– Feb. 20, 2014) –
that the expansion of the
is scheduled to be completed by early April. The expansion is approximately
three months ahead of schedule and capital costs are expected to total US$3
million versus the US$5 million originally budgeted.
Production is anticipated to grow from 37,500 oz. gold this year to 75,000 oz.
gold in 2015. Cash costs are also expected to decrease from US$750
per oz. to US$575 per oz. starting next year.
Commissioning is expected
to commence during Q2, with the expansion fully operational during the second
half of the year.
1 is being expanded from 3,000 tonnes per day (tpd) to 4,500 tpd. In addition
to the expansion, gold grades are expected to increase starting in 2015 from
approximately 1.1 gpt to 2.0 gpt.
“Our team in
along with the company’s main contractor, SAR Servicios Tecnicos, has done a
good job expanding the
continues to grow and this is an important learning experience should the
company proceed with the construction of
mine to generate US$30 million in annual free cash flow before
taxes starting next year (at a $1,300 gold price)”, stated Rob
McEwen , Chairman and Chief Owner.
The goal of
creating a high growth gold producer focused in the
consist of the San José mine in
(49% interest); the
US; the Los Azules project in
and a large portfolio of exploration properties in
20, 2014, which consists of both common and exchangeable shares. Each
exchangeable share is convertible into a common share on a one-for-one basis
and holds the same rights as each common share. Rob McEwen ,
Chairman, and Chief Owner, owns 25% of the shares of the Company.
This news release has been
reviewed and approved by William Faust, PE,
National Instrument 43-101 (“NI 43-101”). For additional information
complex see the technical report titled “Resource Estimate for the El
Gallo Complex, Sinaloa State,
dated August 30, 2013 with an effective date of June 30,
2013, prepared by John Read , C.P.G., and Luke
Willis , P. Geo. Mr. Read and Mr. Willis are not considered
independent of the Company as defined by NI 43-101.
There are significant risks
and uncertainty associated with construction, commencing or expanding
production or changing production plans without a current feasibility,
pre-feasibility or scoping study. As such,
engineering, legal, operating, economic, social, environmental, and other
relevant factors reasonably required to serve as the basis for a final decision
to successfully complete the expansion of all or part of this project.
The foregoing news release
and technical reports are available under the Corporation’s profile on SEDAR (www.sedar.com).
CAUTIONARY NOTE TO
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,
reports measured, indicated and inferred resources, measurements which are
generally not permitted in filings made with the SEC. The estimation
of measured resources and indicated resources involve greater uncertainty as to
their existence and economic feasibility than the estimation of proven and
probable reserves. U.S. investors are cautioned not to assume that any part of
measured or indicated resources will ever 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.
REGARDING NON-GAAP MEASURES
In this news release, we
have provided non-U.S. GAAP (“non-GAAP”) performance measures.
Because the non-GAAP performance measures do not have any standardized meaning
prescribed by U.S. GAAP, they may not be comparable to similar measures
presented by other companies.
Total cash costs consist of
mining, processing, on-site general and administrative costs, royalty costs,
refining and treatment charges, sales costs and operational stripping costs.
All-in sustaining cash costs consist of total cash costs (as described above),
plus environmental rehabilitation costs, mine site exploration and sustaining
capital expenditures. Depreciation is excluded from both total cash costs and
all-in sustaining cash costs. Total cash cost and all-in sustaining cash cost
per ounce are calculated on a co-product basis by dividing the respective
proportionate share of the total cash costs and all-in sustaining cash costs
for the period attributable to each metal by the ounces of each respective
This news 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 news release,
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, 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, the state of the capital
markets, environmental risks and hazards, risks related to the receipt of
required permits and other governmental approvals, 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
Annual Report on Form 10-K for the fiscal year ended December 31, 2012
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
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
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