz and 3,000,000
silver oz). Production costs will be released with year-end
financials in March.  
San Jose Mine Production Comparison  


 
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                               Full-Year  Full-Year  4th Quarter 3rd Quarter
   San Jose - 100%(i)            2012        2011       2012        2012    
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Ore production (tonnes)         509,851    462,825     128,940     136,577  
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Average grade gold (gpt)         5.79        5.86       6.00        5.24    
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Average head silver (gpt)         417        444         422         402    
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Average gold recovery (%)        90.4        92.9       90.4        91.1    
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Average silver recovery (%)      87.0        88.8       88.3        87.9    
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Gold produced (ounces)          85,768      80,948     22,498      20,967   
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Silver produced (ounces)       5,952,534  5,869,564   1,544,917   1,552,000 
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Gold equivalent(1) produced                                                 
 (ounces)                       200,240    193,824     52,208      50,813   
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   McEwen Mining - 49% Share                                                
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Gold produced (ounces)          42,026      39,665     11,024      10,274   
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Silver produced (ounces)       2,916,742  2,876,086    757,009     760,480  
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Gold equivalent(1) produced                                                 
 (ounces)                       98,117      94,974     25,582      24,899   
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(i)McEwen Mining holds a 49% attributable interest in the San Jose mine.    
                                                                            
El Gallo 1 - Commercial Production Achieved                                 
(100% owned by MUX)                                                         

 
On September 24th McEwen Mining announced that it had achieved its
first gold pour from El Gallo 1. During the Fourth Quarter the focus
was on achieving commercial production (defined as operating at 80%
capacity for 30 consecutive days), which was achieved on January 1st,
2013. The mine is now operating at 90% of its designed capacity.
During the Fourth Quarter, El Gallo 1 produced 6,638 gold eq. oz
(6,554 gold oz and 4,368 silver oz). Production since the first pour
was slightly higher at 6,937 gold eq. oz (6,850 gold oz and 4,500
silver oz). In 2013, El Gallo 1 is forecasted to produce 27,310 gold
oz. Production costs will be reported starting in the First Quarter.  
About McEwen Mining (www.mcewenmining.com)  
The goal of McEwen Mining is to qualify for inclusion in the S&P 500
by 2015 by creating a high growth, low-cost, mid-tier gold producer
focused in the Americas. McEwen Mining's principal assets consist of
the San Jose 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 and a large portfolio
of exploration properties in Argentina, Nevada and Mexico.  
McEwen Mining has 296,024,859 shares issued and outstanding. Rob
McEwen, Chairman, President and Chief Owner, owns 25% of the shares
of the Company. As of December 31, 2012, McEwen Mining had cash and
liquid assets of approximately US$70 million and is debt free. 
Reliability of Information 
Minera Santa Cruz S.A., the owner of the San Jose mine, is
responsible for and has supplied to the Company all reported results
from the San Jose mine. This press release is based entirely on
information provided to McEwen Mining by Minera Santa Cruz S.A.
(MSC). 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. As the Company is not the operator of the
San Jose mine, there can be no assurance that production information
reported to the Company by MSC is accurate, the Company has not
independently verified such information and readers are therefore
cautioned regarding the extent to which they should rely upon such
information. 
Technical Information 
The technical contents of this news release has been reviewed and
approved by William Faust, Chief Operating Officer, a Qualified
Person as defined by Canadian Securities Administrator National
Instrument 43-101 "Standards of Disclosure for Mineral Projects"
("43-101").  
Cautionary Note to U.S. Investors 
McEwen Mining reports its resource estimates in accordance with
standards of the Canadian Institute of Mining, Metallurgy and
Petroleum referred to in Canadian National Instrument 43-101 (NI
43-101). These standards are different from the standards generally
permitted in reports filed with the SEC. Under NI 43-101, McEwen
Mining reports measured, indicated and inferred resources,
measurements which are generally not permitted in filings made with
the SEC. According to Canadian NI 43-101 criteria, the estimation of
measured resources and indicated resources involve greater
uncertainty as to their economic feasibility than the estimation of
proven and probable reserves. Under SEC Industry Guide 7 criteria,
measured, indicated and inferred resources are considered Mineralized
Material. The SEC considers that in addition to greater uncertainty
as to the economic feasibility of Mineralized Material compared to
proven and probable reserves, there is also gre
ater uncertainty as to
the existence of Mineralized Material. U.S. investors are cautioned
not to assume that measured or indicated resources will be converted
into economically mineable reserves. The estimation of inferred
resources involves far greater uncertainty as to their existence and
economic viability than the estimation of other categories of
resources. 
Caution Concerning Forward-Looking Statements  
This press release contains certain forward-looking statements and
information, including "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. The
forward-looking statements and information expressed, as at the date
of this press release, McEwen Mining Inc.'s (the "Company")
estimates, forecasts, projections, expectations or beliefs as to
future events and results. Forward-looking statements and information
are necessarily based upon a number of estimates and assumptions
that, while considered reasonable by management, are inherently
subject to significant business, economic and competitive
uncertainties, risks and contingencies, and there can be no assurance
that such statements and information will prove to be accurate.
Therefore, actual results and future events could differ materially
from those anticipated in such statements and information. Risks and
uncertainties that could cause results or future events to differ
materially from current expectations expressed or implied by the
forward-looking statements and information include, but are not
limited to, risks related to the cost of transferring or otherwise
allocating funds between operating jurisdictions, factors associated
with fluctuations in the market price of precious metals, mining
industry risks, political, economic, social and security risks
associated with foreign operations, risks associated with the
construction of mining operations and commencement of production and
the projected costs thereof, risks related to litigation, property
title, the state of the capital markets, environmental risks and
hazards, uncertainty as to calculation of mineral resources and
reserves and other risks. Readers should not place undue reliance on
forward-looking statements or information included herein, which
speak only as of the date hereof. The Company undertakes no
obligation to reissue or update forward-looking statements or
information as a result of new information or events after the date
hereof except as may be required by law. See McEwen Mining's Annual
Report on Form 10-K for the fiscal year ended December 31, 2011 and
other filings with the Securities and Exchange Commission, under the
caption "Risk Factors", for additional information on risks,
uncertainties and other factors relating to the forward-looking
statements and information regarding the Company. All forward-looking
statements and information made in this news release are qualified by
this cautionary statement. 
The NYSE and TSX have not reviewed and do not accept responsibility
for the adequacy or accuracy of the contents of this news release,
which has been prepared by management of McEwen Mining Inc. 
Contacts:
McEwen Mining Inc.
Jenya Meshcheryakova
Investor Relations
(647) 258-0395 ext 410 or Toll Free: (866) 441-0690
(647) 258-0408 (FAX)
Facebook: www.facebook.com/McEwenRob
Twitter: www.twitter.com/McEwenMining 
McEwen Mining Inc.
181 Bay Street Suite 4750
Toronto, ON M5J 2T3
PO box 792
info@mcewenmining.com
 
 
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