| TORONTO (miningweekly.com) – McEwen Mining, the product of the January fusion of US Gold and Minera Andes, said on Thursday its San Jose mine in Argentina produced 1.45-million ounces of silver and 20 934 oz of gold in the fourth quarter.|
The TSX- and NYSE-listed firm also said it held around one-third of its $78.8-million treasury in bullion, betting that prices will rise.
CEO Rob McEwen followed a similar practice when he headed up Canada’s Goldcorp, and repeatedly forecast that gold prices would hit $5 000/oz by the middle of the decade, and silver $200/oz.
Last year, Canadian fund manager Eric Sprott called on silver producers to hold some of their treasuries in the metal itself.
McEwen Mining said it expected San Jose, which US-based Hochschild Mining owns 51% of, to produce 5.7-million ounces of silver and 85 000 oz of gold in 2012.
The company said it was on track to complete construction at its El Gallo Phase 1 project in Mexico by the middle of the year, which was set to produce 10 000 oz of gold during the second half.
McEwen owns 25% of the company, and receives no salary.