Tuesday, March 12, 2013

Catalyst: TNR Gold - McEwen Mining poised for production increase MUX, TNR.v

  Shorts are not feeling comfortable with McEwen Mining any more. Stock is forming the Double Bottom Reversal on the technical side and fundamentals should support this development further now. At the end of February the total short position was reported at the magnitude of 29 million shares, it will be the fuel to clear the 3 dollar level now. As you know, we are particularly interested in Los Azules and TNR Gold's Back-In Right into that World Class Copper project. It will be the next Catalyst for both companies. At the moment market is pricing Los Azules at almost zero for both companies. Any positive developments over there will ignite the short covering rally in McEwen Mining and will reposition TNR Gold valuation in the market place as well.
  Things we are looking forward to: San Juan province glacier audit to be finished on Los Azules after Barrick's Pascua Lama has received green light and moved ahead. New drill results from the Northern Part of Los Azules, where TNR gold has its Back-In Right and new metallurgy tests working on the heap leaching of the lower grade Copper at Los Azules, which could increase the total amount of the recoverable copper and improve even more the economics of this project.
  Any new developments with the prospective buyers for Los Azules will change all the picture overnight. BMO is marketing the project now and we are expecting the research analysts to put their valuations on the Los Azules very soon as well. TNR Gold's Back-In Right independent research valuation could be out next. In the latest PDAC 2013 McEwen Mining presentation on the link below Los Azules Copper project is presented in its full glory and definitely deserves your attention, among other assets of McEwen Mining and TNR Gold.

Rob McEwen Looks For Gold To Keep Rising As Nations Run Up Debt Levels MUX, TNR.v

 As we have mentioned before, BMO Capital market conference is the very good place to pitch Los Azules Copper project for Rob McEwen. BMO is hired by McEwen Mining to market the Sale of Los Azules. Any development on this front will be the Catalyst for McEwen Mining and TNR Gold turn-arounds from the recent heavily oversold levels.

McEwen Mining Corporate Presentation.


McEwen Mining poised for production increase

12th March 2013
Updated 6 hours ago
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TORONTO (miningweekly.com) – McEwen Mining this week said it was prepared for a 24% increase in gold-equivalent production this year, as an optimisation plan was completed at its 49% owned San Jose mine, in Argentina, that would increase processing capacity by 10% from 1 500 t/d to 1 650 t/d, and a full year of production is expected from its El Gallo Phase 1 mine, in Mexico.
The company on Monday reported gold-equivalent production for the fourth quarter ended December 31, totalled 32 220 oz, comprised of 17 578 oz gold and 761 377 oz silver.
For the full year the company produced attributable gold-equivalent ounces (GEO) of 105 050 oz, comprising of 48 876 oz of gold and 2.92-million ounces of silver, which was in line with the company’s 2012 guidance. 
Cash costs totalled $728/GEO in the fourth quarter and full year cash costs totalled $739/GEO, which was below the 2012 guidance of $750/GEO. 
The company had $79-million in cash and liquid assets and no debt as at the end of the financial year.
McEwen said it expected production to grow this year to 130 000 GEOs, comprising 72 310 oz of gold and three-million ounces of silver, at a cash cost of between $800/GEO to $900/GEO.
The company expected all-in sustaining costs t range between $1 200/GEO and $1 325/GEO. All-in sustaining costs include operational, development, exploration, royalties and reclamation costs.
"Last year was significant for McEwen Mining. We successfully merged US Gold and Minera Andes, achieved record production at our San Jose mine, completed construction and commissioned El Gallo Phase 1, published a feasibility study for El Gallo Phase 2, and resolved the litigation surrounding the Los Azules copper project.
“This year will also be an important year for the company. First, we expect to see production grow by 24% to 130 000 GEO, and second, financing and construction of our third mine, El Gallo Phase 2, is scheduled to commence during the third quarter," chairperson and chief owner Rob McEwen said.
The company said the El Gallo Phase 2 was on schedule for construction and would become the company's third and largest mine. 
Four new resource updates were due for release by the end of the second quarter.
The company’s TSX-listed stock on Tuesday traded 7.52% higher at C$2.86 apiece.

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