Issue link: http://resourceworld.uberflip.com/i/734523
o c t o b e r / n o v e m b e r 2 0 1 6 www.resourceworld.com 7 Map courtesy Colorado Resources/Allan Jacobs. LeFt: the el gallo gold mine in Sinaloa State, northwestern mexico. photos courtesy mcewen mining Inc. BOttOm LeFt: rob mcewen OPERATING MINES El Gallo Mine: The El Gallo Mine in Sinaloa State, Mexico poured its first gold in September 2012 and achieved commercial production in January 2013. Open pit at 4,500 tpd. In 2015, the mine had another record production of 63,366 gold equivalent ounces, 64% higher than the previous year. Full year guidance for El Gallo Mine in 2016 is of 55,000 gold equivalent ounces. Cash costs: US $780/oz. AISC: $840/oz. San José Mine: The San José Mine (49% McEwen Mining and 51% Hochschild Mining) is an underground operation at 1,650 tpd located approximately 20 km north of Goldcorp's Cerro Negro Project, Santa Cruz Province, Argentina. McEwen Mining's share of production in 2015 was 47,353 gold ounces and 3,285,751 silver ounces. Production in 2016 is forecast is 45,000 gold ounces and 3,300,000 silver ounces. PERMITTING STAGE PROJECTS El Gallo Silver: Seven km from El Gallo Mine. Fully permitted, ready to build. Open pit at 101 g/t silver. Potential average production 3.5 million oz silver. Lower Capex, expected economic study due shortly. Gold Bar: Central Nevada, Battle Mountain-Eureka-Cortez Gold Trend. Positive feasibility study October 2015. Open pit, heap leach at 1.1 g.t gold. Estimated annual gold production: 65,000 oz. Cash costs: $728/oz. After-tax IRR: 40%. In-pit resource: 611,000 M&I and 111,000 oz inferred. Permits expected 2017. AdvANCEd EXPLORATION Los Azules: 100%-owned copper project in Argentina. PEA 2013 (@ US $3/lb copper): 19.7 B lbs copper @ 0.55%, 35-year mine life, $1.7 B NPV (8%) after-tax, 14.3% IRR, $3.9 B initial Capex. Lower Capex, economic study due 1H 2017. RESOURCE WORLD: What prompted you to take a $1 per year salary? ROB McEWEN: Actually, I just a got a raise to $1 per year. For the last ten years I have taken no com- pensation whatsoever. I receive no bonuses and have no stock options. The reasons for that are that when I built Goldcorp over 19 years I was the largest indi- vidual shareholder. I wanted to get even closer to my fellow shareowners and it takes out the conflict that is there. If you are not earning any salary, you are only going to make money the way all the other shareowners do – and that's through a higher share price. It really focuses your vision as to what needs to be done to improve the value of the company. When you put the shareowners first and take care of them, you will take care of yourself. RW: Most shareowners like to think that manage- ment has 'skin in the game'. Is that why you own 25% of McEwen Mining? RM: Yes, that's right. My investment in the company cost me $127 million. The more I can do to build the value in McEwen Mining for each share, the better I improve everybody's interest. RW: In addition to being the president of a gold min- ing company, you are also an advocate for shareholders.