McEwen increases full-year output guidance for Canadian gold complex
Toronto-headquartered McEwen has increased its expected production out of the Fox Complex, in Timmins, Ontario, to between 20 000 and 23 000 gold-equivalent ounces (GEOs) for the full year.
The company previously expected to produce between 16000 and 19000 GEOs from the project.
McEwen anticipates production from the Fox Complex growing to 100000 GEOs by 2029 as the Stock and Grey Fox mines come online.
The company is developing these projects in phases using the existing Fox Complex milling facility. The Stock mine, in particular, is expected to result in lower-cost gold production at the Fox Complex compared to current operations owing to a lower royalty burden, shorter haulage distance to the mill and the benefits of processing softer material. In turn, the Grey Fox project offers high financial returns with manageable initial capital.
McEwen is reviewing a larger mine and mill scenario in respect of the Tartan mine project, in Manitoba, which would see milling rates of between 1000 t/d and 1500 t/d, compared with an initial plan that envisioned milling rates of between 500 t/d and 1000 t/d. Tartan has the potential to produce between 40 000 and 65 000 GEOs a year over a seven- to ten-year mine life.
In Nevada, however, McEwen is reducing its production guidance from the Gold Bar Complex from between 39000 and 43000 GEOs to between 30000 and 33000 GEOs, with raised all-in sustaining cost guidance of between $2900/oz and $3200/oz. These changes are owing to less ore being placed on the heap leach pad than planned. The Gold Bar Complex is nonetheless poised to reach production of between 90 000 and 110 000 GEOs by 2030, driven by the Windfall, Lookout Mountain and Trinity Ridge operations.
In Mexico, the company is forecasting 20000 GEOs to be produced from the second half of 2027 as the El Gallo mine comes online, while production attributable to McEwen's 49% at the San José mine in Argentina is expected to be between 60000 and 70000 GEOs a year.
McEwen posted net income of $9.6-million, or $0.16 apiece, in the second quarter, compared with net income of $3-million, or $0.06 apiece, in the same quarter last year. The company continues with various exploration works to expand its resource base.
