TORONTO (miningweekly.com) – Colorado-incorporated McEwen Mining on Thursday reported that gold-equivalent output for the first three months of 2014 rose by 14% year-on-year, boosted by higher output from its flagship El Gallo 1 mine, in Mexico.

The NYSE- and TSX-listed company reported output of 32 146 oz of gold equivalent, comprising 20 062 oz of gold and 725 025 oz of silver.

Attributable production from its 49%-owned San José operation, of which joint venture partner Hochschild Mining owns the other 51%, was 22 781 oz of gold equivalent, comprising 10 767 oz of gold and 720 830 oz of silver.

This year, McEwen’s share of San José’s output is expected to total 97 500 oz of gold equivalent, comprising 44 000 oz of gold and 3.2-million ounces of silver.

At 9 365 oz of gold equivalent, the Toronto-based company reported a 38% increase in output at the El Gallo mine, made up of 9 295 oz of gold and 4 195 oz of silver, which established a new quarterly production record.

In 2014, El Gallo 1 is expected to produce 37 500 oz of gold equivalent, made up 37 000 oz of gold and 25 000 oz of silver.

The El Gallo 1 mine is currently being expanded from 3 000 t/d to 4 500 t/d. The expansion is nearing completion and commissioning is scheduled to start later this month.

The increased capacity, combined with higher grades as mining moved deeper in the pit, is expected to increase production to 75 000 oz of gold equivalent by 2015.

The El Gallo complex comprises multiple resource areas – El Gallo 1 and 2, Palmarito, Chapotillo, Haciendita, Mina Grande, Los Mautos, San Jose del Alamo, Las Milpas and CSX.

The total measured and indicated resources for El Gallo 1, as at July 17, 2013, were 13.9-million tonnes, grading 1.54 g/t of gold. Inferred resources were 400 000 t at 0.85 g/t of gold.

El Gallo Phase 1 achieved its first gold pour in September 2012.

In the same month as El Gallo 1’s first gold pour, a feasibility study was completed on El Gallo 2 and, in January, the Secretariat of Environment and Natural Resources for Sinaloa state approved the company’s change of land use application for El Gallo 2. This final environmental permit allows for the construction and operation of the mine.

Total measured and indicated resources for El Gallo 2, as at August 7, 2013, were 34.3-million tonnes, grading 57.99 g/t of silver and 0.18 g/t of gold. Inferred resources were 8.5-million tonnes, grading 52.72 g/t of silver and 0.24 g/t of gold.

McEwen’s full-year guidance remains unchanged for the year at 135 000 oz to 140 000 oz of gold equivalent.