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McEwen Mining Inc (NYSE:MUX) reported that total production for 3Q2016 was 36,496 gold equivalent ounces with a gold to silver ratio at 75:1, or 916,168 silver ounces and 24,281 gold ounces. Production is on track to record 2016 projection of 144,000 gold equivalent ounces.

Financial performance

Operating expenses for the quarter closed September 2016 will be announced with 10-Q financial statements in November. As of October 2016, the company has no debt with liquid assets of $61 million comprised of $18 million of precious metals, marketable securities of $4 million and $39 million in cash. The company has not released equity to finance businesses since closing a rights issue back in 2013. It has preserved leverage to higher silver and gold prices by not burdening assets with metal streams, hedges or royalties.

The San José Mine production of gold came at 12,527 ounces and of silver at 909,017 ounces attributable to company in 3Q2016, for 24,647 gold equivalent ounces. So far in this year, the San José Mine production was 2,443,527 silver ounces and 33,839 gold ounces attributable to company, for 66,419 gold equivalent ounces. Also, full year production estimate for San José is 3.3 million silver ounces.

McEwen Mining reported that the El Gallo Mine fared as projected in 3Q2016, resulting in 11,849 gold equivalent ounces. The production in 3Q2016 was lower compared to the preceding quarter following lower ore grades, as they previous estimate was 1.4 gpt in 3Q2016 compared to 2.3 gpt in 2Q2016. So far, the El Gallo Mine production came at 47,590 gold equivalent ounces. For FY2016, El Gallo can produce 55,000 gold equivalent ounces.

The FY2016 exploration budget set for Mexico is $4 million. The activities related to exploration drilling in the district nearby El Gallo Mine has been revolved around 3 prospective areas. One of the 3 areas is named Encuentro South, which has returned especially encouraging data at shallow depths. Encuentro South is situated 11 km southwest of the company’s El Gallo Mine. Mineralisation at Encuentro South is categorized chiefly by structurally measured, stockwork zones and quartz breccias accommodated by propolytically changed meta-andesites.

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Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg, Equities.com, Hacked.com, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.

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