Gold and Silver Updates


TORONTO, Dec. 31, 2020 (GLOBE NEWSWIRE) — McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is happy to announce the highlights of a optimistic Feasibility Research (FS) for its 100%-owned Fenix Undertaking, which is situated within the State of Sinaloa, Mexico.

“The Fenix Feasibilty Research envisions a 9.5-year mine life with a sexy after-tax IRR of 28% utilizing $1,500/oz gold and $17/oz silver. At present gold and silver costs, the venture’s after-tax IRR nearly doubles and the NPV greater than triples versus the bottom case.

The venture will incorporate an environmentally progressive methodology of tailings administration, utilizing inpit storage that creates a number of advantages, most significantly a safe containment of tailings enabling higher reclamation outcomes.

Common annual manufacturing is projected at 26,000(1) oz gold in Section 1 and 4,200,000(4) oz silver equal in Section 2. The crucial path environmental permits are in hand for the primary section of manufacturing. Our subsequent steps will contain detailed engineering, evaluation of procurement choices, and the analysis of financing alternate options,” stated Rob McEwen, Chairman and Chief Proprietor.

Fenix FS Highlights

    Base Case(1)
$1,500/oz Gold, $17/oz Silver
Upside Case
$1,900/oz Gold, $25/oz Silver
After-Tax IRR 28% 55%
After-Tax NPV (8% low cost) $32 million $98 million
After-Tax Payback Interval 3.6 years 2.8 years
Common After-Tax Money Movement per 12 months of Full Manufacturing $12 million $25 million
  The FS for venture Fenix growth entails two phases:
  Section 1: Years 1 to six, Gold Manufacturing
  • Common Annual Gold Manufacturing 26,000 oz Au
  • $42 million preliminary capex
  • $1,035 money value(2) and $1,042 AISC(3) per oz Au
  Section 2: Years 7 to 9.5, Silver Manufacturing  
  • Common Annual Silver Manufacturing 4,200,000 oz AgEq.(4)
  • $24 million incremental capex in 12 months 6.
  • $14.20 money value(2) and $14.28 AISC(3) per oz AgEq.(4)

Feasibility Research Report

The entire Fenix Undertaking FS NI 43-101 Technical Report can be accessible on and inside 45 days. The FS was ready by GR Engineering Companies Restricted (“GRES”) of Belmont, Western Australia, in accordance with the necessities of Canadian Nationwide Instrument 43-101 “Requirements of Disclosure for Mineral Tasks” (“NI 43-101”) and SEC Trade Information 7.


The present operation at El Gallo Gold is a completely permitted website; allow for the Section 1 was granted by the Federal Environmental Authority (SEMARNAT) in September 2019, for the addition of a mill and leach circuit within the location of the prevailing amenities for the reprocessing of the heap leach pad materials. The allow modification additionally consists of the backfilling of a beforehand mined pit with mill tailings, as a part of an built-in concurrent closure plan for the El Gallo Gold Mine.

Additional venture development for Section 2 is topic to allow approvals. Section 2 venture allowing would require authorization to increase the method plant footprint at El Gallo Gold and the haul street, and to reinforce the tailings quantity to be deposited on the depleted pit.

The Fenix Undertaking has CONAGUA approval for the extraction of groundwater and land-use permits for the development of wells required for the lifetime of Fenix Undertaking.

Useful resource Estimates

Estimated assets for the Fenix Undertaking are comprised solely of fabric inside the boundaries of conceptual pit shells, apart from the El Gallo heap leach pad, which is taken into account fully accessible for reprocessing.

For the needs of mine scheduling, the contained gold ounces within the Heap Leach Materials has been depleted from the useful resource mannequin estimate outlined by drilling by an quantity of 23 koz Au, to account for the manufacturing from heap leach operations and gold in circuit assessments between the timing of the useful resource estimate up till December 2020.

