McEwen grows production at Gold Bar

In Nevada, the Gold Bar Mine in Eureka County accelerated production in the fourth quarter and the month of December, making new records for the quarter and the month through the addition of mining crews and completion of a heap leach pad expansion, according to the company.

Gold Bar produced 43,700 gold equivalent ounces in all of 2023, and 19,800 GEOs in the fourth quarter, compared with 7,940 ounces in the fourth quarter of 2022. The guidance range for Gold Bar for 2023 was between 42,000 and 48,000 GEOs.

McEwen Mining stated that the company expects Gold Bar to deliver higher production in the first half of 2024 over the second half of the year because of a scheduled waste stripping phase in the Pick Pit in preparation for the 2025 mining program.

The company said the mining sequence continues to be optimized at Gold Bar.

At the Fox Complex in Canada, McEwen’s production continued steady above 10,000 GEOs per quarter during the year, and production at San Jose in Argentina continued to strengthen during the year, getting past operational challenges in the first quarter of 2023.

Fox produced 44,450 gold ounces in the year, within guidance range, but San Jose produced slightly less than its guidance at 65,650 GEOs.

The Fox Complex produced 10,200 GEOs in the fourth quarter, up from 9,870 ounces in the 2022 quarter, while the San Jose Mine produced 19,150 gold equivalent ounces in the fourth quarter for McEwen’s 49% share, compared with 19,420 GEOs in the 2022 quarter, the company reported.

At Fox, McEwen stated that development will begin in 2024 of underground ramp access to the Stock orebodies, particularly Stock West, which will become the primary source of feed following the completion of mining the Froome deposit in 2026. The company stated that the capital investment there is partially funded by a $16.1 million flow-through financing completed in December 2023.

Companywide, the production for the year 2023 of 154,600 GEOs consisted of 128,650 ounces of gold and 2.17 million ounces of silver.

McEwen Mining stated that for 2024, the company expects to produce in the range of 130,000 to 145,000 GEOs attributable to McEwen from all operations, including 40,000 to 43,000 GEOs from the Gold Bar Mine at an all-in sustainable cost of $1,650 to $1,750 per ounce.

The Fox Complex guidance is for 40,000 to 42,000 GEOs at all-in sustaining costs of $1,450 to $1,550 per ounce, and San Jose is expected to produce between 50,000 and 60,000 GEOs for McEwen’s 49% ownership.

McEwen also reported on McEwen Copper’s progress on the Los Azules Project in Argentina. Twenty drill rigs are currently on site and more than 118,000 feet of drilling have been completed so far this season to advance all areas that contribute to the upcoming feasibility study.

The company expects to publish the study in the first quarter of 2025.

McEwen Copper also is working to advance power and road infrastructure plans and establish preliminary site-wide water balance, including pit dewatering, according to the production report, as well as making progress on construction of a winter camp and improvements to the exploration road to facilitate year-round operations.

“We are adapting to a changing environment in Argentina, recognizing the importance of current political and economic reforms for the future stability and growth of the nation. Mining is a vital component of Argentina’s economy and, under the right conditions, one that is poised to grow significantly and support the country’s economic recovery,” said Michael Meding, vice president of McEwen Copper and general manager of the Los Azules Project.

McEwen Mining owns 47.7% of McEwen Copper, which owns the Los Azules copper project.