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McEwen Mining Q2 output up QOQ, on track to meet FY'16 guidance

McEwen Mining Inc.said July 25 that it produced 39,555 gold equivalent ounces in the second quarterand is on track to produce 144,000 gold equivalent ounces in 2016.

McEwen produced37,958 gold equivalent ounces in the previous quarter.

The company's fully owned El Gallo mine in Mexico produced 15,640 gold equivalent ouncesin the quarter, down from 17,325 gold equivalent ounces produced in the year-agoperiod.

McEwen, however, maintains its full year guidance of 55,000 goldequivalent ounces for El Gallo.

In addition, this year's exploration budget for Mexico is US$4million, focusing on drilling and ground geophysics on several priority targets.

From its 49%-owned SanJosé mine in Argentina, the company's attributable production totaled23,915 gold equivalent ounces, representing a 10% increase from the prior quarter.

The full-year attributable guidance for San José is 89,000 goldequivalent ounces. Meanwhile, the 2016 exploration budget at San José has been increasedto US$6.5 million, on a 100% basis.

The company purchased for US$5.3 million the existing net smelterreturn royalty on El Gallo property during the second quarter.