McEwen Mining Updates on Grey Fox Gold Resources

McEwen Mining Inc. (NYSE: MUX) has issued corrections to a recent press release concerning its resource estimates for the Grey Fox gold deposit. The company reported an impressive increase in the measured estimated gold resources, noting a 32% growth in the indicated resource, which now stands at 1,538,000 ounces of gold. Additionally, there was a remarkable 95% increase in the inferred resource, which now totals 458,000 ounces.

These adjustments were primarily focused on updating certain percentage differences in the resources listed from their previous estimates and correcting details related to the gold pricing and recovery rates. As a point of clarification, the gold price utilized for the 2021 estimates was $1,725 per ounce, not $1,750, and the recovery rate for that year was 85%, instead of 90%.

Significant Resource Increase

The Grey Fox deposit, part of the larger Fox Complex, has shown significant growth in gold resources by December 31, 2024. The discovery came at a cost of approximately US $14.46 per ounce of gold due to extensive exploration drilling that has uncovered new mineral lenses and extended existing ones. The deposit itself is organized into several key zones, including Contact, 147, 147 NE, Grey Fox South, Gibson, and Whiskey-Jack, all of which exhibit promising geological characteristics.

Moreover, the mineralization at Grey Fox is located near the Porcupine-Destor fault, an area known for its rich gold production history, boasting around 110 million ounces of gold extracted historically. The company has also indicated that a comprehensive update on the Fox Complex's mineral resources is expected in the upcoming weeks.

Factors Contributing to Resource Growth

The surge in resources at the Grey Fox project can be attributed to multiple factors. These include exploration efforts leading to the discovery and extension of gold veins, a rise in gold pricing from US $1,725 to US $2,000 in current calculations, and a reduction in the cutoff grade from 2.30 g/t Au to 1.60 g/t Au. Such favorable conditions have increased the potential for profitable underground mining.

Comments from Leadership

Rob McEwen, the Chairman and Chief Owner of McEwen Mining, remarked that the company’s ongoing investment in exploration at the Fox Complex properties has successfully expanded their gold resources, which paves the way for increased annual production and extended operational lifespan of the mine.

Overview of Resource Updates

The Grey Fox mineral resource update presents a detailed breakdown of the resources across various zones as of December 31, 2024, emphasizing significant enhancements in both indicated and inferred categories. For instance, in the Gibson zone, the indicated resource increased by 109% from 139,000 ounces to 290,000 ounces, while the inferred resource rose by 96% from 125,000 ounces to 245,000 ounces.

The Whiskey-Jack zone showed robust results, classified as 97% indicated mineralization with 116,000 ounces of gold at an impressive grade of 5.7 g/t Au. Given its proximity to the Gibson Ramp, it could be a vital area for early production.

Conclusion

Overall, McEwen Mining’s resource update for the Grey Fox deposit signals strong potential for future mining operations and development. The company's detailed assessments and leadership insights provide a clear indication of positive growth prospects in the gold mining sector as it navigates a favorable market climate.

Mining, Gold, Resources