McEwen Mining Inc Stock Market Press Releases and Company Profile
Q3 2017 Production Results
Q3 2017 Production Results

Toronto, Oct 20, 2017 AEST (ABN Newswire) - McEwen Mining Inc. (googlechartNYSE:MUX) (googlechartTSE:MUX) reports consolidated production for Q3 2017 of 19,051 gold ounces and 749,749 silver ounces, or 29,047 gold equivalent ounces(1), using a 75:1 gold to silver ratio.

Consolidated Production Summary
                Q3 '17  Q2 '17  Q1 '17  Q4 '16  Q3 '16Gold ounces     19,051  22,191  20,096  20,337  24,281Silver ounces  749,749 779,487 722,767 838,768 916,168Gold Eq. ounces 29,047  32,584  29,733  31,521  36,496

Black Fox, Timmins - Enhanced Growth Strategy

Our growth strategy in the Timmins region, which started in April 2017 with the acquisition of Lexam VG Gold, reached a second important milestone on October 6, 2017 with the purchase of the Black Fox Complex. Black Fox consists of: 1) the fully operational Black Fox underground gold mine, 2) the Black Fox-Stock mill, 3) an experienced workforce, and 4) the nearby Grey Fox and Froome development projects. The addition of Black Fox boosts our global 2018 production guidance to between 172,000-185,000 gold equivalent ounces.

Gold Bar Project, Nevada - Major Permitting Milestone

The Gold Bar Project has achieved a major milestone in the permitting process with the publication by the Environmental Protection Agency (EPA) of the Notice of Availability of the Final Environmental Impact Statement (EIS) in the Federal Register. Following a regulated review period, a signed Record of Decision will be published, signifying the completion of the National Environmental Policy Act (NEPA) process. The Record of Decision is expected in early November this year and development of Gold Bar is planned to begin upon receipt, in line with our earlier estimates. Gold Bar is expected to contribute an average of 65,000 ounces to our annual gold production beginning in 2019.

Los Azules, Argentina - Robust Economics in New PEA

The results of the 2017 PEA demonstrate that Los Azules could become a robust, high margin, rapid pay-back, and long-life open pit mine at current copper, gold and silver prices. Financial highlights from the 2017 PEA, assuming a $3.00 per pound copper price, are: 1) $2.2 billion after-tax net present value (NPV@8%), 2) an internal rate of return (IRR) of 20.1%, and 3) a payback period of 3.6 years and a total mine-life of 36 years. Estimated average annual copper production is 415 million lbs. at a cash cost of $1.11/lb. during the first 10 years of mining operations. The PEA report is available for review on our website (www.mcewenmining.com/operations/los-azules-exploration) and SEDAR (www.sedar.com).

San José Mine, Argentina (49%(2)) - Improving Production

Our attributable production from San José in Q3 was 11,862 gold ounces and 747,960 silver ounces, for a total of 21,834 gold equivalent ounces. Year-to-date our attributable production was 64,563 gold equivalent ounces, 2.8% below the same period in 2016.

El Gallo Mine, Mexico - Overcoming Challenges

Production in Q3 was 7,213 gold equivalent ounces, compared to 11,849 gold equivalent ounces during the same period in 2016. Production in Q3 continued to be below our expectations as a result of a serious mechanical failure at the end of July that removed the crushing circuit from operation. As a result we were unable to crush and place fresh ore to leach on the leach pad for a period of time. We currently have almost twice our normal crushing capacity available for the remainder of the year. Production is improving on account of the increased throughput, and access to better grades of ore in the pit that was predicted in the second half of the year. Increased production in Q4 will partially compensate for the shortfall experienced to date.

Financing
In order to purchase Black Fox and provide funding for further investment in capital spending and exploration, we completed a financing in which a total of 20,700,000 shares and 10,350,000 warrants were sold at a price of $2.25 per share and associated one-half warrant, for aggregate gross proceeds of $46,575,000. Each whole warrant entitles the holder to purchase one share at an exercise price of $2.70 per share until September 28, 2018.

Financial Results

Operating costs for the quarter ended September 30, 2017 will be released with our 10-Q Quarterly Financial Statements in early November. As of October 12, 2017 we are debt-free with liquid assets of approximately $60 million.

Footnotes:

'Gold Equivalent Ounces' are calculated based on a 75:1 gold to silver ratio.

The San José Mine is 49% owned by McEwen Mining Inc. and 51% owned and operated by Hochschild Mining plc.

All dollar amounts are US Dollars


About McEwen Mining Inc

McEwen Mining NYSE:MUX

McEwen Mining (NYSE:MUX) (TSE:MUX) has the goal to qualify for inclusion in the S&P 500 Index by creating a profitable gold and silver producer focused in the Americas. McEwen's principal assets consist of: the San José mine in Santa Cruz, Argentina (49% interest); the Black Fox mine in Timmins, Canada; the Fenix Project in Mexico; the Gold Bar mine in Nevada, currently under construction; and the large Los Azules copper project in Argentina, advancing towards development.
 
McEwen has approximately 345 million shares outstanding. Rob McEwen, Chairman and Chief Owner, owns roughly 23% of the shares.

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Contact

McEwen Mining Inc
T: +1 647 258 0395
F: +1 647 258 0408
E: info@mcewenmining.com
WWW: www.mcewenmining.com


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