1. Environmental Impact Assessment for El Gallo Mine has been extended. 2. Phase 1 construction targeted for mid-2026; first gold pour by mid-2027. 3. Projected production of 20,000 GEOs annually from reprocessing historical materials. 4. Remaining capital costs for Phase 1 estimated at $25 million. 5. El Gallo's historical silver resources total 53.1 million ounces.
FAQ
Why Bullish?
The extension of the Environmental Impact Assessment paves the way for construction. Historical resource estimates suggest significant potential production, influencing positive market sentiment.
How important is it?
The developments regarding El Gallo directly impact MUX's production capacity and future revenue streams.
Why Long Term?
Successful development of El Gallo Mine will enhance MUX's production and revenue over the next decade.
McEwen Inc. Secures Key Permit for El Gallo Mine; Construction Set for Mid-2026
McEwen Inc. (NYSE/TSX: MUX) has received a crucial extension of its Environmental Impact Assessment (Manifestación de Impacto Ambiental) from the Mexican government. This approval paves the way for the commencement of Phase 1 Mill Construction at the El Gallo Mine, with construction slated to begin in mid-2026 and the first gold pour expected in mid-2027. The company's onsite ball mill has already been purchased, enhancing its operational capabilities.
Details of Phase 1 and Future Prospects
Phase 1 of the El Gallo Mine project is anticipated to yield approximately 20,000 Gold Equivalent Ounces (GEOs) annually once commercial production is achieved. Production will primarily involve reprocessing materials from a historical leach pad, which allows for minimal development costs and enhanced free cash flow. Remaining capital costs to complete construction are estimated at $25 million.
Furthermore, McEwen has initiated work on Phase 2, focusing on the production from in-situ silver deposits. This could significantly extend the lifespan of the El Gallo operation beyond the initial 10-year plan outlined in Phase 1.
Historical Resource Estimates
The company has reported substantial historical silver resources at the El Gallo and district satellite deposits, totaling 53.1 million ounces in the Measured and Indicated categories and 31 million ounces in the Inferred category for areas yet to be mined. These estimates were derived using a silver price of $28.50 per ounce and gold prices ranging from $950 to $1,500 per ounce. It is important to note that these estimates are historical and have not been validated as current mineral resources.
McEwen plans to update these resource estimates in 2026 based on the current knowledge of resource areas.
Overview of McEwen Inc.
McEwen Inc. operates under the ticker MUX in both the NYSE and TSX markets. The company offers shareholders exposure to a growing base of gold and silver production across several mineral-rich regions of the Americas. These include operations in the Cortez Trend in Nevada, USA, the Timmins district in Ontario, Canada, and the Deseado Massif in Santa Cruz province, Argentina.
In addition to its gold and silver ventures, McEwen holds a 46.4% interest in McEwen Copper, which controls the Los Azules copper development project in Argentina, valued at US$456 million following its last financing round. Designed to be a regenerative copper mine, Los Azules aims for carbon neutrality by 2038.
Management and Future Goals
Rob McEwen, Chairman and Chief Owner of McEwen, has personally invested over US$200 million into the company while taking a salary of just $1 per year, aligning his interests closely with those of shareholders. His accolades include the Order of Canada and membership in the Canadian Mining Hall of Fame.
McEwen's mission is to enhance the profitability and share value of MUX, alongside implementing a dividend policy similar to his successful initiatives at Goldcorp Inc.
Technical Disclosure
The technical details regarding historical resources in this report have been approved by Luke Willis, P.Geo, Director of Resource Modelling at McEwen Inc., and comply with SEC S-K 1300 and Canadian Securities Administrators' NI 43-101 standards.
Additionally, production information and capital estimates have been verified by Channa Kumarage, P.Eng, Director of Technical Services.
Cautionary Note on Forward-Looking Statements
This release contains forward-looking statements that may include estimates, projections, and expectations about future events. These statements are based on management's assumptions and current understanding of the market but are subject to inherent risks and uncertainties. Therefore, actual outcomes may differ materially.