Desk 1: Fenix Undertaking Assets Estimate(5)(6)

Heap Leach Materials(7) Tonnes   Silver Grade   Silver   Gold Grade   Gold  
Potential COG = 0 g/t Au Mt   (g/t)   koz   (g/t)   koz  
Measured 8.8   1.59   451   0.59   167  
Indicated 1.2   1.74   67   0.60   23  
Measured and Indicated 10.0   1.61   518   0.59   190  
Inferred 0.1   1.64   7   0.66   3  
El Gallo Silver                    
In Optimized Pit Shell Tonnes   Silver Grade   Silver   Gold Grade   Gold  
Potential COG = 58 g/t Ag Mt   (g/t)   koz   (g/t)   koz  
Measured 1.0   155.38   4,791   0.08   3  
Indicated 3.5   126.55   14,228   0.13   15  
Measured and Indicated 4.5   132.76   19,019   0.12   18  
Inferred 0.1   128.92   286   0.14   0.3  
COMBINED RESOURCES                    
In Optimized Pit Shells Tonnes   Silver Grade   Silver   Gold Grade   Gold  
Potential COGs variable Mt   (g/t)   koz   (g/t)   koz  
Measured 9.8   16.68   5,242   0.54   170  
Indicated 4.7   94.58   14,295   0.25   38  
Measured and Indicated 14.5   41.98   19,536   0.45   208  
Inferred 0.2   46.50   293   0.48   3  

Desk 2: Fenix Undertaking Reserves Estimate(8)

Heap Leach Materials Tonnes   Silver Grade   Silver   Gold Grade   Gold  
Mt   (g/t)   koz   (g/t)   koz  
Confirmed 8.8   1.59   451   0.59   167  
Possible 1.3   1.57   67   0.54   23  
Confirmed + Possible 10.1   1.58   517   0.58   190  
El Gallo Silver                    
Confirmed 0.7   165.71   3,708   0.05   1  
Possible 3.7   126.61   15,017   0.13   16  
Confirmed + Possible 4.4   132.82   18,725   0.12   17  
COMBINED RESERVES                    
Confirmed 9.5   13.60   4,159   0.55   168  
Possible 5.0   93.46   15,084   0.24   39  
Confirmed + Possible 14.5   41.19   19,243   0.44   207  

Desk 3: Assumptions for Heap Leach Pad and El Gallo Silver Pit Optimization Section 2 (6)(9)

Assumptions for In-Pit Useful resource Shells Deposits Values
Gold Value All $1,300/oz
Silver Value All $16.00/oz
Mining Value Heap Leach Pad $0.53/t
  El Gallo Silver $12.06/t
Processing and G&A Heap Leach Pad $12.88/t
  El Gallo Silver – Oxides $26.90/t
  El Gallo Silver– Sulfides $25.93/t
Restoration – Au Heap Leach Pad 85.90%
  El Gallo Silver 79.40%
Restoration – Ag Heap Leach Pad 45.0%
  El Gallo Silver – Oxides 82.5%
  El Gallo Silver– Sulfides 88.1%
Lower-Off Grade Heap Leach Pad 0 g/t Au
  El Gallo Silver 58 g/t Ag
Inter-Ramp Pit Slope Angle El Gallo Silver 45 levels

(1) The Base Case makes use of the three-year shifting common costs for gold and silver (approximate worth). Estimated 26,000 oz Au every year manufacturing assumes full manufacturing from years 2023 to 2027. Common after-tax money stream every year from full manufacturing years 2023 to 2031 is roughly $12 million every year. Common after-tax money flows every year for the interval from start-up of manufacturing to closure (2022 to 2032) is roughly $8.6 million every year. These money flows assume using all eligible tax loss carry forwards from the El Gallo Gold Mine.
(2) Money value is calculated by dividing complete life-of-mine manufacturing prices, normal and administrative bills and royalties by complete ounces produced.
(3) All-in sustaining prices (AISC) are calculated by dividing the sum of all money prices plus sustaining capital and reclamation prices by complete ounces produced.
(4) All references to AgEq are primarily based on an 88 Ag oz to 1 Au oz ratio. For Section 1 silver accounts for <2% of complete manufacturing. For Section 2 gold accounts for roughly 9% of complete manufacturing. Common annual AgEq manufacturing is from years 2028 to 2031.
(5) Mineral Assets usually are not Mineral Reserves and shouldn’t have demonstrated financial viability. There isn’t any certainty that every one or any a part of the Mineral Assets estimated can be transformed into Mineral Reserves. Numbers within the desk have been rounded to replicate the accuracy of the estimate and should not sum because of rounding.
(6) Assets acknowledged as contained inside a probably economically minable open pit; pit optimization parameters are, USD$1,300/oz Au, and USD$16.00/oz Ag. In-pit useful resource estimates have been developed primarily based on gold and silver recoveries from each historic and up to date testwork packages. Useful resource estimates are efficient as of Oct 31, 2018. Assets are inclusive of reserves.
(7) The heap leach pad spent ore useful resource quantity assumes a cut-off grade that allows processing of the complete pad, whereas blocks inside the leach pad mannequin can be mobilized whereas mining, which can make them troublesome to segregate; sub-cut-off leach pad materials will inherently have potential acid producing sulfide liabilities if positioned in our waste dumps and so it is going to be prudent to course of the complete leach pad and place tailings in a beforehand mined pit at an total environmental and financial profit.
(8) The reserves acknowledged right here fulfill the necessities of the CIM Definition Requirements, and the CIM Estimation of Mineral Assets and Mineral Reserves Greatest Apply Pointers of November 2019, and  have been transformed solely from these parts of the Mineral Assets which might be categorised as Measured or Indicated Mineral Useful resource classes after having been evaluated with consideration of all identified modifying elements affecting financial viability.
(9) Lower-off grades range by pit in accordance with financial, restoration and metallurgical parameters.

