The Fox Complex in Timmins
Dual-listed McEwen Mining has reported progress with the turnaround at its Black Fox mine, in Timmins, Canada, and says it has “ambitious” plans for its Fox Complex, which has a combined resource base of three-million ounces.
Consultants are working on a preliminary economic assessment to expand production from the current short mine life producing 30 000 oz/y to 40 000 oz/y, to a ten-year mine life producing 100 000 oz/y to 150 000 oz/y.
“Early results are encouraging,” the company said on Friday in a progress update.
Development of the underground access to the Froome deposit was ahead of schedule, with first ore to be delivered to the mill later this quarter. McEwen has reaffirmed the fourth quarter of 2021 as the Froome deposit’s scheduled commercial production date.
The company recently raised $12.7-million to fund the development of Froome.
Underground drilling at Black Fox is also returning “encouraging” high-grade intercepts, McEwen said, stating that the results illustrated the potential of the mine.
Results from delineation drilling include 64.7 g/t over 2 m core length, 50.8 g/t over 5.6 m core length, 37.7 g/t over 2.6 m core length and 12.7 g/t over 3.2 m core length.
At Gold Bar, in Nevada, US, McEwen has completed an updated feasibility study following the recent 16% reduction in estimated reserves. The report would be published by February 23.
McEwen would also publish a feasibility study for its Fenix project, in Mexico, by February 15. The study envisions a gold and silver mine with a mine life of 9.5 years.
At Argentina’s San Jose, which joint venture partner Hochschild Mining operates, the company reported that it had received its first dividend for the year from its 49% interest. The mine also performed well in 2020, despite interruptions owing to Covid-19 issues.