Storage Vaults News
Gold grade to be improved at El Gallo 1
McEwen Mining is planning on extending the life of its El Gallo 1 mine, after recent results suggested there could be more of the precious metal beneath the surface. Not only this, the grade of the gold being excavated also looks set to be improved moving forward.
A number of regional prospects at the Mexican site are currently being considered. Drilling has already been planned at San Miguel, which is 3 kilometres away from El Gallo 1. Initial tests show that the gold in soil anomaly registers at 1 kilometre by 500 metres.
Another potential site for exploration is Tule Alto, situated 5 kilometres from El Gallo 1. Blast hole drilling has been performed and surface rock samples taken, both of which point towards moderate to strong anomalous gold values. Drilling is set to get underway later this year.
McEwen Mining has established an exploration budget of $5.5 million in Mexico for the present year. San Jose and Alamo and Twin Domes have been earmarked as two potentially lucrative sites for gold and silver exploration, supplementing the success that has already been seen at El Gallo 1.
A significant milestone was achieved for El Gallo 1 back in September 2012, as it accomplished its first gold pour. Commercial production began in January the following year, as the mine produced a record of 38,212 ounces of gold and 25,912 ounces of silver.
Initial projects suggest that El Gallo 2 will be capable of producing an average of 95,000 gold equivalent ounces a year. This will be at an estimated cash cost of $750 per gold equivalent ounce, which is inclusive of all pre-strip and Mexican royalties.
McEwen Mining is conducting a number of cost saving studies to identify where further capital investment is needed, while determining how the impact of production can be lowered.
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