McEwen Mining has reported a 14% increase in its total production to 32,146oz of gold equivalent for the first quarter of 2014, compared with 28,127oz for the same period in 2013.

Production from the company’s 49% owned San José operation was 22,781oz of gold equivalent, comprising 10,767oz of gold and 720,830oz of silver.

The company reported a 38% increase in output at the El Gallo mine to 9,365oz of gold equivalent, with 9,295oz of gold and 4,195oz of silver.

In 2014, El Gallo 1 is expected to produce 37,500oz of gold equivalent – 37,000oz of gold and 25,000oz of silver.

The El Gallo 1 mine is currently being expanded from 3,000t to 4,500t per day. The expansion is nearing completion and commissioning is due to begin later this month.

The increased capacity, combined with higher grades, is anticipated to increase production to 75,000oz of gold equivalent by 2015.

McEwen initiated the expansion of El Gallo mine in May 2013 and the Final Change of Land Use permit and the Environmental Impact Statement (EIS) permit for the expansion project, known as El Gallo 2, were approved in January 2014.

McEwen Mining plans to submit two additional permits for the expansion in 2014.

The first permit is for obtaining mining permission for a satellite deposit named Palmarito, while the second one is for a right-of-way for providing power supply to the processing plant.

The measured and indicated resources of El Gallo 2 are estimated at 1.4Moz of gold equivalent including 63.9Moz of silver and 201,750oz of gold.

Image: Gold production at El Gallo 1 commenced in September 2012. Image courtesy of McEwen Mining.