McEwen Mining (NYSE: MUX) Strikes Gold!
Record Silver and Gold Estimates in Argentina
According to a press release on MarketWire, McEwen Mining (NYSE:MUX) in Toronto, Ontario has announced a record estimate at its San Jose site in Argentina. On top of mineral resources and reserve estimates increasing in comparison to last year’s numbers, grades for both silver and gold have increased since 2011.
Perhaps most impressive about this news is the fact that the mineral resource estimates have not only increased, but have risen to a record level. According to the release, silver and gold resources were up 44% and 61%, respectively. Grades of both gold and silver also increased.
McEwen Mining Inc. is one of the highest-growth mining companies in the Americas. Much of the company’s success comes down to the fact that its San Jose site is one of the highest-grade mines for precious metals on the continent. Production numbers on reserves are steadily rising annually at McEwen’s San Jose site, putting the company in very good position.
In addition, the company’s 2012 exploration program has been successful, focusing on finding new veins and other enticing areas in McEwen’s current zones, as MarketWire reports. The company has a budget of $8 million to play around with for exploration in 2013 and is hopeful it will be able to complete close to 40,000 meters of diamond drilling.
The successes of McEwen Mining come at a very interesting time for precious metals. Gold and silver are at a turning point at the moment, more so than they’ve been in years. Gold, for example, is considered by many analysts to be losing steam as an investment tool, while silver is considered to be the exact opposite.
In recent years, gold has performed far better than silver on the market, although it appears that things are changing rather steadily. The fact that McEwen mining is enjoying success during this period may be somewhat predictive of what might happen for the precious metals industry in the future.
This also comes at a time when the finer points of gold pricing are being discussed rather heavily. U.S. regulators are paying much closer attention to how gold is being priced and are looking to ensure that things are being handled without manipulation.
The Libor scandal of 2012 brought quite a bit of attention to British banks, and this has had a major impact on regulators, pushing them to start looking closer at the pricing of gold, since UK banks have a major influence on how gold is priced.
Each day, the prices of gold and silver are determined twice by a group of major banks. While no concrete proof of manipulation has been made clear, the potential is definitely there, which could have a direct effect not only on the worldwide jewelry industry, but also on companies such as McEwen mining that sell their raw materials to refineries.
Join Wealth Daily today for FREE. We''ll keep you on top of all the hottest investment ideas before they hit Wall Street. Become a member today, and get our latest free report: "The Next Gold Rush: Three Easy Gold Investments fo 2020" After getting your report, you'll begin receiving the Wealth Daily e-Letter, delivered to your inbox daily.
It contains full details on something incredibly important that''s unfolding and affecting how gold is classified as an investment..
Join Wealth Daily today for FREE. We''ll keep you on top of all the hottest investment ideas before they hit Wall Street. Become a member today, and get our latest free report: "The Next Gold Rush: Three Easy Gold Investments fo 2020"
After getting your report, you'll begin receiving the Wealth Daily e-Letter, delivered to your inbox daily.
The fact that gold has had somewhat of a tough go of things recently—likely to continue into 2014—is having a major impact on the potential success of a company such as McEwen. Since silver is quickly gaining ground in the precious metals industry, many analysts believe that the successes of McEwen and other companies may serve to breathe new life into the industry, and this could have a potentially positive effect on the prices of gold and silver.
McEwen is not the only mining company to see success in recent days. Many other mining companies have seen both increases in revenue and higher grades of gold and silver discoveries.
New mines are being proposed in areas of the world that have experienced great growth in the past, yet not in recent days. A veritable resurgence seems to be growing, which is exciting for anyone who is involved in this and all other corresponding industries.
With the expansion program of McEwen Mining in 2013 already underway, it’s clear that the company is likely to continue seeing evolution in the coming year as well as in the years to follow.
Whether or not this will have any impact on the price-fixings of gold and silver (or whether such settings will have an impact on the company’s successes) remains to be seen. Needless to say, it’s more than worth one’s while to keep a close eye on the precious metals industry in the coming years, especially from an investor standpoint.
If you liked this article, you may also enjoy:
The Best Free Investment You'll Ever Make
After getting your report, you’ll begin receiving the Wealth Daily e-Letter, delivered to your inbox daily.