M3 Engineering, Independent Mining Consultants and SRK Consulting together prepared the feasibility study in compliance with requirements set by Canadian National Instrument 43-101 ‘Standards of Disclosure for Mineral Projects.’
According to the report, annual production is expected to be 5.2 million oz of silver and 6,100oz of gold every year for the first six years. Cash costs for the company are estimated at $9.86 for a silver oz.
McEwen Mining Chief Owner Rob McEwen said that the Phase II FS supported the company’s goal of producing an additional 5 million oz of silver a year from the El Gallo Complex.
"Despite seeing capital costs creep up, we feel these can be contained as we source good used equipment (not permitted in the Feasibility Study) like El Gallo Phase I and as we further build our operating team, which would allow us to manage more of the project internally.
"Over the next 6-9 months we will be looking to convert areas of "inferred" resources into proven and probable reserves in order to further enhance the project," he added.