The technical contents of this information launch has been reviewed and accredited by G. Peter Mah, P.Eng., COO of McEwen Mining and a Certified Individual as outlined by Canadian Securities Directors Nationwide Instrument 43-101 “Requirements of Disclosure for Mineral Tasks.”

The technical info on this information launch associated to useful resource and reserve estimates has been reviewed and accredited by Luke Willis, P.Geo., McEwen Mining’s Director of Useful resource Modelling and Certified Individual as outlined by Canadian Securities Directors Nationwide Instrument 43-101 “Requirements of Disclosure for Mineral Tasks.”

McEwen Mining prepares its useful resource estimates in accordance with requirements of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in Canadian Nationwide Instrument 43-101 (NI 43-101). These requirements are completely different from the requirements usually permitted in experiences filed with the SEC. Beneath NI 43-101, McEwen Mining experiences measured, indicated and inferred assets, measurements, that are usually not permitted in filings made with the SEC. The estimation of measured assets and indicated assets contain larger uncertainty as to their existence and financial feasibility than the estimation of confirmed and possible reserves. U.S. buyers are cautioned to not assume that any a part of measured or indicated assets will ever be transformed into economically mineable reserves. The estimation of inferred assets entails far larger uncertainty as to their existence and financial viability than the estimation of different classes of assets.

This information launch accommodates sure forward-looking statements and knowledge, together with “forward-looking statements” inside the which means of the Non-public Securities Litigation Reform Act of 1995. The forward-looking statements and knowledge expressed, as on the date of this information launch, include McEwen Mining Inc.’s (the “Firm”) estimates, forecasts, projections, expectations or beliefs as to future occasions and outcomes. Ahead-looking statements and knowledge are essentially primarily based upon quite a few estimates and assumptions that, whereas thought of cheap by administration, are inherently topic to vital enterprise, financial and aggressive uncertainties, dangers and contingencies, and there might be no assurance that such statements and knowledge will show to be correct. Subsequently, precise outcomes and future occasions may differ materially from these anticipated in such statements and knowledge. Dangers and uncertainties that might trigger outcomes or future occasions to vary materially from present expectations expressed or implied by the forward-looking statements and knowledge embrace, however usually are not restricted to, results of the COVID-19 pandemic, fluctuations out there worth of treasured metals, mining business dangers, political, financial, social and safety dangers related to international operations, the power of the company to obtain or obtain in a well timed method permits or different approvals required in reference to operations, dangers related to the development of mining operations and graduation of manufacturing and the projected prices thereof, dangers associated to litigation, the state of the capital markets, environmental dangers and hazards, uncertainty as to calculation of mineral assets and reserves, and different dangers. Readers mustn’t place undue reliance on forward-looking statements or info included herein, which communicate solely as of the date hereof. The Firm undertakes no obligation to reissue or replace forward-looking statements or info on account of new info or occasions after the date hereof besides as could also be required by regulation. See McEwen Mining’s Annual Report on Kind 10-Ok for the fiscal 12 months ended December 31, 2019 and different filings with the Securities and Trade Fee, below the caption “Threat Elements”, for extra info on dangers, uncertainties and different elements regarding the forward-looking statements and knowledge relating to the Firm. All forward-looking statements and knowledge made on this information launch are certified by this cautionary assertion.

The NYSE and TSX haven’t reviewed and don’t settle for duty for the adequacy or accuracy of the contents of this information launch, which has been ready by administration of McEwen Mining Inc.


McEwen Mining is a diversified gold and silver producer and explorer centered within the Americas with working mines in Nevada, Canada, Mexico and Argentina. It additionally owns a big copper deposit in Argentina.



Source link