TORONTO (miningweekly.com) – Canadian gold producer McEwen Mining on Thursday said first-quarter gold production had risen significantly, as its second mine, El Gallo Phase 1, in Mexico, added its first commercial production.
McEwen Mining said gold-equivalent production increased by 31% year-on-year to 29 839 oz, comprised of 17 001 oz of gold and 667 555 oz of silver, and the company was on track to produce 130 000 oz of gold-equivalent ounces (GEOs) this year.
Cash costs during the quarter ended March 31 totalled $885/GEO, increasing owing to the work stoppage at San Jose as well as inventory adjustments. Lower costs are expected for the remainder of the year.
The company said total sustaining costs totalled $1 507/GEO, an increase over the same period last year, owing to development being ahead of schedule, additional exploration drilling at El Gallo Phase 1 and the timing of sales, as well as the work stoppage at San Jose and inventory adjustments.
As at March 31, McEwen Mining had $50.6-million in liquid assets and no debt.
The company had received its El Gallo Phase 2 municipal construction permit and the company expected the remaining outstanding approvals to have been received by the third quarter.
The company’s stock traded at C$2.15 apiece on the TSX on Thursday.